Keaton Energy has seen impressive 902% increase in gross profit to R219million on the back of a 49% increase in revenue to R1.4 billion from R919 million in the corresponding period, according to its results for the year ended 31 March 2014.
Headline earnings per share were 30.3cps versus a loss of 30.2cps last year. CEO Mandi Glad, indicated that she is delighted with the results, and attributed the performance “to Vanggatfontein reaching steady state, leading to increased deliveries of both thermal coal to Eskom and 5-seam metallurgical coal to domestic customers.”
Keaton’s Vanggatfontein Colliery delivered 2.2 million tonnes of washed 2-and 4-Seam thermal coal to Eskom, an increase of 45% from the previous year’s 1.5 million tonnes while 5-Seam metallurgical coal sales saw an increase of 49% to 97 635 tonnes from 65 661 tonnes.
Increased utilisation of the 5-Seam plant for own coal allowed limited washing of other coals, with only 145 785 tonnes being toll washed and 10 328 tonnes of B-grade market development product being produced. Discard and slurry sales increased by 86% from 454 083 tonnes to 844 334 tonnes.
Post the all cash acquisition of Xceed Resources during the year, this long life colliery now forms the backbone of the soon to be expanded Vanggatfontein-Moabsvelden complex which will, with the Braakfontein project, form the core of the growing Keaton group of companies.
Keaton continues to pursue its primary medium term strategy of becoming a 5Mtpa producer and made positive advances in this regard during the year with Vanggatfontein reaching steady state and with the acquisition of Xceed.
Keaton’s primary focus is now the development of Moabsvelden, with projected commissioning by the end of 2015, while striving to identify and secure additional reserves to increase the life of mine at Vaalkrantz.
Glad concluded by saying that, “In order for us to realise our goal of producing 5Mtpa, we will also continue to pursue appropriate acquisition opportunities where these offer value for our shareholders.”