Johannesburg, South Africa — MININGREVIEW.COM — 20 March, 2008 – After a year of restructuring and transformation, South African Coal Mining Holdings Limited (SACMH) has achieved a set of results underlining its success as an emerging coal producing company.
Releasing its results for the 18 months to 31 December 2008, the company notched up headline earnings of R4.5 million. It achieved an after tax profit of R 115 million in the 18 months after posting a loss in the previous year to June2006. The coal division’s operating profit of R20 million was generated over four months from end August to end December 2007.
The SACMH statement points out that the results are not strictly comparable with the previous period due to restructuring and acquisitions. These included the acquisition of Umlabu and Ilanga coal mines, as well as Royal Bafokeng Capital became controlling shareholder.
Current production at 100 000 tpm run of mine has been achieved ahead of schedule at Umlabu, and is scheduled to reach run of mine of 1.7 Mtpa in 2011, the company reveals, and adds that resources and reserves have increased significantly. Total resources are up 70% to 90Mt, including 32.8 Mt from the Sterkfontein property. Total saleable reserves are up 88% to 18.8 Mt.
SACMH is now focused on further operational expansion and investing in infrastructure. Access to domestic (Eskom) and export (RBCT) markets has also been established.
Chief executive Karl Gribnitz said: “SACMH is now firmly established as a profitable coal producing company. Production is going well, we reached our target production rate ahead of schedule, and resources and reserves have increased significantly following publication of the independent engineer’s report on the Umlabu Colliery in February.”
Gribnitz confirmed that SACMH recently successfully negotiated an off-take agreement with Eskom, in addition to its export allocation at Richards Bay Coal Terminal.“We are investing in infrastructure to improve transport logistics, and are now focused on operational expansion. We are committed to achieving our objective of being the premier BBBEE coal mining platform in South Africa,” he concluded.