ASX-listed coal junior Universal Coal has revealed that Group EBITDA for the current quarterly reporting period is expected to be in excess of 50% higher than for the previous quarter.
The expected EBITDA increase, which should also exceed US$13 million for HY2015, is the result of achieving optimal run-of-mine production post the completion of the ramp up period at its Kangala coal project in South Africa, higher demand and sales volumes to the company’s main customer and improved coal distribution efficiencies since taking management control of logistics in December 2014.
“The company continues to go from strength to strength, as strong operational performance at Kangala delivers excellent cash flow, with Group EBITDA for the half year ending June 2015 expected to be in excess of $13 million,” says Universal Coal's chief executive officer Tony Weber.
“As a result, we are superbly placed to deliver our next operation which it acquired from Exxaro - the New Clydesdale colliery - before the end of the year. Once running at steady state, we expect group production to double to almost 5 Mtpa on a run-of-mine basis.”
Earnings numbers are still subject to the annual year end audit confirmation and possible adjustment.