Coal of Africa – Report for the Quarter end 31 March 2011

Coal of Africa – Report for the Quarter end 31 March 2011

Coal of Africa Limited provides its operational report for the quarter ended 31 March 2011. A copy of this full report is also available on the Company's website, www.coalofafrica.com.

Highlights

  • Increased production of 1,109,447 tonnes of run of mine (“ROM”) coal (Q2: 954,915) and 710,590 tonnes of export quality coal (Q2: 686,403) at the Company’s Woestalleen and Mooiplaats thermal collieries.
  • Submission of the New Order Mining Right (“NOMR”) application for the Makhado coking coal project (“Makhado Project”) and formal acceptance of the NOMR application by the South African Department of Mineral Resources (“DMR”).
  • Execution of the New Order Prospecting Rights (“NOPR”) for the Rio Farm Swap.
  • Extraction of bulk sample from the Makhado Project completed and processing of bulk sample commenced.
  • Increase in Company’s export allocation at the Matola terminal in Maputo, Mozambique (“Matola Terminal”) from 1.0 to 3.0 million tonnes per annum (“mtpa”). 
  • Securing of US$50 million export finance facility with Deutsche Bank AG, Amsterdam (“Deutsche Bank”) and repayment of the JP Morgan Chase (“JPMC”) US$20 million facility.
  • Cash balance at the end of the quarter of A$25.1 million.

 
Commenting on the results, John Wallington, Chief Executive Officer of CoAL said: “The measures implemented at Mooiplaats and Woestalleen collieries started to impact positively during the quarter under review. During March 2011, CoAL’s export allocation at the Matola Terminal increased from one to three mtpa, which will increase the proportion of total sales that would be exposed to current export market prices which averaged above US$120/tonne during the period under review.”
 
“The Company continues to engage with the relevant government departments to fully comply with all applicable legislation at the Vele Colliery. Further updates will follow in due course.”

No Comments

Post a Comment