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OPT
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OPT - Optimum Coal Holdings Limited - Operational update for the six months to
December 2011
OPTIMUM COAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/007799/06)
Share code: OPT
ISIN: ZAE000144663
Issuer code: OPT
("Optimum Coal" or the "Company")
OPERATIONAL UPDATE FOR THE SIX MONTHS TO DECEMBER 2011
The Company wishes to inform shareholders and update the market on operational
performance at Optimum Collieries and Koornfontein Mines. Optimum Coal owns 100%
of Optimum Collieries and Koornfontein Mines respectively.
Optimum Coal produced 7.441 million tons of run-of-mine ("ROM") coal during the
first half of FY2012, a decrease of 15% on the 8.789 million tons produced in
the 6 months to December 2010 ("the comparable period"). Of this, 2.903 million
tons of export/high quality domestic coal was produced, 20% down on 3.611
million tons produced in the comparable period. Additionally, 3.018 million tons
of Eskom quality coal was produced, 11% down on 3.4 million tons produced in the
comparable period.
Table 1 - Salient Production Features at Optimum Collieries and Koornfontein
Mines for the 6 month period 1 July 2011 to 31 December 2011
.
Optimum Koornfontein Total
Units Collieries Mines
ROM production t`000 5.769 1.672 7.441
Export/ high t`000 1.987 0.916 2.903
quality
domestic coal
saleable
Eskom quality t`000 2.381 0.637 3.018
saleable
Chief Executive Officer Mike Teke said; "Generally, our overall production
performance for H1, FY2012 was disappointing on the back of production
challenges at Optimum Collieries which adversely affected attributable ROM
tonnage performance and consequent export sales volumes. Optimum Collieries
experienced 3 separate industrial action events during the period which
adversely affected production over an aggregate 64 day period during H1, FY2012.
Additionally, 2 large draglines were walked to the Kwagga North section
impacting on available digging capacity in our opencast sections. Kwagga North
now has 3 large draglines in operation and coal is being transported across the
newly constructed overland conveyor which has been successfully commissioned.
Koornfontein Mines has again performed steadily and has achieved all requisite
production targets during H1, FY2012. Conditions precedent to the TNC
acquisition have been met and we expect to shortly conclude this acquisition
which will ensure that Koornfontein Mines returns again to being a long life,
high quality export coal operation. Our safety performance continues to improve
and we remain well ahead of comparable coal industry safety rates.
Encouragingly, TFR`s general industry railings performance to RBCT during the
period has substantially improved on prior periods on the back of rolling stock
and locomotive upgrades as well as efficiency initiatives. This is extremely
encouraging from a coal export and project development perspective.
Additionally, Eskom coal demand requirements remain an important and compelling
opportunity for local coal suppliers like ourselves."
The results for the 6 months ended 31 December 2011 will be announced on SENS on
or about Thursday, 9 February 2012.
www.optimumcoal.com
27 January 2012
Johannesburg
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Financial Communications Advisers
COLLEGE HILL
Date: 27/01/2012 15:28:06 Produced by the JSE SENS Department.
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