Coal of Africa (CoAL) has released its review of operations for the six months ending December 2015, reporting no fatalities for the period and no lost time incidents (LTIs) at a number of its sites, including the Vele coal mine.
The company also reported a loss of US$14.3 million for the period including a net foreign exchange loss of US$9.4 million. As of 31 December, the company had cash and cash equivalents of US$30 million on hand compared to US$17.8 million at the end of June.
Operationally, the company reported regulatory progress at both the Vele coal mine and Makhado project, where water use licences have been approved.
The company also said it had signed a memorandum of understanding with a consortium comprising seven local communities to acquire a 20% stake in the project to help meet the legal requirement for 26% black economic empowerment ownership.
Perhaps the most significant news of the half-year period, however, was the announced takeover of Universal Coal as part of a plan to acquire a cash-generating asset to boost company cash flow during the construction of the Makhado project.
Currently shareholders representing 53.2% of Universal’s issued capital have so far approved the offer with the offer deadline extended to mid-April.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/exploration-and-development/17032016/coal-wraps-up-half-year-operations-2016-417/