Universal Coal plc has released its December 2016 quarterly report, which included the following highlights:
- Group operating cash flow generated of A$4.9 million for the quarter.
- Record Group sales of 1.3Mt for the half year to date.
- Total coal sales of 679 000 t for the quarter, up 18% y/y.
- Record Group Run-of-Mine (ROM) quarterly production of 1.2Mt, up 60% y/y.
- Quarterly yield up 21%, ROM production down by 17% to 896 000 t.
- Feed to plant of 396 000 t during quarter, up from zero the previous quarter.
- Total export sales of 107 000 t for the quarter, up 100% y/y.
- Long-term API4 price linked export offtake secured.
- Long-term coal supply agreement with Eskom executed.
- Debt financing facility being finalised, conditions precedent are being satisfied.
- Opencast pit development has commenced.
The Kangala Colliery delivered 896 000 t run of mine (ROM) during the quarter, down 17% from the previous quarter, however with increased yields in the plant of 68% for the quarter, domestic sales tonnages were in line with the previous quarter. In its first full quarter since commissioning, NCC delivered 396 000 t to the Coal Handling and Preparation Plant (CHPP) to take total Group ROM production to 1.2Mt for the quarter. Export sales tonnages were 107 000 t for the quarter resulting in an overall increased cash position for the quarter.
CEO, Tony Weber, commented: "We are making great strides towards becoming a sustainable, mid-tier coal mining company.
"Our current priority is to bring both the opencast and underground operations at NCC to steady state this year. We are glad to confirm that opencast operations have commenced, having secured a long-term export coal supply agreement with an expected ramp up period of six months. Our underground operation is nearing steady state capacity.”
"Kangala continues its upward trend, again performing strongly with ROM mine production of ~2Mt for the year to date, almost double the original design parameters. Our expectations remain for Kangala operation to again meet last year's 3.2 million t produced.
"Universal is well positioned to grow in the year ahead, benefitting from stronger coal exports markets and now multiple cashflow streams."
Read the article online at: https://www.worldcoal.com/mining/01022017/universal-coal-releases-quarterly-report/