By: Megan Wait
Canada-based Forbes & Manhattan Coal on Tuesday reported a 5% increase in its saleable coal production for the second quarter of 2013, as a result of higher run-of-mine (ROM) output.
Forbes increased its saleable coal output to 256 583 t, from 244 605 t it produced in the first quarter.
However, its ROM production of 414 511 t was still under its target of 436 910 t for the quarter as a result of difficult geology, overloading of the underground conveyor system, interruptions in the power supply and high target tonnages for a stone section in its Magdalena mine, in South Africa.
The company also reported an 11% growth in consolidated earnings before interest, depreciation and amortisation, which increased from $C2.45-million in the first quarter to C$2.72-million, while its revenue increased by 12% quarter-on-quarter to C$23.39-million.
“On the back of these strong set of results in a challenging coal market environment and with the recent announcement of the Zululand Anthracite Colliery acquisition from Riversdale, we believe that the company is going from strength to strength in terms of both performance and achieving its growth strategy,” CEO Stephan Theron said.
He added that strong operations continued to support the financial position of the company‚ with continued increased production at both Magdalena and Aviemore. At Aviemore in particular‚ production levels indicated record ROM and saleable tons.
The group’s gross profit for the quarter ended August amounted to C$2.35-million, compared with C$1.81-million the previous quarter. Further, Forbes Coal reported that its operating expenses had increased to C$18.3-million, or C$63.95/t, for the quarter, up from C$16.2-million.
The company also implemented a reconstitution of its board of directors on Tuesday, following discussions between the company and one of its major shareholders, Resource Capital Fund.
Forbes Coal's board would now include Theron, Stan Bharti, Bernard Wilson, Ryan Bennett, Mike Price, John Dreyer and Craig Wiggill.
David Stein, David Gower and Grant Davey have resigned their board positions effective immediately.
Edited by: Mariaan Webb