| Tue 13 Sep 2011, 13:00 | | FMC - Forbes & Manhattan Coal Corp - Forbes Coal reports record export sales of |
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FMC
FMC
FMC - Forbes & Manhattan Coal Corp - Forbes Coal reports record export sales of
192,400 Tonnes for Q2 2012, an increase of 110%, reflecting strong demand from
export markets
Forbes & Manhattan Coal Corp.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
FORBES COAL REPORTS RECORD EXPORT SALES OF 192,400 TONNES FOR Q2 2012, AN
INCREASE OF 110%, REFLECTING STRONG DEMAND FROM EXPORT MARKETS
TORONTO, ONTARIO - September 13, 2011: Forbes & Manhattan (Coal) Corp.
(Toronto Stock Exchange: FMC) ("Forbes Coal" or the "Company") is pleased to
provide an operations update for the second quarter of 2012. Export sales rose
110% compared to the first quarter of 2012 and total Aviemore Run of Mine
("ROM") production increased 26% when compared to the first quarter of 2012.
References to Q1 2012 or the first quarter of 2012 mean the three months ended
May 31, 2011. References to Q2 2012 or the second quarter of 2012 mean the
three months ended August 31, 2011.
Second quarter highlights include:
- Total export sales in Q2 2012 were 192,400 tonnes, 110% higher than Q1
2012.
- Total domestic sales in Q2 2012 were 147,400 tonnes, 49% higher than Q1
2012.
- Total sales in Q2 2012 were 339,800 tonnes, 78% higher than Q1 2012.
- Total Aviemore ROM production in Q2 2012 was 64,200 tonnes, 27% higher than
total Aviemore ROM production in Q1 2012.
- Total Aviemore saleable production in Q2 2012 was 40,000 tonnes, 26%
higher than total Aviemore saleable production in Q1 2012.
- Commissioning of the second phase of expansion at Magdalena is on track
for the third quarter of 2012.
"Our remarkable increase in export sales is a direct reflection of our
ability to manage our throughput corridor and is supported by a strong
demand for coal from the export markets " commented President and Chief
Executive Officer Stephan Theron. "We are also very pleased with the
continued production improvements at the Aviemore anthracite mine, and
steady production at Magdalena. The next phase of expansion at Magdalena
is on track for third quarter 2012."
Production
ROM production at Aviemore in the second quarter of 2012 was 64,200 tonnes,
an increase of 27% when compared to the 50,700 tonnes produced in the first
quarter of 2012. Saleable production at Aviemore was 40,000 tonnes, an
increase of 26% when compared to the 31,800 tonnes produced in the first
quarter of 2012.
Production at Magdalena remained consistent in the second quarter of 2012.
ROM production in Q2 was 258,600 tonnes compared to 260,300 tonnes in Q1
2012. Saleable production in Q2 was 178,800 tonnes compared to 175,400
tonnes in Q1 2012.
Total saleable production in the second quarter of 2012 was 218,800 tonnes,
a 6% improvement when compared to the 207,200 tonnes of total saleable
production in the first quarter of 2012.
Logistics
In the second quarter of 2012, Forbes Coal dispatched a total of 160,200
tonnes to the Navitrade Terminal at Richards Bay. Of this, 97,700 tonnes
were railed using 35 trains and 62,500 tonnes were trucked. A total of
167,500 tonnes were shipped via this terminal during the quarter, a 115%
increase from the 78,000 shipped in first quarter of 2012.
The Company also participated in its first cape size load from Navitrade.
A cape size load is typically 120,000 to 140,000 tonnes. This particular
shipment, bound for Asia, was 140,000 tonnes of thermal coal, of which
almost half, 50,000 tonnes, was derived from Forbes Coal.
At the end of August 2011, a combined 34,900 tonnes of coal remained in
stock at the Navitrade terminal.
Sales
Total export sales in the second quarter of 2012 were 192,400 tonnes, a
110% increase when compared to first quarter 2012 export sales of 91,800
tonnes. Thermal coal accounted for the majority of export coal sales.
Total domestic sales in the second quarter of 2012 were 147,400 tonnes, a
49% increase when compared to the first quarter 2012 domestic sales of
99,000 tonnes.
Total sales in the second quarter of 2012 were 339,800 tonnes, a 78%
increase when compared to first quarter 2012 total sales of 190,800
tonnes. This quarter also marked the first time that total export sales
were greater than total domestic sales and Forbes Coal expects this trend
to continue.
About Forbes Coal
Forbes Coal is an emerging mid-tier southern African coal company. It
holds a majority interest in two operating mines. The Company holds a
76.75% interest in Slater Coal (Pty) Ltd., a South African company
("Slater Coal") which has a 70% interest in Zinoju Coal (Pty) Ltd.
("Zinoju"). Zinoju holds a 100% interest in certain coal mines in South
Africa (the "Slater Coal Properties"). The Slater Coal Properties comprise
the operating Magdalena bituminous mine (the "Magdalena Property") and
the Aviemore anthracite mine. The mines have a substantial combined
resource of coal and each mine has a projected 20 year life span. Forbes
Coal is in the process of increasing production at both mines and looks
to triple production from current levels in the next two to four years
using existing infrastructure and capacity. The Company has in-place
transportation infrastructure allowing its coal to reach both export
corridors and the growing domestic coal market. Forbes Coal has a
strong balance sheet and an experienced coal-focused management team.
Cautionary Notes
The ability of the Company to increase production amounts has not been
the subject of a feasibility study and there is no certainty that the
proposed expansion will be economically feasible.
This press release contains "forwardlooking information" within the meaning
of applicable Canadian securities legislation. Forwardlooking information
includes, but is not limited to, statements with respect to
the anticipated production results with respect to the Slater Properties,
future financial or operating performance of the Company and its projects,
statements regarding the anticipated improvements in logistical support
and anticipated improvements in sales, statements made with respect to
prospects for the business of the Company, requirements for additional
capital, government regulation of the mineral exploration industry,
environmental risks, acquisition of mining licences, title disputes or
claims, limitations of insurance coverage and the timing and possible
outcome of pending litigation and regulatory matters. Generally,
forwardlooking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements
of the Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to: general
business, economic, competitive, foreign operations, political and social
uncertainties; a history of operating losses; delay or failure to
receive board or regulatory approvals; timing and availability of
external financing on acceptable terms; not realizing on the potential
benefits of the proposed transaction; conclusions of economic
evaluations; changes in project parameters as plans continue to be
refined; future prices of mineral products; failure of plant, equipment
or processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; and, delays in obtaining governmental
approvals or required financing or in the completion of activities.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance
on forwardlooking information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable
securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Stephan Thero
President and Chief Executive Officer
Email: stheron@forbescoal.com
+1 (416) 861 5912
Sabina Srubiski
Investor Relations Manager
+1 (416) 309 2957
Email: ssrubiski@forbescoal.com
Sponsor: Sasfin Capital, a division of Sasfin Bank Limited
Date: 13/09/2011 13:00:01 Produced by the JSE SENS Department.
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