| Mon 19 Sep 2011, 8:01 | | CZA - Coal of Africa Limited - Press release regarding annual financial |
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CZA
CZA
CZA - Coal of Africa Limited - Press release regarding annual financial
statements
Coal of Africa Limited
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
AIM Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
COAL OF AFRICA "TRANSFORMED" in FY2011: CEO
Results for the year ended 30 June 2011
Key features:
- 75% increase in thermal coal production
- 154% rise in saleable tonnes
- Revenue up 166%
- 40% improvement in gross profit
- Development resumes at Vele coking coal project
- CoAL`s Makhado coking coal project: regulatory process pushes ahead
- Matola (Mozambique) export allocation triples
- Soutpansberg Coalfields footprint set to grow
CoAL has undergone "substantial transformation" in 2011, says CEO John
Wallington.
Commenting on the company`s results for the year ended 30 June 2011, Wallington
says that the former junior explorer and development stage company is
"implementing additional structures, processes and resources as the company
gears up to become a significant developer and operator of large-scale mining
projects and operations."
Thermal coal operations: production, sales increase
CoAL`s total run-of-mine (ROM) production of thermal coal - from the Woestalleen
and Mooiplaats Collieries, both in South Africa`s Mpumalanga Province - rose by
75% in FY2011 to 4.4 million tonnes ("Mt"). Saleable coal increased by 154% to
3.3 Mt.
Total revenue generated rose by 166% to US$261.4 million, US$229.2 million of
which came from thermal coal sales and the balance from alloy sales by CoAL
subsidiary NiMag, which is deemed non-core.
Gross profit was 40% up year on year at US$37.9 million, and the adjusted loss
before tax (non-cash items and foreign exchange gains and losses) of US$11.4
million was recorded compared with US$22.5 million in the previous year.
Coking coal projects: moving ahead
Subsequent to year-end, work on CoAL`s Vele coking coal project in South
Africa`s Limpopo Province resumed following the lifting of a regulatory hold
imposed by the South African Department of Environmental Affairs in August 2010.
A non-governmental coalition appeal against the project`s water use licence,
resulting in its temporary suspension, currently limits developmental work to
activities that do not require the use of water but Wallington says the company
has petitioned the Minister of Environmental Affairs to lift the suspension.
Vele is targeting annual production of 2.7 million run of mine ("ROM") tonnes
and 1.0 Mt of saleable coking coal in its first phase.
Wallington says CoAL`s second major coking coal project in Limpopo Province,
Makhado, is progressing: application has been made for a new order mining right
and preparations are continuing both for regulatory approval of the
environmental management programme and the granting of a water use licence.
Following extraction of a bulk sample, detailed testing has confirmed that
Makhado will be capable of producing a semi-hard coking coal "with several
excellent parameters", Wallington says.
Samples have been provided to steel producer ArcelorMittal South Africa Limited
for testing; also, an independent evaluation has been commissioned to determine
the potential value of the Makhado product and its market value. Once these
processes are finalised, discussions will take place with Exxaro Resources
Limited regarding the exercising of its option to acquire up to 30% of Makhado.
Exports: Matola allocation triples
Wallington says that, with the completion of the Phase 3 expansion of the Matola
Terminal in Maputo, Mozambique in March 2011, CoAL`s export allocation through
the port tripled to 3Mt per annum.
An increase in rail capacity on the Maputo rail corridor by Transnet Freight
Rail (TFR), together with joint initiatives by TFR and port operator has halved
turnaround time to four days, resulting in increased exports by CoAL through the
Matola Terminal.
CoAL is in discussions with TFR on the issue of rail tariffs and meeting
capacity requirements that will flow from the planned Phase 4 expansion of the
Matola Terminal, Wallington says.
Soutpansberg Coalfields: footprint set to grow
CoAL made further progress subsequent to the year-end on its acquisition of the
Rio Tinto/Chapudi properties in Limpopo Province.
These, when consolidated with CoAL`s contiguous properties, will make CoAL a
"substantial holder of coking coal new order prospecting rights in the
Soutpansberg Coalfield", says Wallington, continuing its work "towards becoming
the primary South African coking coal producing company supplying both the
domestic and international markets".
An exploration programme on the various Soutpansberg Coalfield properties is in
the process of being mobilised.
A complete Independent Technical Statement on all assets has been issued by
Venmyn Rand (Pty) Ltd.
Bryanston
19 September 2011
JSE Sponsor
Macquarie First South Capital (Pty) Ltd
For more information contact:
John Wallington
Chief Executive Officer
Coal of Africa
+27 11 575 7423
Wayne Koonin
Finance Director
Coal of Africa
+27 11 575 4363
Shannon Coates
Company Secretary
Coal of Africa
+61 893 226 776
Chris Sim/Romil Patel
Nominated Adviser
Evolution Securities
+44 20 7071 4300
Jos Simson/Emily Fenton
Financial PR
Tavistock
+44 207 920 3150
Melanie de Nysschen/
Annerie Britz/
Yvette Labuschagne
JSE Sponsor
Macquarie
+27 11 583 2000
Charmane Russell/James Duncan
Financial PR S.Africa
Russell & Associates
+27 11 880 3924
+27 82 372 5816
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company
operating in South Africa. CoAL`s key projects include the Vele Colliery (coking
and thermal coal), the Makhado Project (coking coal) and the Mooiplaats and
Woestalleen Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is currently ramping up
to produce 2 Mtpa. The Woestalleen Colliery, acquired through the acquisition of
NuCoal Mining (Pty) Limited in January 2010, currently processes approximately
2.5Mtpa of saleable coal for domestic and export markets. The Woestalleen
Complex also incorporates three beneficiation plants with a total processing
capacity of 350,000 run of mine feed tonnes per month.
CoAL`s Vele Colliery is expected to start production in the first half of 2012.
During the initial phase, the operation is targeting 2.7 Mtpa ROM production to
produce 1.0Mtpa saleable coking coal.. The Makhado Project, CoAL`s flagship
project in the Soutpansberg coalfield, is well into the feasibility stage, with
a Definitive Feasibility Study nearing completion. An application for a New
Order Mining Right for the Makhado Project was submitted in January 2011.
In November 2010, CoAL agreed to acquire the Chapudi coal project and several
other coal exploration properties in the Soutpansberg coal basin in South Africa
from the previous owners, including Rio Tinto. Upon completion, the acquisition
of these projects will significantly extend the scale and scope of certain of
CoAL`s existing projects in the region and will more than double the resource of
the existing Makhado Project.
Competent Persons
The information in this announcement that relates to mineral resources or ore
reserves has been compiled by Ms C Telfer (B.Sc. Hons. (Geol.), (DMS) Dip Bus
Man Pr. Sci. Nat., FGSSA, MAusIMM, M.Inst.D) and Mr G Njowa (M.Sc. (Min. Eng),
MRM, B.Sc.Hons. (Min. Eng), Grad CIS, MSAIMM, Pr Eng, MIAS), of Venmyn Rand
(Pty) Ltd, who both have relevant and appropriate experience and independence to
appraise the coal assets. Both Ms C Telfer and Mr G Njowa are considered
"Competent Persons", and each have more than five years relevant experience in
the assessment and evaluation of the types of coal exploration and mining
properties presented in this announcement. Both Ms C Telfer and Mr G Njowa
consent to the inclusion of the resource information in this announcement in the
form and context in which it appears.
Forward looking statements
Certain statements in this announcement are or may constitute `"forward looking
statements". Forward-looking statements can be identified by words such as
"plans", "expects", "intends", "estimates", "will", "may", "continue", "should"
and similar expressions. Such forward-looking statements are based on numerous
assumptions regarding CoAL`s present and future business strategies and the
environment in which CoAL will operate in the future. By their nature, forward-
looking statements involve a number of risks, uncertainties and assumptions that
could cause actual results or events to differ materially from those expressed
or implied by the forward-looking statements. These risks, uncertainties and
assumptions could adversely affect the outcome and financial effects of the
plans and events described herein. Past performance is not an indication of
future results and past performance should not be taken as a representation that
trends or activities underlying past performance will continue in the future.
All views expressed are based on financial, economic, and other conditions as of
the date hereof and CoAL disclaims any obligation to update any forecast,
opinion or expectation, or other forward looking statement, to reflect events
that occur or circumstances that arise after the date hereof.
Date: 19/09/2011 08:01:01 Produced by the JSE SENS Department.
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