| Fri 9 Dec 2011, 8:07 | | FMC - Forbes & Manhattan Coal Corp - Forbes coal delivers solid fiscal Third |
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FMC
FMC
FMC - Forbes & Manhattan Coal Corp - Forbes coal delivers solid fiscal Third
Quarter 2012 production
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 DELIVERS SOLID FISCAL THIRD QUARTER 2012 PRODUCTION
Total Sales Increase 235% Year-Over-Year
TORONTO, ONTARIO - December 8, 2011: Forbes & Manhattan (Coal) Corp. (TSX/JSE:
FMC) ("Forbes Coal" or the "Company") reports that total saleable production at
the Magdalena bituminous and Aviemore anthracite operations rose 13%
sequentially in the fiscal third quarter of 2012 (September 1, 2011 to November
30, 2011), as compared to fiscal second quarter 2012.
Third quarter fiscal 2012 highlights include:
- Aviemore ROM production was 78,100 tonnes, a 22% sequential increase over
second quarter 2012 of 62,400 tonnes
- Aviemore saleable production was 52,100 tonnes, a 33% sequential increase over
second quarter 2012 production of 40,000 tonnes
- Magdalena ROM production was 275,900 tonnes, a 7% sequential increase over
second quarter 2012 production of 258,600 tonnes
- Magdalena saleable production was 194,400 tonnes, an 8% sequential increase
over second quarter 2012 production of 178,000 tonnes
- Total sales were 320,200 tonnes, a 235% year-over-year increase compared to
the 95,600 tonnes sold in the third quarter of 2011
- Additional section on a single shift brought into production at Aviemore
"Production at Magdalena and Aviemore continues to increase on plan and Forbes
Coal remains on track to achieve substantial run of mine and saleable numbers in
fiscal 2012," commented President and Chief Executive Officer Stephan Theron.
"Coal sales remain robust and the coal pricing environment remains strong. We
have now completed the first phase of our capital expenditure program at
Magdalena and three continuous miners are fully operational. "
PRODUCTION
An additional section on a single shift was brought into production at Aviemore
in the third quarter of 2012, resulting in significant increases in ROM and
saleable production. ROM production at Aviemore in the third quarter of 2012
was 78,100 tonnes, a 22% sequential increase over the 64,200 tonnes produced in
the second quarter of 2012. Year-over-year ROM production at Aviemore increased
15% over the 68,000 tonnes produced in third quarter 2011.
Saleable production at Aviemore was 52,100 tonnes, a 33% sequential increase
over the 40,000 tonnes produced in the second quarter of 2012. Year-over-year
saleable production at Aviemore increased 22% over the 42,800 tonnes produced in
the third quarter of 2011.
ROM production in the third quarter of 2012 was 275,900 tonnes, a 7% sequential
increase over the 258,600 tonnes produced in the second quarter of 2012. Year-
over-year ROM production at Magdalena increased 24% from the 222,200 tonnes
produced in the third quarter of 2011.
Saleable production at Magdalena was 194,400 tonnes, an 8% sequential increase
over the 178,800 tonnes produced in second quarter 2012. Year-over-year saleable
production at Magdalena increased 34% over the 145,000 tonnes produced in the
third quarter of 2011.
Total ROM production for the third quarter was 354,000, a 10% sequential
increase over the 322,800 tonnes produced in the second quarter of 2012. Year-
over-year total ROM production increased 22% over the 290,300 tonnes produced in
the third quarter of 2011.
Total saleable production for the third quarter was 246,600, a 13% sequential
increase over the 218,700 tonnes produced in the second quarter of 2012. Year-
over-year total saleable production increased 31% over the 187,800 tonnes
produced in the third quarter of 2011.
SALES
Total sales were 320,200, a 235% year-over-year increase compared to the 95,600
sold in third quarter 2011. The majority of the coal sold to local and overseas
markets continues to be thermal coal and export sales continue to be great than
domestic sales. Of the total coal sold, 60% was to the export markets. Domestic
sales were 132,000 tonnes and export sales were 188,200 tonnes in the third
quarter of 2012.
LOGISTICS
In the third quarter of 2012, Forbes Coal dispatched a total of 119,600 tonnes
to the Navitrade terminal at Richards Bay.
ABOUT FORBES COAL
Forbes Coal is a growing coal producer in southern Africa. It holds a majority
interest in two operating mines through its 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 the Magdalena
bituminous mine and the Aviemore anthracite mine in South Africa (collectively,
"the Slater Properties"). The mines have a substantial resource base and each
mine has a projected life span in excess of 20 years. Forbes Coal is in the
process of increasing production at both mines and looks to triple production
from 2010 levels in the next three 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.
Please refer to the Company`s NI 43-101 compliant technical report on the Slater
Properties dated March 1, 2011 entitled "Technical Report on Slater Coal and
Subsidiaries, KwaZulu-Natal Province, South Africa", available on the SEDAR
profile of the Company at www.sedar.com. Additional information is available at
www.forbescoal.com.
Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a
director of Minxcon and an independent Qualified Person, as defined in National
Instrument 43-101 has reviewed and approved the scientific and technical
information contained in this release.
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 Theron
President and Chief Executive Officer
+1(416)861-912
stheron@forbescoal.com
Sabina Srubiske
Investor Relations Manager
+1(416)309-2957
ssrubiskiAforbescoal.com
9 December 2011
Sponsor: Sasfin Capital (a division of Sasfin Bank Limited )
Date: 09/12/2011 08:07:40 Produced by the JSE SENS Department.
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