| Tue 17 Jan 2012, 12:44 | | FMC - Forbes & Manhattan Coal Corp - Fiscal third quarter 2012 unaudited |
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FMC
FMC
FMC - Forbes & Manhattan Coal Corp - Fiscal third quarter 2012 unaudited
interim results
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")
FORBES UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE
THREE AND NINE MONTHS ENDED NOVEMBER 30, 2011
FORBES COAL REPORTS REVENUE OF $31.2 MILLION IN FISCAL THIRD QUARTER 2012, AN
INCREASE OF 245% YEAR-OVER-YEAR
Consolidated EBITDA Increases 19% Sequentially to $8.2 million
TORONTO, ONTARIO - January 16, 2012: Forbes & Manhattan Coal Corp. (TSX/JSE:
FMC) ("Forbes Coal" or the "Company") is pleased to announce its fiscal third
quarter 2012 financial results for the three months ended November 30, 2011
(References to Q3 2012 or the third quarter 2012 mean the three months ended
November 30, 2011. References to Q2 2012 or the second quarter 2012 mean the
three months ended August 31, 2011.)
Third Quarter Financial Highlights:
(All figures are in Canadian dollars, unless otherwise stated)
Third Quarter Second Quarter %
2012 2012 Change
(September - (July -
November 2011) August 2011)
Revenue $31.2 million $35.2 million (11)%
Gross profit $6.8 million $5.6 million 21 %
Consolidated EBITDA $8.2 million $6.9 million 19 %
(see non-IFRS measures)
Slater Stand Alone EBITDA $9.0 million $9.2 million (2) %
(see non-IFRS measures)
Cash and cash equivalents $16.8 million $24.2 million (30) %
"The largest portion of the capital program at Magdalena is complete and the
company is well positioned to maintain strong growth rates," said Stephan
Theron, President and Chief Executive Officer. "The return on investment from
our capital expenditure program is evident as production at both of our mines
continues to increase. In addition, sales remain consistent as a result of the
continued global demand for coal."
Fiscal year-to-date figures are: Revenue is $86 million; Gross Profit is $16.6
million; Consolidated EBIDTA is $20.9 million; Slater Stand Alone EBIDTA is
$24.4 million.
Operational highlights
Production at Forbes Coal`s two mines, Aviemore and Magdalena, continue to
grow. 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.
Operational highlights include:
ROM Production
- ROM production at Aviemore in the third quarter of 2012 was 78,100 tonnes, a
22% sequential increase over 62,400 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. Fiscal year-to-date ROM production at
Aviemore is 193,000 tonnes.
- ROM production at Magdalena in the third quarter of 2012 was 275,900 tonnes,
a 7% sequential increase from 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. Fiscal year-to-
date ROM production at Magdalena is 794,800 tonnes.
- Total ROM production in the third quarter of 2012 was 354,000 tonnes, a 10%
sequential increase over the 322,800 tonnes of total ROM production 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. Fiscal year-to-date
total ROM production is 987,800 tonnes.
Saleable Production and Sales
- Saleable production at Aviemore in the third quarter of 2012 was 52,100
tonnes, a 33% sequential increase over the 39,100 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.
Fiscal year-to-date saleable production at Aviemore is 123,100 tonnes.
- Saleable production at Magdalena in the third quarter of 2012 was 194,400
tonnes, an 8% sequential increase over the 179,600 tonnes in the second
quarter of 2012. Year-over-year saleable production at Magdalena increased 34%
over the 145,000 tonnes produced in the third quarter of 2011. Fiscal year-to-
date saleable production at Magdalena is 549,400 tonnes.
- Total saleable production in the third quarter of 2012 was 246,600 tonnes, a
13% sequential increase when compared to the 218,700 tonnes of total saleable
production in the second quarter of 2012. Year-over-year total saleable
production increased 32% over the 187,000 tonnes produced in the third quarter
of 2011. Fiscal year-to-date total saleable production is 672,500 tonnes.
- Total sales in the third quarter of 2012 were 331,300 tonnes, a slight
sequential decrease when compared to the 339,800 tonnes sold in the second
quarter of 2012. Year-over-year total sales, however, increased 246% when
compared to the 95,600 tonnes sold in third quarter 2011. Fiscal year-to-date
total sales are 861,900 tonnes.
- 60% of total coal sold was into the export market via the Richards Bay coal
terminal.
- Total export sales in the third quarter of 2012 were 199,200 tonnes, a 3.5%
sequential increase when compared to second quarter 2012 export sales of
192,400 tonnes. Fiscal year-to-date total export sales are 483,500 tonnes.
- Total domestic sales in the third quarter of 2012 were 132,100 tonnes, a 10%
sequential decrease when compared to the second quarter 2012 domestic sales of
147,400 tonnes. Fiscal year-to-date total domestic sales are 378,500 tonnes.
- Saleable product transported to the Navitrade port in third quarter 2012 was
119,600 tonnes.
- Coal shipped through Navitrade to overseas markets in third quarter 2012 was
86,800 tonnes.
- Stock at the Navitrade terminal at the end of the third quarter stood at
67,700 tonnes.
SUMMARIZED FINANCIAL RESULTS OF SLATER COAL (ACTUAL)
Three months ended * Nine months ended *
November November November November
30, 2011 30, 2010 30, 2011 30, 2010
Run of Mine (ROM) (t) 354,003 290,278 987,770 720,240
Run of Mine (ROM) coal 18,207 21,660
purchased (t) - -
Saleable production (t) 246,570 187,069 672,483 486,972
Saleable coal purchased (t) 27,313 27,313
- -
Plant feed (t) 364,358 276,388 995,171 718,956
Yield (%) on ROM 66.2% 64.4% 66.6% 67.6%
Yield (%) on plant feed 67.7% 67.7% 67.6% 67.7%
Inventory tonnes balance open 82,425 86,742
129,269 189,778
Inventory tonnes balance close 38,258
220,728 38,258 220,728
Sales (t) 331,296 95,610 861,925 352,986
Revenue 000,000`s (CAD)
31.2 8.4 86.0 30.3
EBITDA 000,000`s (CAD)
9.0 2.7 24.4 10.4
CAD: USD (average) 1.02 1.02 0.99 1.03
ZAR: CAD (average) 7.77 6.86 7.30 7.14
Selling price (average) /sold 94.03 87.75 99.78 85.81
production tonnes (CAD)
Selling price (average) /sold 92.56 85.88 101.30 83.12
production tonnes (USD)
Cash cost of sales and
operating expenses 000,000`s 20.5 5.3 57.1 19.1
(CAD)
Cash cost of sales and
operating expenses/sold 61.76 55.47 66.19 54.12
production tonnes (CAD)
Cash cost of sales and
operating expenses/sold 60.79 54.28 67.20 52.42
production tonnes (USD)
Capital expenditures 000,000`s 13.49 2.33 17.45 5.04
(CAD)
Capital expenditures per t of 54.69 12.45 25.95 10.35
saleble production (CAD)
Numbers in this chart are derived from the Slater
Coal stand alone financial statements these are not
affected by the adjustments related to the purchase
price allocation or consolidation adjustments.
See non IFRS measures.
(*) The Slater Coal results presented in the chart above for the three and
nine months ended November 30, 2010 have not been reported in the consolidated
financial statements of the Company in full. Only results for a period from
the date of acquisition (July 29, 2010) have been consolidated. Also as
described above the comparative period for reporting purposes is the three
months ended December 31, 2010.
NON-IFRS PERFORMANCE MEASURES
The Company has included in this document certain non-IFRS performance
measures that are detailed below. These non-IFRS performance measures do not
have any standardized meaning prescribed by IFRS and, therefore, may not be
comparable to similar measures presented by other companies. The Company
believes that, in addition to conventional measures prepared in accordance
with IFRS, certain investors use this information to evaluate the Company`s
performance. Accordingly, they are intended to provide additional information
and should not be considered in isolation or as a substitute for measures of
performance prepared with IFRS. The definition for these performance measure
and reconciliation of the non-IFRS measure to reported IFRS measures are as
follows:
EBITDA - Forbes Coal consolidated
Three months Nine months
ended ended
November 30, November 30,
2011 2011
$000`s $000`s
Net income (loss) for the period 3,523 1,097
add back
Amortization and depletion 3,907 12,355
Income tax (recovery) expense (396) 2,672
Foreign exchange (gain) (1,203) (1,131)
Interest and dividend income 306 827
Change in estimates on contingent acquisition 120 120
liability
Accretion 475 1,540
Business combination transaction costs 2 24
Stock based compensation 64 1,996
Loss on share-based payments 1,488 1,488
Unrealized (gain) on marked-to-market securities (54) (54)
EBITDA Forbes Coal Consolidated 8,232 20,934
EBITDA - Slater Coal stand alone
Three months Nine months
ended ended
November 30, November 30,
2011 2011
$000`s $000`s
Net income (loss) for the period 3,523 1,097
add back
Amortization and depletion 3,907 12,355
Income tax (recovery) expense (396) 2,672
Foreign exchange (gain) (1,203) (1,131)
Interest and dividend income 306 827
Change in estimates on contingent acquisition 120 120
liability
Accretion 475 1,540
Business combination transaction costs 2 24
Mineral properties investigation costs (Non- 190 190
Slater)
Stock based compensation 64 1,996
Loss on share-based payments 1,488 1,488
Unrealized (gain) on marked-to-market securities (54) (54)
General and administration (Non Slater) 615 3,320
EBITDA Slater Coal 9,037 24,444
The condensed interim consolidated financial statements of Forbes Coal are
available on the SEDAR profile of the Company at www.sedar.com and will be
released on SENS on 18 January 2012.
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 NOTE REGARDING FORWARD-LOOKING INFORMATION 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
at the Slater Properties, future financial or operating performance of the
Company and its projects, statements regarding the 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) 861-5912
Email: stheron@forbescoal.com
Sabina Srubiski
Investor Relations Manager
+1 (416) 309 2957
Email: ssrubiski@forbescoal.com
JOHANNESBURG
17 January 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 17/01/2012 12:44:00 Produced by the JSE SENS Department.
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