KEATON ENERGY HOLDINGS LIMITED - Keaton Energys First Half-Year Production Update
KEH 201610140015A
Keaton Energy’s First Half-Year Production Update
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011090/06)
Share code: KEH
ISIN code: ZAE000117420
(“the Company”)
Keaton Energy’s First Half-Year Production Update
Keaton Energy has released the following first half production update for the half year ended 30 September
2016.
Vanggatfontein reported a LTIFR of 0.46 (1H FY2016: 0.38). This disappointing performance is the subject of
increased management scrutiny.
Production was consistent and according to plan. Some 1.139Mt of washed 2- and 4-Seam thermal coal was
delivered to Eskom (1H FY2016: 1.192Mt). This decrease of 52 372t (4%) was due largely to reception
constraints at Eskom preventing delivery of all production in the period.
5-Seam metallurgical coal sales decreased 36% over the comparable period to 35 961t from 56 156t in line with
the geological model. Spare capacity within the 5-Seam plant was used for additional Eskom production as
before. Production of B-grade coal was also discontinued for this purpose (1H FY2016: 25 951t). Discard and
slurry sales were 242 415t (1H FY2016: 17 704t).
Vaalkrantz Colliery in KZN remains on care and maintenance as section 11 Ministerial Consent for its sale is still
awaited.
Mandi Glad, Keaton CEO, said “It is pleasing to report yet another solid quarter’s production at Vanggatfontein,
although the deterioration in safety performance is a concern.” She added, “The recent grant of a water use
licence for the Moabsvelden Project allows us to complete the preparation for its development. This fully
permitted addition to Vanggatfontein will see combined production rise to 4Mt per year of washed coal.”
Johannesburg
14 October 2016
Sponsor
Investec Bank Limited
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