Headline earnings per share rose dramatically from a loss of 21.1 cent per share in 2012 to a positive 19.4 cents per share this year.
[DATA KEH:KEATON ENERGY HOLDINGS LTD] stated that its Vanggatfontein colliery improved its performance by delivering 1,14 million tonnes of thermal coal to national power utility, Eskom, while coal sales to the domestic market increased from 31 272 tonnes in 2012 to 55 154 tonnes this year.
“The majority of this increase was as a result of significantly improved performance at Vanggatfontein for both thermal coal deliveries to Eskom, where revenue increased by 98 per cent, as well as metallurgical coal sales to the local market where revenue increased by 84 per cent,” said the company in a statement.
Group revenue increased by 70 per cent to 710 million rand in the first half of the 2014 financial year compared to 417 million rand in the corresponding period of 2013.
However, no dividends for the period have been declared.
The company which is set to acquire Australia’s Xceed Resources by the end of February 2014 has announced production plans to commence in January 2015.
They believe that significant synergies exist between Xceed’s Moabsvelden project and Keaton’s Vanggatfontein colliery due to their close proximity to one another and will provide substantial operational and financial benefits.
Keaton’s focus remains on becoming a 5Mtpa (million tonnes per annum) coal producer while also looking to use their Vanggatfontein colliery to maximise cash generation and diversify their product range.
“Our longer-term strategy of becoming a 5Mtpa producer remains our focus. With Vanggatfontein having achieved steady state it now forms a solid foundation from which we can maximise cash generation and expand and diversify our product mix. Prudent operational and financial management will enable us to balance the funding of our growth whilst rewarding shareholders,” concluded the statement.