The group, which released results on Wednesday, reported a 49 per cent increase in group revenue to 1.3 billion rand for the year ended 31 March 2014, from 918.8 million rand in the same period in 2013.
Gross profit also increased to 218.7 million rand for the period under review from a gross loss of 27 million rand in the 2013 financial year.
“During the 2014 financial year Keaton Energy delivered on its promises. We are safe. We are profitable. We are growing towards five million tonnes per annum of saleable coal,” Keaton Energy said in a statement.
“Vanggatfontein, our long life open pit colliery, has reached steady state, while
production at Vaalkrantz has stabilised in the face of difficult mining conditions and labour issues.”
[DATA KEH:Keaton Energy Holdings Limited] is a South Africa-based coal mining company, whose assets Vanggatfontein and Vallkrantz operating collieries.
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Operating profit increased to 150.1 million rand from 139.4 million rand, and mining and related expenses declined to 11. 4 million rand from 70.4 million rand in 2013.
Net finance cost was recorded at 47.7 million rand from 32.1 million rand in 2013, and finance income remained relatively flat at 2 million rand.
Headline earnings per share increased from a loss of 30.2 cents in 2013 financial year to a profit of 30.3 cents in the 2014 financial year.
Revenue for the group’s Vanggatfontein colliery increased to 1.1 billion rand for the period under review from 654.8 million rand in 2013.
“Vanggatfontein delivered 2,192,519 tonnes of washed 2- and 4-Seam thermal coal to Eskom during the year, an increase of 45 per cent from the previous year’s 1,509,681 tonnes,” Keaton Energy explained.
“Vaalkrantz dispatched 303, 837 tonnes of anthracite to domestic and international metallurgical markets, a 7 per cent decrease over the previous year’s 326, 597 tonnes. The operation continued to suffer from extremely difficult mining conditions in the West Alfred section of the mine which limited production.”
Revenue for the Vaalkrantz colliery therefore decreased to 245.3 million rand from 272.9 million rand in 2013, and revenue for the Keaton Holdings Limited segment increased to 108.1 million rand from 90.4 million rand.
In February this year, Keaton Energy acquired the entire issued share capital of Xceed for a cash consideration of 194.7 million rand.
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The greenfields Moabsvelden project was also acquired in February 2014. It is expected to grow the group’s Delmas footprint.
“We continue to pursue our primary long-term strategy of becoming a five million tonnes per annum producer. Following the optimisation of our Vanggatfontein operation, we will now focus on advancing our internal pipeline of projects,” said Keaton Energy.