Production in line with expectations for Keaton Energy - CNBC Africa

Production in line with expectations for Keaton Energy

Earnings

by admin 0

Keaton Energy's whose assets include the Vanggatfontein and Vallkrantz collieries. PHOTO: Getty Images

The company’s Vanggatfontein colliery delivered 617,324 tonnes of washed 2- and 4- Seam thermal coal to Eskom for the period ended 30 June 2014. This was an increase of 17 per cent over the corresponding period last year, and some 17 per cent above the March 2014 quarter’s sales.

“Keaton Energy ended the quarter in a positive mood. Production profiles and cash generation met plan and safety improved. Expansion and optimisation projects are advancing to enhance our production footprint. We are well positioned for the coming years,” Mandi Glad, CEO of Keaton Energy, said in a statement.

(READ MORE: Keaton Energy eyes major production boost)

[DATA KEH:Keaton Energy] is a South Africa-headquartered coal mining company, whose assets comprise of the Vanggatfontein and Vallkrantz collieries, as well as three other development projects.

5-Seam metallurgical coal sales into the domestic market also increased to 36,799 tonnes during the quarter, which was an increase of 46 per cent over the corresponding period last year, and some 96 per cent higher than the March 2014 quarter’s sales.

“Vanggatfontein has settled into steady state production and continues with its solid and consistent performance. The dry and relatively holiday-free June and September quarters are traditionally the strongest production months for opencast coal producers and we met our production goals and cash targets,” Glad explained.

“We are pleased with the colliery’s performance and look forward to enhancing it with the adjacent Moabsvelden operation.”

(READ MORE: Keaton Energy recieves R350 million from Investec)

Operational improvements at the Vaalkrantz colliery led to production increasing 22 per cent over the corresponding period last year to 93,578 tonnes, six per cent above the March 2014 quarter’s sales. This improvement, according to Keaton Energy, reflects the success of the on-going turnaround of the operation.

“Vaalkrantz’s performance was outstanding in the quarter with cash generation exceeding expectation. Overcoming challenging geological conditions in a safe and cost effective manner has become a way of life for our colleagues in Natal. This, coupled with the increased mineable reserve at the colliery bodes well for the future,” said Glad.

Comments