[miningmx.com] — COAL group Keaton Energy Holdings has posted diluted headline earnings per share (HEPS) of 10.3 cents – up from the previous period’s 5.6 cents – for the year ending on March 31.
Revenue was up from R21.9m to R35.2m, total profit went from the red at R3.5m to the black at R7.2m, and a total of 56,886 tonnes of saleable coal was produced. No dividends were declared for the year.
These results saw the company moving decisively from exploration and development to fully fledged production, according to Keaton.
The group attributed the increase in profit to the first four months of coal sales from the 5 Seam at the group’s Vanggatfontein project in Mpumalanga.
Keaton Energy CEO Paul Miller said customer acceptance of the product had been excellent and the demand was strong.
“Sales in the first four months of production totaled 48,397 tons, limited only by the impact of heavy summer rainfall on production ramp-up,” Miller said.
Miller said the Vanggatfontein project was expected to contribute substantially to group earnings in 2011-12. Miller also said the group would focus on safely ramping up plant production at the project in order to meet the contracted coal supply commitment to Eskom as soon as possible.
Keaton landed a deal to initially supply about 16.5 million metric tonnes to Eskom over seven years, with the contract being extended to 20.8 million metric tonnes over 10 years.
The group said it would also focus on getting all remaining approvals and consents to acquire 74% of Leeuw Exploration and Mining, so that the turnaround of Leeuw’s Vaalkrantz Colliery could be completed, the development of its Braakfontein thermal coal project near Newcastle could be advanced and Leeuw consolidated into the group.
“Next year should see the group becoming a robust and sustainable enterprise, and making significant advances towards achieving its longer-term target of becoming a mid-tier coal producer,” Miller said.
