Farr-Jones said the company had achieved a number of milestones since a new management team initiated a “new focus, positive momentum and change of culture” within the company.

“The first phase, particularly towards the end of 2012, was to identify the best way forward at Minas Moatize and to deliver an operationally sound and financially robust mine,” Farr-Jones said at Friday’s AGM.

“Under the leadership of Rowan Karstel, a revised expansion strategy was adopted, which targeted a phased growth strategy to deliver a significant reduction in proposed capital expenditure but still achieve an initial plant capacity of 1.8Mpta ROM, rising to 2.8Mpta ROM by December 2013.

“This new approach focused on matching the Company's coking coal production targets with its rail allocation, enabled the Beacon Hill team to tailor the volume of saleable coal with the most cost efficient method of reaching its export markets.”

Farr-Jones said that before they started the ramp-up, they reviewed every facet of the business.

“We strengthened the depth of management capability and also made necessary retrenchments, we have implemented new management information systems, motivated and aligned our key people, upgraded our JORC resource by +31%, signed a 20 year mining contract with the Government of Mozambique and in April we concluded a timely US$21 million equity fund raising.”

The chairman also confirmed that the company was on course to deliver a new senior debt facility and on schedule with payments to Thelo for the provision of rolling stock.

During the first quarter, the company commissioned a wash plant at Minas Moatize, which has now been operational for two weeks. It also secured a rail allocation on the Sena rail line.

Farr-Jones thanked the company’s shareholders for “their continued support during a difficult period for our share price” and said Beacon Hill would now focus on increasing production and breaking even.