Riversdale posts $A5m profit

RIVERSDALE Mining has posted a net profit of $A5 million and cash flow of $18.2 million for the 2007 financial year, a period which saw the company's share price climb from 88c to $3.29 on the back of a growing coal portfolio.
Riversdale posts $A5m profit Riversdale posts $A5m profit Riversdale posts $A5m profit Riversdale posts $A5m profit Riversdale posts $A5m profit

Jubilee executive chairman Kerry Harmanis

Staff Reporter

During the year, Riversdale continued the extensive drilling program at its coal tenements in Mozambique, where initial coal production is anticipated in early 2010.

The coal tenements are located in the Moatize Coal Basin, an area considered to be one of the largest known undeveloped coking and thermal coal regions in the world.

In August this year, Riversdale entered a $A100 million agreement with global steel group Tata Steel which gives Tata a 35% interest in the Benga and Tete exploration tenements, as well as a 40% share of the coking coal off-take.

Meanwhile, the company's Zululand Anthracite Colliery completed its first full-year contribution, returning a significant improvement in operational performance with run of mine tonnes, saleable production and tonnes sold increasing by 8%, 18% and 56% respectively year on year.

The successful completion of the Deep E block development during the year will allow access to additional coal tonnages and extend the mine life considerably.

Riversdale CEO and chairman Michael Keeffe said the results reflected a strong growth year for the company.

"This is a good result for the company in a year in which we acquired the Mozambique tenements," he said.

"With our strong cash position and ongoing contribution from ZAC, we are well positioned to continue the growth of the company."

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