The company has a combined run-of-mine production rate of 2.8Mtpa from its three mines – Penumbra, Ferreira and Vlakvarkfontein.
The company enjoyed first coal production and the first export coal sales from Penumbra during the quarter ending December 31.
Thermal coal sales for the quarter grew 10%, quarter-on-quarter, to 449,203t.
ROM coal production at Ferreira grew 44% quarter-on-quarter to 152,580t.
The first draw down of the ABSA Capital $US30 million, seven-year term loan was completed with funds to be applied to outstanding capital, mine equipment and working capital costs at Penumbra.
Optimisation work on the De Wittekrans Project, the proposed fourth mine development, showed the opportunity to enhance the project’s technical and financial fundamentals. The company believes exports of 2.4Mtpa of thermal coal over a 30-year mine life are possible.
The company expects to receive $US9 million over the forthcoming quarter from the sale of its VanMag stake.