Forbes Coal Reports 45% Production Increase for FiForbes & Manhattan Coal Corp.
TSX :
FMC
June 16, 2011 07:32 ET
Forbes Coal Reports 45% Production Increase for First Fiscal Quarter 2012 (March-May 2012)
Export Sales Up 61%
TORONTO, ONTARIO--(Marketwire - June 16, 2011) -Forbes & Manhattan (Coal) Corp. (TSX:FMC) ("Forbes Coal" or the"Company") is pleased to provide an operations update for the firstquarter of fiscal 2012 (ended May 31, 2011). Total Run of mine ("ROM")monthly coal production increased 45% when compared to the fourthquarter of fiscal 2011 and export sales rose 61% compared to thequarterly average of fiscal 2011.
First quarter highlights include:
- Total combined ROM production for the first quarter was 311,000 tonnes, 45% higher than total ROM production during the fourth quarter of fiscal 2011.
- Average combined monthly sales in the first quarter of 2012 were 44% higher than the average combined monthly sales for fiscal 2011. When compared with the fourth quarter of 2011, first quarter 2012 sales increased by approximately 14%.
- Average monthly ROM production at Magdalena increased to 86,800 tonnes from 58,200 tonnes, a 49% improvement from the fourth quarter of 2011. When compared to fiscal 2011 monthly averages, Magdalena monthly ROM production increased 33% during the first quarter of 2012.
- Total export sales for the first quarter of fiscal 2012 were 80,800 tonnes, 61% higher compared to quarterly average for fiscal 2011.
- Total domestic sales for the first quarter fiscal 2012 were 110,000 tonnes, 34% higher when compared to quarterly average for fiscal 2011.
- Chief Operating Officer, Malcolm Campbell started his new role effective June 13, 2011, compared to previously announced August 1, 2011.
- Mr. Johan Louw, previously Vice President Operations, will now take the role as Vice President Business Development and will focus on coal marketing, logistics and new projects.
"The positiveresults we have achieved reflect the success of the additionalcontinuous miner at Magdalena and the steady improvements in made torail performance leading to an increase in export sales," commentedPresident and Chief Executive Officer Stephan Theron. "The productionramp-up is on track and management expects that a significantimprovement in coal sales will directly translate into higher cashflows. We are also very pleased to have Malcolm Campbell officially onboard as the Chief Operating Officer of the Company, based out of SouthAfrica, and expect the operations team to leverage of his vast coalmining experience and knowledge base. Furthermore, a special thanks toJohan Louw for successfully leading the team up to this point. Johanwill now have an opportunity to focus on coal marketing and businessdevelopment projects."
Production
ROMproduction at Magdalena for the first quarter of 2012 was 260,300tonnes. Average monthly ROM production at Magdalena during this periodwas 86,800 tonnes. This represents a 33% higher than the average monthlyROM production at Magdalena as compared to fiscal 2011 ROM productionat Magdelena and a 45% increase compared to the fourth quarter resultsof 2011.
ROM production at Aviemore for the first quarter of 2012was 50,700 tonnes, with average monthly ROM at Aviemore for the sameperiod at 16,900 tonnes. This represents a 29% improvement fromAviemore's fourth quarter 2011 average monthly production. When comparedto average ROM production for fiscal 2011, first quarter 2012 monthlyproduction was slightly lower than the average monthly ROM production atAviemore for fiscal 2011.
Total saleable production for thefirst quarter of 2012 was 207,200 tonnes, a 29% improvement whencompared to total saleable production from fourth quarter 2011.Magdalena produced 175,400 tonnes and Aviemore produced 31,200 tonnes.
Logistics
Railperformance at the Company's siding facilities improved by 42% in firstquarter 2012 when compared to fourth quarter of 2011. Managementremains encouraged by these results as during this period, the Companywas subject to an annual coal line shut down at the end of May 2011,which impacted rail performance for all South African coal operators.
At the end of May 2011, a combined 46,000 tonnes of coal was in stock at the Navitrade terminal.
Sales
Averagecombined monthly sales were 63,600 tonnes for the first quarter of2012, representing a 44% increase to the average combined monthly salesfor fiscal 2011. When compared to fourth quarter 2011, average combinedmonthly sales increased 14%.
Export sales for first quarter 2012 were 80,800 tonnes, 61% higher than average quarterly sales in fiscal 2011.
Domesticsales in first quarter 2012 were 110,400 tonnes, a 34% increase whencompared to the fiscal 2011 quarterly average. When compared to thefourth quarter of fiscal 2011, domestic sales increased 43%.
JohanOdendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), adirector of Minxcon and an independent Qualified Person, as defined inNational Instrument 43-101 has reviewed and approved the scientific andtechnical information contained in this release.