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Sah - South African Coal Mining Holdings Limited - Trading Statement For The

Release Date: 13/02/2009 17:15:03      Code(s): SAH
SAH - South African Coal Mining Holdings Limited - Trading statement for the    
year ended 31 December 2008                                                     
South African Coal Mining Holdings Limited                                      
(Incorporated in the Republic of South Africa)                                  
Registration number 1994/009012/06                                              
Share code: SAH                                                                 
ISIN: ZAE000102034                                                              
("SACMH" or "the company")                                                      
Trading statement for the year ended 31 December 2008                           
In terms of the JSE Limited Listings Requirements, companies are required to    
publish a trading statement as soon as they become aware that the financial     
results for the period to be reported upon next will differ by more than 20%    
from those of the previous corresponding period.                                
The audited results of the company for the previous period ended 31 December    
2007 are not, however, directly comparable with the results for the 12 months   
ended 31 December 2008.  The previous results were in respect of an 18 month    
period with only about six months of production following the implementation of 
a major restructuring which included several acquisitions by the company.       
The company is expected to report a headline loss per share for the year ended  
31 December 2008 of between 4 and 6.5 cents, compared with headline earnings per
share of 3 cents for the 18 months ended 31 December 2007.  The loss per share  
for the same period is expected to be between 13 and 15.5 cents, compared with  
84 cents profit per share for the 18 months ended 31 December 2007.  The        
difference between the headline earnings per share and earnings per share is due
to the impairment of certain of the old Ilanga plant and equipment.  These      
assets will be transferred to current operations to improve efficiencies.       
The financial information on which this trading statement is based has not been 
reviewed or reported on by the company`s auditors.                              
SACMH has experienced a difficult trading period in the last six months.  The   
modifications to the plant which were completed in the second half of the year  
have not as yet borne fruit and second half production levels and yields        
remained similar to those of the first half.  On the upside, the construction of
the Umlabu siding, which will reduce the cost of road haulage and railage going 
forward, has been completed.                                                    
Earnings for the year were affected by higher input costs, notably diesel,      
steel, explosives and sub-contractors, and retrospective price increases by     
Transnet Freight Rail as well as higher interest costs due to higher interest   
rates and increased debt levels.                                                
Management is addressing plant efficiencies with the utmost urgency.  A new     
engineer has been appointed and capital expenditure on the plant is expected to 
enhance throughput and yields considerably in the current year.                 
The audit committee and board have reviewed the accounting policy for intangible
assets relating to mineral rights.  These assets were previously re-valued using
the revaluation model and the revaluation portion shown as non distributable    
reserves.  The board has decided to change to the historical cost basis to      
enhance industry comparability.  This resulted in a reduction in the headline   
loss per share of 1.5 cents per share.                                          
SACMH is due to report its actual results for the year ended 31 December 2008   
towards the end of March 2009, when full details regarding the performance and  
mine plan will be set out in detail.                                            
Enquiries:                                                                      
SACMH: 011 748 2800                                                             
Melanie Steyn: 011 748 2831                                                     
Nick Williams: 011 447 3030                                                     
Mirkwood                                                                        
13 February 2009                                                                
Sponsor: QuestCo Sponsors                                                       
Date: 13/02/2009 17:15:02 Supplied by www.sharenet.co.za                     
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