KEATON ENERGY HOLDINGS LIMITED - Production update for the 6-month period to 30 September 2012Release Date: 10/10/2012 13:00:00 Code(s): KEH
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011090/06)
JSE share code: KEH ISIN: ZAE000117420
(?Keaton Energy? or ?the company?)
Production update for the 6-month period to 30 September 2012
Keaton Energy is pleased to provide a production update for the six-month period to
end September 2012. The company expects to release its interim financial results in
late November 2012.
- Focus on safety performance
- Improved performance following appointment of a new mining contractor at
- Productivity improvements at Vaalkrantz, offset by poor geological conditions
- Work underway to advance Braakfontein and Sterkfontein projects
Keaton Energy?s CEO Mandi Glad commented that while the first half of FY2013 has
presented some challenges, these have largely been dealt with. ?I remain confident
that this will be a year of growth for the company and we continue to actively assess
external growth opportunities. Our internal project pipeline is being advanced with
work underway to advance the Braakfontein project and to complete the conceptual
study on the Sterkfontein Project.?
?The current labour relations situation in South Africa is a great cause for concern,
especially the road freight strike which is likely to have an impact on our performance
in the second 6-months of FY 2013?
The group continues to focus on the safety of its employees, contractors and the
communities residing near its operations. The Lost Time Injury Frequency Rate at
Vanggatfontein Colliery was 0.20 for the 6-months (0.38 for the preceding 6-months)
while at the Vaalkrantz Anthracite Colliery the Lost Time Injury Frequency Rate was
0.45 (0.45 for the preceding 6-months).
A new opencast mining contractor, Liviero Mining was appointed in June 2012. The
underperformance by the previous contractor is expected to have a negative impact
on the financial results for the period.
The transition to the new contractor has gone exceedingly well and record
production months were achieved in July, August and September 2012. This
performance and the efforts by mine management to optimise the available mining
faces saw significant in-pit and run-of-mine inventories being available at the end of
the period, which should deliver benefits in the second half of the financial year.
As expected, 5-Seam coal production declined in line with the mine plan, as Pit 1 5-
Seam coal was depleted; 5-Seam coal production is expected to increase as Pit 3 is
developed during 2H of FY2013.
In total, 737 877 tonnes of 4- & 2-Seam coal was delivered to Eskom in the period
(1H FY2012: 230 041 tonnes) and 31 272 tonnes of 5-Seam coal was sold into the
domestic metallurgical market (1H FY2012: 99 233 tonnes).
Vaalkrantz Anthracite Colliery
Performance at Vaalkrantz was pleasing with on-going investment in underground
mining equipment leading to productivity improvements. However, difficult geological
conditions encountered during the period offset much of these gains.
In total, 57 904 tonnes of mid-ash export anthracite was produced and sold during
the period under review (1H FY2012: 91 374 tonnes), while 93 344 tonnes of
premium low-ash anthracite was sold into the domestic metallurgical market (1H
FY2012: 114 341 tonnes).
Both operations were affected by the road freight industry strike in the last week of
September 2012 and into October. The full impact of the strike is not yet clear.
The company continues to actively assess external growth opportunities. In addition,
the company?s internal project pipeline is being advanced. Consultants have been
appointed and work is underway to advance the Braakfontein project and to
complete the conceptual study on the Sterkfontein Project.
10 October 2012
Date: 10/10/2012 01:00:00 Supplied by www.sharenet.co.za
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