KEATON ENERGY HOLDINGS LIMITED - Quarterly production updateRelease Date: 15/01/2014 08:00:00 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?)
Quarterly Production Update
Keaton Energy has released the following quarterly production update for the period ended
31 December 2013.
The safety performance at Vanggatfontein improved to a LTIFR of 0.09 whilst that at
Vaalkrantz declined to 0.31. Management remains focused on our goal of zero harm.
Despite challenges with Christmas road transport embargoes, holidays and wet weather,
Vanggatfontein Colliery delivered 521 078t of washed 2- and 4-seam thermal coal to Eskom
in the quarter, an increase of 26% over the corresponding quarter last year. The colliery has
thus delivered 1.66Mt to Eskom in the first nine months of this financial year compared with
1.15Mt in the previous year, an increase of 44%.
5-seam metallurgical coal sales for the quarter increased by 66% over the corresponding
period last year to 23 747t. Sales for the year to date were 78 901t, an increase of 73%
over the corresponding period last year.
No third party coal was washed during the period as plant capacity was fully utilised by own
coal. Discard and slurry sales were 87 969t, down 27% compared with the corresponding
quarter last year due to poor weather impacting on the reclamation process. Discard and
slurry sales for the year to date were 643 932t, an increase of 120% over last year.
Production at Vaalkrantz Colliery continued to be affected by difficult geological conditions.
The colliery sold 61 496t of anthracite to domestic and export customers during the quarter,
down 37% over the same period last year. Year to date, the sales have been 215 641t,
down 13% over the corresponding period last year.
Mandi Glad, Keaton Energy CEO said ?Vanggatfontein continues to produce to plan both in
terms of production and, importantly, cash generation. With the Xceed transaction due to
close in early 2014 we look forward to developing another successful mine adjacent to
Vanggatfontein and integrating the two mines into a significant, long-term operation.?
Glad added that ?The Vaalkrantz operations remain a challenge as they near the end of the
life of mine, however, the replacement capacity projects are proceeding well.?
The above information has not been reported on or reviewed by the company?s auditors.
15 January 2014
Date: 15/01/2014 08:00:00 Supplied by www.sharenet.co.za
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