KEATON ENERGY HOLDINGS LIMITED - Quarterly production updateRelease Date: 15/07/2014 07:05:00 Code(s): KEH
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011090/06)
JSE code: KEH
ISIN code: ZAE000117420 ("Keaton" or ?the company?)
Quarterly Production Update
Keaton Energy has released the following quarterly production update for the period ended 30 June
The safety performance at both group collieries improved with Vanggatfontein reporting a LTIFR of
0.04 (June 2013, 0.05) and Vaalkrantz a LTIFR of 0.21 (June 2013, 0.36).
Production grew in line with plan. Vanggatfontein Colliery delivered 617 324t of washed 2- and 4-
Seam thermal coal to Eskom, an increase of 17% over the corresponding period last year and some
17% above the March 2014 quarter?s sales.
5-Seam metallurgical coal sales into the domestic market during the quarter increased to 36 799t, an
increase of 46% over the corresponding period last year and some 96% higher than the March 2014
No toll washing took place at Vanggatfontein during the quarter since all capacity was used for own
coal. 13 531t of market development B-grade coal was produced, resulting in an 81% increase over
the March 2014 quarter. Discard and slurry sales totalled 100 201t for the period, a decrease of 62%
from the corresponding period last year and some 50% less than the March 2014 quarter. This
decrease is due to the discard being used currently to increase the height of the slurry dam wall.
Mandi Glad, Chief Executive Officer, said ?Vanggatfontein has settled into steady state production and
continues with its solid and consistent performance. The dry and relatively holiday-free June and
September quarters are traditionally the strongest production months for opencast coal producers
and we met our production goals and cash targets. We are pleased with the colliery?s performance
and look forward to enhancing it with the adjacent Moabsvelden operation.?
Significant operational improvements at Keaton Energy?s Vaalkrantz Colliery led to production
increasing 22% over the corresponding period last year to 93 578t (6% above the March 2014
quarter?s sales) reflecting the success of the on-going turnaround of the operation.
Glad commented ?Vaalkrantz?s performance was outstanding in the quarter with cash generation
exceeding expectation. Overcoming challenging geological conditions in a safe and cost effective
manner has become a way of life for our colleagues in Natal. This, coupled with the increased
mineable reserve at the colliery bodes well for the future.?
?Keaton Energy ended the quarter in a positive mood. Production profiles and cash generation met
plan and safety improved. Expansion and optimisation projects are advancing to enhance our
production footprint. We are well positioned for the coming years.?
The above information has not been reported on or reviewed by the company?s auditors.
15 July 2014
Investec Bank Limited
Date: 15/07/2014 07:05:00 Supplied by www.sharenet.co.za
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