Keaton Energy Holdings Limited - Quarterly Production UpdateRelease Date: 15/01/2015 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?)
Quarterly Production Update
Keaton Energy Holdings Limited (?Keaton Energy? or ?the Company?) has released the
following production update for the period ended 31 December 2014.
The safety performance at Vaalkrantz improved to zero LTIFR (Q3 FY2014: 0.31) ? an
outstanding achievement in difficult narrow seam mining conditions ? and that at
Vanggatfontein to 0.04 (Q3 FY2014: 0.09). Zero harm remains our goal.
Despite the usual challenges of the Christmas quarter and the number of power outages
experienced, Vanggatfontein Colliery delivered 540 127t of washed 2- and 4-seam thermal
coal to Eskom in the quarter, an increase of 3.7% over the corresponding quarter last year.
The colliery delivered 1.74Mt to Eskom in the first nine months of the year, up 4.4% on the
corresponding period last year.
Sales of 5-seam metallurgical coal were 30 897t for the quarter, up 30.1% over the
corresponding quarter last year, and 95 903t for the nine months, up 21.6% over last year?s
performance. B-grade sales were 9 959t for the quarter, up 248.4% on the corresponding
quarter, and 31 988t for the nine months, as this new product gained market acceptance.
Discard and slurry sales were negligible as these were utilised in on-mine construction
Vaalkrantz Colliery sold 79 662t of anthracite to local and export customers during the
quarter, an increase of 29.5% over the corresponding period. Sales for the first nine months
of the year were 271 560t, an increase of 25.9% over the corresponding period last year.
Importantly, this quarter saw the first contracted sales of a new 32% ash product which has
been met with considerable market support.
Mandi Glad, Keaton Energy CEO, said ?As we told the market, this will be a year of sustained
performance at Vanggatfontein ? consistent production of coal and cash generation from
this long-life colliery.? She added ?After a lot of hard work at Vaalkrantz, we are starting to
see the benefits of improved work practices and the introduction of the new 32% ash
product. We too are pleased with the excellent safety performance at both of our
The above information has not been reported on or reviewed by the Company?s auditors.
15 January 2015
Investec Bank Limited
Date: 15/01/2015 01:00:00 Supplied by www.sharenet.co.za
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