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OPT - Optimum Coal Holdings Limited - Trading statement and operational update for the six months to December 2010 OPTIMUM COAL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2006/007799/06) Share code: OPT ISIN: ZAE000144663 Issuer code: OPT ("Optimum Coal" or the "Company") TRADING STATEMENT AND OPERATIONAL UPDATE FOR THE SIX MONTHS TO DECEMBER 2010 Optimum Coal, a leading South African coal mining and exploration group listed on the JSE Limited ("JSE"), is currently finalising its results for the half year ended 31 December 2010, which will be released on SENS on 3 February 2011. In this regard, shareholders are advised that earnings per share ("EPS") and headline earnings per share ("HEPS") will likely be more than 20% higher than the restated EPS and HEPS for the previous corresponding half year to 31 December 2009 ("the comparable period"). A further trading statement will be issued in due course to provide earnings forecast ranges for HEPS and EPS as required by the JSE Listings Requirements. The Company also wishes to inform shareholders and update the market on operational performance at Optimum Collieries and Koornfontein Mines. Optimum Coal owns 100% of Optimum Collieries and Koornfontein Mines respectively. Optimum Coal produced 8.789 million tons of run-of-mine ("ROM") coal during the first half of FY2011, an increase of 35% on the 6.493 million tons produced in the comparable period. Of this, 3.611 million tons of export/high quality domestic coal was produced, 40% up on 2.572 million tons produced in the comparable period. Additionally, 3.422 million tons of Eskom quality coal was produced, 37% up on 2.500 million tons produced in the comparable period. The comparable period production numbers do not include production from Koornfontein Mines, as Optimum Coal did not own Koornfontein Mines at the time. For information purposes, Koornfontein Mines produced 1.515 million tons of ROM coal, 0.947 million tons of export/high quality domestic coal and 0.676 million tons of Eskom quality coal during the comparable period. Table 1 - Salient Production Features at Optimum Collieries and Koornfontein Mines for the 6 month period 1 July 2010 to 31 December 2010. Optimum Koornfontein Total
Units Collieries Mines ROM production t`000 7,239 1,550 8,789 Export/ high t`000 2,643 968 3,611 quality domestic coal saleable Eskom quality t`000 2,751 671 3,422 saleable Chief Executive Officer Mike Teke said; "We are pleased with our group production performance for the first half of FY2011. ROM production at Optimum Collieries has improved by 11.5% on the comparable period, non-withstanding having been affected by difficult cutting conditions and a reduction in cutting tempos due to drawn out wage negotiations at Boschmanspoort underground mine. Our opencast mines have been affected by the excessive rains experienced over recent weeks, although our water management structures and initiatives have mitigated against some of the operational impact. Now being fully integrated since March 2010, Koornfontein Mines has proven itself a valuable addition to Optimum Coal and is an important step in our growth strategy. Local logistics remain challenging, but we are working closely with Transnet Freight Rail and Richards Bay Coal Terminal in this regard." The outlook for thermal coal remains robust on the back of strong international demand coupled with supply constraints across key coal producing regions. Global demand has been boosted by the cold European winter combined with increased power generation and continued growth in Asian countries. Extreme weather conditions experienced since November 2010 have materially impacted local and international thermal coal supply and this supply tightness has caused a 45% rise in API#4 dollar thermal coal prices out of Richard Bay since October 2010. "We believe that global supply constraints will take some time to resolve and that international thermal coal demand remains robust and sustainable. Optimum Coal is well placed to take advantage of these current market conditions." The financial information on which this update is based has not been reviewed and reported on by the Company`s external auditors. www.optimumcoal.com 17 January 2011 Johannesburg Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Financial Communications Advisers COLLEGE HILL Date: 17/01/2011 13:25:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
