Wrap Text
KEH - Keaton Energy Holdings Limited - Preliminary summarised audited group
results for the year ended 31 March 2011
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2006/011090/06)
JES share code: KEH ISIN: ZAE000117420
(Keaton Energy) or (the company) or (the group)
Preliminary summarised audited group results for the year ended 31 March 2011
Key features
Excellent safety performance
Vanggatfontein Project
* fast-track, simultaneous development of Phases 1 and 2
* Phase 1 completed on time, within budget
* 5 Seam coal well received by domestic metallurgical customers
* possible re-scheduling of Phase 2 completion
* 24% increase in coal reserve to 32.2Mt
Leeuw Mining and Exploration refinancing, acquisition
* new major shareholder
* producing anthracite colliery (Vaalkrantz)
* two advanced development projects
* access to export markets, wider customer base
Sterkfontein Project
* approaching feasibility stage
Summarised Consolidated Statement of Comprehensive Income
for the year ended 31 March 2011
R`000 Note Year to Year to
31 March 31 March
2011 2010
Revenue 3 35 163 21 957
Cost of sales (23 095) (21 191)
Gross profit 12 068 766
Other income 4 383 2 023
Administrative and other operating 5 (17 411) (13 219)
expenses
Mining and related expenses 5 (10 925) (11 453)
Share appreciation rights (expense) / 6 (2 191) 4 346
income
Impairment and net realisable value 7 - (7 813)
losses
Operating loss before net finance (18 076) (25 350)
income
Net finance income 8 18 699 29 107
Net profit before taxation 623 3 757
Income taxation credit / (expense) 9 6 574 (7 279)
Profit / (Loss) and total 7 197 (3 522)
comprehensive income for the year
Profit / (Loss) and total
comprehensive income attributable to:
Owners of the company 15 186 5 974
Non-controlling interest (7 989) (9 496)
7 197 (3 522)
Earnings per share (cents)
Basic 10 10.3 4.1
Diluted 10 10.3 4.1
Summarised Consolidated Statement of Financial Position
at 31 March 2011
R`000 Note 31 March 2011 31 March 2010
Assets
Non-current assets 11 689 079 129 698
Current assets 12 94 328 343 710
Total assets 783 407 473 408
Equity and liabilities
Total equity attributable to owners 591 304 456 117
of the Company
Non-controlling interest (9 757) (1 768)
Total equity 581 547 454 349
Non-current liabilities 13 46 051 -
Current liabilities 14 155 809 19 059
Total equity and liabilities 783 407 473 408
Summarised Consolidated Statement of Cash Flows
for the year ended 31 March 2011
R`000 Year to Year to
31 March 2011 31 March 2010
Cash flows from operating activities 2 976 9 916
Cash flows from investing activities (368 261) (48 533)
Cash flows from financing activities 57 205 -
Net decrease in cash and cash (308 080) (38 617)
equivalents
Cash and cash equivalents at the 335 080 373 698
beginning of the year
Cash and cash equivalents at the end of 27 000 335 081
the year
Summarised Consolidated Statement of Changes in Equity
for the year ended 31 March 2011
Transactions with owners
R`000 Share Share- Retained Total Non- Total
capital based earnings/ controlling equity
and payment (Accumu- interest
premium reserve lated loss)
Balance at 432 780 4 550 (141) 437 189 - 437 189
31 March
2009
Profit / - - 5 974 5 974 (9 496) (3 522)
(Loss) and
total
comprehensiv
e income for
the year
Share-based 17 300 (4 346) - 12 954 - 12 954
payments
Non- - - - - 7 728 7 728
controlling
interest
resulting
from
acquisition
of a
subsidiary
Balance at 450 080 204 5 833 456 117 (1 768) 454 349
31 March
2010
Profit / - - 15 186 15 186 (7 989) 7 197
(Loss) and
total
comprehensiv
e income for
the year
Ordinary 65 179 65 179 65 179
shares
issued for
cash
Ordinary 55 000 55 000 55 000
shares
issued for
consideratio
n other than
cash
Share-based - 2 191 - 2 191 - 2 191
payments
Share issue (2 369) - (2 369) (2 369)
expenses
Balance at 567 890 2 395 21 019 591 304 (9 757) 581 547
31 March
2011
Notes
1 The financial results are presented for the year ended 31 March 2011. Prior
period figures represent the year ended 31 March 2010.
2 The preliminary summarised consolidated results for the year ended 31 March
2011 incorporate extracts of the group`s unqualified audited financial
statements. The summarised consolidated results have been prepared in
accordance with the recognition and measurement requirements of IFRS and
the presentation and disclosure requirements of IAS 34: Interim Financial
Reporting and are presented in accordance with the South African Companies
Act, 61 of 1973 (as amended) and the AC 500 standards as issued by the
Accounting Practices Board. The accounting policies applied are consistent
with those applied in the annual financial statements for the year ended 31
March 2010, except for:
* Amendments to IFRS 2: Group Cash-settled Share-based Payments : the impact
is at a individual company level and does not have an impact on these group
results.
For a better understanding of the group`s financial position and results of
operations, these summarised consolidated results are to be read in
conjunction with the group`s audited annual financial statements for the
year ended 31 March 2011, which include all disclosures required by IFRS,
and which are expected to be posted on or about 30 June 2011.
3 The group`s Vanggatfontein Project generated mining revenue of R35.2
million (2010: R21.8 million generated from Klip Colliery), resulting in a
gross profit of R12.1 million (2010: R0.8 million).
4 Other income includes an amount of R0.4 million comprising of rental income
received from a sublease. The decrease in other income of R1.6 million is
as a result of the once-off damages claim in 2010.
5 Administration, other operating and mining related expenses for the year
increased with R3.7 million or 14.8%. Major items included in the R28.3
million (2010: R24.7 million) are (prior year figures in brackets):
* employee benefit costs (excluding the share appreciation rights expense) of
R18.5 million (R9.8 million).;
* consulting, legal, audit and professional fees of R3.4 million (R4.2
million);
* non-executive directors` fees of the company of R1.8 million (R2.0
million);
* listing and investor relations costs of R1.6million (R1.6 million);
head office lease costs of R 0.8 million (R0.7 million); and
* depreciation charges not included in cost of sales of R0.5 million (R0.7
million).
Note: Mining and related expenses mainly include that portion of management and
employee time spent directly on mining subsidiaries, direct consulting fees by
mining contractors, and compensation paid to surface right holders.
Administration and other operating expenses mainly include the remainder of the
employee benefit costs, non-executive directors` fees, and listing and investor
relations costs.
6 Share appreciation rights (expense) / income
The group issued 3.8 million share appreciation rights during the year
resulting in an expense of R2.2 million. The prior year income of R4.3
million was as a result of lapsed share appreciation rights.
7 Impairment and net realisable value losses
The group did not incur any impairment or net realisable value losses
during the year. Operations at Klip Colliery, forming part of Keaton Mining
(Pty) Limited (74% subsidiary of Keaton Energy), had been downscaled during
the previous financial year resulting in a sharp decrease in the remaining
life of the mine. The 2010 decrease resulted in the weighted average cost
per ton increasing significantly, and low quality stockpiles having to be
written down by R4.9 million to their net realisable value. An additional
impairment of R1.1 million resulted from capitalised mine development. As a
result of the regulatory uncertainty regarding the two remaining prospects
in Amalahle Exploration (Pty) Limited (74% subsidiary of Keaton Energy), an
impairment loss of R1.8 million was raised in the previous financial year
to fully impair the associated exploration and evaluation expenditure.
8 Net finance income of R18.7 million was significantly lower than the R29.1
million in 2010 mainly as a result of the investment of the company`s cash
resources in the development of the Vanggatfontein Project and lower
interest rates.
9 Income taxation changed by R13.9 million from a R7.3 million charge in the
prior year to a R6.6 million credit in the current year. The income
taxation credit was as a result of the first time recognition of a deferred
tax asset in Keaton Mining (Pty) Ltd (R5.3 million) and the reversal of the
prior year accruals for Secondary Taxation of Companies (STC) (R2.9
million). STC will be replaced with withholding tax on 1 April 2012. As
this new legislation is currently enacted and whilst it is reasonably
expected that no dividends will be declared by the company`s subsidiaries
before 1 April 2012, the accruals for STC have been reversed during the
year. This was offset by the company`s current taxation charge of R2.7
million, albeit much lower than the 2010 charge of R5.7 million (a direct
result of the lower net finance income).
10 Earnings per share
The calculation of basic earnings per share is based on the profit for the
year (attributable to owners of the company) of R15 186 005 (2010 - R5 974
510) and a weighted average of 148 102 328 (2010 - 144 172 800) ordinary
shares in issue during the year.
The reconciliation to headline earnings is as follows:
R`000 Year to Year to
31 March 2011 31 March 2010
Profit for the year (attributable to owners 15 186 5 974
of the company)
Add back: Impairment losses attributable to - 2 163
owners of the company *
Headline earnings for the year 15 186 8 137
* Headline earnings Gross Tax Non- Net
adjustments : 2010 controlling
interest
Impairment losses 2 923 - 760 2 163
attributable to owners of
the company
Year to Year to
31 March 31 March
2011 2010
Earnings per share (cents)
Headline 10.3 5.6
Headline diluted 10.3 5.6
The calculation of diluted earnings per share is based on the profit of
R15.2 million (2010: R6.0 million) and headline earnings of R15.2 (2010:
R8.1 million) million, with the weighted average number of ordinary shares
not being adjusted as the potential ordinary shares are anti-dilutive.
11 The non-current assets increased by R559.4 million from R129 7 million to
R689.1 million during the year. The increase relates to the development
costs of the Vanggatfontein Project of R431.5 million and the refinancing /
acquisition of Leeuw Mining and Exploration (Pty) Ltd of R131.6 million. A
more detailed discussion is included under `Commentary`.
12 Current assets of R94.3 million (2010: R343.7 million) mainly include:
* inventory of R7.9 million (2010: Rnil);
* cash and cash equivalents of R39.0 million (2010: R335.1 million) of which
R12.0 million is restricted in terms of various ceded and pledged deposits.
The decrease of R296.1 million was mainly as a result of the development of
the group`s Vanggatfontein Project. During the year cash inflows mainly
comprised shares issued for cash (R65.0 million), coal sales at the
Vanggatfontein Project (R15.2 million) and interest received (R18.0
million);
* trade and other receivables of R31.4 million (2010: R6.4 million) which
includes R5.6 million relating to deferred transaction costs for financing
obtained after year end (refer Subsequent events below); and
* value-added tax recoverable of R16.0 million (2010: R2.3 million).
13 Non-current liabilities of R46.1 million (2010: R0.3 million) mainly
include the current estimate of cash flows that will be needed to
rehabilitate the Vanggatfontein Project.
14 Current liabilities of R155.8 million (2010: R18.7 million) mainly include:
* amounts payable to the Vanggatfontein Project`s property, plant and
equipment vendors of R121.3 million (2010: R10.2 million);
* other trade payables of R26.3 million (2010: R3.7 million);
* employee benefits accruals of R7.3 million (2010: R1.4 million); and
* taxation of R0.6 million (2010: R3.4 million).
15 Issues of equity during the year:
31 March 2011 31 March 2010
Number of shares Number of shares
(000) (000)
Issued share capital
At beginning of year 144 841 142 841
Issued for cash during the year 14 484 -
Issued for consideration other 12 222 -
than cash during the year
Share-based payments - 2 000
At end of year 171 547 144 841
During the financial year, a total of 26 706 351 ordinary shares were issued at
a price of R4.50 per ordinary share. The shares were issued in three tranches
as follows:
* 5 555 556 ordinary shares, representing 3.84% of the issued ordinary share
capital of Keaton Energy, issued and listed on the JSE on 30 December 2010
(issue for cash to Plusbay Limited (Plusbay));
* 8 928 573 ordinary shares, representing 6.16% of the issued ordinary share
capital of Keaton Energy, issued and listed on the JSE on 25 February 2011
(issue for cash to Plusbay); and
* 12 222 222 ordinary shares, representing 7.12% of the issued ordinary share
capital of Keaton Energy, issued and listed on the JSE on 2 March 2011
(issued for financial instruments acquired). These shares were subsequently
bought by Plusbay and Plusbay has therefore become a non-public
shareholder. Also refer to Commentary for a further discussion in this
regard.
The above ordinary shares were issued at a premium of 10 cents (2.19%) over
Keaton Energy`s 30 day volume weighted average market price prior to 23
December 2010, being the date the board of directors of Keaton Energy
approved the issues.
16 No dividends have been declared nor are any proposed for the year ended 31
March 2011 (year ended 31 March 2011: Rnil).
17 The group`s net asset value per share (total equity / issued ordinary
shares as at 31 March) is R3.39 (2010: R3.14).
18 Segment information
Refer to the Commentary below for a description of the segments of the
group.
R`000 31 March 2011 31 March 2010
Total segment assets
Vanggatfontein Project 554 043 63 472
Sterkfontein Project 65 426 62 374
Klip Colliery 1 849 3 286
Keaton Administrative and Technical 1 807 1 504
Services (Pty) Limited
Keaton Energy Holdings Limited - 632 091 474 773
investments and cash resources
Total operating segments` assets 1 255 216 605 409
Assets not allocated to segments 16 417 3 668
Consolidation adjustments - investments (488 226) (135 669)
in subsidiaries
Total assets 783 407 473 408
R`000 Year to Year to
31 March 2011 31 March 2010
Segment revenue
Vanggatfontein Project(all external coal 35 163 -
sales)(1)
Klip Colliery (all external coal - 23 401
sales)(1)
Keaton Administrative and Technical 9 998 10 639
Services (Pty) Limited
(intersegment revenues)
Keaton Energy Holdings Limited 4 460 2 274
(intersegment revenues)
Total operating segments` revenue 49 621 36 314
Klip Colliery - damages claim disclosed - (1 594)
under other income
Consolidation adjustments (14 458) (12 763)
Revenue 35 163 21 957
Segment profit or loss - Year Operating Depreciation Net Net profit
to profit / / impairment finance / (loss)
31 March 2011 (R`000) (loss) losses income before
taxation
Vanggatfontein Project (since 12 426 (3 870) (28) 8,528
1 December 2010) *
Keaton Mining (Pty) Limited - (8 670) - 343 (8 327)
loss after excluding the
Vanggatfontein Project
Keaton Energy Holdings (16 141) 498 19 877 4 234
Limited
Keaton Administrative and (50) (512) 12 (550)
Technical Services (Pty)
Limited
Other segments (1 153) - - (1 153)
Total operating segments` (13 589) (3 884) 20 204 2 732
(loss) / profit
Consolidation adjustments (198) (405) (1 505) (2 109)
As per Statement of (13 787) (4 289) 18 699 623
comprehensive income - group
Segment profit or loss - Year to
31 March 2010 (R`000)
Keaton Energy Holdings Limited (5 623) (3 679) 28 894 19 592
Keaton Administrative and 638 (757) 444 325
Technical Services (Pty) Limited
Keaton Mining (Pty) Limited 3 367 (18 070) - (14 703)
Other segments ** (2 891) (1 834) - (4 725)
Total operating segments` (loss) (4 509) (24 340) 29 338 489
/ profit
Non-cash flow items (179) - - (179)
Consolidation adjustments - 3 679 (231) 3 448
As per Statement of (4 688) (20 661) 29 107 3 758
comprehensive income - group
* Reported as part of Keaton Mining (Pty) Ltd up to 30 November 2010.
** For comformity with the current year`s reporting, Other segments
include the subsidiaries Amalahle Exploration (Pty) Limited and Labohlano
Trading 46 (Pty) Limited. These were reported on separately on in 2010.
19 The group`s capital commitments are:
R`000 31 March 2011 31 March 2010
Guarantees issued to the Department of 19 880 19 592
Mineral Resources
Guarantees issued in terms of farm 8 000 50 000
acquisitions (subsequent to year-end)
Authorised but not contracted 42 219 58 829
Authorised and contracted 42 118 31 539
All contracted amounts will be funded through the project finance agreement
entered into with Nedbank Limited.
20 Significant events after 31 March 2011 up to the date of this report
On 28 March 2011 Keaton Mining (Pty) Limited (a 74%-held subsidiary)
concluded a project financing agreement to the value of R230 million with
Nedbank Limited (Nedbank) to further fund the development of its
Vanggatfontein Project. On 1 April 2011 the final conditions precedent were
reached / waived, and R138.7 million was drawn. The remainder of the R230
million will be drawn as the Vanggatfontein Project develops. A further R25
million was made available by Nedbank as a standby debt facility.
Transaction costs of R5.6 million were incurred during the year in securing
the above project finance and have been deferred as a prepayment. This will
be offset against the financial liability in the 2012 financial year,
together with any other additional transaction costs.
In terms of the circular mailed to shareholders on 17 May 2011 and the
general meeting held on 21 June 2011, the following ordinary resolutions
were approved by the shareholders present or represented by proxy thereat:
* Ordinary Resolution No.1 - 16 622 222 of the authorised but unissued
ordinary shares placed under the control of the directors.
* Ordinary Resolution No.2 - Adoption of the amendments to the Keaton
Energy Long-Term Performance Incentive Scheme.
* Ordinary Resolution No.3 - General authority to issue a further 5% of
the issued ordinary shares for cash.
Also refer to the Commentary regarding a recent incident at the Vanggatfontein
Project.
21 KPMG Inc`s unqualified auditors` reports, included in the annual financial
statements and in the summarised financial statements contained in this
summarised report, are available for inspection at the company`s registered
office.
COMMENTARY
Key features of the period under review were:
* the fast-track, simultaneous development of Phases 1 and 2 of the group`s
first major coal mining project, Vanggatfontein, near Delmas in South
Africa`s Mpumalanga province; and
* the agreement to refinance and acquire 74% of Leeuw Mining and Exploration
(Pty) Limited.
Safety, health and the environment
The group`s safety performance in the period under review was exemplary, with
862 705 hours worked at the Vanggatfontein Project with no lost time injuries
recorded. Further, the group experienced no reportable health or environmental
issues in the period. Significant additional information relating to safety,
health and the environment will be contained in the group`s integrated Annual
Report.
Vanggatfontein Project
A number of significant milestones were reached at Vanggatfontein during 2011:
* An on-mine operating team was established led by Isak Nkosi, who was
appointed Mine Manager in August 2010.
* All service providers, across all 27 outsourced service areas, were
selected and appointed.
* The 5 Seam coal plant and related infrastructure were developed on time and
within budget, with the first washed coal delivered to metallurgical
customers on 2 December 2010.
* Eskom mainline power reached the project and went live during April 2011,
allowing the project to switch from using diesel-powered generators.
* The East Resource Block Coal reserve was increased by 24% to 32.2 million
tonnes.
* The R230 million project finance facility was secured, with the first draw-
down occurring on 1 April 2011.
* The 4 and 2 Seam thermal coal plant construction was well under way and
nearing completion by financial year end.
* The supply contract with South African power utility Eskom was extended to
supply 26% more thermal coal - a total of 20.8 million tonnes - over 10
years instead of the original seven years.
Phase 1: No 5 Seam coal
During the period under review, a total of 3.3 million cubic metres of
overburden was removed and 145 107 tonnes of 5 Seam run-of-mine coal was mined.
Run-of-mine production started in October 2010 and the 5 Seam plant was fully
commissioned during November 2010. A total of 56 886 tonnes of saleable 5 Seam
coal was produced. There was excellent acceptance of the coal product by the
domestic metallurgical market and consequent strong sales of 48 397 tonnes of
product during the first four months of production, limited only by the slower
than expected ramp-up of plant production due to the exceptionally wet weather
in December 2010. Production has stabilised at targeted levels since the end of
the financial year, with the run-of-mine stockpile having been cleared. This
improvement in plant performance is due to better run-of-mine coal qualities,
fresh run-of-mine coal being fed to the plant directly from the pit and better
plant management.
Phase 2: Nos 4 and 2 Seam thermal coal
The construction and commissioning of the 4 and 2 Seam plant was on track to
deliver the full ramp-up commitment of thermal coal to Eskom by the end of July
2011. However, the project`s ability to meet this commitment may be affected by
the failure of the support structure of one of the Dense Medium Separation unit
feed bins during pre-commissioning on 28 May 2011. Management is working closely
with DRA Mineral Projects (Pty) Limited, the lump-sum turnkey contractor
responsible for construction of the plant, and a mitigation plan has been
implemented which has allowed production to resume while the structure is being
rehabilitated. The first Eskom coal stockpile has been prepared and coal
deliveries are expected to begin as soon as all quality management procedures
have been completed.
Coal Reserve and Resource Statement
On 9 November 2010, the company declared a 24% increase in the coal reserve of
its 74%-held Vanggatfontein Project to 32.2 million tonnes - 22.3 million tonnes
in the proved category and 9.9 million tonnes in the probable category. The
declaration is contained in an updated SAMREC-compliant East Resource Block:
Coal Reserve and Resource Statement, released by the company following further
exploration drilling on the project and completion of a feasibility update
report. The updated gross tonnes in situ coal resource estimate for the East
Resource Block is 84.2 million tonnes. The coal reserve has been reduced by the
145 107 tonnes of 5 Seam mined during the period.
Leeuw Mining and Exploration (Pty) Limited - refinancing and acquisition
On 14 February 2011, Keaton Energy announced that it plans - in a two-stage
transaction - to refinance and acquire a 74% interest in South African export
coal producer Leeuw Mining and Exploration (Pty) Limited (LME). The acquisition
will give Keaton Energy:
* a new major shareholder in Plusbay, an affiliate of Gunvor Group Limited
(Gunvor) one of the world`s leading energy trading companies;
* a controlling interest in an existing operating anthracite colliery,
Vaalkrantz, which has been in production since 2003;
* more advanced development projects, specifically:
* the Koudelager anthracite project, which will provide a future
run-of-mine anthracite supply to the existing Vaalkrantz plant; and
* the Braakfontein thermal coal project, near Newcastle.
* two exploration projects:
* the Balgray anthracite project near Utrecht; and
* the Mpati project near Dundee.
* access to export markets and a wider customer base through:
* a 207 000 tpa participation in Richards Bay Coal Terminal`s (RBCT)
Quattro export programme; and
* a dedicated railway siding facility near Vaalkrantz.
Further, it will help to safeguard more than 400 jobs in LME`s operations.
LME`s founding shareholders will retain a 26% interest in LME. The
refinancing consideration of LME has been settled with the issue of 12 222
222 new Keaton Energy shares at a price of R4.50 per share, and R65 million
has been raised to recapitalise the Vaalkrantz Colliery and as initial
development capital for the Koudelager and Braakfontein projects. The
acquisition consideration for LME will be settled with the issue of 16 622
222 new Keaton Energy shares. This will also see Gunvor, through Plusbay,
increase its shareholding in Keaton Energy to approximately 25%. The
refinancing and technical support provided to LME has already seen
anthracite production recover and sales increase. The transaction remains
dependent on certain conditions precedent being met, including competition
authority approvals and consent for the change of control of LME by the
Minister of Mineral Resources.
Other activities during the reporting period
Sterkfontein Project, Bethal
The second phase of the Sterkfontein Extension drilling programme,
comprising 56 holes totaling over 9 000 metres of drilling and the
associated geological modelling, was completed during the reporting period.
An updated SAMREC-compliant resource statement will be released in due
course. The execution of a number of granted "in-fill" prospecting rights
is awaited. Once the remaining prospecting rights are executed, it is the
company`s intention to consolidate all the prospecting rights held by
Keaton Mining (Pty) Ltd and Labohlano Trading 46 (Pty) Ltd into a single
project company.
The Sterkfontein Project is now approaching feasibility stage and capital
estimates for its development are expected in Q2 2012.
Corporate governance
During the financial year Mr JN Wallington resigned as a director on 31 May
2010 and Mrs Z Mostert resigned as a director on 31 July 2010. Mr OP Sadler
was appointed as an independent non-executive director with effect from 1
October 2010. Subsequent to year end, Mr D Jonker was appointed as a non-
executive director with effect from 31 May 2011.
Routledge Modise Inc. practising as Eversheds resigned as company and group
secretary with effect from 30 September 2010 and Michelle Louise Taylor was
appointed in its stead with effect from 1 October 2010.
Looking ahead
The Vanggatfontein Project is expected to contribute substantially to group
earnings in 2011/12 and the focus at the project will be on safely ramping
up 4 and 2 Seam plant production to meet the contracted coal supply
commitment to Eskom as soon as possible, while maintaining the production
rate and market acceptance of the 5 Seam coal product. Once steady-state
production is achieved, the next step will be to achieve technical and
financial completion in terms of the Nedbank Capital project financing
arrangements and thereby formally reach full commercial production. The
group will also focus on getting all remaining approvals and consents for
the LME acquisition so that the turnaround of the Vaalkrantz Colliery can
be completed, the development of the Braakfontein Project can be advanced
and LME consolidated into the group. With two operating collieries -
Vanggatfontein producing thermal coal for Eskom and 5 Seam coal for the
domestic metallurgical market and Vaalkrantz producing
low-ash anthracite for the domestic market and higher-ash anthracite for
export markets - 2012 should see the group make significant advances in
becoming a robust and sustainable enterprise, and in achieving its longer-
term target of becoming a mid-tier coal producer.
On behalf of the Board
David Salter Paul Miller
(Chairman) (Managing Director)
22 June 2011
Registered Office:
Ground Floor, Eland House, The Braes, 3 Eaton Avenue,
Bryanston, South Africa
(Postnet Suite 464, Private Bag X51, Bryanston, 2021)
Transfer Secretaries:
Computershare Investor Services South Africa (Pty) Limited
Ground Floor, 70 Marshall Street, Johannesburg, South Africa
(PO Box 61051, Marshalltown, 2107)
Auditors:
KPMG Inc.
1226 Schoeman Street, Hatfield, Pretoria
Directors:
Dr JD Salter (chairman)*++, PBM Miller (managing director), AB Glad, D
Jonker**+, LX Mtumtum++, P Pouroulis***+, OP Sadler++, JG Schonfeldt, APE
Sedibe+, PCCH Snyders.
*British **Dutch ***South African / Cypriot
+non-executive, ++independent non-executive
telephone: +27 11 317 1700
telefax: +27 11 463 4759
email: info@keatonenergy.co.za
www.keatonenergy.co.za
Date: 22/06/2011 10:55:01 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.
Sharenet Sites 
