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OPT - Optimum Coal Holdings Limited - Optimum Coal quarterly operational

Release Date: 14/10/2011 15:00
Code(s): OPT
Wrap Text

OPT - Optimum Coal Holdings Limited - Optimum Coal quarterly operational update for the 3 month period ended 30 September 2011 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") OPTIMUM COAL QUARTERLY OPERATIONAL UPDATE FOR THE 3 MONTH PERIOD ENDED 30 SEPTEMBER 2011 Optimum Coal, a leading South African coal mining and exploration group, listed on the JSE Limited, 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 3.755 million tons of run-of-mine ("ROM") coal during the first quarter of FY2012, a decrease of 11% on the 4.175 million ROM tons produced in the 4th quarter of FY2011. During the quarter under review, 1.46 tons of export/high quality domestic coal was produced and 1.51 million tons of Eskom/lower quality domestic coal was produced. Table 1 - Salient Production Features at Optimum Collieries and Koornfontein Mines for the 3 month period 1 July 2011 to 30 September 2011. Production Q1, FY2012 Optimum Koornfontein Units Collieries Mines ROM production t`000 3.003 775 Eskom/lower quality domestic t`000 1.207 300 saleable (buy-ins) Export/high quality domestic t`000 1.035 426 saleable CEO Mike Teke commented "production performance was generally disappointing for Q1, FY2012. We were unfortunately affected by lost production time at both our operations during the 10 days of industrial action which occurred between 24th July 2011 and 3rd August 2011. Additionally, recent production at Optimum Collieries has further been impacted by the current industrial action affecting Coalcor Mining (Pty) Ltd, the Boschmanspoort underground mining contractor, which commenced on Monday 3rd October 2011 and remains unresolved. Notwithstanding the various industrial action effects, Koornfontein continues to perform steadily and has met all requisite production targets during the quarter under review. Our immediate focus is to address the wage and contractor related issues at our Boschmanspoort underground mine and to ensure the successful re-location of draglines to the critical Kwagga North opencast extension area. TFR railings performance to RBCT has shown a material improvement in recent weeks which has enabled us to substantially reduce on-mine export stocks." The above information has not been reviewed and reported on by Optimum Coal`s external auditors. www.optimumcoal.com 14 October 2011 Johannesburg Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Financial Communications Advisers COLLEGE HILL Date: 14/10/2011 15:00:01 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.

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