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FMC - Forbes - Fiscal third quarter 2012 unaudited interim results
Forbes & Manhattan Coal Corp.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
("Forbes Coal" or "the Company")
FORBES COAL SIGNIFICANTLY IMPROVES PRODUCTION AND SALES YEAR-OVER-YEAR
- Aviemore fourth quarter year-over-year run of mine production increased
125% and saleable production increased 115%
- Total export sales increased 179% year-over-over and fourth quarter export
sales increased 13% year-over-year
- Total sales increased 104% year-over-year
- Year-over-year production during the December maintenance month increased
223% for run of mine and 172% for saleable tonnes
- February 2012 produced record monthly figures for Forbes Coal, 138,000
tonnes run of mine
TORONTO, ONTARIO - March 19, 2012: Forbes & Manhattan Coal Corp. is pleased
to announce its fiscal fourth quarter 2012 and fiscal year end production and
sales results for its operations at the Slater coal properties in South
Africa.
Forbes Coal has made significant progress increasing production since
acquiring the Slater properties, as shown in the table below. Total run of
mine production increased 38% year-over-year from 933,900 tonnes to 1,290,800
tonnes.
Sales have also grown dramatically as a result of a focused marketing
strategy. Total sales tonnes increased 104% over fiscal 2011 from 529,200
tonnes to 1,081,800 tonnes. The growth in export sales is particularly
noteworthy and directly related to the continued demand from Asian and Indian
markets. The Company expects this trend to continue.
From a strategic perspective, the Company sees excellent upside potential at
Aviemore and has initiated a scoping level study, with initial exploration
drilling expected to begin in the first quarter of fiscal 2013.
"Forbes Coal has made major strides since we acquired the Slater Coal assets
in July 2010. Our successful growth in fiscal 2012 is a result of the
restructuring of the management team and capital expenditure investment made
at the Magdalena and Aviemore operations," said Stephan Theron, President and
Chief Executive Officer of Forbes Coal. "The Company set record fiscal
production and sales numbers during the past year. We have had a strong start
to fiscal 2013 from a production standpoint on the back of record production
in February 2012, and are continuing to target 1.5 million saleable tonnes
for the current fiscal year."
Fourth Quarter and Year End Production Highlights:
(December is an annual maintenance month at the Slater Coal properties and as
a result a production suspension was scheduled)
Production (tonnes)
Fourth Fourth % change Fiscal Fiscal % change
Quarter Quarter 2012 2011 Year
2012 2011 Year End End
(Dec 2011 (Dec 2010 (Mar 2011- (Mar 2010
- - Feb 2012) -
Feb 2012) Feb 2011) Feb 2011)
Magdalena 214,800 174,500 +23% 1,009,500 785,700 +28%
Run of
Mine
Aviemore 88,200 39,200 +125% 281,300 148,200 +90%
Run of
Mine
Total Run 303,000 213,700 +42% 1,290,800 933,900 +38%
of Mine
Magdalena 171,300 135,800 +26% 748,000 556,000 +35%
Saleable
Aviemore 52,600 24,500 +115% 175,700 92,000 +91%
Saleable
Total 223,900 160,400 +40% 923,700 648,000 +43%
Saleable
Sales (tonnes)
Fourth Fourth % change Fiscal Fiscal % change
Quarter Quarter 2012 2011
2012 2011 Year End Year End
(Dec 2011 (Dec 2010 (Mar 2011 (Mar 2010
- - - -
Feb 2012) Feb 2011) Feb 2012) Feb 2011)
Export 107,300 95,100 +13% 578,000 207,200 +179%
Domestic 114,300 81,100 +41% 503,800 322,000 +56%
Total 221,600 176,200 +26% 1,081,800 529,200 +104%
Sales
About Forbes Coal
Forbes Coal is a growing coal producer in southern Africa. It holds a
majority interest in two operating mines through its 100% interest in Slater
Coal (Pty) Ltd., a South African company ("Slater Coal") which has a 70%
interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest
in the Magdalena bituminous mine and the Aviemore anthracite mine in South
Africa (collectively, "the Slater Properties"). The mines have a substantial
resource base and each mine has a projected life span in excess of 20 years.
Forbes Coal is in the process of increasing production at both mines and
looks to triple production from 2010 levels in the next three years using
existing infrastructure and capacity. The Company has in-place transportation
infrastructure allowing its coal to reach both export corridors and the
growing domestic coal market. Forbes Coal has a strong balance sheet and an
experienced coal-focused management team.
Please refer to the Company`s NI 43-101 compliant technical report on the
Slater Properties dated March 1, 2011 entitled "Technical Report on Slater
Coal and Subsidiaries, KwaZulu-Natal Province, South Africa", available on
the SEDAR profile of the Company at www.sedar.com. Additional information is
available at www.forbescoal.com.
Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a
director of Minxcon and an independent Qualified Person, as defined in
National Instrument 43-101 has reviewed and approved the scientific and
technical information contained in this release.
Cautionary Note Regarding Forward-Looking Information This press release
contains "forwardlooking information" within the meaning of applicable
Canadian securities legislation. Forwardlooking information includes, but is
not limited to, statements with respect to the anticipated production results
at the Slater Properties, future financial or operating performance of the
Company and its projects, statements regarding the prospects for the business
of the Company, statements regarding foreign demand for coal, requirements
for additional capital, government regulation of the mineral exploration
industry, environmental risks, acquisition of mining licences, title disputes
or claims, limitations of insurance coverage and the timing and possible
outcome of pending litigation and regulatory matters. Generally,
forwardlooking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those expressed
or implied by such forward-looking information, including but not limited to:
general business, economic, competitive, foreign operations, political and
social uncertainties; a history of operating losses; delay or failure to
receive board or regulatory approvals; timing and availability of external
financing on acceptable terms; not realizing on the potential benefits of the
proposed transaction; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of mineral
products; failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry; and,
delays in obtaining governmental approvals or required financing or in the
completion of activities. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue reliance on
forwardlooking information. The Company does not undertake to update any
forward-looking information, except in accordance with applicable securities
laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Stephan Theron
President and Chief Executive Officer
+1 (416) 861-5912
Email: stheron@forbescoal.com
Sabina Srubiski
Investor Relations Manager
+1 (416) 309 2957
Email: ssrubiski@forbescoal.com
JOHANNESBURG
19 March 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 19/03/2012 12:55:01 Supplied by www.sharenet.co.za
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