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FORBES & MANHATTAN COAL CORP - Forbes Coal reports second quarter 2012 production results

Release Date: 17/09/2012 14:39
Code(s): FMC     PDF:  
Wrap Text
Forbes Coal reports second quarter 2012 production 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 REPORTS SECOND QUARTER 2013 PRODUCTION
RESULTS WITH TOTAL SALES INCREASING 21% OVER FIRST
QUARTER


TORONTO, ONTARIO – September 17, 2012 : Forbes & Manhattan Coal Corp. (TSX: FMC)
(JSE: FMC) (“Forbes Coal” or the “Company”) is pleased to report production and sales
levels for its Magdalena bituminous and Aviemore anthracite operations for the second quarter
of 2013 which runs from June 1st 2012 to August 31st, 2012.

Second Quarter highlights include:

                                         Q2 2013             Q1 2013
                                                                                % Change
                                         (tonnes)            (tonnes)
  Total Run of Mine Production           414,551             387,075               + 7%
  Magdalena U/G ROM
                                         200,101             167,394              + 20%
  Production
  Aviemore U/G ROM
                                         130,601             124,659               + 5%
  Production
  Total Saleable Production              256,583             244,605               + 5%
  Total Sales                            284,196             234,997              + 21%

President and CEO Stephan Theron commented on the recent quarter’s production “In the
second quarter we continue to see consistent increases in overall production that demonstrate
the operations at Magdalena and Aviemore are performing well and continue to deliver on the
Company’s growth strategy.”

Production
Forbes Coal generated total run of mine (ROM) production for the second quarter of 2013 of
414,551 tonnes, which was a 7% increase compared to the 387,075 tonnes produced in the first
quarter of 2013. Total saleable production in the second quarter was 256,583 tonnes, a 5%
increase compared to 244,605 saleable tonnes in the first quarter. In addition, Forbes Coal
bought in 34,871 tonnes in the second quarter and 21,873 tonnes in the first quarter of 2013,
resulting in total saleable tonnes of 291,454 for the first quarter, a 9% increase from 266,478
total saleable tonnes in the first quarter.

ROM production at Magdalena continued to increase with a total of 283,950 bituminous tonnes
produced. This included a 20% increase from the prior quarter in underground production with
200,101 tonnes produced in the second quarter of 2013. Opencast production contributed
83,849 tonnes to total bituminous production.
ROM production at Aviemore in the second quarter of 2013 was 130,601 tonnes, an increase of
5% compared to the 124,659 tonnes produced in the first quarter of 2013.

Sales
Total sales were 284,196 tonnes in the second quarter of 2013 which represents a 21% quarter
over quarter increase, and comprised 231,802 bituminous tonnes and 52,394 anthracite tonnes.

In terms of domestic versus export sales, the Company exported 178,489 tonnes during the
second quarter, representing a significant 54% quarter over quarter increase in export sales.
This was primarily as a result of a 92% increase in tonnes shipped through Forbes Coal’s export
allocation at the Navitrade Dry Bulk Terminal. Domestic sales were down by 12% in the second
quarter with 105,707 tonnes sold.

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 Forbes Coal (Pty) Ltd., a South African company
("Forbes Coal Dundee") 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 Dundee 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 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 Dundee 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.

Cautionary Notes

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.

The ability of the Company to increase production amounts has not been the subject of a
feasibility study and there is no certainty that the proposed expansion will be economically
feasible.

This press release contains “forward-looking information” within the meaning of applicable
Canadian securities legislation. Forward-looking information includes, but is not limited to,
statements with respect to the anticipated production results with respect to the Dundee
Properties, future financial or operating performance of the Company and its projects,
statements regarding the anticipated improvements in logistical support and anticipated
improvements in sales, statements made with respect to prospects for the business of the
Company, 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, forward-looking 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
forward-looking 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                                            Colinda Parent
President and Chief Executive Officer                     VP Corporate Development
+1 (416) 861-5912                                         +1 (416) 861-5811
Email: stheron@forbescoal.com                             Email: cparent@forbesmanhattan.com


Johannesburg
17 September 2012 

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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