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FORBES & MANHATTAN COAL CORP - Q3 production update

Release Date: 14/12/2012 07:05
Code(s): FMC     PDF:  
Wrap Text
Q3 production update

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”)


FORBES COAL REPORTS PRODUCTION RESULTS FOR THIRD QUARTER 2013




TORONTO, ONTARIO – December 13, 2012: Forbes & Manhattan Coal
Corp. (TSX/JSE: FMC) (“Forbes Coal” or “the Company”) reports
that the total saleable production at the Magdalena bituminous
and Aviemore anthracite operations declined in the third quarter
of 2013 (September 1, 2012 to November 30, 2012), as compared to
the second quarter of fiscal 2013, due to labour disruptions
during the quarter. The labour disruptions lasted 4.5 weeks of
the 13 week quarter, from October 17, 2012 - November 16, 2012,
representing one third of the working weeks in the quarter.
Total saleable production for the third quarter was 152,000
tonnes, a 41% decrease from the previous quarter. The mine
operations resumed on November 19, 2012 and have been in full
production since.


Third quarter fiscal 2013 production results:


  -   Aviemore run of mine (ROM) production was 61,000 tonnes, a
      53% decrease over second quarter 2013 of 130,000 tonnes
  -   Aviemore saleable production was 40,000 tonnes, a 49%
      decrease over second quarter 2013 production of 79,000
      tonnes


  -   Magdalena ROM production was 184,000 tonnes, a 35% decrease
      over second quarter 2013 production of 283,000 tonnes


  -   Magdalena saleable production was 112,000 tonnes, a 37%
      decrease over second quarter 2013 production of 177,000
      tonnes


  -   In addition, Forbes Coal bought in 25,000 tonnes resulting
      in 177,000 total saleable tonnes for the third quarter 2013


  -   Total sales were 147,000 tonnes, a 48% decrease over second
      quarter 2013 sales of 280,000 tonnes.




“The incremental increase in production we’ve seen at Magdalena
and Aviemore in the previous quarters was hindered by the labour
disruption that lasted just over a month. The mine operations
resumed in full production November 19th. Furthermore, under
prevailing market conditions of weak coal prices globally, we
are monitoring coal output. Forbes Coal remains focused on
achieving continued growth in run of mine and saleable numbers
for the balance of fiscal 2013 and beyond,” commented President
and Chief Executive Officer Stephan Theron.


Seasonal Production Break
It is routine for the mine operations to shut down during the
holiday season which this year is scheduled to commence on
December 22, 2012. The plant will re-open on Thursday, January
3, 2013, while mining operations will resume on Monday, January
7, 2013. The siding will operate throughout the holiday season.


Logistics


In the third quarter of fiscal 2013, the Company exported 73,000
tonnes, with domestic sales of 74,000 tonnes.


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 Forbes Coal 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 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. In September 2012, Forbes Coal entered into an agreement
to acquire 100% ownership of Riversdale Holdings (Pty) Ltd from
Rio Tinto.   As a result of the acquisition, Forbes Coal will
acquire Zululand Anthracite Colliery (“ZAC”), a producing
anthracite mine in South Africa.   ZAC is thought to be one of
the last large-scale producers of high-quality anthracite
product in South Africa, with historic run of mine production of
700,000 tonnes of coal per annum over the last five years. The
acquisition scales Forbes Coal’s annual production capacity to
an estimated 2.5 million tonnes per annum.


Please refer to the Company's NI 43-101 compliant technical
report on the Forbes Coal 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.




Forbes Coal has a strong balance sheet and an experienced coal-
focused management team and board of directors.



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 anticipated production results with
respect to the Forbes Coal 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
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
Samantha Thomson
President and Chief Executive Officer
Investor relations Manager
+1 (416) 861-5912
+1 (416) 309-2957
Email: stheron@forbescoal.com
Email: sthomson@forbescoal.com


Johannesburg 14 December 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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