Wrap Text
Q4 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” or “the Company”)
FORBES COAL DELIVERS FOURTH QUARTER PRODUCTION OF 363,000 TONNES
COAL
RECORD MONTHLY PRODUCTION OF 151,000 TONNES ACHIEVED IN FEBRUARY
2013
TORONTO, ONTARIO – March 8, 2013: Forbes & Manhattan Coal Corp.
(TSX/JSE: FMC) reports strong fourth quarter production at its
Magdalena bituminous and Aviemore anthracite mines (December 1,
2012 to February 28, 2013). Total run of mine production (ROM)
for the fourth quarter of 2013 was 363,000 tonnes, a 48%
increase over the 246,000 tonnes produced in the third quarter
of 2013 and a 20% increase over the fourth quarter of 2012.
Total saleable production for the fourth quarter of 2013 was
213,000 tonnes (excluding bought in tonnes), a 40% increase from
the previous quarter of 152,000 tonnes and an 8% increase over
the fourth quarter of 2012.
February 2013 monthly production achieved a record ROM tonnage
of 151,000 tonnes, a significant achievement over the 117,000
tonne monthly average of the last 12 months.
Production Highlights:
Tonnes Q4 2013 FY 2012 FY 2013 %Change
y/y
Total ROM Production 363,000 1,291,000 1,412,000 +9%
Magdalena ROM 278,000 1,010,000 1,009,000 -
production
Aviemore ROM 85,000 281,000 403,000 +43%
Production
Total Saleable 230,000 924,000 965,000 +4%
Production (including
bought in tonnes)
Total Sales 170,000 1,082,000 836,000 -23%
Aviemore ROM production was 85,000 tonnes, a 39% increase over
third quarter 2013 production of 61,000 tonnes
Aviemore saleable production was 57,000 tonnes, a 43% increase
over third quarter 2013 production of 40,000 tonnes
Magdalena ROM production was 278,000 tonnes, a 51% increase over
third quarter 2013 production of 184,000 tonnes
Magdalena saleable production was 156,000 tonnes, a 39% increase
over third quarter 2013 production of 112,000 tonnes
In addition, Forbes Coal bought in 17,000 tonnes resulting in
230,000 total saleable tonnes for the fourth quarter 2013 and a
30% increase over the third quarter 2013
The increased production rates at Aviemore and Magdalena have
enabled both mines to build up healthy stocks of ROM and
saleable product. This in turn has resulted in more efficient
and optimal use of washing plant capacity.
“We have resumed a healthy pace of production and our fourth
quarter results reflect the consistent growth the company has
achieved up to the third quarter, where production was lost as a
result of a four and a half week labour disruption. The company
has made a strong recovery from the third quarter, and with a
record February in ROM production, we are starting the 2014
fiscal year in a strong position. Forbes Coal remains focused
on diligent operational efficiency,” commented President and
Chief Executive Officer Stephan Theron.
Logistics
In the fourth quarter of 2013, the Company exported 70,000
tonnes, with domestic sales of 100,000 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.
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
President and Chief Executive
Officer
+1 (416) 861-5912
Email: stheron@forbescoal.com
Samantha Thomson
Investor relations Manager
+1 (416) 309-2957
Email: sthomson@forbescoal.com
7 March 2013
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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