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FORBES & MANHATTAN COAL CORP - First quarter production at its Magdalena bituminous and Aviemore anthracite mines

Release Date: 12/06/2013 13:30
Code(s): FMC     PDF:  
Wrap Text
First quarter production at its Magdalena bituminous and Aviemore anthracite mines

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 23% GROWTH IN RUN OF MINE PRODUCTION FOR THE
FIRST QUARTER OF FISCAL 2014 AND CONSECUTIVE RECORD PRODUCTION
MONTHS


SALES INCREASE 55% FOR THE FIRST QUARTER OF FISCAL 2014


TORONTO, ONTARIO – June 12, 2013: Forbes & Manhattan Coal Corp.
(TSX/JSE: FMC) reports record first quarter production at its
Magdalena bituminous and Aviemore anthracite mines (March 1,
2013 to May 31, 2013).   Total run of mine production (ROM) for
the first quarter of fiscal 2014 was 447,000 tonnes a 23%
sequential increase over the 364,000 tonnes produced in the
fourth quarter of fiscal 2013, and a 16% increase over the first
quarter of fiscal 2013, with the combined operations achieving
record production levels in each of April and May 2013.   Total
sales for the first quarter of fiscal 2014 was 261,000 tonnes a
55% sequential increase from the previous quarter of 168,000
tonnes and a 12% increase over the first quarter of fiscal 2013.

Production Highlights:


                                Q1 2014   Q4 2013   Q1 2013
    Total Run of Mine         447,000    364,000   387,000
    Production
    Aviemore ROM              138,000     85,000   124,000
    Production
    Magdalena ROM             309,000    278,000   262,000
    production
    Total Saleable            253,000    225,000   266,000
    Production (including
    bought in coal)
    Total Sales               261,000    168,000   234,000




-   First quarter fiscal 2014 total ROM production of 447,000
    tonnes is equal to 32% of the total fiscal 2013 annual ROM
    production of 1,408,000 tonnes


-   Aviemore ROM production was 138,000 tonnes, a 62% increase
    over the fourth quarter fiscal 2013 production of 85,000
    tonnes.   Record production was achieved by Aviemore in each
    of April and May 2013


-   Magdalena underground ROM production was 227,000 tonnes for
    the first quarter of 2014, a 16% increase over fourth
    quarter fiscal 2013 production of 196,000 tonnes.   Record
    production was achieved by Magdalena underground in each of
    April and May 2013.


-   First quarter fiscal 2014 saleable production was 253,000
    tonnes, an 18% increase over fourth quarter fiscal 2013
    saleable production of 214,000 tonnes (excluding bought in
    coal in this quarter).   No coal was bought in during the
    first quarter of fiscal 2014
 
-   In the first quarter of fiscal 2014, Forbes Coal exported
     142,000 tonnes, a 108% increase over the fourth quarter of
     2013




President and Chief Executive Officer Stephan Theron commented,
“We are very pleased with the record production numbers we have
achieved this quarter and in particular with the consecutive
record production months achieved by both Magdalena and Aviemore
in April and May of this year. The Company has experienced a
steady and consistent pace of growth in the last four months and
we are tracking well against our annual production targets. The
Company reported annual run of mine tonnage of 1,408,000 for
fiscal 2013 on May 30, 2013. The first quarter run of mine
production for the current fiscal year is 447,000 tonnes, which
is just under a third or 32% of our total fiscal 2013 production
number. A continued incremental increase in production each
month is the focus for the remainder of the year. We’ve
established great momentum.”


Logistics


In the first quarter of fiscal 2014, the Company exported
142,000 tonnes, a 108% increase over the fourth quarter of
fiscal 2013, with domestic sales of 119,000 tonnes, an 18%
increase over the fourth quarter of fiscal 2013.


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.


Please refer to the Company's NI 43-101 compliant technical
report on the Forbes Coal Dundee Properties dated March 6, 2013
entitled "Independent Qualified Persons’ Report on Forbes Coal
Dundee Operations in the 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) 309-5912                                       
email: sthomson@forbescoal.com

12 June 2013
Johannesburg

Sponsor

Sasfin Capital (a division of Sasfin Bank Limited)
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