PETMIN LIMITED - Operational update for the nine months ended 31 March 2015

Operational update for the nine months ended 31 March 2015

PETMIN LIMITED 
Incorporated in the Republic of South Africa 
Registration Number 1972/001062/06 
Share Code JSE: PET & ISIN: ZAE000076014 
 ("Petmin" or the "Company") 

PETMIN LIMITED - OPERATIONAL UPDATE FOR THE NINE MONTHS ENDED 31 MARCH 2015 

SOMKHELE ANTHRACITE MINE: SOLID PERFORMANCE CONTINUES

The Somkhele team continues to focus on safety and productivity improvements in order to 
reduce costs and maximize production and sales.

During the 9 months under review, Somkhele further reduced its production cost per tonne ("ex-
mine gate") by 9% from R694 to R634 as outlined in the tables below.

Key Information Table: 9 Months to 31 March 2015

 Description                           9 months ended         9 months ended            % Change   
                                       31 March 2015           31 March 2014

Anthracite tonnes produced             1 015 270               827 983                   23%
Anthracite tonnes sold                   946 013               703 236                   35%
Anthracite yield                          44.5%                 42.4%                     5%
Energy coal tonnes produced              270 801               171 100                   58%
Energy coal tonnes sold                  274 786                52 809                  420%
Energy coal yield                         26.4%                 20.4%                    29%
Average cost at mine gate - Anthracite R634/tonne            R694/tonne                  -9%

Production of metallurgical anthracite for the period increased by 23% to 1,015,270 tonnes (2014: 
827,983 tonnes). Sales volumes for the nine month period increased by 35% to 946,013 tonnes 
(2014: 703,236 tonnes) as demand for all our products remains firm.

Energy coal production increased by 58% to 270,801 tonnes for the period (2014: 171,100 tonnes). 
Demand for this product has been strong, with 274,786 tonnes sold in the nine month period 
(2014: 52,809 tonnes).

While sales volumes have improved in 2015, average export prices for  the nine months ended 30 
March 2015 were some 8% lower than in 2014 and average inland prices reduced by 1%. 

Export anthracite prices have historically traded at a 10% to 15% premium to the API4 index, and 
during the quarter ended March 2015, this premium has increased by up to 40% due to supply 
constraints in key international markets.    

Orders have been received for 1.1 million tonnes of an estimated 1. 2 million tonnes of anthracite 
production for the year ending 30 June 2015 and orders have been received for all of the 
estimated 346,000 tonnes of energy coal production for the year ending 30 June 2015 . 

NORTH ATLANTIC IRON CORPORATION (NAIC) PROJECT UPDATE

During the quarter ended 31 March 2015, Petmin invested a further one million US Dollars into the 
NAIC project and has now invested USD 21 million for a 36% shareholding in NAIC.

The site specific feasibility study is underway and the final site selection decision is expected 
before June 2015. 

It remains our intention to unbundle NAIC as soon as possible thereafter via the declaration and 
distribution of a dividend in specie of our stake in NAIC of approximately 50 cents a share. The 
timing of the unbundling and separate listing is subject to the regulatory environment and 
procedures pertaining to a new listing on a recognised exchange.  

SHARE BUYBACKS AND DIVIDENDS

As announced in the Condensed Consolidated Interim Results for the six months ended 31 
December 2014, Petmin has embarked on a share buy-back programme. During the 9 months 
ended 31 March 2015, Petmin has acquired 24,531,538 shares in total at an average price of R 
1.56 per share. Petmin now holds 28,842,494 shares in treasury, which represents 5% of its issued 
share capital. 

Together with a dividend of 3 cents per share, paid on 21 November 2014, Petmin has returned 
some R 55 million to shareholders during the past 9 months.

NEW BUSINESS

Petmin continues to evaluate investment opportunities in thermal coal and other projects that 
meet Petmin's investment criteria and in particular are reviewing opportunities that are cash 
producing and or near cash. 

This update and SENS announcement has not been reviewed or audited by the Company`s 
auditors.

Enquiries:
Petmin
Bradley Doig +27 824 597 818

Johannesburg
28 April  2015

Sponsor and Corporate Adviser
River Group



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