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PETMIN LIMITED - Petmin Limited Operational update Quarter ended 30 September 2015

Release Date: 19/11/2015 08:00
Code(s): PET     PDF:  
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Petmin Limited – Operational update Quarter ended 30 September 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
Quarter ended 30 September 2015

SOMKHELE ANTHRACITE MINE: SOLID PERFORMANCE CONTINUES 
Tendele Coal Mining, the operator of Petmin's Somkhele anthracite mine in KwaZulu-Natal, 
continues to focus on safety and productivity improvements to reduce costs and maximize 
production and sales in difficult trading conditions.

During the quarter to end-September 2015, Somkhele increased anthracite sales by 29% and 
maintained production costs per tonne in line with FY15. 

 Description                  Quarter ended   Quarter ended   % Change  Year ended
                              September 2015  September 2014            June 2015   
                                                                                 
Anthracite tonnes produced     352 179          340 010          4%       1 335 233
Anthracite tonnes sold         355 201          276 396         29%       1 222 150
Anthracite yield                44.56%           42.14%          6%          44.13%
Energy coal tonnes produced     86 032           81 128          6%         368 413
Energy coal tonnes sold         85 190          152 592        -44%         352 255
Energy coal yield               26.45%           21.78%         21%          26.80%

Production of metallurgical anthracite for the quarter increased by 4% to 352 179 tonnes (2014: 340 010 tonnes). Sales volumes increased by 29% to 355 201 tonnes (2014: 276 396 tonnes) as demand for Somkhele anthracite products remains firm.

Energy coal production increased by 6% to 86 032 tonnes for the quarter (2014: 81 128 tonnes). Demand for this product has been strong, with 85 190 tonnes sold in the three month period (2014: 152 592 tonnes). The energy coal sales in 2014 included additional sales off stockpiles and was a result of timing differences as Somkhele built up stock for big shipments.

While sales volumes have improved in 2016, average export prices for the three months ended 30 September 2015 were some 20% higher than in 2014 and average inland prices increased by 1%.

Export anthracite prices have historically traded at a 10% to 15% premium to the API4 index, and during the quarter ended September 2015 this premium increased to 33% due to supply constraints in key international markets.

Sales commitments have been received for 900 000 tonnes of an estimated 1.2 million tonnes of anthracite production for the year ending 30 June 2016. The remaining tonnes are under offer and confirmation of these sales is expected.

Sales commitments have been received for 104 654 tonnes of an estimated 350 000 thousand 
tonnes of energy coal production for the year ending 30 June 2016.The balance of these tonnes are under offer and negotiations are expected to be concluded for all remaining tonnes .

DROUGHT AND WATER SHORTAGE
The continued drought in KwaZulu-Natal is of concern as the impact is felt on the mine and the community around Somkhele. The potential impact on Somkhele operations of scenarios of 
extended drought  is being assessed and risk mitigation factors are being investigated.

NORTH ATLANTIC IRON CORPORATION (NAIC) PROJECT UPDATE
During the quarter ended 30 September 2015, Petmin invested a further US$2 million into the NAIC project and has now invested a total US$23 million for a 38% shareholding in NAIC.

Site engineering and design is underway in conjunction with other elements of the bankable 
feasibility study, which is expected to be finalised by June 2016.

SHARE BUYBACKS
As announced in the Preliminary Results for the year ended 30 June 2015, Petmin's share buy-back programme has continued and at 30 September 2015 Petmin held 39,794,211 shares in treasury.

CASH AND FACILITIES
After implementation of the BEE transaction (as announced on SENS on 12 November), the group had cash and facilities available of R 467 million.

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

Enquiries:
Petmin
Bradley Doig +27 824 597 818
www.petmin.co.za

Johannesburg
19 November 2015
JSE Sponsor and Corporate Adviser
River Group
Andrew Lianos +27 834 408 365




Date: 19/11/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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