Forbes Coal Reports Second Quarter 2013 Production Results With Total Sales Increasing 21% Over First Quarter
TORONTO, ONTARIO -- (Marketwire) -- 09/17/12 -- Forbes & Manhattan Coal Corp. (TSX: FMC)(JSE: FMC) ("Forbes Coal" or the "Company") is pleased to report production and sales levels for its Magdalena bituminous and Aviemore anthracite operations for the second quarter of 2013 which runs from June 1st, 2012 to August 31st, 2012.
Second Quarter highlights include:
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Q2 2013 Q1 2013 %
(tonnes) (tonnes) Change
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Total Run of Mine Production 414,551 387,075 + 7%
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Magdalena U/G ROM Production 200,101 167,394 + 20%
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Aviemore U/G ROM Production 130,601 124,659 + 5%
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Total Saleable Production 256,583 244,605 + 5%
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Total Sales 284,196 234,997 + 21%
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President and CEO Stephan Theron commented on the recent quarter's production "In the second quarter we continue to see consistent increases in overall production that demonstrate the operations at Magdalena and Aviemore are performing well and continue to deliver on the Company's growth strategy."
Production
Forbes Coal generated total run of mine (ROM) production for the second quarter of 2013 of 414,551 tonnes, which was a 7% increase compared to the 387,075 tonnes produced in the first quarter of 2013. Total saleable production in the second quarter was 256,583 tonnes, a 5% increase compared to 244,605 saleable tonnes in the first quarter. In addition, Forbes Coal bought in 34,871 tonnes in the second quarter and 21,873 tonnes in the first quarter of 2013, resulting in total saleable tonnes of 291,454 for the first quarter, a 9% increase from 266,478 total saleable tonnes in the first quarter.
ROM production at Magdalena continued to increase with a total of 283,950 bituminous tonnes produced. This included a 20% increase from the prior quarter in underground production with 200,101 tonnes produced in the second quarter of 2013. Opencast production contributed 83,849 tonnes to total bituminous production.
ROM production at Aviemore in the second quarter of 2013 was 130,601 tonnes, an increase of 5% compared to the 124,659 tonnes produced in the first quarter of 2013.
Sales
Total sales were 284,196 tonnes in the second quarter of 2013 which represents a 21% quarter over quarter increase, and comprised 231,802 bituminous tonnes and 52,394 anthracite tonnes.
In terms of domestic versus export sales, the Company exported 178,489 tonnes during the second quarter, representing a significant 54% quarter over quarter increase in export sales. This was primarily as a result of a 92% increase in tonnes shipped through Forbes Coal's export allocation at the Navitrade Dry Bulk Terminal. Domestic sales were down by 12% in the second quarter with 105,707 tonnes sold.
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 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 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. Forbes Coal has a strong balance sheet and an experienced coal-focused management team.
Please refer to the Company's NI 43-101 compliant technical report on the 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.
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 the anticipated production results with respect to the 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 forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts:
Forbes & Manhattan Coal Corp.
Stephan Theron
President and Chief Executive Officer
+1 (416) 861-5912
stheron@forbescoal.com
Forbes & Manhattan Coal Corp.
Colinda Parent
VP Corporate Development
+1 (416) 861-5811
cparent@forbesmanhattan.com
www.forbescoal.com