Optimum Coal Quarterly Operational Update as at 30 September 2010
Friday, October 15th, 2010
Optimum Coal, a leading South African coal mining and exploration group, listed on the JSE Limited, wishes to inform shareholders and update the market on operational performance at Optimum Collieries and Koornfontein Mines. Optimum Coal owns 100% of Optimum Collieries and Koornfontein Mines respectively.
Optimum Coal produced 4.597 million tons of run-of-mine (“ROM”) coal during the first quarter of FY2011, in line with forecasts of 17.9 – 19.1 million tons of ROM for the full year.
Of this, 1.96 million tons of export/high quality domestic coal was produced, slightly ahead of full year production targets of between 7.2 and 7.8 million tons.
Additionally, 1.625 million tons of Eskom/lower quality domestic coal was produced in line with full year production forecasts of 6.7 million tons.
Table 1 – Salient Production Features at Optimum Collieries and Koornfontein Mines for the 3 month period 1 July 2010 to 30 September 2010.
Units, Optimum Collieries, Koornfontein Mines
ROM production t`000 3,756 841
Eskom/lower quality domestic saleable t`000 1,316 309
Export/high quality domestic saleable t`000 1,416 544
Chief Executive Officer Mike Teke said: “We are pleased with our operating results for the first quarter of FY2011. We have gained significant momentum during this quarter with total ROM production having increased by 10.2% and total saleable production increased by 14.1% from the last quarter of FY2010 ending 30 June 2010. Optimum Collieries delivered at targeted production rates whilst Koornfontein Mines delivered at production rates ahead of its Q1, FY2011 targets. In anticipation of the imminent rainy season, we have spent a significant amount of time and capital on water management initiatives at our opencast operations. We remain confident of achieving our FY2011 production targets.”
Optimum Coal will announce its 2011 interim results on Wednesday 23 February 2011.