Fin24

CoAL revenue rockets

2011-09-19 09:56

Johannesburg - JSE-listed coal company Coal of Africa [JSE:CZA] (CoAL) grew its revenue 166 percent, according to its results for the financial year ended June 30, 2011, released on Monday.

"The company underwent a significant internal restructuring during FY2011 and has refocused the business into three core areas, namely exploration, development and mining," CEO John Wallington said in a statement.

Total revenue generated rose by 166% to R1.97bn.

Gross profit was 40% up year on year at R286m.

Wallington said the former junior explorer and development stage company was "implementing additional structures, processes and resources as the company gears up to become a significant developer and operator of large-scale mining projects and operations."

Work at its Vele coking coal project in Limpopo had resumed after the lifting of a regulatory hold imposed by the department of environmental affairs in August 2010.

However, its water use licence had been suspended after an appeal by a non-governmental coalition so work at Vele is limited to activities that do not require the use of water.

Wallington said the company had petitioned the minister of environmental affairs to lift the suspension.

Vele Colliery was expected to start production in the first half of 2012.

CoAL's second major coking coal project in Limpopo was Makhado. The company had applied for a new order mining right and was preparing for regulatory approval of the environmental management programme and the granting of a water use licence.

CoAL's other projects were the Mooiplaats and Woestalleen collieries which both produce thermal coal.