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Johannesburg - Coal of Africa [JSE:CZA] (CoAL) on Friday reported a loss for the six months ended December 2012 of $111.7m‚ or 14.39 cents per share‚ compared with a loss of $74.7m or 13.36 cents per share for the prior corresponding period.
Revenue from the sale of coal for the six months totaled $87.3m compared to $125.8m for the comparative period due to lower coal prices and reduced production as a result of the strike action and subsequently‚ lower sales volumes.
The loss included non-cash charges of $98.3m‚ including an impairment loss of $50m‚ net foreign exchange losses of $21.6m which represent unrealised losses arising from the translation of inter-group loan balances‚ borrowings and cash due to change in therand-US dollar exchange rate‚
CEO John Wallington said: "The key development of this p eriod was the strategic partnership agreement signed with Beijing Haohua Energy Resource Company Limited( BHE) through the equity placement of $100m. The partnership with BHE has significantly strengthened the financial structure of the company which will aid in the development of CoAL´s projects. The exchange of technical and operational expertise will facilitate the growth and development of CoAL and the coking coal industry in South Africa."
For the period‚ the group reported 2 676 821 tonnes of run of mine coal and 1 050 045 tonnes of export quality coal produced during the six months.
It also reported a reduction in export coal sales to 636 264 tonnes from 863 893 tonnes due to the reduction in production volumes after the strike action that lasted for six weeks at the Mooiplaats Colliery‚ and the impact of tippler upgrades at the Matola Terminal in Maputo‚ Mozambique.
Sales of export quality coal on the domestic market during the six months decreased 13% to 341 685 tonnes.
Sales of middling coal increased 25.9% to 473 154 tonnes. A new one year supply agreement was concluded with Eskom for the supply of coal on improved terms.
Looking ahead‚ CoaAL said it is considerably better placed following the strategic investment by BHE however certain elements of the turnaround strategy remain work in progress. These include possible restructuring or sale of Mooiplaats colliery‚ Woestalleen colliery and related assets.
The company is also continuing discussions with various financial institutions to secure new short and long term debt facilities. In addition finalisation of the Vele coal product trials is required in order to complete the phase two capital programme.
