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Johannesburg - JSE-listed Petmin [JSE:PET] announced its interim results for the six months to the end of December 2013.
Petmin, a multi-commodity mining company, has reported headline earnings per share up 29%, despite operational and labour challenges and price pressures in a difficult market.
Normalised earnings were up 40%.
Petmin's profit and production were up despite operational challenges and a weak export market.
The company's stake increased to 30% in the North Atlantic Iron Corporation (NAIC).
Profit after tax was up 9% to R33m and headline earnings per share were up 29% to 6.71 cents.
Operational highlights include an 86% increase in metallurgical anthracite production to 534 523 tonnes, although anthracite sales were down 6% at 349 414 tonnes.
Ex-mine gate cost per tonne decreased from R770/t to R697/t.
During this period the company was granted a mining right for the Veremo pig iron project in Mpumalanga.
“We remain strongly cash generative despite difficult conditions,” said CEO Jan du Preez.
“Petmin’s Somkhele anthracite asset has increased production at a materially reduced cost, despite 37 days of industrial action that cost Petmin approximately R10m after tax.”
He said the expansion of its stake in NAIC to 30% indicates its confidence in this North American industrial venture, which is concluding its preliminary economic assessment and "moving rapidly up the value curve".
Petmin expects to invest up to a further $8m in NAIC, taking its interest to 40%.
This funding will be from Petmin’s own resources. No further capital will be required from Petmin.
NAIC will be expected to raise the capital required for further development.
Petmin is contemplating exchanging its 40% in NAIC for 40% of the shares in a Canadian company, which will own 100% of NAIC and will be listed on the TSX and JSE.
In this event, Petmin intends to unbundle these shares to its shareholders.
Petmin, a multi-commodity mining company, has reported headline earnings per share up 29%, despite operational and labour challenges and price pressures in a difficult market.
Normalised earnings were up 40%.
Petmin's profit and production were up despite operational challenges and a weak export market.
The company's stake increased to 30% in the North Atlantic Iron Corporation (NAIC).
Profit after tax was up 9% to R33m and headline earnings per share were up 29% to 6.71 cents.
Operational highlights include an 86% increase in metallurgical anthracite production to 534 523 tonnes, although anthracite sales were down 6% at 349 414 tonnes.
Ex-mine gate cost per tonne decreased from R770/t to R697/t.
During this period the company was granted a mining right for the Veremo pig iron project in Mpumalanga.
“We remain strongly cash generative despite difficult conditions,” said CEO Jan du Preez.
“Petmin’s Somkhele anthracite asset has increased production at a materially reduced cost, despite 37 days of industrial action that cost Petmin approximately R10m after tax.”
He said the expansion of its stake in NAIC to 30% indicates its confidence in this North American industrial venture, which is concluding its preliminary economic assessment and "moving rapidly up the value curve".
Petmin expects to invest up to a further $8m in NAIC, taking its interest to 40%.
This funding will be from Petmin’s own resources. No further capital will be required from Petmin.
NAIC will be expected to raise the capital required for further development.
Petmin is contemplating exchanging its 40% in NAIC for 40% of the shares in a Canadian company, which will own 100% of NAIC and will be listed on the TSX and JSE.
In this event, Petmin intends to unbundle these shares to its shareholders.
