Forbes Coal Reports 23% Growth in Run of Mine Production for the First Quarter of Fiscal 2014 and Consecutive Record Production Months
SALES INCREASE 55% FOR THE FIRST QUARTER OF FISCAL 2014
TORONTO, ONTARIO -- (Marketwired) -- 06/12/13 -- Forbes & Manhattan Coal Corp. (TSX: FMC)(JSE: FMC) reports record first quarter production at its Magdalena bituminous and Aviemore anthracite mines (March 1, 2013 to May 31, 2013). Total run of mine production (ROM) for the first quarter of fiscal 2014 was 447,000 tonnes a 23% sequential increase over the 364,000 tonnes produced in the fourth quarter of fiscal 2013, and a 16% increase over the first quarter of fiscal 2013, with the combined operations achieving record production levels in each of April and May 2013. Total sales for the first quarter of fiscal 2014 was 261,000 tonnes a 55% sequential increase from the previous quarter of 168,000 tonnes and a 12% increase over the first quarter of fiscal 2013.
Production Highlights:
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Q1 2014 Q4 2013 Q1 2013
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Total Run of Mine Production 447,000 364,000 387,000
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Aviemore ROM Production 138,000 85,000 124,000
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Magdalena ROM production 309,000 278,000 262,000
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Total Saleable Production (including
bought in coal) 253,000 225,000 266,000
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Total Sales 261,000 168,000 234,000
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-- First quarter fiscal 2014 total ROM production of 447,000 tonnes is
equal to 32% of the total fiscal 2013 annual ROM production of 1,408,000
tonnes
-- Aviemore ROM production was 138,000 tonnes, a 62% increase over the
fourth quarter fiscal 2013 production of 85,000 tonnes. Record
production was achieved by Aviemore in each of April and May 2013
-- Magdalena underground ROM production was 227,000 tonnes for the first
quarter of 2014, a 16% increase over fourth quarter fiscal 2013
production of 196,000 tonnes. Record production was achieved by
Magdalena underground in each of April and May 2013.
-- First quarter fiscal 2014 saleable production was 253,000 tonnes, an 18%
increase over fourth quarter fiscal 2013 saleable production of 214,000
tonnes (excluding bought in coal in this quarter). No coal was bought in
during the first quarter of fiscal 2014
-- In the first quarter of fiscal 2014, Forbes Coal exported 142,000
tonnes, a 108% increase over the fourth quarter of 2013
President and Chief Executive Officer Stephan Theron commented, "We are very pleased with the record production numbers we have achieved this quarter and in particular with the consecutive record production months achieved by both Magdalena and Aviemore in April and May of this year. The Company has experienced a steady and consistent pace of growth in the last four months and we are tracking well against our annual production targets. The Company reported annual run of mine tonnage of 1,408,000 for fiscal 2013 on May 30, 2013. The first quarter run of mine production for the current fiscal year is 447,000 tonnes, which is just under a third or 32% of our total fiscal 2013 production number. A continued incremental increase in production each month is the focus for the remainder of the year. We've established great momentum."
Logistics
In the first quarter of fiscal 2014, the Company exported 142,000 tonnes, a 108% increase over the fourth quarter of fiscal 2013, with domestic sales of 119,000 tonnes, an 18% increase over the fourth quarter of fiscal 2013.
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 Forbes Coal Dundee Properties"). The mines have a substantial resource base and each mine has a projected life span in excess of 20 years.
Please refer to the Company's NI 43-101 compliant technical report on the Forbes Coal Dundee Properties dated March 6, 2013 entitled "Independent Qualified Persons' Report on Forbes Coal Dundee Operations in the 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.
Forbes Coal has a strong balance sheet and an experienced coal-focused management team and board of directors.
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 anticipated production results with respect to the Forbes Coal 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.
Samantha Thomson
Investor relations Manager
+1 (416) 309-2957
sthomson@forbescoal.com
www.forbescoal.com