TORONTO, ONTARIO--(Marketwire - March 8, 2013) - Forbes & Manhattan Coal Corp. (TSX:FMC)(JSE:FMC) reports strong fourth quarter production at its Magdalena bituminous and Aviemore anthracite mines (December 1, 2012 to February 28, 2013). Total run of mine production (ROM) for the fourth quarter of 2013 was 363,000 tonnes, a 48% increase over the 246,000 tonnes produced in the third quarter of 2013 and a 20% increase over the fourth quarter of 2012. Total saleable production for the fourth quarter of 2013 was 213,000 tonnes (excluding bought in tonnes), a 40% increase from the previous quarter of 152,000 tonnes and an 8% increase over the fourth quarter of 2012.
February 2013 monthly production achieved a record ROM tonnage of 151,000 tonnes, a significant achievement over the 117,000 tonne monthly average of the last 12 months.
|Total ROM Production
|Magdalena ROM production
|Aviemore ROM Production
|Total Saleable Production (including bought in tonnes)
- Aviemore ROM production was 85,000 tonnes, a 39% increase over third quarter 2013 production of 61,000 tonnes
- Aviemore saleable production was 57,000 tonnes, a 43% increase over third quarter 2013 production of 40,000 tonnes
- Magdalena ROM production was 278,000 tonnes, a 51% increase over third quarter 2013 production of 184,000 tonnes
- Magdalena saleable production was 156,000 tonnes, a 39% increase over third quarter 2013 production of 112,000 tonnes
- In addition, Forbes Coal bought in 17,000 tonnes resulting in 230,000 total saleable tonnes for the fourth quarter 2013 and a 30% increase over the third quarter 2013
The increased production rates at Aviemore and Magdalena have enabled both mines to build up healthy stocks of ROM and saleable product. This in turn has resulted in more efficient and optimal use of washing plant capacity.
"We have resumed a healthy pace of production and our fourth quarter results reflect the consistent growth the company has achieved up to the third quarter, where production was lost as a result of a four and a half week labour disruption. The company has made a strong recovery from the third quarter, and with a record February in ROM production, we are starting the 2014 fiscal year in a strong position. Forbes Coal remains focused on diligent operational efficiency," commented President and Chief Executive Officer Stephan Theron.
In the fourth quarter of 2013, the Company exported 70,000 tonnes, with domestic sales of 100,000 tonnes.
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. Forbes Coal is in the process of increasing production at both mines using existing infrastructure and capacity. The Company has in-place transportation infrastructure allowing its coal to reach both export corridors and the growing domestic coal market.
Please refer to the Company's NI 43-101 compliant technical report on the Forbes Coal Dundee Properties dated March 1, 2011 entitled "Technical Report on Slater Coal and Subsidiaries, 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.
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 forwardlooking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.