Forbes & Manhattan Coal Corp.
TSX : FMC
JSE : FMC

Forbes & Manhattan Coal Corp.

December 08, 2011 13:09 ET

Forbes Coal Delivers Solid Fiscal Third Quarter 2012 Production

Total Sales Increase 235% Year-Over-Year

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2011) - Forbes & Manhattan (Coal) Corp. (TSX:FMC)(JSE:FMC) ("Forbes Coal" or the "Company") reports that total saleable production at the Magdalena bituminous and Aviemore anthracite operations rose 13% sequentially in the fiscal third quarter of 2012 (September 1, 2011 to November 30, 2011), as compared to fiscal second quarter 2012.

Third quarter fiscal 2012 highlights include:

  • Aviemore ROM production was 78,100 tonnes, a 22% sequential increase over second quarter 2012 of 62,400 tonnes

  • Aviemore saleable production was 52,100 tonnes, a 33% sequential increase over second quarter 2012 production of 40,000 tonnes

  • Magdalena ROM production was 275,900 tonnes, a 7% sequential increase over second quarter 2012 production of 258,600 tonnes

  • Magdalena saleable production was 194,400 tonnes, an 8% sequential increase over second quarter 2012 production of 178,000 tonnes

  • Total sales were 320,200 tonnes, a 235% year-over-year increase compared to the 95,600 tonnes sold in the third quarter of 2011

  • Additional section on a single shift brought into production at Aviemore

"Production at Magdalena and Aviemore continues to increase on plan and Forbes Coal remains on track to achieve substantial run of mine and saleable numbers in fiscal 2012," commented President and Chief Executive Officer Stephan Theron. "Coal sales remain robust and the coal pricing environment remains strong. We have now completed the first phase of our capital expenditure program at Magdalena and three continuous miners are fully operational."

Production

An additional section on a single shift was brought into production at Aviemore in the third quarter of 2012, resulting in significant increases in ROM and saleable production. ROM production at Aviemore in the third quarter of 2012 was 78,100 tonnes, a 22% sequential increase over the 64,200 tonnes produced in the second quarter of 2012. Year-over-year ROM production at Aviemore increased 15% over the 68,000 tonnes produced in third quarter 2011.

Saleable production at Aviemore was 52,100 tonnes, a 33% sequential increase over the 40,000 tonnes produced in the second quarter of 2012. Year-over-year saleable production at Aviemore increased 22% over the 42,800 tonnes produced in the third quarter of 2011.

ROM production in the third quarter of 2012 was 275,900 tonnes, a 7% sequential increase over the 258,600 tonnes produced in the second quarter of 2012. Year-over-year ROM production at Magdalena increased 24% from the 222,200 tonnes produced in the third quarter of 2011.

Saleable production at Magdalena was 194,400 tonnes, an 8% sequential increase over the 178,800 tonnes produced in second quarter 2012. Year-over-year saleable production at Magdalena increased 34% over the 145,000 tonnes produced in the third quarter of 2011.

Total ROM production for the third quarter was 354,000, a 10% sequential increase over the 322,800 tonnes produced in the second quarter of 2012. Year-over-year total ROM production increased 22% over the 290,300 tonnes produced in the third quarter of 2011.

Total saleable production for the third quarter was 246,600, a 13% sequential increase over the 218,700 tonnes produced in the second quarter of 2012. Year-over-year total saleable production increased 31% over the 187,800 tonnes produced in the third quarter of 2011.

Sales

Total sales were 320,200, a 235% year-over-year increase compared to the 95,600 sold in third quarter 2011. The majority of the coal sold to local and overseas markets continues to be thermal coal and export sales continue to be great than domestic sales. Of the total coal sold, 60% was to the export markets. Domestic sales were 132,000 tonnes and export sales were 188,200 tonnes in the third quarter of 2012.

Logistics

In the third quarter of 2012, Forbes Coal dispatched a total of 119,600 tonnes to the Navitrade terminal at Richards Bay.

About Forbes Coal

Forbes Coal is a growing coal producer in southern Africa. It holds a majority interest in two operating mines through its 76.75% interest in Slater Coal (Pty) Ltd., a South African company ("Slater Coal") 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 Slater 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 and looks to triple production from 2010 levels in the next three years 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. Forbes Coal has a strong balance sheet and an experienced coal-focused management team.

Please refer to the Company's NI 43-101 compliant technical report on the Slater 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.

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.

Cautionary Notes

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 the anticipated production results with respect to the Slater 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.

Contact Information

  • Forbes & Manhattan Coal Corp.
    Stephan Theron
    President and Chief Executive Officer
    +1 (416) 861-5912
    stheron@forbescoal.com

    Forbes & Manhattan Coal Corp.
    Sabina Srubiski
    Investor Relations Manager
    +1 (416) 309-2957
    ssrubiski@forbescoal.com