Continental Coal’s determination to reduce costs is delivering results with a 38% reduction in administration costs and other expenses by 68%.There has also been a 15% increase to 2.3Mt year on year in the total Run of Mine (“ROM”) production from the three operating mines in Southern Africa. Most notably, the Vlakvarkfontein mine production is up by 23% and has recorded free on truck (“FOT”) costs of R140 (US$14) per tonne, which was 6% below planned costs. The Ferreira mine has also exceeded expectations, producing at a yield of 70.4% during the year. “We achieved our goals set for the 2013 financial year of increasing production and reducing our cost base,” says Continental Chief Executive Officer, Mr Don Turvey. “This trend is set to continue during 2014 with our Penumbra mine building up to its planned production.” Development of the primary ventilation shaft at the Penumbra Coal Mine has allowed for a notable production increase at the mine. The company is focused on pushing the monthly production rate up to 63,000 tonnes per month by October 2013 and aims to deliver 600,000 ROM tonnes during the 2014 financial year at a FOB cost of R530 (US$53) tonne. At Continental’s proposed fourth mine development, the De Wittekrans project, optimization work has decreased the capital expenditure needed to begin production.
Continental welcomes new CFOContinental Coal has announced the appointment of Lou van Vuuren as Chief Financial Officer, who takes over from Executive Director Jason Brewer today. “I would like to express our warm welcome to Lou as he joins the Company at this exciting time,” says Turvey. “He comes with very strong credentials and will complement the existing Continental Coal executive team perfectly.” Brewer will remain on the board of Continental as a Non-Executive Director.