The South Africa-focused producer reported a revenue of $A62.2 million for the year ended June 30 in its preliminary results released on Monday, compared to a revenue of $82.1 million during FY2012.
Increased ROM production and sales consistent with the prior period were unable to mitigate the external factors hitting the company’s revenue.
The Australia-based company reported a full-year net loss of $49.5 million compared to last year’s net loss of $49.9 million.
Cash at the end of the year dropped considerably in comparison, down 69% to only $4.5 million.
Total thermal coal sales of 1.8 million tons during the year consisted primarily of 1.3Mt of domestic thermal coal sales.
Export sales decreased 22% when compared to 2012 due to the company ceasing purchasing of third-party coal, as well as a slight decrease in production at its Ferreira mine.
Production at Ferreira decreased 19% year on year due to an initial delay in obtaining regulatory approval to expand the mine.
The mine is nearing the end of its life and reserves are expected to be depleted by November 2013.
Production from the Vlakvarkfontein mine increased 23% year on year and contributed 1.5Mt to total ROM production.
It marks Vlakvarkfontein’s third successive year of increased thermal coal production, thermal coal sales and earnings, with the mine forecast to deliver 1.3Mt during FY2014.
Continental’s Penumbra mine began production during the year, producing 143,299t by June 30.
The company said it was focusing on achieving the planned monthly production rate of 63,000t per month by October 2013.
The De Wittekrans project is in the development and feasibility stage with a mining right expected to be granted this quarter and optimization studies expected by the end of the year.
“We achieved our goals set for the 2013 financial year of increasing production and reducing our cost base,” Continental chief executive officer Don Turvey said.
“This trend is set to continue during 2014 with our Penumbra mine building up to its planned production.
“The results of the optimisation studies for the De Wittekrans project are encouraging and the planned phased development approach significantly reduces the development capital required to commencement of production.
“Obtaining the mining right for De Wittekrans in the current quarter will allow the board to review the planned development schedule.”
The company simultaneously announced on Monday that Jason Brewer had stepped down from the role as chief financial officer “to pursue other interests”.
Lou van Vuuren has been appointed to succeed him, effective today.
Brewer will remain on the board of Continental as a non-executive director.
“I would like to express our warm welcome to Lou as he joins the company at this exciting time,” Turvey commented.
“He comes with very strong credentials and will complement the existing Continental Coal executive team perfectly.
“On behalf of the board, I wish to express our sincere thanks to Jason for his commitment and contribution to the company over the past four years and wish him well in the future.”
