The Australian-listed, Indonesia-focused company finished the second quarter with revenue of about $A2.2 million on 72,955 tons shipped.
But production costs weighed heavily, with the company reporting a net operating loss of $1.8m.
Orpheus said its production during the quarter was affected by ongoing bad weather. But monthly tonnage steadily increased and by the third week in July, over 27,000t had been shipped, boding well for production to increase month-on-month again from June’s 31,028t.
Orpheus fell just short of the 80,000t required by its sales contracts during the quarter, but said it would continue to work to meet the target and will not be penalized for late shipments.
One major problem the company faced during the quarter was access to loading slots.
“Competition for barge loading slots in South Kalimantan has been very aggressive over the course of 2013, as both producers and traders race to move their inventories and outbid each other to secure loading slots,” Orpheus said in its quarterly report Tuesday.
As it has previously advised, the company has a strategic objective to develop and acquire its own infrastructure facilities. It is currently in advanced discussions regarding port opportunities that will “facilitate Orpheus managing its entire coal chain from mine mouth to end buyer” and include port upgrades such as all-weather loading capability.
“lt is anticipated that this will become a key component of Orpheus's overall business, particularly as the current available margins on coal loading are superior to that of coal mining.”
As well as its operating projects in South Kalimantan, Orpheus has two other projects in Indonesia.
In East Kalimantan, a drilling program was launched in June at the company’s 3126ha B4 project with the aim of defining a potential JORC resource.
At Orpheus’s greenfields project in Papua, early stages of exploration have been undertaken which have identified three seams and numerous coal outcrops.
“The three expeditions to date have each found coal seam outcrops,” Orpheus said.
“These outcrops offer the potential for strike length extensions, as well as the potential for further as yet "hidden" coal seams in the sedimentary strata gaps between localities.”
Further exploration work will continue with another team commencing exploration in a previously unexplored tenement of the concession during Q3.
Orpheus has estimated cash outflow of $3.2m in the third quarter, most going to production costs.
Orpheus closed the quarter with total cash reserves of $1.5m.
