Riversdale yesterday announced a net profit after tax for the first half of $A1.1 million, below Hartleys’ forecast of $3 million. Excluding one-offs, the result was up on the adjusted figure from the corresponding half of $0.4 million.
Hartleys analyst Andrew Rowell pointed to the strong cashflow generation from Riversdale’s Zululand Anthracite Colliery in South Africa and a looming steady flow of exploration results from the company’s Moatize exploration ground in Mozambique as working in Riversdale’s favour.
“We expect production at ZAC to increase in the June half, with the Dep E Block contributing for a full reporting period,” Rowell said.
“We expect Riversdale to benefit from a solid flow of exploration results from Mozambique and an increased production profile now that theDeep E Block is commissioned.”
Rowell said he was expecting results from the widely spaced program at Moatize by the end of the month, “with positive drill results likely to indicate the presence of a large mineralised zone”
Riversdale recently purchased two more drill rigs to go with the two already in place at Moatize, and the company says it is aiming to fast-track the development of the project.
Riversdale shares gained 1.5c to $1.97 on the back of the results yesterday, but had slipped back to $1.94 in morning trade.
