All three of the company’s thermal coal mining operations in South Africa generated positive cash flow from operations.

Its Penumbra thermal coal mine reported ROM coal production of 52,876t, a 99% increase on the previous quarter.

Underground production increased steadily throughout the quarter, from 14,031t of total material mined (coal and sandstone) in January to 27,311t in February and 30,867t in March 2013.

Production increased as more pitrooms were developed in the bord and pillar underground operations and following the commissioning of the second Joy 14HM15 continuous miner in late February.

The Vlakvarkfontein coal mine produced 412,764t ROM for the quarter, 32% above the 313,495t ROM achieved in the previous quarter.

ROM production for the quarter exceeded the budget of 328,948t by 25%.

ROM production year-to-date of 1.1 million tonnes is 16% above budgeted production levels.

A total of 220,017t was produced from the no 4 seam and 192,748t from the no 2 seam.

Total waste of 775,540 bank cubic metres was moved by the open pit mining contractor during the quarter.

An average strip ratio of 1.9:1 was achieved for the quarter.

Activities during the quarter focused on expanding the faces to the north and south of the existing mine.

Total thermal coal sales during the quarter from the Vlakvarkfontein coal mine were 349,911t, in line with the previous quarter’s sales of 351,264t and 2% above budgeted sales.

ROM coal production at the Ferreira coal mine for the quarter totaled 165,917t, a 9% increase on the 152,280t in the previous quarter.

ROM coal production has increased quarter on quarter in the 2013 financial year.

ROM production year-to-date of 423,954t is 5% above budgeted production levels.

ROM production for the quarter exceeded budget of 138,450t by 20% or 27,467t.

Budgeted ROM production was exceeded despite ROM production in March 2013 being limited to 45,500t as a result of the availability of trains for transportation of export coal product to Richards Bay coal terminal.

Total material movement of 1,341,051bcm was moved by the open pit mining contractor during the quarter.

An average strip ratio of 7.8:1 was achieved for the quarter.

Year-to-date mining costs at the Ferreira coal mine averaged 273 rand ($US30.51) per tonne ROM (approximately 5% below budget).