The company reported it sold 366,204 tonnes for the quarter, feeding 576,522t and achieving an overall yield of 73%.
The Kangala Colliery can now make permitted cash distributions to its shareholders in the form of shareholder loan repayments and/or dividend distributions – a big event for any junior.
However, revenues for the quarter were 8.3% lower than anticipated, mainly resulting from lower than anticipated domestic and export sales volumes, Universal said.
Significant developments were also made on the infrastructure front.
The box-cut at Kangala was completed, creating a northern and southern pit in the southern pit itself, with the southern pit now continuing as a roll-over operation, while the northern pit will continue to progress towards being in roll-over during the course of the quarter.
The second product stockpile facility was commissioned in November, which effectively doubled the product stockpile capacity of the mine, with 66,000t of product stockpiling capacity.
At Kangala, 60,629t remain on the run of mine (ROM) stockpile for processing and sale in the following quarter.
Universal also reported that “above average” inclement weather over November and December impacted “severely” on the ROM production targets for the quarter.
To this end, Universal and its mining contractor, Stefanutti Stocks Mining Services, have addressed the issue to increase mining capacity to improve this position in the short-term.
The December quarter was a particularly busy one for Universal, with surface rights applied and mining activities starting at its Roodekop mine with no outstanding regulatory approvals in sight.
Brakfontein, meanwhile, is shaping up as the company’s third mine within three years, with a maiden proven reserve of 9.62Mt and a pre-feasibility study underway.
The $17.9 million (R170 million) New Clydesdale Colliery acquisition is also progressing according to schedule, with the acquisition price fully guaranteed by Rand Merchant Bank, a division of FirstRand Bank.
Universal is also progressing negotiations for off-take of domestic and export coal coupled with a debt financing arrangement with local banking institutions.
On the downside, domestic product sales were below budget due largely to under-offtake by Eskom at its designated power stations over the December holiday period.
“A catch-up plan for coal under off-take experienced in this quarter (Q2 2014-15) is being addressed with Eskom, as stipulated in the Eskom off-take agreement, to allow for the recovery of lost sales tonnages,” Universal said.
Export sales build up progressed during the quarter, with three trains shipped instead of the budgeted four. The shortfall will be made up during the next quarter, given the current train scheduling.
