Forbes Coal posts record exports

[] — TORONTO and JSE-listed Forbes & Manhattan Coal Corp (FMC) reported record export sales of 192,400 tonnes for the second quarter of its financial year, an increase of 110%, reflecting strong demand from export markets.

Releasing an operations update for the second quarter, the company said total Aviemore Run of Mine (ROM) production increased 26% when compared to the first quarter of 2012.

Total domestic sales in the second quarter were 147,400 tonnes, 49% higher than in the first quarter and total sales were 339,800 tonnes, 78% higher than the first quarter.

This quarter also marked the first time that total export sales were greater than total domestic sales and Forbes Coal expects this trend to continue.

“Our remarkable increase in export sales is a direct reflection of our ability to manage our throughput corridor and is supported by a strong demand for coal from the export markets,” said President and CEO Stephan Theron.

“We are also very pleased with the continued production improvements at the Aviemore anthracite mine, and steady production at Magdalena. The next phase of expansion at Magdalena is on track for third quarter 2012.”

Total saleable production in the second quarter was 218,800 tonnes, a 6% improvement when compared to the 207,200 tonnes of total saleable production in the first quarter.

In the second quarter, Forbes Coal dispatched a total of 160,200 tonnes to the Navitrade Terminal at Richards Bay. Of this, 97,700 tonnes were railed using 35 trains and 62,500 tonnes were trucked. A total of 167,500 tonnes were shipped via this terminal during the quarter, a 115% increase from the 78,000 shipped in first quarter of 2012.

The company also participated in its first cape size load from Navitrade. A cape size load is typically 120,000 to 140,000 tonnes.