BUFFALO Coal Corporation, a Johannesburg-listed miner of anthractite and bituminous coal from two mines in South Africa’s KwaZulu-Natal province, reported a more than doubling in its full-year net loss for the 2017 financial year of some R123.7m compared to a net loss of R45.5m previously.
The increase in losses was blamed partly on “significant non-cash items” which included an impairment loss of R175.6m related to plant and equipment. There were also foreign exchange gains in the previous financial year which didn’t occur in the 12 months ended December 31, 2017.
Production was also lower. At some 1.3 million tonnes (Mt), output was 14% lower than the 1.6Mt produced in the previous financial year. From a sales perspective, production was 794,000 tonnes compared to 893,000 tonnes – a decline of 11% year-on-year.
Commenting on prospects for the current financial year, the firm said it was looking for opportunities to expand. However, it was heavily indebted. Buffalo Coal has rolled debt over with South African bank Investec on several occasions with the latest deferral for June 29 this year. Just over R200m is owed to the bank by the coal producer.
