Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – JSE-listed diversified miner Petmin said on Monday that, following a strong operational performance at the Somkhele coal mine – with revenue in excess of R1-billion for the first time and anthracite production exceeding one-million tons – it expected group headline earnings for the year ended June 30 to be maintained at around 15c a share and normalised earnings to increase 24% year-on-year.
Despite softer export pricing, Somkhele operated at full capacity during the second half of the year and had firm sales for all products to June and beyond.
Petmin said in a trading statement that headline earnings would include a mark-to-market loss of R14-million on Petmin's investment in Turkey-focused junior Red Crescent Resources.
The loss a share for the financial year was expected to increase 7% to 20.7c as a result of the impairment of the group’s investment in early iron developer Veremo Holdings of R181-million and the impairment of Iron Bird Resources of R19-million.
“Petmin continues to seek ways to optimise value in Veremo and is pursuing its claim for the dividend of R130-million, now due and payable,” it stated.
Meanwhile, the development of North Atlantic Iron Corporation (NAIC) remained firmly on track, as did the process leading up to the listing of NAIC and the unbundling of Petmin's shareholding in NAIC to shareholders.
The company would release it results on September 11.