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Africa|Coal|Mining
Africa|Coal|Mining
africa|coal|mining

Buffalo's quarterly loss narrows

21st May 2021

By: Marleny Arnoldi

Deputy Editor Online

     

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TSX- and JSE-listed Buffalo Coal Corporation has posted a net loss of R60.1-million for the three months ended March 31, compared with a net loss of R106-million in the three months ended March 31, 2020.

The company reported a normalised headline loss a share of R0.14 apiece in the quarter under review.  

This compares with a normalised headline loss a share of R0.25 apiece posted in the prior corresponding quarter.

The company wholly owns the Buffalo Coal Dundee (BC Dundee) company, which has an interest in two operating coal mines in South Africa.

BC Dundee indirectly holds a 70% interest in the BC Dundee Properties through its 70% interest in Zinoju Coal Proprietary, which holds all of the mineral rights with respect to the BC Dundee Properties. The remaining 30% interest in Zinoju is held by South African black economic empowerment partners.

The BC Dundee Properties comprise the Aviemore anthracite mine and the Magdalena bituminous mine.

The company generated R4.4-million in the quarter from operating activities, while cash and cash equivalents at the end of the quarter amounted to R6.4-million.

During 2020, Buffalo had been able to make loan capital payments of R8-million to Investec and R5-million to STA Coal Mining Company.

The company continues to be in breach of certain covenants and agreed repayment terms with respect to its borrowings from Investec as at the end of March, with the outstanding balance being R56-million.

This while Buffalo owes STA R12.6-million – for which Buffalo has continued to make monthly interest payments in months where it was not able to make capital payments.

In addition to other loans, Buffalo’s shareholders’ deficiency amounts to R427-million, while its working capital deficiency is at R116-million.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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