TORONTO, ONTARIO--(Marketwire - March 19, 2012) - Forbes & Manhattan Coal Corp. (TSX:FMC)(JSE:FMC) ("Forbes Coal" or the "Company") is pleased to announce its fiscal fourth quarter 2012 and fiscal year end production and sales results for its operations at the Slater coal properties in South Africa.
Forbes Coal has made significant progress increasing production since acquiring the Slater properties, as shown in the table below. Total run of mine production increased 38% year-over-year from 933,900 tonnes to 1,290,800 tonnes.
Sales have also grown dramatically as a result of a focused marketing strategy. Total sales tonnes increased 104% over fiscal 2011 from 529,200 tonnes to 1,081,800 tonnes. The growth in export sales is particularly noteworthy and directly related to the continued demand from Asian and Indian markets. The Company expects this trend to continue.
From a strategic perspective, the Company sees excellent upside potential at Aviemore and has initiated a scoping level study, with initial exploration drilling expected to begin in the first quarter of fiscal 2013.
"Forbes Coal has made major strides since we acquired the Slater Coal assets in July 2010. Our successful growth in fiscal 2012 is a result of the restructuring of the management team and capital expenditure investment made at the Magdalena and Aviemore operations," said Stephan Theron, President and Chief Executive Officer of Forbes Coal. "The Company set record fiscal production and sales numbers during the past year. We have had a strong start to fiscal 2013 from a production standpoint on the back of record production in February 2012, and are continuing to target 1.5 million saleable tonnes for the current fiscal year."
Fourth Quarter and Year End Production Highlights:
(December is an annual maintenance month at the Slater Coal properties and as a result a production suspension was scheduled)
Production (tonnes)
------------------------------------------------------------------
Fiscal Fiscal
Fourth Fourth 2012 2011
Quarter Quarter Year Year
2012 2011 End End
(Dec (Dec (Mar (Mar
2011 - 2010 - 2011 - 2010 -
Feb Feb % Feb Feb %
2012) 2011) change 2012) 2011) change
----------------------------------------------------------------------------
Magdalena
Run of
Mine 214,800 174,500 +23% 1,009,500 785,700 +28% ---------------------------------------------------------------------------- Aviemore
Run of
Mine 88,200 39,200 +125% 281,300 148,200 +90% ---------------------------------------------------------------------------- Total Run
of Mine 303,000 213,700 +42% 1,290,800 933,900 +38% ----------------------------------------------------------------------------
----------------------------------------------------------------------------
Magdalena
Saleable 171,300 135,800 +26% 748,000 556,000 +35% ---------------------------------------------------------------------------- Aviemore
Saleable 52,600 24,500 +115% 175,700 92,000 +91% ---------------------------------------------------------------------------- Total
Saleable 223,900 160,400 +40% 923,700 648,000 +43% ----------------------------------------------------------------------------
Sales (tonnes)
------------------------------------------------------------------
Fiscal Fiscal
Fourth Fourth 2012 2011
Quarter Quarter Year Year
2012 2011 End End
(Dec (Dec (Mar (Mar
2011 - 2010 - 2011 - 2010 -
Feb Feb % Feb Feb %
2012) 2011) change 2012) 2011) change
----------------------------------------------------------------------------
Export 107,300 95,100 +13% 578,000 207,200 +179% ---------------------------------------------------------------------------- Domestic 114,300 81,100 +41% 503,800 322,000 +56% ---------------------------------------------------------------------------- Total
Sales 221,600 176,200 +26% 1,081,800 529,200 +104% ----------------------------------------------------------------------------
About Forbes Coal
Forbes Coal is a growing coal producer in southern Africa. It holds a majority interest in two operating mines through its 100% interest in Slater Coal (Pty) Ltd., a South African company ("Slater Coal") which has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa (collectively, "the Slater Properties"). The mines have a substantial resource base and each mine has a projected life span in excess of 20 years. Forbes Coal is in the process of increasing production at both mines and looks to triple production from 2010 levels in the next three years using existing infrastructure and capacity. The Company has in-place transportation infrastructure allowing its coal to reach both export corridors and the growing domestic coal market. Forbes Coal has a strong balance sheet and an experienced coal-focused management team.
Please refer to the Company's NI 43-101 compliant technical report on the Slater Properties dated March 1, 2011 entitled "Technical Report on Slater Coal and Subsidiaries, KwaZulu-Natal Province, South Africa", available on the SEDAR profile of the Company at www.sedar.com. Additional information is available at www.forbescoal.com.
Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a director of Minxcon and an independent Qualified Person, as defined in National Instrument 43-101 has reviewed and approved the scientific and technical information contained in this release.
Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the anticipated production results at the Slater Properties, future financial or operating performance of the Company and its projects, statements regarding the prospects for the business of the Company, statements regarding foreign demand for coal, requirements for additional capital, government regulation of the mineral exploration industry, environmental risks, acquisition of mining licences, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Forbes & Manhattan Coal Corp.
Stephan Theron
President and Chief Executive Officer
+1 (416) 861-5912
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Forbes & Manhattan Coal Corp.
Sabina Srubiski
Investor Relations Manager
+1 (416) 309 2957
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www.forbescoal.com