Universal Coal has announced an increase in its operating earnings report before interest, tax, depreciation and amortisation (EBITDA) for the 2018 financial year, at A$72 million, due to its two fully operational collieries and a much-improved outlook for coal and pricing. The company currently has both the Kangala Colliery and the New Clydesdale Colliery at full production capacity.
Universal Coal achieved sales of 4.7 million tonnes per annum (Mtpa) for the current year compared to the 3Mtpa of sales in the prior year. The majority of the increase was driven by New Clydesdale Colliery’s first full year of nameplate production volumes. The colliery has a great exposure to export quality coal, allowing it to benefit from ‘exceptionally high’ export market prices.
Universal Coal’s CEO, Tony Weber said that the exceptionally strong financial and operational results for the year ending June 2018 prove that the company is a growth-orientated and cost-effective coal producer.
“We expect to build on this reputation by successfully extracting minimum value from our producing mines, executing projects that are currently under development, and integrating new operations that we are acquiring,” he explained.
The company expects to take effective ownership of the Eloff Mining Company (Pty) Ltd as well as the North Block Complex in the months to come.
“These transactions are well advanced and progressing to plan,” Mr Weber said.
Mr Weber also explained that the company has a focus on the most cost-efficient utilisation of its resources, without compromising safety or operational performance.
“Our results are enhanced by a proud fatality-free production year and with minimal disruptions due to reportable injuries on our respective operating sites. The safety of our workforce remains a constant work in progress and our greatest priority,” he said.
Universal Coal projects an approximate A$20 million of attributable capital and acquisition expenditure for FY2019. The company aims to become a 10Mtpa saleable tonne producer.
A full copy of the Preliminary Final Report can be found here.