Coal of Africa Reports Dismal Interim Results, but Confident About Turnaround Strategy

The Financial Mail reported that recent  interim results from Coal of Africa were disappointing, after the company has suffered through a strike, weak coal prices and asset impairments, yet remains confident about future prospects.

As quoted in the market report:

Revenue reflected both weaker coal prices and lower production after a strike at Mooiplaats, one of CoAL’s two thermal coal mines near Ermelo. Total production was 1,1Mt (2011: 1,2Mt) of export quality coal, in a period when benchmark prices for thermal coal averaged $87/t from $100/t in the preceding six months. Even benchmark coking coal, a premium-priced product used in metallurgy, is currently trading around $159/t from a peak of $354/t two years ago.

To view the whole Financial Mail report, click here.