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Riversdale Mining well placed for growth August 18, 2009 Posted by Fortbridge in Energy, Mining. Tags: annual report, riversdale trackback
Riversdale Mining Limited (ASX: RIV) today announced a net profit after tax and minorities for FY2009 of $300,000 (2008: $92.4 million) equating to basic earnings per share of 0.16 cents (2008: 54.5 cents).
HIGHLIGHTS:
• Net profit after tax of $300,000 • Major project milestones achieved in Mozambique • Strong operational performance at ZAC • Operating cashflow $19 million • Net assets of $507 million • Cash on hand of $290 million • Significant investment in plant and exploration continues
The profit was down on the previous year which included $83.3 million profit relating to the sale of part of 2 licences in Mozambique to Tata Steel Limited. The FY2009 net profit was also affected by increased share option costs of $7.8 million and higher tax charges.
During the reporting period, Riversdale Mining has achieved significant milestones at the world-class Benga Coal Project, including the awarding of the Mining Contract, completion of a Feasibility Study and the receipt of the Mining Concession for an initial term of 25 years, renewable.
In South Africa, the Zululand Anthracite Colliery (ZAC) increased its operating profit before interest, income tax and minority interests in FY2009 to $17.7 million (2008: $9.1 million). The prior year results included once off consulting services related to the ZAC business improvement process of $4.8 million. In a challenging coal market, reduced sales volumes during the current year were offset by higher sales prices and operating efficiencies.
Group operating cash flow for the year of $19.3 million was higher than the previous year’s $16.5 million, and the company continued to invest in developing the business with $48.8 million spent on plant and equipment and $30.6 million on exploration activities.
The financial position at year end was strong, with net assets totalling $506.7 million (2008: $484.2 million) and $290.3 million in cash available.
The directors have decided not to declare a dividend for the year.
Commenting on the results, Executive Chairman Mr Michael O’Keeffe said: “Riversdale Mining is positioned for significant growth. The company has $290.3 million cash and we are progressing the Benga Coal Project in Mozambique and Ngwabe developments at ZAC. There have been a number of important milestones achieved during the year as the Benga Coal Project moves towards production, in anticipation of a recovery in global coal markets.”
RIV Price at posting:
$6.10 Sentiment: LT Buy Disclosure: Held
