As Champ said, most of what is contained in the Quarterly is old...

As Champ said, most of what is contained in the Quarterly is old news (esp. the combined announcements about Mashala, Cap Raisings, Pen, DeWitt BFS, Botswana drilling program, appointment of new operator on Ferr. [note: "The general standard of operation in the Northern Pit is considered significantly better than that of the former contractor" ... "(revised plans) forecast to result in a longer period of sustained production over the life of mine. Continued improvements are forecast throughout 2011 with increased productivity and a reduction in mine operating costs."], higher op costs for Dec 2010 Qtr at VlkVk, etc.

I liked this too, about VlkVk: "Negotiations with Eskom continued during the Quarter and a final offtake agreement to supply Eskoms power stations is expected to be completed in the current quarter."

"During the Quarter the Company completed financial settlement of the acquisition of Portion 3 and 13 of the Farm Vlakvarkfontein 213 IR. This farm is situated immediately east of the current box-cut and current mining operations. During the Quarter mining activities commenced on this farm and have progressed in an easterly direction from the box-cut."

"The finalisation of the acquisition of this farm will allow the Company to maintain production rates in line with the quarterly targeted rates of 300,000 tonnes and also produce a higher quality domestic coal product for sale to Eskom and the broader domestic market."

"With the Vlakvarkfontein Coal Mine now fully established and still in only its second full quarter of operations, during the Quarter management was focussed on optimisation of both the planned mining schedule over the remaining 10 year mine life, and improving coal qualities and optimising the sold coal product. For the March 31 Quarter, the Company is forecasting ROM coal production of 300,000 tonnes. Sales of 450,000 tonnes are forecast with stocks to be drawn from the existing ROM stockpile. "

Next quarter should be a standout for both VlkVk & Ferr. , now that all the creases seem to have been ironed out. I like the proactive nature of Conti - spotting inefficiencies & bad practices & fixing them straight away. Gives me a LOT more confidence that these guys are all business & no-nonsense managers. March Qtr 2011 sales for VlkVk projected to be 450,000 tonnes, at better margins, we are looking at approx. $2m - $3m free cash flow.

Ferreira: "Total export coal railed to Richards Bay Coal Terminal for the period 1 November to 31 December was 64,516 tonnes which was sold under contracts realising provisional average gross sales price of US$107.87/t. A further 29,783 tonnes of a lower domestic coal product were sold over the quarter under a long term contract with Eskom."

Mar Qtr Ferreira: export coal sales of 141,000 tonnes at total FOB costs of between US$70-80/t. = $4.2m at $30 margins - total free cash Mar. Qtr (excluding Ferr. dom. sales) + $2.5m VlkVk = approx. $6.5m (annualised = $26m - this should increase with higher prices likely to be received & the cost reductions mentioned in report with new mine operators, new strategies & achieving full "nameplate" production rates).

So, the best is yet to come.