It's hard to believe, but Universal becomes the third - largest pure play ASX listed coal producer (behind New Hope Coal and Whitehaven) when it starts its second South African mine.
Universal has secured a $55m debt package from Investec for its NCC mine, in the Witbank region, which also houses South 32's four coalmines. "We see it likely that NCC will be producing coal by the end of the calendar year, giving Universal two profitable long - life coal mines in South Africa," broker Patersons says.
Along with the producing Kangala mine, Universal will be producing six million tonnes of thermal product a year, supplying utility Eskom on a take - or - pay arrangement.
Not for the first time, Universal shares barely moved on good news. The stock remains a spec buy on expectations the June quarter will deliver EBIT of $7m - $8m compared with $6m in the March quarter.
UNV Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
