Continental continues to operate its two thermal coal mines in...

Continental continues to operate its two thermal coal mines in South Africa and both are forecast to achieve record production, sales and turnover for the Company for the 2011/12 financial year.

... The Ferreira Coal Mine operations are forecast to continue to sustain the Delta Processing Operations at positive cash margins.

Surprised that no one apart from Kenton has commented on the update released this morning - it confirms what I discussed last night, regarding the viability/profitability of the Ferreira-Delta operations. The update confirms that mines and Delta are still producing coal, at record levels & profitably. The bought in coal prices should be pegged to international prices, so the margins from this coal should still be robust, using the SRK CPR as a guide.

No-one noticed the divestment reference either:

Updates in relation to exploration activities in Botswana, the sale of the VanMag project and other non-core assets, the joint venture with KORES at the Vlakplaats Coal Project, the joint exploration at the Vaalbank Coal Project with Total Coal SA, optimisation studies of the De Wittekrans Coal Project Feasibility Study and detailed operational and development updates on the Vlakvarkfontein and Ferreira Coal Mines and Delta Processing Operations and the Penumbra Coal Mine will be made shortly.