Preliminary Results for the year ended 28 February 2009
28 August 2009
SNR (AIM: SNRP) announces its Preliminary Results for the year ended 29 February 2009.
Highlights
- Earnings per share 2.74p, headline loss per share 0.62p (2008: 1.11p loss)
- Mining right granted over 9,200 hectares
- Blasting in preparation for commencement of mining and extraction of saleable coal
- Commencement of mine development in order to access primary underground shaft by 2010
- Application for prospecting rights over 119,000 ha of land adjacent to existing prospecting area submitted, increasing total area under Elitheni’s control to 190,000 ha.
- Confirmation of increase in Elitheni’s in-situ coal resource to 97.2 Mt.
- With 44.5 Mt of measured resource confirmed, Elitheni has negotiated a supply agreement with IPSA for its planned IPP development.
Comment from Richard Latham, Chairman
“As anticipated, Elitheni received its coal mining and extraction licence towards the end of the financial year under review. Having drilled only 1.3% of our licenced area and confirmed a measured resource capable of supplying more than just the first phase of the planned IPP, we are now moving to put in place sales to long term customers in order to underline the conversion of Elitheni from an exploration company to a producing mine-owner.
It is no small achievement that we have been able to move from obtaining a prospecting right to a mining right and turning first soil in 3 years (as opposed to the norm of 5 years), within the mineral regulations imposed on the South African mining industry. The key focus area for our next financial year will be to sweat the asset and realise revenue through steadily increasing production and sales.
We are not immune to the tightening of economic conditions from the end of 2008 until the present day and in particular the commencement of supply to our power generation base has been delayed in the context of Eskom having surplus power due to the turn down in the South African economy in conjunction with the global recession.
We are, however, excited about prospects for the coming year as SNR has been working hard to generate market penetration in terms of coal supply to local industry, which we believe can result in a cash positive situation for the operating company in 2010.
We will keep you as our valued shareholder abreast of these developments as they unfold and will remain committed to the realisation of a profitable return on your investment in SNR.”
For further information, please contact:
Strategic Natural Resources plc
David Nel, Chief Executive Officer
+27 (0) 41 374 0842
Jeremy Metcalfe, Communications Director
+44 (0)7785 346 718
Nominated Adviser and Joint Broker - Allenby Capital Limited
Nick Naylor / Alex Price / James Reeve
+44 (0) 20 3328 5656
Joint Broker - SP Angel Corporate Finance Limited
Emin Eyi / Tercel Moore
+44 (0) 207 647 9646
FTI Consulting
Ben Brewerton / Georgia Mann
+44 (0)207 831 3113