TORONTO, ONTARIO — (Marketwire) — 10/15/12 — Forbes & Manhattan Coal Corp. (TSX: FMC)(JSE: FMC) is pleased to announce its financial results for the second quarter of fiscal 2013 (three month period ended August 31, 2012) All figures are in Canadian dollars unless specified.
Second Quarter 2013 Financial Highlights:
„I am again pleased to report that Forbes Coal continues to grow production, revenue, and profit. On the back of these strong set of results in a challenging coal market environment and with the recent announcement of the ZAC acquisition, we believe that the Company is going from strength to strength in terms of both performance and achieving its growth strategy“, commented Stephan Theron, President and Chief Executive Officer.
Operational Highlights
Strong operations continue to support the financial position of the Company, with continued increased production at both Magdalena and Aviemore. At Aviemore in particular, production levels indicate record run of mine (ROM) and saleable tonnes.
Operational highlights include:
ROM Production
Saleable Production and Sales
Full Financial Statements and the Management Discussion and Analysis Report will be available under the Forbes Coal profile at or at .
SUMMARIZED FINANCIAL RESULTS OF FORBES COAL DUNDEE
NON-IFRS PERFORMANCE MEASURES
The Company has included in this document certain non-IFRS performance measures that are detailed below. These non-IFRS performance measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company-s performance. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with IFRS. The definition for these performance measures and reconciliation of the non-IFRS measures to reported IFRS measures are as follows:
EBITDA – Forbes Coal Consolidated
EBITDA – Forbes Coal Dundee Stand Alone
About Forbes Coal
Forbes Coal is a growing coal producer in southern Africa. It holds a majority interest in two operating mines through its 100% interest in Forbes Coal (Pty) Ltd., a South African company („Forbes Coal Dundee“) which has a 70% interest in Zinoju Coal (Pty) Ltd. („Zinoju“). Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa (collectively, „the Forbes Coal Dundee Properties“). The mines have a substantial resource base and each mine has a projected life span in excess of 20 years. Forbes Coal is in the process of increasing production at both mines using existing infrastructure and capacity. The Company has in-place transportation infrastructure allowing its coal to reach both export corridors and the growing domestic coal market. Forbes Coal has a strong balance sheet and an experienced coal-focused management team.
Please refer to the Company-s NI 43-101 compliant technical report on the Forbes Coal Dundee Properties dated March 1, 2011 entitled „Technical Report on Slater Coal and Subsidiaries, KwaZulu-Natal Province, South Africa“, available on the SEDAR profile of the Company at . Additional information is available at .
Cautionary Notes:
Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a director of Minxcon and an independent Qualified Person, as defined in National Instrument 43-101 has reviewed and approved the scientific and technical information contained in this release.
The ability of the Company to increase production amounts has not been the subject of a feasibility study and there is no certainty that the proposed expansion will be economically feasible.
This press release contains „forward-looking information“ within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the anticipated production results with respect to the Forbes Coal Dundee Properties, future financial or operating performance of the Company and its projects, statements regarding the anticipated improvements in logistical support and anticipated improvements in sales, statements made with respect to prospects for the business of the Company, requirements for additional capital, government regulation of the mineral exploration industry, environmental risks, acquisition of mining licences, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as „plans“, „expects“ or „does not expect“, „is expected“, „budget“, „scheduled“, „estimates“, „forecasts“, „intends“, „anticipates“ or „does not anticipate“, or „believes“, or variations of such words and phrases or state that certain actions, events or results „may“, „could“, „would“, „might“ or „will be taken“, „occur“ or „be achieved“. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts: Forbes & Manhattan Coal Corp. Stephan Theron President and Chief Executive Officer +1 (416) 861-5912
Forbes & Manhattan Coal Corp. Samantha Thomson Investor Relations Manager +1 (416) 309-2957
