Uitkomst Colliery produced 225,389 tonnes of run of mine coal

Uitkomst Colliery, Utrecht, KwaZulu-Natal (84% owned), produced 225,389 tonnes (t) (H1 FY2022: 217,228t) of run of mine (ROM) coal during the period and the colliery had 27,058t (H1 FY2022: 10,803t; FY2022: 15,534t) of saleable product at site at the end of the period with a further 36,764t at port (H1 FY2022: nil t; FY2022: 22,169t).

Uitkomst sells an up to 40mm (duff) product into the metallurgical domestic market for use as pulverised coal. The colliery also sells unsized thermal coal into the export coal market via the Coal Sales and Marketing Agreement (Marketing Agreement) with Overlooked Collieries (Pty) Ltd (Overlooked).

Uitkomst supplies sized coal (peas) products to local energy generation facilities and also sells smaller volumes of a high-ash, coarse discard coal (middlings) product. The initial Marketing Agreement with Overlooked was signed in July 2022 and was due to expire on 31 December 2022 and has been extended for a further six months to June 2023.

Uitkomst sold 104,855t of coal during the six months consisting of 98,924t of high-grade peas and duff, with 71,955t exported (H1 FY2022: nil t) and the balance sold domestically. The exported volumes are 5,352t lower than previously reported following the subsequent receipt of an updated third-party confirmation. The colliery also sold 5,931 tonnes of lower grade middlings coal (H1 FY2022: 11,655t).

Despite the challenging geological conditions and increased incidence of electricity outages due to lack of supply from Eskom, the state power utility, Uitkomst generated pleasing results for the period with revenue of $14.0 million (H1 FY2022: $13.0 million) yielding a gross profit of $3.9 million (H1 FY2022: $2.1 million).

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