Tuesday, February 24, 2009

Riversdale Mining Limited

HALF YEAR RESULTS TO 31 DECEMBER 2008
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Financial result for the half year
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Net profit after tax of $80,000 (2007: $83.3 million including one-off sale of investment)
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Cash from operations of $18.4 million (2007: $3.3 million)
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Cash on hand of $326.1 million (Jun08: $347.8 million)
Riversdale Mining Limited (ASX: RIV) reported a net profit after tax and minority interest for the half year to 31 December 2008 amounting to $80,000 (2007: $83.3 million). In the previous half year consideration for the disposal of 35% of the entities holding key exploration tenements resulted in a net gain on sale of investment of $83.3 million.
The Company recorded a strong operating cash flow of $18.4 million. (2007: $3.3 million) from its principal producing assets in South Africa, the Zululand Anthracite Colliery (ZAC). ZAC operating profit before interest, income tax and minority interests in the current half year increased to $10.6 million, compared with $4.1 million in 2007. However, net profit was affected by increased share option costs of $8.3 million and a higher tax charge.
At ZAC mining for the half year was conducted in the Kwa-Sheleza, Outcrop and Deep E Blocks using conventional and continuous mining methods. The Run of Mine (ROM) increased 16,406 to 432,528 tonnes and saleable production was consistent with the last half year.
The Company is in a sound cash position, with cash on hand of $326.1 million at the end of December 2008, compared to $347.8 million at 30 June 2008. Funds are placed on deposit in accordance with the Board-approved policy with AA-rated Australian and international banks.
Overall sales increased by 14,836 to 318,083 tonnes compared to the previous half year. As elsewhere in the coal sector in South Africa, domestic customers for anthracite deferred receipt of some shipments during the December quarter and overall exports were affected by poor rail performance. The domestic coal market in South Africa is expected to be soft for most of 2009. The ZAC operation is monitoring closely the market demand for product and developing opportunities for supply into export markets.
Significant progress was recorded at the Company’s project in Mozambique, and Riversdale Mining expects to update shareholders during the current quarter on key developments as it moves towards production targets for 2010.

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