THE contribution from recent acquisitions would more than double silica and coal miner Petmin’s reported headline earnings for the six months to December compared with last year, the company said yesterday.
Petmin also announced an increase in the proven reserves at its Somkhele anthracite project after completion of a drilling programme.
This has increased its total proven reserves for areas one and two of the project to 11,7million run-of-mine tons and its combined probable reserves to 17,9-million tons.
Proven reserves indicate a degree of certainty that the resource can be mined economically.
Somkhele’s proven reserves were sufficient for 12 years of production at full capacity of 950000 tons a year, management said.
Snowden Mining Industry Consultants, who reported on the reserves, said it had identified significant improvements in phosphorus in coal from the resource to 140 parts per million from 225 parts per million. High phosphorus in coal is negative because it reduces the efficiency of boilers and makes steel brittle.
Petmin said it expected to report an increase in headline earnings to about 2,34c a share for the six months to December from 1,12c a share previously.
Basic earnings a share would increase more slowly because they included negative goodwill on the acquisitions, it said.
The latest results would include a six-month contribution from silica producer SamQuarz against three months in 2004 and one month from Springlake Holdings, it said.
Petmin, together with black empowerment partners and with the assistance of the New Africa Mining Fund, acquired SamQuarz for R65m in March 2004.
It bought Springlake Holdings from the fund and minority shareholders for R108m in a deal approved by its shareholders in December.
© 2009 Petmin Limited