ANTHRACITE coal and silica miner Petmin yesterday reported a 46% increase in headline earnings per share for the year to June despite difficult trading conditions caused by a slowdown in demand.
The JSE and AIM-listed mining company said that the growth in its headline earnings per share was achieved as a result of managing operational costs down and optimising revenues.
Revenue for the year rose 18% to R789m from R667m last year, and headline earnings per share rose to 22,29c compared with 15,31c. Net cash flow from operating activities increased 43% to R225m.
The company also spent R291m on capital projects, up from R229m in the same period last year. Of this amount, R187m was spent on exploration drilling and mine development programmes to expand existing operations, and R91m on plant and mining equipment.
“We are of the view that trading conditions will improve slowly in the year ahead and, while operations were appropriately scaled during the reporting period, they are well positioned to take advantage of any increase in demand,” said chief operating officer Bradley Doig.
With cash resources of R176m, undrawn bank facilities of R150m and low gearing, Petmin said it was well positioned for acquisitive growth.
About R85m of the cash in hand was received from the completion of its sale of the Springlake Colliery to Shanduka operations.
© 2009 Petmin Limited