Menafn.com website reports that South African thermal coal producer Continental Coal has achieved first production from Penumbra - the company's third operating - and its first underground - coal mine.
Penumbra is forecast to generate around R150.6m in revenue in 2013, which is forecast to rise to about R398.7m in 2014.
First saleable export thermal coal is expected to be produced this month (November) following processing of the run of mine (ROM) coal through the company's nearby Delta Processing Operations, with first sales slated for December 2012. Penumbra is forecast to produce 750,000 tonnes per annum of ROM coal over an initial 10 year mine life at forecast average total free on board (FOB) costs of 490 per tonne (May 2011 terms).
Don Turvey, Continental Coal CEO told Menafn.com that Penumbra will soon be making its first export thermal coal sales and generating its first cash flow. "It is set to be a long-life and low-cost operation which should generate significant and sustainable returns for shareholders," Turvey said.
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