keaton energy holdings limited - results for the year … · 2016. 11. 25. · results, plans and...

WWW.KEATONENERGY.CO.ZA

RESULTS FOR THE YEAR ENDED31 MARCH 2013

Wednesday 12 June 201310h00

1

DAVID SALTER

2

CHAIRMAN

MANDI GLAD

3

CHIEF EXECUTIVE OFFICER


LOCATION

4

OPERATIONS AND PROJECTS

WWW.KEATONENERGY.CO.ZA 5

HIGHLIGHTS

Record Safety Performances» Vanggatfontein LTIFR ZERO» Vaalkrantz LTIFR 0.36

58% increase inEskom sales to

1.5Mt

R42 million paiddown on NedbankProject Finance

facility

Studies on developmentprojects advanced

Pit 3 developedfrom

operationalcash flows

HEPS down from9.5 cps to 30.2 cps

94% increase ingroup revenue toR919 million

R11m gross profitin second half

of FY13 comparedwith a gross

loss of R38m infirst half

25% reserve increase atVanggatfontein to 45Mt


A YEAR

2HFY13» Gross profit of R11 million» Increased ROM production» Cost containment» Plant optimisation» First 5 seam from Pit 3» Toll washing commenced1HFY13» Gross loss of R38 million» Poor performance of mining

contractor» Challenging geological conditions» Transport workers strike» Poor plant performance

6

OF TWO HALVES

15%

10%

5%

0%

5%

10%

15%

600.0

400.0

200.0

200.0

400.0

600.0

1HFY13 2HFY13

9%

2%

Revenu

e(Rm)

GP%


VANGGATFONTEIN LTIFR* VAALKRANTZ LTIFR

7

0.00

0.38

0.20

0.00

1HFY12 2HFY12 1HFY13 2HFY13

0.44 0.45 0.45

0.36


FATALITY FREE SINCE INCEPTION

» Fatality Free Man Hours 14 645 394» Fatality Free Shifts 1 627 266

» Fatality Free Production Shifts 2 974

» Fatality Free Man Hours 63 741 555» Fatality Free Shifts 7 082 395» Fatality Free Production Shifts 5 773

SAFETY

* LTIFR per 200kt man hours


VANGGATFONTEIN VAALKRANTZ

8

OPERATIONS

FY13 FY12Sales (t) +42% 1 575 342 1 109 483

ROM (t) produced +29% 2 785 835 2 151 853

Waste (m³) moved +32% 9 651 871 7 293 945

Reserve (Mt) +25% 45.0 35.9

Remaining Life ofMine (years) +30% 13+ 10+

Capex (Rm) 19% 210 258

No. of employees 40% 416 692

LTIFR 100% 0.00 0.38

FY13 FY12Sales (t) 9% 318 934 351 331

ROM (t) produced 2% 551 101 559 725

Reserve (Mt) +6% 2. 2 2.08

Remaining Life ofMine (years) +3% 3.6 3.5

Capex (Rm) 62% 6.3 16.6

No. of employees +8% 778 723

LTIFR 20% 0.36 0.45

GROWTH

9


RESERVE

10

AND RESOURCE GROWTH

ROM COAL RESERVE COAL RESOURCE

PROJECT Mt (MTIS) Mt

Vanggatfontein Colliery +25% 45.0 +20% 70.3

Vaalkrantz Colliery +6% 2.2 1% 17.8

Koudelager Project 0% 0.0 +1% 11.9

Braakfontein Project +5% 24.4 0% 69.2

Sterkfontein Project +100% 23.6 +32% 90.8

TOTAL +55% 95.2 +15% 260.0


PRIMARY

» Koudelager Anthracite (Vryheid)Vaalkrantz replacement project, 20kmeast of Vaalkrantz11.9Mt coal resourceMine planned to commence Q4FY14

» Braakfontein Thermal Project (Newcastle)Positive scoping study completed May2013Opencast & underground operation on69.2Mt resource, 24.4Mt reserveFinal phase of feasibility andgeotechnical drilling to commence inJuly 2013

» Sterkfontein Thermal Project (Bethal)Scoping study completed in May 201390.8Mt resource, 23.6Mt reserveOptions analysis underway

11

INTERNAL GROWTH PROJECTS


» 16 opportunities identified» 13 through screening process» 10 examined in detail» 5 foundered on price and/or technical» 4 on going

» 1 successfully concluded

» Mooiklip Anthracite (Vryheid)Estimated 4.5 Mt Dundas seam coalresource potential 30 km north eastof Vaalkrantz CollierySimilar qualities to VaalkrantzDrilling to commence inAugust 2013

12

ACQUISITIONS

JACQUES ROSSOUW

13

CHIEF FINANCIAL OFFICER


FINANCIAL

14

PERFORMANCE

Extracts fromStatement of Comprehensive Income FY 2013 FY 2012** %Revenue 918.8 474.4 94Cost of Sales (946.1) (459.8) >100

* Cash cost (704.9) (329.3) >100* Depreciation (227.1) (122.9) 85* Inventory (14.1) (7.6) 86

Gross (loss)/profit (27.3) 14.6 >100Mining and related expenses (70.5) (10.4) >100Admin and other operating cost (54.7) (26.5) >100Results from operations (139.4) 4.9 >100Gain on business combination 114.4 100Net finance costs (32.2) (13.4) >100Income tax 39.3 6.2 >100Owners’ comprehensive income (84.5) 132.0 >100EPS (cents per share) (44.2) 75.2 >100HEPS (cents per share) (30.2) 9.5 >100

* From operational results ** Re presented


FINANCIAL

15

PERFORMANCE

GROSS PROFIT

10%

5%

0%

5%

10%

15%

200

100

0

100

200

300

400

500


5 – seam 8%Eskom 66%Anthracite 26%


5 – seam 60%Eskom 40%


Revenue 117.7 356.7 417.3 501.5Cost of Sales (95.4) (364.4) (455.2) (490.9)

Cash cost (60.8) (268.5) (295.1) (409.8)Depreciation (33.0) (89.9) (115.3) (111.8)Inventory (1.6) (6.0) (44.8) 30.7

Gross profit/(loss) 22.3 (7.7) (37.9) 10.6

Revenu

e(Rm)

GP%

RevenueContribution

19%

2%

9%

2%


FINANCIAL

EBITDA FY13*

16

5%

7%

9%

11%

13%

15%

17%

19%

21%

23%

25%

0

50

100

150

200

250

300

350

400

450

500

550

1HFY13 2HFY13

PERFORMANCE

*EBITDA excluding loss on de recognition of asset

Revenu

e(Rm)

EBITDA

%

11%

19%


FINANCIAL

17

PERFORMANCE

30.0

20.0

10.0

10.0

20.0

FY08 FY09 FY10 FY11 FY12 FY13

HEADLINE EARNINGS PER SHARE (CPS)

50.0

30.0

10.0

10.0

30.0

50.0

70.0

FY08 FY09 FY10 FY11 FY12 FY13

BASIC EARNINGS PER SHARE (CPS)


FINANCIAL

18

PERFORMANCE

» GROUP NET DEBT

265192

9

10 2

210

7

237

300

250

200

150

100

50

Net debt 1 April2012

Net cash fromoperations

Foreign exchangelosses

Tax Capital additions Other netinvesting activities

Equity raised Net debt 31March 2013

Net debt1 April 2012

Net debt31 March 2013

Net debt1 April 2012

Net cash fromoperations

Foreignexchangelosses

Tax Capitaladditions

Other netinvestingactivities

Equity raised Net debt31 March 2013

MANDI GLAD

19

CHIEF EXECUTIVE OFFICER


LOOKING

» Pursue long term strategy ofproducing 5Mtpa

» Advance internal pipeline of projects

» Maintain acquisition drive

» Create greater flexibility

» Product mix diversification

» Grow investor interest

20

AHEAD


SO

» Record group performance to date in FY14

SalesAverage FY13 158ktApril 2013 224ktMay 2013 249ktPlant throughputAverage FY13 278ktApril 2013 350ktMay 2013 391kt

» Unit cost reduction» Build cash reserves» Strive towards paying dividends

21

ARE WE ON TRACK?


DISCLAIMER

Opinions expressed herein are by nature subjective to known and unknown risksand uncertainties. Changing information or circumstances may cause the actualresults, plans and objectives of Keaton Energy Holdings Ltd (the “Company”) todiffer materially from those expressed or implied in the forward lookingstatements. Financial forecasts and data given herein are estimates based on thereports prepared by experts who in turn relied on management estimates.Undue reliance should not be placed on such opinions, forecasts or data. Norepresentation is made as to the completeness or correctness of the opinions,forecasts or data contained herein. Neither the Company, nor any of its affiliates,advisors or representatives accepts any responsibility for any loss arising from theuse of any opinion expressed or forecast or data herein. Forward lookingstatements apply only as of the date on which they are made and the Companydoes not undertake any obligation to publicly update or revise any of its opinionsor forward looking statements whether to reflect new data or future events orcircumstances.

22


DISCLAIMER

Opinions expressed herein are by nature subjective to known and unknown risksand uncertainties. Changing information or circumstances may cause the actualresults, plans and objectives of Keaton Energy Holdings Ltd (the “Company”) todiffer materially from those expressed or implied in the forward lookingstatements. Financial forecasts and data given herein are estimates based on thereports prepared by experts who in turn relied on management estimates.Undue reliance should not be placed on such opinions, forecasts or data. Norepresentation is made as to the completeness or correctness of the opinions,forecasts or data contained herein. Neither the Company, nor any of its affiliates,advisors or representatives accepts any responsibility for any loss arising from theuse of any opinion expressed or forecast or data herein. Forward lookingstatements apply only as of the date on which they are made and the Companydoes not undertake any obligation to publicly update or revise any of its opinionsor forward looking statements whether to reflect new data or future events orcircumstances.

22

NOTES

keaton energy holdings limited - results for the year … · 2016. 11. 25. · results, plans and...

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