South Africa-based coal producer Coal of Africa (CoAL) has announced its financial results for the first half (ended December 31) of the financial year 2011-12, reporting a loss after tax of $74.7 million compared to a loss after tax of $66.5 million in the first half of the previous financial year.
For the given period, the revenues of CoAL improved by 62.9 percent year on year to $143.8 million, while the gross profit increased to $19.4 million from $2.2 million in the same period of the previous financial year.
According to Coal of Africa's statement, coal extraction at the Vele Colliery commenced in December 2011 with approximately 16,800 mt of run of mine coal mined by the end of February this year. The first coal sales from the mine are expected in the fourth quarter of the financial year 2011-12.
Coal of Africa CEO John Wallington said that the definitive feasibility study for the Makhado coking coal project has been completed and sent to South Africa-based mining company Exxaro Resources. Exxaro will decide whether to use its option to buy a 30 percent stake in the project bringing a welcome injection of funding.