30th Sep 2014 15:16
LONDON (Alliance News) - Shares in Coal of Africa Ltd were trading lower Tuesday after the company said its loss narrowed in its last financial year, but it posted a significant fall in revenue.
The thermal and coking coal developer reported a pretax loss from continuing operations of USD63.5 million for the year ended June 30, compared with a USD65.1 million loss in the previous year, after it cut costs by putting its Mooiplaats Colliery on care and maintenance.
Revenue in the year from the rendering of services, excluding investment income, fell to USD761,000, down from USD1.0 million a year earlier. It said USD3.3 million in revenue was generated by the Mooiplaats colliery for the year, a significant reduction from last year's USD145.4 million, as a result of the operation being put on care and maintenance in October 2013.
It booked an impairment charge for Mooiplaats of USD14.9 million, down from USD48.5 million in fiscal 2013. Total non-cash charges were USD54.2 million, down from USD106.4 million a year earlier.
The company reported total investment income of USD1.7 million during the year, up from USD628,000 the prior year, and rental income of USD926,000.
In a statement last week, the company said it had signed a sale and purchase agreement for the disposal of the Mooiplaats Colliery in South Africa. It said it had signed the deal with a wholly-owned subsidiary of Blackspear Holdings Proprietary Ltd for the disposal of the colliery for a consideration of ZAR250 million.
The company's stock was down 8.1% at 3.31 pence Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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