31st Oct 2013 09:49
LONDON (Alliance News) - Coal of Africa Ltd Thursday said it managed to cut the amount of cash it is bleeding in the third quarter as it cut costs and closed and sold assets as part of a turnaround plan.
In a trading update, the company said its cash outflow in the third quarter was USD8.1 million, down from USD18.4 million in the second quarter.
It estimated cash outflows of USD7.6 million for the fourth quarter, including exploration spending of USD2.7 million, development costs of USD2.4 million, and administration costs of USD2.5 million. However, this excludes any profits it makes on asset sales.
"Good progress is being made on all elements of the turnaround strategy and includes the closure of the loss making Mooiplaats Colliery, advancement of the disposal of the Woestalleen complex and the completion of studies on the potential expansion of the Vele Colliery," the company said in a statement.
Coal of Africa shares were up 0.6% at 8.37 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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