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Minergy announces full year results

Coal News - Published on Thu, 20 Sep 2018

Image Source: Mining Global
Minergy, the Botswana Stock Exchange listed coal mining and trading company, released results for the year ended 30 June 2018. While Minergy is still in the development and exploration phase, with the results reflecting expenditure and investment in capex typical of this, substantial progress has been made towards full operational status, boosted by the granting of a mining license post year-end. The company had also invested in infrastructure during the year, including offices in Medie and Lentsweletau in addition to its head office in Gaborone. Mr Andre Boje CEO of Minergy said that company was pleased to report such satisfactory progress, which had been significantly boosted post year end by the granting of a mining license, with works now underway. He added that the period included a full 12 months, in contrast to the six to eight months recorded in the company’s maiden results in 2017.

Mr Boje noted that costs related to the AIM listing had been included in the results, whilst a once-off IFRS 2 share-based payment expense of BWP10 million was included in the prior period’s results “Expenditure relates mainly to the holding company such as salaries, listing and statutory related costs, as well as salary and office costs of our subsidiary, Minergy Coal (Pty) Ltd.”

He said that “The group invested surplus funds into short-term South African Rand denominated investments, as well as local Pula investments. The former yielded higher returns than the equivalent Pula investment and as a result, the group benefited from favourable exchange rates in late 2017 into 2018. Interest earned for the period was a pleasing BWP1.6 million, which allowed for further preservation of the group’s cash and cash equivalents, which amounted to BWP55.9 million at the period end. Most of this will be expensed during the first half of the 2019 financial year on capitalised expenditure, specifically mine development.”

He added that an additional share issue, which had been approved by shareholders at the AGM had raised additional capital of BWP26,9 million. No dividends have been distributed to date, with cash being utilised to ensure operations are in place.

He further added that the mining license had marked a significant milestone for the company. “We are now able to break ground and invite contractors to start work immediately as well as to actively engage the local communities about job creation and upliftment programmes, including improving the school and the clinic in the village closest to the mine, Medie, as well as bringing in electricity.”

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Posted By : Rabi Wangkhem on Thu, 20 Sep 2018
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