Continental Coal advances on high production update

Shares in AIM-listed Continental Coal lifted on Thursday after the South African thermal coal producer unveiled details of its latest mining activities.

Underground coal mining activities at the Penumbra Coal Mine accelerated in February as the company increased monthly run-of-mill (ROM) production. This followed the commissioning of the second Joy 14HM15 Continuous Miner underground in February and as more coal panels were developed.

The company reported that underground production in February 2013 was approximately 27,311 tonnes, a 93% increase on January 2013 monthly underground production of 14,031 tonnes.

ROM coal production of 19,352 tonnes was achieved for the month, an 81% increase on ROM coal production of 10,716 tonnes achieved in January 2013.

Mine operations at the Ferreira Coal Mine continued to perform strongly in February 2013 following the establishment of new opencast mining operations in the adjacent and adjoining Prospecting Rights in the December 2012 quarter.

ROM production at the Vlakvarkfontein Coal Mine in February 2013 of 143,872 tonnes, exceeded budget by 31% and was a 39% month-on-month increase on ROM coal production in January 2013 of 103,751 tonnes.

Continental Coal's share price was up 3.70% to 3.50p at 12:32 on Thursday.

MF