Record results of Keaton Energy: increase 192%
Group revenue increased by 70% to R710 million in the first half of 2014 compared with R417 million in the comparable period, mostly on the back of a significantly improved performance from Vanggatfontein.
Despite increased sales volumes at Vaalkrantz in the first half of 2014 revenue decreased by 6% as a result of reduced sales prices both domestically and internationally.
Group gross profit was R117 million or 17% of revenue for the period under review, compared to a gross loss of R38 million or (9%) of revenue for the corresponding period in 2013. Cost of sales increased by R137 million or 30% on the back of increased production volumes mainly at Vanggatfontein.
Other income, more than doubled to R9 million mainly as a result of increased discard sales at Vanggatfontein.
The income taxation expense of R21 million is mainly attributable to the utilisation of estimated tax losses and unredeemed capital expenditure relating to Vanggatfontein.
Net profit after tax for the period increased by 166% to R42 million compared to a net loss after tax of R64 million in the corresponding period.
Capital investment for the group totalled R143 million for the period compared to R71 million for the corresponding period. The majority of capital was spent at Vanggatfontein, mainly on on-going mine development of R135 million.
Cash generated from operations amounted to R205 million, this was however offset by capital investments of R143 million and debt repayments of R39 million. ■