ASX-listed miner, Tigers Realm Coal Limited (ASX: TIG), has completed its transition from explorer to producer with strong FY18 production and financial results as well as the affirmation of its FY19 guidance, forecasting increased production and sales volumes.
In just its third year of operation, production at TIG’s Amaam Coal Basin mine in Russia’s Chukotka Autonomous District is forecast to increase from 576kt in FY18 to 680-750kt in FY19. Sales volumes are forecast to increase from 393kt to 650kt-720kt.
The growth forecast comes after a strong FY18 in which TIG posted positive EBITDA of A$15.3million and net operating cash flow of A$8.0 million.
Forecast growth in FY19 production is supported by significant investments in mining equipment and infrastructure, haulage and port logistics. This includes the delivery of two new 500t barges built in China, and two used 500t barges which will arrive at site in time for the 2019 shipping season.
Speaking at the AGM, TIG Chairman Craig Wiggill said the company’s strengthening profile confirmed the investment strategy to bring Amaam North’s Project F deposit into production and in so doing change from a junior coal explorer to a developing coal producer with an important role to play in the supply of product to Asian steel and utility markets.
The rapid customer adoption of the coal products currently being exported through the Company’s coal port has illustrated a key investment criterion in that the source diversification for coal customers remains a priority and that this would provide further incentive for growth of TIG’s operational footprint. The long-term goal of full development of the large resource within Amaam Basin remains a target for the future but, as this requires a substantial investment, this will be subject to the company’s further growth and capital access opportunities.
Mr Wiggill paid tribute to the new leadership team, led by CEO Dmitry Gavrilin and CFO Dale Bender, both of whom are in Australia for the AGM. He stated that the new leadership had embraced the growth strategy approved by the board and that they were aligning and adding to the company’s resources, both in terms of capital spending as well as employee competencies, in order to deliver this growth.
Mr Gavrilin told investors at the AGM the positive FY18 results and FY19 outlook would not have been possible without the ongoing support of shareholders.
“TIG has brought a remotely located deposit into production in a very short period of time. From the time we first explored the Amaam North deposits in the winter of 2013/14, it took three years to get into production in January 2017. That is very fast by international standards, especially taking into account the unstable coal market and intricate geopolitical environment TIG has been operating in during those years. We have been ramping up the last two years and expect to sustain our growth rate in the future.”
“Our development involves working closely with the local indigenous communities over both our current and future plans related to operations in the region. This engagement is focused on sustainable development, including supporting local communities’ awareness of and development in the fields of cultural heritage, sport, education, environment and general health and well-being.”
The source of information is at www.medianet.com.au
