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Petmin (PTMN:AIM) – Interims PTP: Z109.5m (Z43.3m) Divi: n/a (n/a)

The anthracite and silica producer increased pre-tax profit by 153% to Z109.5 (£6.9) million, showing the benefits of better production and sales rates at its Somkhele project. Earnings were also lifted by improvements at the Springlake Colliery, which had previously been hit by high operation costs and lacklustre production volumes.

To meet high demand for metallurgical coal, Petmin is looking at ways to expand coal processing at Somkhele. It is currently forecast production of 512,000 tonnes of anthracite, a high quality coal, this year.

It should complete the second phase of the Veremo acquisition, a large iron ore deposit in which it will eventually become a 25% shareholder.

The company has been affected by the South African power crisis and will invest in diesel generators to power operations.

Shares says: Should benefit from rising coal prices and higher volumes as production expands.

by: Dan Coatsworth