South Africa-based miner Coal of Africa has announced that in the first six months ended on December 31 it registered a net loss of $46.3 million, down from a net loss of $111.7 million in the corresponding period of the previous year. In the given period, Coal of Africa's revenues declined to $60 million from $516 million in the first six months of the previous financial year.
In addition, CoAL implemented some measures to decrease overhead costs which included a reduction in staff numbers at its corporate office as well as its projects. These processes were completed by July 2013 and, together with the relocation of the corporate office in Johannesburg, resulted in significant cost savings.
According to CoAL, over the next three to twelve months, to ensure that the company is a going concern and pays its debts, it should conclude additional funding, conclude the negotiations with Rio Tinto regarding the $30 million payment for the Chapudi coking coal project, and complete the sale of non-core assets.
