Sultan Mining records increase in coal sales

Sultan Mining and Energy Development Corp. (SMEDC) reported its Surigao del Sur coal mine has posted significant increase in sales volumes coal mine owing to a rising demand for the commodity, a company official said.

“For April alone, the production volume of 22,000 metric tons [increased] 120 percent from the previous month. It was also greater than the first quarter’s production for 2008,” Anthony Buyawe, SMEDC chief finance officer, said.

He said that the April output of its Bislig mine, the largest open-pit coal mine in Mindanao, also exceeded the target for the month set at 20,000 metric tons “despite heavy rains and challenging sea conditions during the period.”

The higher sales figure was attributed to the ramping up of production as well as the healthy growth in coal prices as the local and international firms shy away from oil because of the soaring price of crude world wide.

With this positive development, SMEDC plans to step up its coal production further in the coming months to at least 300,000 metric tons this year from less than 20,000 metric tons last year.

“SMEDC’s management believes that the company is in a position to increase and sustain profitability for the remaining eight months of 2008 as it continues to increase monthly coal production and convert these into sales,” Buyawe said.

The company is set to undertake a P480-million initial public offering (IPO) this quarter to raise funds for its exploration and expansion activities. It has tapped Asian Alliance Investment Corp. to be the lead underwriter for the IPO.

SMEDC shareholder Maxinvent Trading Corp. has also granted Asian Alliance an option to purchase or place up to P48 million worth of SMEDC shares for the purpose of covering over-allotments.

Source