Miranda aiming for coal production this year

MIRANDA Mineral Holdings, a diversified mining company, has said it is now moving into active coal mining and hopes to start mining anthracite coal at its Sesikhona project this year.

Miranda, which reported a widened interim operating loss yesterday for the six months ended February, said mining at Sesikhona would take place once discussions regarding mining subcontracting and off-take had been finalised.

At its Uithoek coal project, Miranda said it was renegotiating its joint-venture agreement with the Simpson family, which owns the prospecting licence for the project.

It said a decision on a mining right application for the Burnside project was imminent.

Despite the company experiencing cash-flow difficulties, its board said it would also focus on opportunities to grow by acquisition and on implementing its strategy of fast-tracking and bringing to account Miranda Coal’s most advanced coal projects in KwaZulu-Natal. Miranda, which has had disputes with old management, hopes to generate cash flow from production in Sesikhona and Uithoek. It is also relying on Incubex, a 17,8% shareholder, for support.

Last year it was given permission to issue new shares to raise capital. But it has not told the market whether it will exercise this option.

In the six months ended February Miranda widened its loss per share to 5,7c from 3,9c in the previous period. Its operating loss before interest and tax grew to R15,4m, versus a loss of R11,2m in the corresponding six months of the year before.

Total cash at the end of the sixmonth period was R2,7m.

Miranda is also grappling with a problem of current liabilities exceeding current assets.

It has current assets of R4,6m compared with R53m in current liabilities, translating into a negative net asset value per share of 1,4c — from positive 20,3c at the end of February last year.

Shares in Miranda closed 4,76% lower at 20c yesterday.