Intra Energy Corporation Ltd (ASX: IEC), the diversified mining and energy group, today announced its February 2019 production update. Tancoal Energy Limited (a 70% IEC owned and 30% National Development Corporation of Tanzania owned company), reported a 47.9% increase in coal sold in February 2019 as compared to February 2018. Tancoal Energy reported 61.505-kilo tonnes of coal sold in February 2019, compared to 41.583-kilo tonnes sold in February 2018.
On the production front, the company updated that, in February 2019 it produced 60,452 tonnes compared to 60,959 tonnes in February 2018. This comes on the back of production impacted by rain and machinery breakdowns. IEC expects additional machinery, which was planned to be delivered in February 2019, to be delivered in March 2019. This would increase production capacity.
On the leasing front, the company reported that leases essential for the increased production had not been approved by the Ministry yet.
Also, the Caspian court case has been postponed to 8th April 2019. This was due to the appointment of the new judge post the elevation of the previous judge to a higher court.
Tancoal won the NBC court case on 4th March 2019, and this news has a bearing on the balance sheet as this was mentioned on 2018 balance sheet as both a contingent liability and contingent asset. Tancoal was awarded its counterclaim against NBC bank for the return of US$0.23 million. This amount was withdrawn by NBC from its bank account without authorisation.
Graeme Robertson, the IEC chairman, stated that February sales were impacted due to rain and delays in the arrival of ordered equipment. The imposition of road tax by the Ministry of minerals would increase production costs for the cement industry and would restrict the export of coal. He also highlighted that they are continuing the discussion with the Ministry of Minerals with regards the road tax issue. Speaking more on the impact of the road tax, the chairman also highlighted that Tancoal sells coal at stockpile and customers send their trucks to transport the coal and the road tax imposed would make the arrangement difficult.
The company had recently announced its half-yearly results; the sales and production volumes showed a healthy uptick. The company reported revenue of A$26,484,000 in 1HFY19 vs. 15,088,000 in 1HFY2018. The EBITDA came in at A$3,275,000 in 1HFY19 vs. an EBITDA loss of A$787,000 in 1HFY18. Profit from continuing operations was A$2,705,000 in1HFY19 vs. a loss of A$1,319,000 in 1HFY18.
The stock has been in a robust uptrend in the recent past. The stock has moved up by 55.56%, and 27.27%, in the past six months and three months respectively.
The shares of IEC were trading unchanged at A$0.014 on ASX, (As on Wed 06 Mar)
Intra Energy Corporation Ltd’s (ASX: IEC) market capitalization stands at circa $5.43 million. The Stock has noted the 52-week high price of A$0.020 and 52-week low price of A$0.007. As per the latest ASX declaration, the company’s EPS stood at -0.004 AUD.
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