Orpheus Energy is on track to produce 50,000 tonnes of coal at the ADK project after production resumed to normal levels on November 21 following unseasonal heavy rains due to the tropical cyclones experienced in the Philippines.
By December 2 Orpheus had mined and transported 27,690 tonnes from the ADK mine to the SKJM Port stockpile. There was then 20,000 tonnes of coal loaded on to barges and sold to an Indonesian trading group at benchmark prices and with cash payment received up front.
The remaining coal on stockpile and the coal being delivered daily from ADK is also under contract to be sold to the same group in December. These sales are part of an agreement with the Indonesian trading group to purchase at least 30,000 tonnes and all additional available coal from ADK.
Orpheus is on track to mine, haul, load and sell 50,000 tonnes of its ADK coal in the month of December. The net sales margin achievable from Orpheus’ own production means that should this sales figure be achieved, the company will be operational cash-flow positive this month.
Additionally, with a favourable upward movement in the coal price over the last month of approximately $1.00 per tonne for 4200 kcal GAR coal to US$39.65 FOB Mother Vessel per tonne, there will be a marginally improved return to Orpheus on coal sales.
Wet weather also affected the movement of coal contracted by Orpheus from local miners to SKJM Port and Abidin Port 1. It is anticipated that volumes and sales from trading operations will commence from early 2014.