Sakari’s net profit more than doubles to $190m in 2011

The group’s profit was driven by higher coal prices last year compared to 2010.

For the first time Sakari’s annual sales exceeded $1 billion as the Group produced a year end Net Profit after Tax of $190 million, more than double that of 2010. Q411 NPAT alone, at $73 million, was a record profit for any previous quarter for Sakari as sales of higher value coal from Sebuku’s Northern Leases helped to lift average selling prices to $100/t in the final quarter of 2011.

A key driver of the increased profit was higher average international coal prices in 2011 compared to 2010. Aside from the margins improving through higher average selling prices from Sebuku coal, the lowering of costs at Sebuku as volumes increased set the foundation for a reduction in overall Group cash costs in the quarter to $54.3/t (Q3’11 $58.23). Notwithstanding this achievement, the Group is aware that during the year, costs across the industry were under pressure and has started a process of examining operational efficiency now that both Jembayan and Sebuku mines have completed their infrastructure capital expenditure programmes.

Sakari’s policy of paying 60% of its net profit to shareholders has again been confirmed with the final proposed 2011 dividend recommended at 5.83 US cents per share, bringing the 2011 total to 10.07 US cents per share. The 2011 dividend total is a yield of over 5% on Sakari’s current share price.
 

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Tags: Sakari net profit 2011, Sebuku coal, mining