African Minerals Limited announced unaudited consolidated earnings and production results for the six months ended June 30, 2014. For the six months, the company reported revenue of $399.2 million against $404.8 million a year ago. EBITDA was $2.7 million against $100.0 million a year ago. Operating loss before special items was $58.2 million against operating income before special items of $39.4 million a year ago. Operating loss was $85.1 million against $18.3 million a year ago. Profit before finance items and taxation was $46.1 million against $11.8 million a year ago. Loss before taxation was $7.2 million against $24.5 million a year ago. Profit for the period attributable to equity holders of the company was $8.9 million against loss attributable to equity holders of the company of $30.9 million a year ago. Basic profit per share based on profit for the period was 2.70 cents against basic loss per share based on loss for the period of 9.34 cents a year ago. Basic and diluted loss per share based on underlying profit was 41.35 cents against 12.25 cents a year ago. Net cash flow from operating activities was $104.8 million against net cash outflow from operating activities of $157.3 million a year ago. Payments to acquire property, plant and equipment was $48.5 million against $161.0 million a year ago. Net debt as at 30 June 2014 was $458.8 million against $473.3 million as at December 31, 2013.

For the six moths, the company's first half production continued the strong growth of the second half of 2013. DSO ore mined was 12.1Mt, 64% up from the same period last year. Other material mined, including for the first time 0.5Mt of waste, was 2.8Mt, up 122%. The earthmoving rate in first half was 30Mtpa, with a total of 15.0Mt moved in the half year, an activity level 73% higher than first half 2013. 12.5Mt of ore was processed in first half 2014 (first half 2013: 7.0Mt), creating 3.8Mt of lump (first half 2013: 1.7Mt), 3.5Mt of fines (first half 2013: 2.3Mt), and 2.5Mt of A32 (first half 2013: 2.3Mt) for a total of 9.8Mt (first half 2013: 6.2Mt) to a total mass yield of 78% (H1 2013: 87%). This mass yield is expected to improve and remain over 80% with the addition of the de-sliming circuits during third quarter. In first half 2014 a total of 9.5Mt of product was railed from the mine to the port (first half 2013: 5.4Mt) despite a number of planned closures for maintenance and upgrading of the rail, including curve straightening, bridge strengthening, and the creation of additional lay-bys and loops. The port loaded 9.1Mt of product onto the transhipping vessels (first half 2013: 5.5Mt) and onto 52 ocean going vessels ("OGVs"). Due to timing of bills of lading, 8.9Mt in 51 OGVs have been recognised for revenue in the first half 2014.

The company provided production guidance for the third quarter and full year of 2014. For the quarter, the company's operations remain stable throughout third quarter, despite wet season and Ebola outbreak. The third quarter exports of 4.4Mt shipped with 25 vessels sailed, brings year to date total to 13.3Mt (first quarter 4.6Mt in 26 ships; second quarter 4.3Mt in 25 ships). With third quarter building firmly on the results of first half 2014, even during the wet season, the company remains confident of exporting between 16 and 18Mt during 2014, and reiterate guidance of cash costs for the year in the range of $34 and $36 per tonne.

For the full year, the company's export guidance reiterated of 16-18Mtpa for full year 2014, with C1 cash costs in the range $34-36/t. Provision of new export guidance for 2015: 21-23Mt for the year, with C1 cash cost of under $30/t. Exit run rate for 2015 of 25Mtpa, with exit cash cost target of $25/t.

With the improvement of its infrastructure capacity already achieved, the commissioning of 1G and de-sliming circuits, an expanded production capability, and the various cost interventions already described, and all-year-round shippable products, the company expects to achieve production during 2015 of 21-23Mt, with cash costs for the full year under $30/t. The company expects to exit 2015 with a demonstrable 25Mtpa sustainable export run rate, and cash costs around $25/t.