projected sales for the next 12 months

Penumbra budgeting 63,000T per month 756,000T per annum
Cost PT to mine approx $50
Sale price based on hedge, current and futures contracts $80pt (average)
Gross profit PT $30 approx
Total revenue on 756,000 estimated at $60,480,000
Total cost of sales on 756,000 $37,800,000
Gross Profit $22,680,000

Vlakvarkfontein budgeting 125,000TPM 1,500,000 per annum
Cost PT to mine $15
Sale price achievable is now $24PT average
Gross profit PT $9
Total revenue on 1.5mt is approx $36,000,000
Total cost of sales is approx $22,500,000
Gross profit approx $13,500,000

Total Revenues both mines over 12 months $96,480,000 approx
Total Gross Profit over 12 months $36,180,000

Figures are base on company's reported budgeted sales figures, current local Eskom prices being paid and estimates achievable export prices based on hedged production, current coal prices and the indicated Richards Bay futures contracts over the next 12 month period.