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Additional Information
Market:ASX
Sector:Coal
EPIC:CCC
Latest Price: 0.13  (-10.71% Descending)
52-week High:0.54
52-week Low:0.13
Market Cap:52.63M
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Continental Coal Full Continental Coal profile here

Continental Coal (ASX: CCC) is an established South African thermal coal producer, with a portfolio of producing and advanced coal projects located in South Africa's major coal fields. The company has two operating mines, Vlakvarkfontein and Ferreira, producing 2Mtpa of thermal coal for the export and domestic markets.

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Continental Coal sets coal production record in May at Vlakvarkfontein and Ferreira

Wednesday, June 08, 2011
Continental Coal sets coal production record in May at Vlakvarkfontein and Ferreira

Continental Coal (ASX: CCC) has achieved a fifth successive quarter of increased run-of-mine (ROM) production of thermal coal from its mining operations in South Africa.

Impressively, with 368,942 tonnes produced so far this quarter, the amount already exceeds March 2011 quarter production of 318,830 tonnes by 16%.

The production figure is also a 27% increase on the 289,889 tonnes produced in the December 2010 quarter.

The production boost comes as a result of Continental’s continued focus on optimising its existing open pit thermal coal mining operations at Vlakvarkfontein and Ferreira.

Total ROM production at both the Vlakvarkfontein and Ferreira mines reached a record 218,835 tonnes for the month of May.

Monthly ROM production at Vlakvarkfontein was a record 152,652 tonnes and the mine is on schedule to exceed budgeted quarterly run-of-mine production of 300,000 tonnes.

Don Turvey, Continental’s CEO, said “I am particularly pleased to be able to report that both operations achieved outstanding production results for May."

"The Vlakvarkfontein mine produced an all-time record of 152,652 tonnes against a monthly target of 100,000 tonnes and the Ferreira mine continued its good performance by achieving an output of 66,183 tonnes against a target of 55,000 tonnes.”

The company said ROM production for the June 2011 quarter from both the Vlakvarkfontein and Ferreira mines is now forecast to exceed 500,000 tonnes, with the Vlakvarkfontein mine set to exceed its budgeted quarterly production of 300,000 tonnes.

In other recent good news for the company, on June 2 Continental announced it has secured a competitive committed offer of finance for the construction and working capital requirements of its Penumbra Coal Project in South Africa, enabling development to commence in June 2011.

Continental last traded at $0.048, but the company's recent news is likely to add to the company's valuation in coming months.

US Investment Bank Madison Williams placed a $0.09 twelve month price target on May 16, indicating significant longer-term upside.

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