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Riversdale Mining [ASX: RIV] - Riversdale well funded and set for major growth in 2011

Riversdale Mining Limited (ASX: RIV) today released its Annual Report for the year ended 30 June 2010.



Key points:

� Net loss after tax for FY2010 of $779,000
� Strong sales performance at ZAC
� Operating cash flow of $28 million
� Cash on hand of over half a billion (including Capital Raising)
� Major project milestones achieved in Mozambique
� Development underway on Benga Coal Project
� Project partners secured for Zambeze Coal Project

Riversdale announced a net loss after tax and minorities for FY2010 of $779,000 (2009: Profit $300,000) equating to basic loss per share of 0.40 cents (2009: Gain 0.16 cents).

The loss reflects reduced interest income and lower production levels at ZAC, partly offset by increased sales of anthracite as markets improved during the financial year.

The Company is progressing the expansion and development stage of its two Tier 1 Mozambique coal projects, with the first exports of premium hard coking coal expected from the Benga Coal Project (Benga) in the second half of 2011.

During the year, Riversdale Mining has achieved significant milestones at the world-class Benga Coal Project, including:

� Approval of the development of the project and the official opening by the President of the Republic of Mozambique, His Excellency Armando Emilio Guebuza,
� Approval of the Environmental Impact Study
� Signing the mining contract with MCC Contracts Pty Limited, and
� Signing the design, supply and construction contracts for coal handling and processing plant with Sedgman Limited.

The Company also announced venture partners for Riversdale Mining�s second Tier 1 coal project in Mozambique, the Zambeze Coal Project (Zambeze).

In June 2010, Riversdale signed a non-binding MoU with Wuhan Iron and Steel (Group) Corporation (WISCO) and a logistics partnership agreement with the China Communications Construction Company (CCCC) for the development of Zambeze, valuing the project upon completion of the transaction at US$ 2 billion.

In South Africa, the Zululand Anthracite Colliery (ZAC) earnings before interest, income tax and minority interests in FY2010 was $13.4 million (2009: $17.7 million).

At ZAC, increased sale volumes into improving markets during the year were offset by higher mining costs, royalties, and depreciation.

Group operating cash flow for the year increased to $28.1 million (2009: $19.3 million) and funds were invested with $55.9 million spent on plant and equipment and $25.7 million on exploration activities.

The strong ZAC sales during the year reduced inventory levels and increased cash receipts from customers resulted in the increased operating cash flow.

This was partly offset by reduced cash receipts from interest income.

The financial position at year end was strong, with net assets totalling $506.1 million (2009: $506.7 million) and $247.3 million in cash available.

The capital raising subsequent to year end increased cash on hand to approximately $560 million.

The directors have decided not to declare a dividend for the year.

Executive Chairman Mr Michael O�Keeffe said Riversdale Mining is well funded and positioned for significant growth in 2011 and beyond.

�The Company has over half a billion dollars in cash following the successful and well supported capital raising and we are fast-tracking and expanding the development of the Company�s two Tier 1 hard coking coal projects in Mozambique,� Mr O�Keeffe said.

�In 2010, the management team and staff delivered on major operational and logistical targets.

We are now looking forward to an extremely busy year as Riversdale Mining intends to bring its first premium hard coking coal exports to world markets in 2011.�


To view the full Annual Report, please visit:
http://riversdalemining.com.au/media/announcements/2010/Appx_4E_&_Annual_Report_30_June_10_-__MASTER.pdf


For further information, please contact:

Steve Mallyon
Managing Director
Ph: +612 8299 7900

Niall Lenahan
CFO
Ph: +612 8299 7900

or

Media: Fortbridge
Bill Kemmery
Ph: +612 9331 0655
Mob: +61 400 122 449
Email: