Economic sustainability

Keaton Energy has made significant strides towards sustainable long-term economic prosperity for a broad range of stakeholders. As an exploration and development company its raison d’ętre is the production of coal from operating mines, and to this end Keaton Energy has begun producing and selling coal from its small, short-life Klip Colliery.

It also continues to invest in the development of its larger, long-life Delmas and Sterkfontein Projects and has added the Leeuwfontein Project to its portfolio of smaller projects.

Keaton Energy has been profitable largely as a consequence of interest earned on the capital raised in 2008, and the company expects to begin investing that capital in earnest during 2009. The overall results for the year are characteristic, however, of an exploration company which is in the process of financing its exploration and evaluation activities, with the return on its invested funds resulting in a small profit for the year.

Keaton Energy’s operating philosophy includes making extensive use of outsourcing and contracting, and as a consequence we consider the employees and suppliers to our business as our stakeholders. Vendor relationships are important and we look to establish long-term, trusting relationships with them. However, these relationships have to be managed formally within a project management approach.

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