The Canadian company, which has been open thus far regarding its ongoing financial difficulties, said good recent news was not enough to offset the overall picture.

“Despite a welcomed recent increase in productivity, previous underperformance by Magdalena underground, the company’s largest business unit, the depletion of the Magdalena open-cast reserve, which reached the end of its life in March, the continued reduction in export coal prices, as well as ongoing frequent and unpredictable load shedding by Eskom, have impacted the company’s current and forecast financial position,” officials said.

“This has necessitated further restructuring in order to cover operational cash flow shortfalls, thereby ensuring that Buffalo remains sustainable into the future.”

The dual-listed miner is also now under a delisting review by the Toronto Stock Exchange (TSX). Buffalo now has until September 18 to come into compliance with all listing requirements or may face delisting within 30 days post-deadline.

Toronto-based Buffalo, focused on coal in South Africa, holds a majority interest in two operating mines: 100% in Buffalo Coal Dundee (Pty) Ltd., a South African company with a 70% interest in Zinoju Coal (Pty) Ltd. Zinoju maintains 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa.