Forum Archive Index - August 2002

["G Stolwyk" <stolwyk@wave.co.nz>]

August 8 2002

Austral Coal has reported a bumper half-year net profit because of a buoyant coking coal market and looks set to achieve its 2002 financial forecasts.

Net profit came in at $7.3 million for the half year ended June 30. That compared with a net loss of $2.1 million in the first half of 2001 and was a 75 per cent improvement on the net profit of $4.2 million reported for the entire 2001 year.

The result follows record production of 1.231 million run-of-mine tonnes of coal and sales of 897,000 tonnes of clean coal.

Managing director Ugo Cario said that ROM production, up 55 per cent from the previous year, was the principal catalyst for improved profitability.

"Directors remain positive regarding the company's future profitability, as the market for coking coal is very buoyant and price increases have been secured from a number of the company's major customers consistent with the general market movement for hard coking coal," Mr Cario said.


"Directors are confident of achieving the $13 million profit forecast for 2002 despite a scheduled and extended long-wall changeover being undertaken in the second half.

"This changeover is associated with the movement of the long-wall system to a different long-wall domain adjacent to Tahmoor North and the commissioning of the new North West conveyor system."

The company said a major refurbishment of the long-wall system resulted in improved efficiency and reliability and was complemented by a decision to operate the long-wall for a half day on both Saturdays and Sundays.

These initiatives resulted in increased operating time, historically low downtimes and increased production.

Expenditure and commitments on major capital infrastructure and operating equipment grew to $21.7 million during the half.

Revenue from ordinary activities was up 73 per cent on the previous year to a record $60.9 million and net cash flow from operating activities was up 125 per cent at $10.3 million.

AAP