Coal news and updates

ASX-listed Whitehaven Coal narrowed its net loss for the six months ended December 31, by 76% to $11.6-million, compared with $48.6-million for the prior corresponding period, reflecting improved operating performance, the company announced on Wednesday.

 

The miner also reported a 43% increase in revenue to $402.2-million and a 747% improvement in operating earnings before interest, tax, amortisation and depreciation before significant items to $50.8-million.

 

“The increases in revenue, cash flow, margins and earnings all reflect a significant lift in volumes and a pleasing reduction in our cost of production,” Whitehaven MD Paul Flynn said.

 

The company said that outstanding performance at its Narrabri mine, in New South Wales, that produced 3.29-million tons of run-of-mine (RoM) coal and 2.91-million tons of saleable coal, contributed to the record production on a 100% basis of 5.94-million tons RoM coal and 5.21-million tons saleable coal during the first half of the 2014 financial year.

 

On an equity basis, Whitehaven produced 4.64-million tons RoM coal and 4.08-million tons saleable coal, increases of 32% and 37% respectively compared to the prior corresponding period.

 

Meanwhile, the company’s cost reduction programme, instituted in the prior year continued to deliver with free-on-board costs, excluding significant items, declining by 10% to $71.69/t from the previous half-year period.

 

“The 10% reduction in cost was owing to increased efficiency at our mines and smarter asset use from a range of initiatives,” Flynn explained.

 

He added that the company had also, during the period under review, completed the expansion at its Werris Creek project, and started work on the new mine at Maules Creek, where construction had been ramped up significantly since early January after the project’s last legal and regulatory hurdles had been cleared.

 

“The fundamentals of the business are now showing some encouraging upside and we believe we have enhanced our resilience to volatility on coal prices,” Flynn said, adding Whitehaven’s outlook was encouraging as the company continued to expand capacity, reduce costs and was demonstrating that it had the capabilities across the business to plan carefully and exceed targets when plans were executed.

 

“While not ignoring future potential for fluctuations in the coal price, we remain of the view that underlying demand continues to trend upwards for Australian coal and, in particular, for the higher grades of metallurgical and thermal coal where we are increasing capacity,” he stated.

 

Whitehaven did not declare a dividend for the period.

 

 

Source: http://www.miningweekly.com/