PERTH (miningweekly.com) – Diversified junior Aquila Resources swung to profitability during the year ended June, after selling its interest in the Isaac Plains and Belvedere coal projects.

Aquila reported a net profit after tax of A$317.5-million for the year ended June, compared with a net loss of A$238 000 during the 2012 financial year.

The sale of Aquila’s 50% interest in the Isaac Plains project to Japan’s Ocean Coal Mining, and its 24.5% interest in the Belvedere coking coal project to joint venture (JV) partner Vale, as well as its preference shares in WICET Holdings, resulted in cash proceeds of some A$617.1-million, and a net accounting gain of A$490.5-million.

The miner reported no revenue during the full year, as it sold its only operating asset.

Aquila’s focus now remained on its 50% shareholding in the Eagle Downs project, in Queensland, and its West Pilbara iron-ore project. The company also controls a host of smaller-scale assets in Queensland and South Africa.

The ASX-listed company told shareholders on Friday that with its solid financial position, Aquila had the foundation to prudently progress the development of the two major bulk commodity projects. However, the project developments would be dependent on securing sufficient financing, as both projects would require rail and port solutions.

As a result, Aquila said that it was undertaking a process to introduce one or more new equity partners into the 5.1-million-tonne-a-year Eagle Downs JV project, which it owns with Vale, while also investigating the possible divestment of a number of its noncore assets.

Aquila and Vale have delayed the completion of Eagle Downs from November 2016 to the first half of 2017 after re-evaluating its capital spend in a soft coal price environment.

Meanwhile, Aquila on Friday also flagged possible development issues at its West Pilbara iron-ore project, as it failed to agree on both a minimum budget and the general advancement of the project.

JV partner AMCI was not prepared to approve Aquila’s planned minimum spend for the 2014 financial year, and was seeking to have the budget further reduced.

Aquila has questioned if AMCI’s controlling shareholder, AMCI Investment, remained committed in retaining its interest in the A$7.4-billion West Pilbara iron-ore project.

The West Pilbara mine, rail and port project was expected to deliver some 30-million tonnes a year, and it was hoped that first ore could be shipped by 2017.