PERTH (miningweekly.com) – ASX-listed Wesfarmers is expecting its resources business to exceed earning expectations in the first half of 2017, reflecting strong production from the Curragh and Bengalla coal mines.
Wesfarmers said on Wednesday that earnings before interest and tax were expected to reach between A$135-million and A$140-million for the first half of the 2017 financial year.
The increase in production at Curragh and Bengalla, in Queensland and New South Wales respectively, followed the implementation of recommendations from a productivity review, a new mine plan and the opportunistic use of contract fleet to further increase volumes to take advantage of the higher coal price.
Wesfarmers noted that the increase in production supported the higher-than-expected sales volumes, aided by improved shipping timing and higher realised prices at both mines.
The Curragh mine produced 3.2-million tonnes of coal during the December quarter, up 22.5% on the previous quarter, with metallurgical coal accounting for 2.2-million tonnes and steaming coal for 931 000 t.
The Bengalla mine delivered 902 000 t of coal to Wesfarmers, up 11.1% on the previous quarter.
Wesfarmers in November last year announced that it was evaluating ‘strategic options’ for its coal assets, responding to reports that it had launched a A$2-billion sale process for its Curragh and Bengalla mines.