Photo by: Bloombeg
PERTH (miningweekly.com) – Coal miner Whitehaven Coal has posted an interim profit after a 54% surge in revenue on the back of record run-of-mine (RoM) output.
ASX-listed Whitehaven on Friday reported net profit of A$7.8-million for the six months to the end of December, compared with a loss of $77.9-million in the corresponding period. Sales revenue for the interim period increased to A$574.3-million, while operating earnings before interest, taxes, depreciation and amortisation doubled on the previous corresponding period, to A$106.4-million.
Operating cash flows increased by 421% during the same period, to A$118.3-million.
“Whitehaven recorded a range of significant achievements in the first half with major improvements across all key financial performance indicators,” said CEO and MD Paul Flynn.
“The results are particularly pleasing because they have been achieved at a challenging time for the industry, meeting all our commitments we have made to the market.”
RoM production during the interim period was up 59% on the previous corresponding period, to 7.1-million tonnes, reflecting the increased output from the Narrabri mine and first commercial production from the Maules Creek mine, both in New South Wales.
The Narrabri mine produced a record 8.3-million tonnes during the calendar year, positioning itself as one of the top three underground mines in Australia.
Maules Creek ramped-up on schedule, producing 3.3-million tonnes in the first half of the financial year, and operating at a rate of 8.5-milion tonnes a year during the month of December. During the next two to three years, the mine would be ramped up to a RoM output of 13-million tonnes a year
During the interim period, RoM coal sales were also up by 55% on the previous corresponding period, with Whitehaven selling 7.3-million tonnes of coal.
Flynn said that the company was confident that its financial position would continue to improve over the next three years, driven by further increases in production and improving margins.
“Whitehaven remains positive about the medium- and long-term outlook for coal, particularly the outlook for the high-grade quality coal we produce. Our coal is highly sought after by customers and countries that have appreciation for the critical role high-quality coal does play in creating an economically competitive, low emissions future.”