Low prices, strong currency drive Whitehaven into the red
PERTH (miningweekly.com) - Coal miner Whitehaven Coal has reported a 225.1% decline in net profit for the six months to December, as low commodity prices and the strong Australian dollar weighed on results.
Net loss after tax for the interim period was reported at $27.6-million, compared with a net profit of $22-million in the first half of 2012.
“As outlined in our December quarterly report, Whitehaven’s first-half performance has suffered from a number of adverse impacts on the business, the most significant being weak coal prices and a strong Australian dollar,” said Whitehaven MD Tony Haggarty.
Earnings before interest, taxes, depreciation and amortisation were also reported at A$8.2-million, an 85.9% decline on the A$58-million reported in the previous corresponding period.
Sales revenue for the interim period was also down by 17.5% to A$280-million.
Haggarty noted that despite the market influences, significant work had been undertaken across the company to minimise the impact of the commodity cycle.
“While we are already well placed on the cost curve, we are continuing to review our opencut operations to identify opportunities to further reduce costs and enhance operating performance and revenue.
“As outlined previously, our small and relatively high-cost Sunnyside opencut mine was placed on care and maintenance in November 2012. The accounting treatment of closure related to costs has contributed to a loss of around A$20-million to our overall result,” said Haggarty.
He added that the ramp-up of the Narrabri longwall production progressed well through the later stages of the first half. Haggarty said that ensuring Narrabri met its production rates consistently was a key focus for Whitehaven.
“Regardless of external factors, Whitehaven remains on the path towards its target of becoming a 25-million-ton-a-year producer,” he said.
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