PERTH (miningweekly.com) – A $355-million impairment charge on its early-stage exploration assets has seen coal miner Whitehaven sink deeper into the red in the financial year ended June.

The miner on Thursday reported that its loss for the full year had widened from a A$56.3-million pre-tax loss in 2014, to a pre-tax loss of A$483.3-million.

Whitehaven took the decision to take an impairment on its early-stage exploration assets owing to a change in the timeframe for the likely development of the assets as a result of the change in market prospects for certain coal types.

Meanwhile, operating earnings before interest, taxes, depreciation and amortisation increased to A$130.3-million for the full year, compared with the A$90.4-million reported in 2014, with results driven by a substantial reduction in unit cost production, increased production and sales volumes and by eliminating coal purchases.

However, these improvements were partly offset by lower average realised selling prices.

In the year under review, Whitehaven delivered record run-of-mine production of 12.2-million tonnes, up 33% from the previous financial year. Saleable coal production was also up by 38%, to 11.25-million tonnes, while coal sales were up by 32% to 10 859 t.

Revenue for the year increased, from the A$755.4-million reported in 2014, to A$763.3-million.

Whitehaven CEO and MD Paul Flynn said the company had seen a modest return to profit of A$1.7-million during the second half of the year, excluding the significant items reported.

This was the first profit recorded by Whitehaven in three years, which Flynn said reflected the company’s strong performance in managing its costs in a more subdued pricing environment.

“The fact that Whitehaven has delivered on its commitments and achieved a modest return to profitability in the second half, despite subdued global demand, is a strong endorsement of our product, performance and potential.

“Whitehaven is positive about the long-term outlook for coal and particularly the high-quality coal being sought by countries that understand the crucial role it has to play in creating a lower emissions future,” said Flynn.

Whitehaven declared commercial production at its Maules Creek mine in July, with production expected to ramp up to 13-million tonnes a year run-of-mine coal over the next three years.

Construction at the mine was completed ahead of schedule and below budget and first coal was railed three months ahead of schedule.

“On almost any measure, Maules Creek is an extraordinary achievement in current circumstances and the mine is now poised to help underpin Whitehaven’s value position over its 30-year mine life,” Flynn said.