The capital raising announcement on Thursday April 8 followed a trading halt on Tuesday April 6.

 

The raising will compromise of issuing 57.7 million new shares underwritten by Wilson HTM Corporate Finance.

 

The proceeds will go towards replenishing short term working capital depleted by the early termination of panel 21 and delay in the projected start up of Tahmoor North, now scheduled for June 2004.

 

Funds will also be directed towards Tahmoor North infrastructure, critical to maintain development and continuity of longwall production at the new lease.

 

From June output from Tahmoor North is expected to be 3mtpa for the remainder of the year, progressively increasing to 3.5mtpa over the eight year life of the mine.

 

Austral said its results to December 2004 would be a contrast of halves. Earnings to June 2004 would reflect the loss of longwall production and the impact of the longwall delay, resulting in a small loss. However, output from the new lease starting June would lift net profits after tax for 2004 to $15 to $18 million, taking into account the recently announced amendments to the NSW coal royalty scheme.