Cockatoo is targeting to produce 2.8 million tonnes of coal in calendar year 2014 and 9.9 million tonnes by 2016. Importantly, the quantity of PCI coal in the production mix will steadily improve to peak at 90% in calendar year 2014.

“Development of the company’s coal assets in the Surat Basin continues to gather pace,” Fat Prophets said.

“The projects the company has in the Surat Basin continue to reveal the extent of the prospective nature of the region for coal.

“Following on from recent infill drilling activities at the Collingwood and Taroom projects, the mineral resource estimate has been upgraded for the Surat Basin.”

Cockatoo’s Woori project will be the first of the Surat Basin assets to come on stream in 2016.

The company recently completed the sale of 49% of Woori to Japanese giant Mitsui. The joint venture will take Woori through to full production, which is anticipated to be 2016.

In support of current mining at Baralaba in the Bowen Basin, the company’s JORC compliant mineral resource estimate stands at 168 million tonnes of ore.

“With the potential for further exploration success in the Bowen Basin, we are of the opinion future upgrades to the company’s JORC resource for Baralaba will be forthcoming,” Fat Prophets said.

“It is the ability of the company to continually expand its resource base that will help drive future shareholder value.”

In the September quarter, some 96 holes were drilled totalling 12,723 metres.