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Net profit after tax for the 2005-06 financial year is forecast at $140-155 million.
Company managing director Ken Talbot said Macarthur had benefited from the buoyant market conditions of last year.
“Whilst expectations on coal prices are lower at present than was the case in 2005, we believe that demand remains strong, and that prices will remain well above the long-term average over the foreseeable future," he said.
“Given Macarthur Coal's robust cash position and net debt free status, the company remains well positioned to deliver on its plan of developing up to five new mines by 2010.”
The development timetable targets increasing group production from about 4.5 million tonnes per annum in 2006 to 8Mtpa by 2010, a planned increase now possible as port, rail and other infrastructure expansions kick in.
First cab off the rank will be Olive Downs with production set for early next year. The mine will produce 1Mtpa of PCI and coking coals.
“Growth must be profitable. Many mining projects manage to cover costs, but fail to produce the profit necessary to reward equity holders," Talbot said.
A shallow underground operation will also be one of the mines to be developed – Macarthur’s first venture underground. It will initially be modest in scale with scope to ramp up after working conditions have been assessed.
