Today’s profit guidance was issued on the back of expected saleable production of 700,000 tonnes of coking coal and 1.4 million tonnes of thermal coal.

Gloucester said the bad weather pounding the Hunter Valley of late had not affected its operations. Indirectly an impact had been made on several export trains which were delayed due to track damage.

“Demand for our products remains strong, though port congestion continues to be an issue and profits have been impacted by the movements of the exchange rate,” Gloucester chairman Andy Hogendijk said.

“While it is ultimately up to the shareholders to decide, the Gloucester board notes that the independent expert has concluded that the scheme is fair and reasonable and in the best interests of Gloucester shareholders, and the board continues to unanimously recommend that, in the absence of a superior proposal, shareholders vote in favour of the scheme.”

Shareholders are due to vote on Xstrata’s takeover bid on July 5. Gloucester first announced the proposed scheme on April 10, 2007.

Under the scheme Xstrata plc, through its subsidiary Helios Australia, would acquire all of the issued shares in Gloucester for $4.75 cash per Gloucester share.

If approved, the scheme will result in Gloucester being de-listed from the Australian Securities Exchange and becoming a wholly owned subsidiary of Xstrata.

Gloucester was trading down 2.4% on Wednesday at $4.89.