Run-of-mine coal production totalled 267,000 tonnes and export sales totalled 278,000 tonnes, significantly more than previous records.

“The commissioning of the upgraded longwall unit has been smooth and, combined with the improvements to the operating regime nearly a year ago, Southland has demonstrated reliability at over 2.1 million tonnes of coal per annum, excluding blending operations,” the Company said.

Southland also announced longer-term contracts were being written with steel mills in several continents, but did not elaborate further.

Gympie Gold has also completed the first tranche of the $25 million placement announced on 25 November 2003. The placement of 50 million shares comprised a first tranche of 28.5 million shares and a second tranche of 21.5 million shares. The second tranche is subject to approval by shareholders at a General Meeting of the Company being held on 8 January 2004.

The net proceeds of the placing have been designated to meet increased working capital requirements of growing coal production; reduce the Company's debt-to-equity ratio from over 90% to below 60%; and pursue organic growth opportunities at both Southland Coal and Gympie Eldorado Gold.