Net profit will comprise $A70-A75 million from ordinary activities, plus $A20 million from a deferred tax benefit from the remaining tax losses at its Wambo operation.

Excel was positive about its future, issuing a financial year 2006 net profit guidance of $A150 million.

The company said all its operations achieved strong production results in the June quarter, with total saleable coal production up 9.6% over 2004.

New South Wales longwall Metropolitan produced 515,000 ROM tonnes for the quarter, far above the corresponding quarter last year, lacklustre thanks to a longwall change out.

“Coal production for financial year 2005 was 26% higher than 2004, reflecting realisation of benefits from Metropolitan’s 2005 program of upgrades. This included widening of the longwall face and an upgrade to the drift conveyor,” the company said.

Difficult mining conditions at Chain Valley underground mine near Lake Macquarie adversely affected production with output below plan. The mine produced 218,000t during the quarter.

Excel said saleable coal production at its New South Wales opencut Wambo accelerated significantly during the quarter and exceeded prospectus forecasts. The mine produced 1.25Mt during the quarter.

Construction of the Wambo rail project and coal preparation plant upgrade continued on-schedule during the quarter, as did construction of the Millennium coal project in central Queensland.

Production at Millennium will commence later this year at 1.5Mtpa, eventually ramping up to 3Mtpa.