The net profit figure (including significant items) of $83.5 million, which was struck off revenues for the half year of $198.5 million and included $56.4 million from the sale of 7.5% of the Narrabri Joint Venture, was a “solid” result that reflected the implementation of the company’s short and medium-term growth plans, Whitehaven managing director Tony Haggarty said.

“The company has now cemented its position as the leading coal developer and producer in the Gunnedah Basin,” he said.

“In addition to existing projects, Whitehaven’s growth plans have been enhanced by

the acquisition of the Bluevale (formerly Vickery) assets and our expanded exploration

efforts throughout the region.”

The company was in a strong financial position at December 31 with net assets of $1.037 billion, including $232.6 million cash on hand and interest-bearing liabilities of $82.6 million

All operations performed well in terms of safety, environmental management, and production, with saleable coal production for the half up 50% to 1.725 million tonnes on an equity basis and cost of sales per tonne of coal down by 10%, Haggarty said.

The company is on target to expand its saleable open-cut production to 5.5Mtpa by the third quarter of calendar 2010 through the purchase of an additional excavator and trucks at Werris Creek to take it to 2Mtpa of saleable coal, and an additional excavator and trucks at Tarawonga to bring production to 1.8Mtpa. Rocglen will increase to 1.2Mtpa, while the Gunnedah processing plant will be upgraded to 550 tonnes per hour.

Stage one of the Narrabri longwall project is almost complete but problems in driving the drift due to poor ground conditions in preparation for the longwall has meant stage two is running four months late and mining is now due to begin in mid-2011.

The intersection of the coal seam is now anticipated to occur in April 2010.

“We’ve probably to 300 metres of tunnelling still to do,” Haggarty said.

“With approximately $2 million per month of drift driving costs, we will have to increase our cost estimates for the project.”

Haggarty confirmed the Narrabri longwall and associated equipment has been ordered with delivery due for late 2010.

Whitehaven remains well positioned to benefit from the strong fundamental growth in demand for coal (both metallurgical and thermal).

The company’s growth profile is supported by its strong financial position, solid portfolio of long-term coal sales contracts and increased infrastructure access, Haggarty said.

At mid-morning, Whitehaven’ shares were down 18c to $4.94.