CCI chairman of directors Peter E J Murray said as a result of the company’s rejuvenation program, the profit results would reflect some “abnormal” items generated from historical adverse leasing, investment accounting and trade debtors issues, together with a costly business closure – but offset by a recovery on the Pluton coal resource in the Ukraine.

As well as announcing the positive financial turnaround, CCI updated shareholders on recent events concerning the company’s future outlook.

Murray said the company’s recent decision to sell its 50% interest in the Pluton Project to Shimoda for $US500,000 would net CCI approximately $A650,000 as well as retaining a royalty interest on future production.

“This project has had a chequered history for many years and attempts to interest parties in developing the project have continually failed. The board believes the sale is in CCI’s interest and it enables CCI to concentrate on its traditional growing businesses,” Murray said.

He said CCI Australia is now planning to set up a new dedicated borecore facility in Newcastle, which will enable the company to service more coal exploration activity and increase profitability in future years.

However, Murray also announced the closure of the CCI Indonesia Engineering Joint Venture, saying the company had begun implementing the liquidation process. He said the closure would cost CCI in the order of $350,000 this financial year.

“The venture has been doubtful for some years. In recent times poor accounting and other practices demanded increased and unacceptable attention from the joint venture partners,” he said.

Overall, the company maintained a positive outlook for 2006.

“The net result of these items in the accounts, given past provisions, should be a modest gain,” Murray said.