Last week, Centennial announced its net profit was forecast in the range of $A45-55 million, excluding a $34 million writedown from the troubled Newstan longwall operation.

With the cost incurred by Newstan, this would mean a result in the range of $11-21 million, compared to a 2005-06 net profit of $17.1 million, which was also down from the previous year.

Moss said the Tahmoor mine, which experienced an improvement in performance that was less than originally anticipated, has also contributed to the company’s reduced profit expectations for the 2007 financial year.

“I would like to put on the record how much we regret the slowing in Centennial’s previously strong performance and to offer our apologies to shareholders for this outcome,” Moss said.

“While we all may be suffering some short-term pain, the directors believe that Centennial will be stronger going forward with several world-class assets, which, by their nature, should drive shareholder growth by utilising scarce resources efficiently and delivering a more consistent and higher than average return on investment.”

Looking forward, Moss said there were a number of opportunities underpinning the group’s future profitable growth, including the acceleration of Mandalong, an improvement plan at Tahmoor and the development of the Anvil Hill opencut mine.

By the end of 2008, the restructure will be well underway and the group will be operating without its Newstan, Awaba and Mannering mines.

“The restructure will deliver significant benefits for the group in terms of improved profitability and cash flow and reduced operating risk,” Moss said.

Moss thanked shareholders for their continued support (although judging by the recent share price drop, some haven’t been all that supportive) and recited Centennial’s future growth strategy, summed up in a simple sentence:

“Centennial’s strategy is to operate large world-class mines, with higher margins based on increased operating efficiencies and market-based pricing,” he said.

“…I look forward to a much improved year. I am confident that we will do better.”

Centennial arrested the dramatic drop of its share price on Wednesday this week, clawing back 3.2% Wednesday, 7.7% Thursday and was trading midday today at $2.79.