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Record sales tonnage of 1.83 million tonnes was also achieved, up 50% over the previous corresponding period. Attributable group coal production from the company’s three operating open cut coal mines was 1.82 million tonnes, up 44%.
Operating profit before tax was $10 million on revenue of $121 million, up slightly over the previous corresponding period which achieved $9.7 million operating profit and $82 million revenue.
Managing director Brian Flannery said the Yarrabee mine is operating within expectations and is anticipated to achieve full year sales of around 1.7Mt, while Ashton open cut ROM production is on target.
Unexpected, localised faulting slowed coal removal rates at Minerva, which failed to reach full production rates during the quarter.
Meanwhile, the Ashton underground longwall is on track to be commissioned mid March, with full production of around 2.2Mtpa of product coal expected in the last quarter of FY 2007.
The development of longwall panel one was completed early February with longwall equipment installation currently being undertaken.
“Coal production and subsequent sales and revenues for the group are expected to increase significantly in the second half with the commissioning of the Ashton underground longwall in March,” the company said.
Felix’s 100% owned Moolarben project is progressing as anticipated, with construction scheduled for mid 2007, allowing first coal to be available for loading by the end of 2008.
The development of a longwall at Moolarben is also planned to commence within three years of the opencut commissioning, at a production rate of 4Mtpa of thermal coal.
Looking forward, Flannery predicted a strong market outlook with 2007 prices increasing.
“Demand across all coal types is strong with seaborne traded supply being constricted by port congestion. This is underpinning recent months strengthening of spot prices and is now being reflected in higher contracted prices for 2008,” he said.
“ All coal products have seen tangible indications of USD price improvement with some sectors including semi soft coking coal and low volume thermal coal seeing significant increases in prices going forward.”
