Despite the change to the sales target, forecast net profit after tax of $63–73 million remains unchanged.

Following a disappointing December quarter, Macarthur predicted that low levels of run-of-mine coal production would continue until the June quarter 2007.

Coppabella produced 807,000 ROM tonnes during the March quarter, up slightly from 658,000t in the same quarter of 2006.

Moorvale posted 518,000t for the quarter, down from 652,000t in the 2006 period.

Coal sales of 618,500t were significantly lower than the corresponding 2006 quarter, which achieved 1.2Mt.

Exploration activity during the quarter was adversely affected by wet weather, preventing drilling taking place and delaying access to drilling sites until the ground became firm enough to support drilling rigs and ancillary equipment.

“The shortage of exploration rigs, experienced geologists and geophysical logging units together with the inability of laboratories to meet the demand for coal testing continue to limit exploration activity in Queensland,” Macarthur said.