The guidance is up from $13.5 million profit reported in the previous corresponding half. The six months to June were affected by flooding in the Bowen Basin which had a knock-on affect to sales volumes.

The company lifted force majeure on August 20 and says sales volumes from its Coppabella Mine are recovering to full capacity.

Macarthur said today its guidance was sensitive to achieving the budgeted shipping schedule of 4 million tonnes of PCI coal and 1Mt of thermal coal, and of no changes to the valuation of financial derivatives from June 30, 2008.

“We are forecasting a greater than ten-fold increase in first half profit, year on year. The company’s premium low volatile PCI product remains in strong demand from global steel mills as its use reduces the cost of steel production,” Macarthur CEO Nicole Hollows said.

“Importantly given the current situation in the financial markets, Macarthur Coal is in a strong financial position in relation to the funding for future growth.”

Macarthur closed down 13.7% yesterday at $5.90.