SK Networks is Cockatoo’s second-largest shareholder with 9.9%. It abandoned a $313 million placement in the company in April because of the adverse economic environment.
The share surge prompted a “speeding ticket” from the Australian Securities Exchange
Cockatoo did not offer any explanation for the surge. Instead, it pointed to its profitability and last week’s release of the bankable feasibility study for its Baralaba expansion project in Queensland.
“As announced on 20 September 2012, for the year ended 30 June 2012, the company reported a profit before tax $22.1m, gross profit from coal sales of $13.3m and record coal production of 600,171 tonnes,” Cockatoo said.
“Further, as announced on 27 September 2012, the company reported the completion of its bankable feasibility study confirming the attractive economics of the expansion of the Baralaba project from 750,000 tonnes per annum production to 3.5 million tonnes per annum.”
The completion of the Baralaba BFS confirms the economics of its simple open-cut brownfield development with a life of more than 20 years, according to Cockatoo.
“The comprehensive coal-quality drilling and testing program, combined with independent testing and verification, confirmed that the project will have an attractive product yield of 85% and an improved product mix producing 100% high-value ULV PCI coal,” it said.