Aquila drains Bounty�s cash

BOUNTY Industries has announced revenues of $A3.6 million from 116,000 tonnes of coal produced in the quarter to September 2006, but expensive development work at Aquila and subsequent slower production have resulted in a negative cash flow for the first quarter.
Aquila drains Bounty’s cash Aquila drains Bounty’s cash Aquila drains Bounty’s cash Aquila drains Bounty’s cash Aquila drains Bounty’s cash

 

Staff Reporter

During the quarter, mining at Aquila was primarily focused on completing the development of a panel located over the subsided longwalls of the German Creek Coal seam.

During the first two months, one production unit was operating in what was a comparatively slow and expensive development program.

In late September, Bounty commenced mining in a second panel, which had the immediate effect of significantly increasing production.

“This second production unit has been introduced without the requirement for additional employees and as such production costs per tonne mined decreased significantly,” the company said.

Given the better mining conditions in the new production areas, lower per tonne production costs, and less development work being undertaken, the company expects improved production and cash flow from the two operating units at Aquila during the second quarter.

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