For the period ended September 30, the company marked net income of $C9.3 million versus $47.1 million in the same period of 2008. Over the first six months of the year, net income was $14.4 million, a 71% drop year-on-year from $50.4 million.

Sales in the period totaled 360,000 tons, up from 340,000t in the comparable quarter of 2009.

Grande Cache’s revenue of $44.8 million – a nearly 42% slide versus $76.6 million reported last year – was earned through an average sales price of $124 per ton, almost halved from last year’s second-quarter average of $223/t.

Conversely, revenue for the first six months of the year was up slightly, to $119.4 million from $118 million, which GCC said related to the volume increase offsetting the lower sales prices.

Costs dropped 19% year-on-year, from $104/t to $84/t. The company cited reduced contractor services, maintenance and diesel fuel costs for the result, as well as lower rail costs.

For the fiscal 2010 year, GCC estimates sales volumes to be 1.5-1.7 million tons, up from a previous 1.3-1.5Mt forecast.

“The increase is due to a continuing recovery in demand from traditional customers and sales to new customers in China,” it noted, adding that the average US dollar-denominated sales price for the year is projected to be $US115-125/t, including carryover shipments, spot sales and contract sales.

"We are pleased with the sales performance and production increases we were able to achieve in the second quarter while at the same time reducing our overall unit costs," company president Robert Stan said.

"With our new fleet of equipment [including haul trucks and an excavator] and the anticipated approval of No. 8 surface mine, we are well positioned to take advantage of the market rebound and growth opportunities we are experiencing in China."