Wongawilli reaches milestone as Wollongong revenues plunge

WOLLONGONG Coal’s Wongawilli Colliery in New South Wales has started a progressive restart program which has reached the milestone of processing existing underground inventories. But directors have warned the company may not continue as a going concern after reporting a 35% drop in revenues to $12.3 million.
Wongawilli reaches milestone as Wollongong revenues plunge Wongawilli reaches milestone as Wollongong revenues plunge Wongawilli reaches milestone as Wollongong revenues plunge Wongawilli reaches milestone as Wollongong revenues plunge Wongawilli reaches milestone as Wollongong revenues plunge

Image courtesy of Wollongong Coal.

Lou Caruana

Developmental activities and recommissioning of mining plant and equipment continues at Wongawilli an bord and pillar mining (partial extraction) should continue in the near future, the directors said.

In November 2015, Wollongong Coal received confirmation from the NSW Department of Planning that the Company has satisfied residual concerns raised by PAC after an initial public hearing regarding an application for the Underground Expansion Project at its Russell Vale Colliery.

Despite DoP’s recommendation to approve the proposed UEP under strict conditions, the PAC has raised further concerns after its second public hearing in February 2016 resulting further delays in commencing longwall operations at Russell Vale Colliery.

“The company remains committed to resolve those issues and obtain the required approval,” it said.

The consolidated entity continues operating within a very strict budget and cost-controlled regime, Wollongong directors said.

“The directors believe that with all measures put in place as detailed above, together with the continued support of its parent entity, financiers, suppliers and other stakeholders, the consolidated entity would be able to put its liquidity troubles behind it and move to the more productive aspect of running a profitable business,” they said.

“If one or more of the planned measures do not eventuate or are not resolved in the consolidated entity’s favour, then in the opinion of the directors, there will be significant uncertainty regarding the ability of the consolidated entity to continue as a going concern and pay its debts and obligations as and when they become due and payable.”

If the consolidated entity is unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the normal course of business at amounts different from those stated in the financial statements.

“No adjustments have been made to the financial statements relating to the recoverability and classification of the recorded asset amounts or the amounts and classification of liabilities that might be necessary should the consolidated entity not continue as going concern,” the company said.

topics

loader