As part of the restructuring, Newstan will cease operations at the end of the 2008 financial year, but is expected to make a positive contribution until then, following action to de-risk remaining longwall mining.
The group achieved sales of 16.6 million tonnes for the year, a 9% lift on the previous year of 15.2Mt.
Meanwhile, sales revenue for the year reached $901.8 million, an increase of 12% on the previous year of $807.9 million.
While the consequence of the restructure was a large one-off, non-cash write-down, the restructure is already enabling Centennial to accelerate expansion of the group’s successful Mandalong mine while reducing losses at Newstan.
Looking forward, Centennial said the new financial year is off to a good start.
“The Newstan operations have been substantially de-risked, Mandalong’s expansion to 5 million tonnes per annum is firmly on track, Tahmoor’s ventilation issues will be resolved shortly and the group’s western operations continue to perform strongly," the company said.
“Together with continuing strong coal market fundamentals and the recent receipt of development consent for Anvil Hill, the directors expect a substantial uplift in reported profitability for the 2008 financial year."