Record-breaking six months for Felix

THE record-high coal prices of 2008 have delivered a gift for Felix Resources in the form of a record profit of $166.1 million, 228% higher than the same time last year.
Record-breaking six months for Felix Record-breaking six months for Felix Record-breaking six months for Felix Record-breaking six months for Felix Record-breaking six months for Felix

Felix Resources' Ashton project.

Kate Haycock

The company, which operates several open cut and longwall mines in New South Wales and Queensland, and is also developing the Moolarben longwall in NSW, made a profit before tax of $224.6 million.

And with $37 million in debt and $340 million cash on hand at February this year, the coal miner will pay a 23c per share dividend to shareholders.

Meanwhile, work at Moolarben continues with first shipments due in March 2010, with the new port at Newcastle 50% completed and also due for completion in March next year.

When the longwall gets up and running it will add a further 10 million tonnes to Felix’s production profile. In the last half of 2008 the company produced 2.3Mt.

Felix has also been the subject of speculation about a potential takeover and today the miner said these talks were ongoing.

Given the global economic slowdown, the company warned it was unlikely these discussions would be wrapped up “in the near term” and while it would continue holding talks, the company priority would remain its current business and additional opportunities.

Shares in Felix were last trading at $6.91, up 35c or almost 4%, after peaking at $7.22 in intra-day trade.

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