Macarthur posts high, pushes back Middlemount start

STRONG production, good weather and a drop in vessel queues at Dalrymple Bay have all added up to a great December quarter for Macarthur Coal, outshining expectations.
Macarthur posts high, pushes back Middlemount start Macarthur posts high, pushes back Middlemount start Macarthur posts high, pushes back Middlemount start Macarthur posts high, pushes back Middlemount start Macarthur posts high, pushes back Middlemount start

Image courtesy of Macarthur Coal

Angie Tomlinson

Having predicted sales of 2.4-2.7 million tonnes for the second half of 2009 back in November, Macarthur today said its December half sales would reach 2.8Mt.

Sales are the second highest in the company’s history and Macarthur now expects its profit for the December half to be $A37-42 million.

June half sales are expected to be less than the December half due to minimal coal stocks, likely seasonal effects of the weather on production, and continuing restrictions in the Goonyella coal chain.

The 2010 financial year full-year sales forecast has now also been lifted to 4.8-5Mt.

Macarthur also advised that shipments from its Middlemount project would be delayed with no shipments expected in the 2011 fiscal year.

The delays were attributed to the lack of progress in obtaining key toll arrangements for temporary water and rail infrastructure.

“Middlemount Coal is progressing development of its own rail loop and water supply pipeline which are expected to be completed in the December half of 2011,” Macarthur chief executive Nicole Hollows said.

Hollows said the company would continue to seek opportunities for an earlier start and work to expedite the environmental impact statement already underway to increase production which would enable accelerated ramp up of production once infrastructure was in place.

Macarthur was trading down 2.25% mid-morning today at $11.28.

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