Sharp losses at Wollongong Coal

UNAUDITED results show that Wollongong Coal recorded a net loss of $A11.73 million for the June quarter – a 127% decline from the $43.8 million net profit of the previous quarter.
Sharp losses at Wollongong Coal Sharp losses at Wollongong Coal Sharp losses at Wollongong Coal Sharp losses at Wollongong Coal Sharp losses at Wollongong Coal

Courtesy of Wollongong Coal, formerly Gujarat NRE Coking Coal.

Blair Price

Revenue for the recent quarter was just $4.89 million – a 77% plunge from the March quarter.

The Wongawilli colliery struggled with unworkable strata conditions following a roof fall in February, with 115 staff from the operation eventually made redundant on May 29 as it was reduced to single miner section running each week from Monday to Thursday.

Run of mine production from Wongawilli was 7,276 tonnes in the June quarter as a result – a 95% fall from the 154,228t of the March quarter.

ROM production from the Russell Vale longwall mine – where the company could retrench 200 workers if it does not receive timely federal government approval to extract the first 400m of a planned expansion panel – was up 6% from the March quarter to 42,239t in the June quarter.

Development crews there faced geotechnical challenges, with development metres falling 30.5% to 1430m in the recent quarter while 216m was achieved at Wongawilli.

The Illawarra coal miner ended June with $12.56 million cash at bank and total current liabilities of $171.88 million, including $82.8 million of trade and other payables.

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