In his presentation to the Wilson HTM Focus on Coal conference in Sydney last week, Gloucester chief executive officer Rob Lord said close to 1 million tonnes of thermal coal had been contracted for the next financial year at prices above $US73 a tonne.
He said the company plans to ship its full port allocation and the weaker Australian dollar should help despite expected price falls from recent record-high coal contract prices settled in 2008.
Gloucester has been adapting to changing demand conditions by switching away from coking coal production to thermal coal.
The company’s proposed merger with Whitehaven Coal is under from the review of the Takeovers Panel following 21.7%-shareholder Noble Group’s cash takeover offer of $4.85 a share to Gloucester shareholders.
Shares in Gloucester traded down 5c to $4.60 today.
