Falling coal prices have dampened the effect of a strong increase in production for Whitehaven Coal.
The company also says it still expects to be producing coal from its controversial Maules Creek mine in 2014, despite legal action being taken against its development approval.
Whitehaven produced 8.2 million tonnes of coal in the 2012/13 financial year, up 67 per cent on the previous financial year.
Total coal sales for the year of 7.4 million tonnes were up 34 per cent from the previous year.
But prices fell during the 2012/13 financial year, the company said.
“Whitehaven’s realised value for its thermal coal in the second half has been affected adversely by the continued weakness in the market price, adverse foreign exchange rates, and lower energy of Narrabri thermal coal,” Whitehaven said.
The company has been working to overcome a quality issue with coal produced at its Narrabri mine, and that quality is expected to improve in the next three months, the company said.
The benchmark price for Whitehaven’s metallurgical coal fell to $US113.50 per tonne in the June quarter, and is expected to fall to about $US102 per tonne in the three months to September, Whitehaven said.
Thermal coal prices have also dropped, hitting $US77 a tonne in July, from $US93 a tonne in December.
Metallurgical coal is used in the making of steel, while thermal coal goes into energy production.
Whitehaven also said it expects to make its first sales from the Maules Creek project, in northwest NSW, in the final three months of 2014.
That is a more specific target than its previous forecast of first sales in the second half 2014.
The company is continuing to work on construction of the mine, despite proceedings being launched in the federal court by an environmental group.
“Pending any findings by the court, the company is relying on the minister’s approval to proceed with construction,” Whitehaven said.
“In the event of an adverse finding against the minister, one remedy could entail the minister re-approving the project.”
Whitehaven shares dropped three cents to $2.10 at 1555 AEST, Monday.
