Gloucester Coal has increased first quarter coal sales by 17 per cent from a year earlier due mainly to its acquisition of a new mine and increased share in another.
Total sales of 627,000 tonnes for the quarter compared to 535,000 tonnes for the same quarter last year.
Production of 934,000 tonnes more than doubled from 451,000 tonnes due to the Middlemount and Donaldson mines’ inclusion.
However production from the Gloucester Basin alone of 449,000 tonnes was slightly down on last year’s 451,000 tonnes on a like-for-like comparison.
The company’s shares fell one cent to close at $6.84.
The sales figure included coking or metallurgical coal, used in steelmaking, of 186,000 tonnes for the quarter compared to 130,000 tonnes for the previous corresponding quarter, an increase of 43 per cent.
However, demand for metallurgical coal from Gloucester and Donaldson had weakened in line with the general market, the company said in a statement.
Thermal coal sales of 441,000 tonnes were up nine per cent on the previous quarter.
While prices had softened slightly, demand for thermal coal remained strong, the company said.
Gloucester Coal now has a 50 per cent stake in Middlemount with Macarthur Coal holding the other half, with estimates of a saleable production capacity of up to four million tonnes per annum over a 20-year mine life.
With Cline Mining being less than a year away from having production at a rate of 3 million tonnes a year of Met Coal, what value does that put on CMK?
Will we see $7.00 per share in a years time? Other than Maplak who thinks the shares will be at $ .74, what are the opinions out there?
Hourglass11