Gloucester Coal, which recently announced its intention to merge with rival Whitehaven Coal, has reported a $44 million profit for the six months to 31 December, up from $5.1 million in the same period last year. The company said it remained on track to deliver solid results despite softening demand.
CEO Rob Lord said the combination of the company's interim result and the forthcoming merger would deliver strong returns for shareholders.
"We are confident that demand for our products will remain firm and that we can continue to deliver a solid operating performance," he said.
"In addition, completion of the Whitehaven merger will take Gloucester Coal to the next level, delivering additional revenue streams and a portfolio of production and development assets that will underpin long term success."
Gloucester said it was renegotiating its coking coal contracts with customers in India, China and Korea.
As at 31 January cash at hand was $50.7 million, up from $25 just a month prior.
The company also highlighted its increase in coal exploration saying: "Our exploration program also delivered great results with open cut reserves increasing by 33% to 38 million tonnes, lifting our coal resources to 209 million tones."
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