Gloucester looking on the bright side Tuesday, 29 April 2008
GLOUCESTER Coal is banking on higher than expected coking coal prices to pull its 2007/08 financial performance through 15% higher than the preceding year, despite a drop in sales during the March quarter due to heavy rains.
Courtesy Gloucester Coal
While heavy rainfall and coal infrastructure constraints impacted on production from Gloucester's operations in the Gloucester Basin of New South Wales, the company said full year coal sales remain on track to exceed 1.8 million tonnes.
Coking coal sales in the first quarter fell short of 2007 levels by 21%, at 169,000 tonnes, and export thermal coal fell 22%, from 370,000t in first quarter 2007 to 289,000t.
Total run of mine coal production fell short of first quarter 2007 by 4% and 15% below the December 2007 quarter as a result of constraints in the Hunter Valley Coal Chain.
Rain during the quarter cut production at Gloucester's biggest producer, the Duralie mine, by 10% to 377,000t. However, Bowens Road North managed a 47% increase in production, from 140,000t in the March quarter of 2007 to 206,000t in 2008.
Exploration and development expenditure in the March quarter reached $400,000, with a focus on acquiring land over prospective areas and converting resources into mineable reserves. Gloucester said it expected to release an updated JORC reserves and resources statement in the second quarter of 2008.
During the quarter Gloucester signed thermal coal contracts at prices in excess of $US100 per tonne, which it said were "indicative of a significant uplift in expected earnings" for the next fiscal year.
Shares in Gloucester Coal jumped 9.33% yesterday to a high of $11.02 on the Australian bourse, but dropped off slightly this morning to $10.35.
and todays.....
New coal discovery lifts Gloucester Thursday, 1 May 2008 Christine Feary
GLOUCESTER Coal this morning announced a major coking coal discovery in New South Wales' Gloucester Basin, sending the company’s shares up A72c in intra-day trade.
Drilling intersections along the eastern side of the basin confirmed continuity of the Clareval Seam, known for its low sulfur, semi-hard coking coal.
Analyses from the drill results indicate a product coal yield of 70–75% could be anticipated from routine washing.
Approximately 50% of the product would be an 8% ash semi-hard coking coal with a sulfur content of less than 1%.
“We expect further drilling over the coming months will enable us to delineate resources and therefore increase JORC standard reserves and resources further as a result of this success," said Gloucester chief executive Rob Lord.
The Sydney based miner’s shares rose to a high of $10.56, a 7.3% jump from yesterday’s close of $9.84, before cooling to $10.26.
GCL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
