It is reported that an active exploration program more than wiped out stronger earnings from Aquila Resources Isaac Plains coal mine resulting in the company posting a net loss of USD 64.6 million in the year to June.
Earnings benefited from surging coal prices which more than offset production constraints arising from waterlogged operations after the floods in central Queensland earlier in the year. Sales have also been hampered by a dispute with joint venture partner Vale over marketing of the coal.
Coal production in the year fell to 1.56 million tonnes from 2.5 million tonnes a year earlier with coking coal output of 233,000 tonnes down from 664,000 tonnes and output of pulverised coal, which is injected directly into the blast furnace, rising to 766,000 tonnes from 635,000 tonnes. The balance of the production is made up of steaming coal.
Revenue rose to USD 133 million from USD 129 million a year earlier wi
th earnings before interest, taxation depreciation and amortisation increasing to USD 36.3 million from USD 15.6 million a year ago. Aquila has only the Isaac Plains mine in production although it is spending actively to develop a suite of coal, iron ore and iron mines across Australia and Africa.
This resulted in exploration and evaluation spending rising to USD 102.4 million from USD 60.2 million a year earlier which Aquila writes off immediately, unlike some miners who capitalise much of this spending.
Even with the heavy spending program, Aquila still has sizeable cash reserves of USD 184 million, and no debt which will help it to achieve part of its growth ambitions.
The company remains mired in litigation with its joint venture partner, Brazilian resources group Vale Resources, over the development of several of the group's assets.
Earlier this month, the Queensland Supreme Court ruled against Vale in a dispute over the Eagle Downs coking coal project saying Vale has not acted in good faith or in the best interests of the joint venture'.
(Sourced from www.smh.com.au)
