by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Whitehaven Coal Limited : Annual Report 2008
Whitehaven Coal Limited - Annual Report 2008 CHAIRMAN’S LETTER Dear Whitehaven Shareholder, This has been an exciting year for Whitehaven Coal Limited (Whitehaven). Since the company was listed on the Australian Securities Exchange in June 2007, significant progress has been made developing the company’s coal projects and mines. PROFIT Profit for the year was $51.9 million. Coal prices remained high but infrastructure constraints limited the tonnages shipped. Also, long vessel queues at the Newcastle port caused substantial demurrage costs. ACHIEVEMENTS FOR 2008 Managed saleable coal production for the year increased by 20% to 2.753 million tonnes from 2.288 million tonnes in FY 2007. Production for the first full year of operations at the Tarrawonga mine offset reduced production from Canyon. Construction has begun at the Narrabri and Rocglen projects and a Development Application has been submitted to the NSW Department of Planning for our new project at Sunnyside. Additional drilling increased the JORC reserves at both Narrabri North and Werris Creek. Whitehaven increased its equity in the Werris Creek Joint Venture (JV) from 40% to 100% utilising proceeds from a capital raising and has agreed to increase its equity in the Bonshaw prospect from 67% to 100%. In addition we have sold a 7.5% interest in the Narrabri JV to Upper Horn Investments Pty Ltd (part of China’s Yudean Group) for $67.5 million. We have also accepted offers from Europe’s EdF Trading and Japan’s Electric Power Development Co Ltd for those companies each to acquire 7.5% of the Narrabri JV at prices of US$120 million and $125 million respectively. The sales are subject to formal documentation, due diligence and usual regulatory approvals, conditional on FIRB approval and are expected to be completed during September and October 2008. All three companies are leading coal consumers, and have entered into long term market based off-take contracts. We believe that the Narrabri JV is strengthened by their participation. After the balance sheet date the Company declared a dividend of 1.7 cents per share or $6,662,000, fully franked. CORPORATE Mr Keith Ross retired as Managing Director in March 2008. Mr Ross was integral in the development of Whitehaven and on behalf of shareholders, directors and all staff, I thank him for his leadership and vision throughout his long association with the Company. Mr Rob Stewart was appointed Managing Director effective 1 April 2008, having joined Whitehaven as Chief Executive Officer in October 2007. SAFETY Safety continues to be a priority for directors and management. Whitehaven has an excellent safety record since it commenced mining in the Gunnedah region in 2000. To the end of June 2008, only two lost time injuries had been recorded during this eight year period. FUTURE OUTLOOK The market for coal continues to be strong. We expect managed production to increase in FY 2009 with production improvements at Tarrawonga and Werris Creek and with the commissioning of the Rocglen and Sunnyside mines. Improved infrastructure arrangements and access will be critical to support our increased production. On behalf of the Board, I compliment the Managing Director and all Whitehaven staff on a successful year and thank shareholders for their support. John C. Conde, AO 1
Annual Report 2009