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Whitehaven Coal Limited : Annual Report 2012
Whitehaven Coal Limited -- Annual Report 2012 63 8. PRINCIPAL ACTIVITIES The principal activity of the Group during the period was the development and operation of coal mines in New South Wales. During the year ended 30 June 2012, Whitehaven Coal Limited and its controlled entities ('the Group') continued development at the Narrabri underground mine. 9. OPERATING AND FINANCIAL REVIEW 9.1 Overview of the consolidated entity Whitehaven Coal Limited was incorporated on 15 March 2007 and legally acquired Whitehaven Coal Mining Limited and its controlled entities on 29 May 2007. During the year ended 30 June 2012, the Group continued development at the Narrabri underground mine as well as exploration of its Vickery Project. 9.2 Highlights Financial • Underlying net profit after tax (NPAT), before significant items, of $57.8 million, down 13% from FY2011; • NPAT after significant items of $62.5 million. Total significant items after tax of $4.8 million including: -- Historical legacy contract losses pre-tax of $29.4 million (all legacy contracts fulfilled end of March 2012); -- Aston/Boardwalk transaction costs pre-tax of $41.4 million; -- Profit on sale of interest in Maules Creek to J Power pre-tax of $116.2 million; -- Accounting adjustment for the fair value of Boardwalk Resources goodwill at acquisition pre-tax of $119.8 million; -- Initial recognition of Mineral Rent Resource Tax (MRRT) starting base as a deferred tax asset of $101.5 million. • A fully franked final dividend of 3 cents per share has been declared, payable on 23 September 2012. This takes the total dividend for the year to 53 cents per share after the payment earlier in the year of the special dividend of 50 cents per share; • Revenue from coal sales of $448.4 million (net of purchased coal and excluding NSW royalty), up 2.6% from FY2011; • Cash flow and financial position -- $513.6 million cash available with net cash of $24.2 million compared to $207.6 million cash available and net cash of $29.0 million at 30 June 2011. Operating • The Narrabri longwall was installed in the June quarter and is currently being commissioned. First longwall coal was cut on 12 June 2012, with over 240 Kt of longwall coal produced to date during commissioning. • Saleable coal production up 3% (equity basis) to 4.28 Mtpa, and up 4% to 4.90 Mtpa (100% basis); • Equity ROM coal production increased slightly to 4.66 Mtpa for the year. This was lower than anticipated due largely to significant impacts of exceptional wet weather in the December and March quarters and consequential mine scheduling issues. • NSW Project Approval for the Maules Creek project is still pending and has taken much longer than anticipated. Latest indications are that approval will be received in the September quarter. There are no apparent issues to be resolved and Whitehaven remains confident of a successful outcome. It is extremely difficult to predict the timing of approvals under the current NSW planning process, but Whitehaven is remaining optimistic that approval will be forthcoming in this timeframe. • Planning at the Vickery project has generated an open cut mine plan to produce around 4.5 Mtpa ROM for more than 25 years with a stripping ratio of approximately 10:1. Focus is on obtaining NSW Project Approval for this project and lodgement of the approval for assessment by the NSW Government is planned for the fourth quarter in CY2012. A full review of the South Vickery project is underway. South Vickery is contiguous with Vickery and was recently acquired as part of the Coalworks acquisition. 9.3 Review of operations The Managing Director's Report, containing a review of operations, commences on page 10 of this Annual Financial Report. This, together with the Chairman's Letter and the sections headed 'Significant Changes in the State of Affairs' and 'Events Subsequent to Reporting Date' in this report, provides a review of operations of the consolidated entity during the year and subsequent to the reporting date.
Annual Report 2011
Annual Report 2013