Posting Centennial’s March quarter 2007 results, managing director Bob Cameron said it was “extremely disappointing” that the continuing problems at Newstan and ongoing ventilation issues at Tahmoor had lowered the full-year profit forecast.

“This validates our decision late last year to cease longwall mining at Newstan at the end of next financial year,” Cameron said.

“Going forward, the group’s portfolio will be substantially refocused on Mandalong, the lower-risk Anvil Hill opencut project which will produce at least one-third of the company’s longer-term output, and Tahmoor with its upgraded ventilation system.”

Taking into account the November non-cash write-down of $34.1 million attributed to Newstan, Centennial expects to return a break-even result for the 2007 financial year.

Centennial’s run of mine (ROM) coal production totalled 4.1 million tonnes for the March quarter 2007 and 13.4Mt for the year to date, up 1% and 20% respectively on the prior corresponding periods.

Coal sales totalled 4.1Mt for the quarter and 12.9Mt on a YTD basis, up 4% and 18% respectively on the prior corresponding periods.

Cameron said that slow progress at Newstan in late March and early April had affected the production results, as well an AFC breakdown at Mandalong and the longwall changeover at Angus Place.

Looking forward, Centennial is confident that 2008 will be a better year for the company, as it works towards increasing production and productivity at its key operations, including Anvil Hill, Mandalong and Tahmoor.