Sales revenue from its subsidiaries Gympie Eldorado in Queensland and Southland Coal in New South Wales increased 76% over the previous year to $85 million
Managing director, Harry Adams, said the after-tax loss of $2.5 million for 2001-02 reflected the past two years of setting up operations which has been challenging and expensive, particularly at Southland Coal.
“The foundation has now been laid for significantly improved profitability from the second half of 2002-03, as mine development is now in place to increase production and reduce unit costs,” he said.
“It is pleasing that progress remains on track to achieve the long-standing target revenue of about $140 million in 2002-03.”
Production at Southland Coal increased by 120% to 1.03 million ROM tonnes. Thiess took over as contract operator in March, and Gympie said it has since completed a range of remediation works, re-established operations and initiated a range of improvement programs.
The new production zone from the Greta Seam at Southland Coal is targeted to provide about 1.5Mt in 2002-03. The largest single longwall panel in the history of the Greta Seam was completed at Southland. Production from this zone commenced in July, and is targeted to provide about 1.5Mt in the next financial year.
