The net profit after tax from the six months ending December 2007 reached $239.5 million, bolstered by the sale of two mining operations to Xstrata Coal and the completion of a four-year $460 million debt restructure in December.

In June 2007 Centennial sold its Anvil Hill project to Xstrata for a total of $655.2 million, making $212.7 million profit. In October it also accepted Xstrata's offer of $1.83 per share for its 86% interest in Austral Coal, leaving it with a profit of $133.9 million.

Total coal sales for the first half of fiscal year 2008 reached 8 million tonnes, helped by strong performances from Centennial's major mines. The Angus Place coal mine returned a 300%-plus increase in interim pre-tax profits.

Centennial said the arrival of new longwall equipment at Angus Place, which will be installed in June 2008, and exploration drilling beginning at Angus Place East means the project is "heading for a record year".

Mandalong was another strong performer, generating a record first-half, pre-tax profit of $30.2 million ($21.1 million after tax). Operations at the mine recently resumed following a longwall changeover, and the mine is now on schedule to meet an expected 5 million tonnes in the 2009 financial year.

While Centennial incurred losses from some of its smaller mines, this was largely due to development work which has improved its long-term prospects.

The Newstan mine incurred a pre-tax loss of $2.6 million due to extended delays associated with the longwall equipment and conveyors; however, the final longwall is now ramped up to full production and is expected to be complete in September 2008.

The Munya mine, which undertook development work to improve mine ventilation, efficiency and overall product quality, returned a pre-tax loss of $4.5 million. This development work, along with the arrival of two new roof bolters, means Munya is now able to develop and implement improved mining system models to increase productivity and reduce costs.

Centennial's two export-focused mines, Charbon and Clarence, both came in close to expectations in the first half of fiscal year 2008. The Clarence mine spent the first half increasing the length of two panels where faulting conditions turned out to be less severe than anticipated. Although this meant the mine produced slightly below expectation, Centennial said the developments will maximise future extraction from the area.

Charbon, which produced in line with expectations, is currently producing poorer quality coal. While an opencut extension is currently underway to increase production, Centennial is also examining the potential for an underground project in the area.

Centennial's biggest loser was the Tahmoor mine, incurring a pre-tax loss of $12.6 million. Tahmoor was sold to Xstrata in October, as part of the Austral deal. In the four months before Austral was sold to Xstrata, the Tahmoor mine reached the thinner, more difficult end of the longwall block and underwent a longwall changeover.

With all its longwalls now operating at full production until the next changeovers in June this year, Centennial said it is on track to meet all its targets for the full year.