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Aquila said the attributable EBITDA guidance for Isaac Plains in the 2009 financial year was $A110–120 million.
Isaac Plains is situated near Moranbah and consists of the North and South coal deposits located 15km apart.
The ramp-up to full capacity has been timed with the expansion of Phase 2/3 of Dalrymple Bay Coal Terminal to be completed later in the 2009 fiscal year.
Aquila said it had achieved prices consistent with benchmark pricing for Isaac Plains’ semi-hard coking coal and PCI coal.
While Aquila expects strong EBITA from the project in the 2009 financial year, it said assuming full production ramp-up is achieved and current coal prices are rolled over, attributable EBITDA would substantially increase in the 2010 fiscal year.
It said the risks to that guidance were delays in regulatory approvals, delays in the ramp-up of Dalrymple Port and extreme weather.
The cash flow from Isaac Plains will help Aquila and joint venture partner Vale Australia further develop its other projects.
A prefeasibility study is due shortly for the 780Mt Eagle Downs coal project.
At Belvedere, where Aquila holds 24.5% and Vale 51%, the resource was recently upgraded to 3.8 billion tonnes.
Aquila’s total attributable JORC-compliant measured, indicated and inferred resources for coal projects is 2.6Bt of predominantly hard coking coal.
Aquila was trading down 4.27% mid-morning at $11.20.
