Western achieved record production levels in the first quarter of the 2011 fiscal year – which started on April 1 – and further improvements are anticipated for the second quarter, president Keith Calder said at the company’s recent annual general and special meeting
“Market fundamentals for metallurgical coal remain strong, both in the short and medium-term, and the company expects a continued growth in the global demand for its products during this period,” he said.
A comprehensive evaluation of all Western assets is now underway, and the company is considering numerous opportunities outside North America which could further increase resources and provide it access to emerging markets.
Western chief financial officer Braam Jonker also looked ahead, confirming that the producer continues to deliver against its stated targets for the year while supporting cash flow through higher sales and lower costs.
“The company remains confident that it should be able to implement its organic growth target of producing 10Mt of coal per annum by 2013 without having to revert to the markets for financial support,” he said.
Additionally, Jonker noted, all of the external growth opportunities currently on Western’s radar are affordable from that internal cash flow and financing facilities alone.
“There is currently no intention, neither is there a need, for the company to revert to the markets for finance,” he said, adding that the company will amend its capital structure by the end of the year and delist 72 million Western shares currently held by one of its subsidiaries.
The operator is on a notable growth path as of late; in August it announced it had closed its $C35.6 million acquisition of Welsh operators Energybuild.
Under the deal initially announced in June, a total of 8,551,578 new Western common shares were issued, bringing the total of issued and outstanding Western common shares at that time to 345,195,111, including 72,122,826 issued and outstanding shares held by its wholly owned subsidiary. Common shares totaling 273,072,285 are held by the public.
Vancouver-based Western Coal produces metallurgical coal from mines in northeast British Columbia, Canada, met and thermal output from mines in West Virginia, and high quality anthracite and met product in South Wales, United Kingdom.
It also holds a 24% interest in Mandalay Resources, a 40% interest in Xtract Energy and a 20% interest in NEMI Northern Energy & Mining.
