Sedgman
Coal-handling and processing plant specialist Sedgman posted a post-tax net loss of $6.7 million for the recent half – a 154% freefall from the $12.3 million net profit after tax clocked up in the corresponding period of 2012.
Revenue slumped 40% year on year for the recent half, with Sedgman saying major projects were deferred due to lower commodity prices while some mining sites switched over to an owner-operator model.
Sedgman will still issue a fully franked interim dividend of 2c per share while its CEO and managing director Nick Jukes has decided not to renew his employment contract when it expires at the end of June.
An executive search is underway, while Jukes said Sedgman’s performance was impacted by difficult market conditions, but was consistent with its November guidance.
“Our book remains sound with $373 million work in hand, up $23 million in the period,” he said.
“We have reduced overheads in the past 12 months and maintained a strong net cash balance of $77.9 million.”
New Hope
Queensland thermal coal producer New Hope produced a total of 2.41 million tonnes run of mine for its recent quarter – down 10% year on year due to the move to cease mining at Oakleigh and change the schedules at the New Acland and Jeebropilly mines.
Sales for its recent quarter were up 11% year on year to 1.53Mt, which probably reflected lower realised prices, while its saleable coal production was down 15% to 1.18Mt.
New Hope will release its half-year financial results on March 25 and has flagged net profit after tax to fall into the range of $21-23 million.
“The result for the current period has been impacted by continuing weakness in thermal coal prices and a relatively high Australian dollar,” New Hope said.
“Despite the difficult coal market conditions, management remain focused on maximising long-term shareholder value by continuing to deliver prudent cost reductions and operational efficiencies.”
Bounty
