The coal miner said profitability suffered in FY 2004 because of lower coal prices due to lower US$ market prices and a strong Australian dollar, resulting in average A$ FOB contract prices received being significantly lower than FY 2003.
Saleable coal production and sales exceeded expectation during the year, ROM coal production reaching 5.97 million tonnes and coal sold registering 4.86 million tonnes.
Excel were optimistic for the 2005 FY, predicting US$ coal prices to be an average 10% higher than prospectus forecasts.
The New South Wales coal royalty regime in force since July 1 2004 will impact negatively on Excel in 2005 FY to the tune of A$4.4 million.
The acquisition of the minority interest in HunterCoal increased Excel’s share of Wambo mine’s profit from 56% to 75%. Excel predicted the increased interest would lift its earnings per share by 10% in 2005 FY.
