Clean coal production for the second half of 2004 is currently 210,000 tonnes behind expectations. Austral said although it would be possible to recover some production, a significant shortfall will be sustained at year end.
Austral directors will not provide a new profit guidance until this month’s production levels are known.
Austral’s share price took a battering yesterday down 9.52% from 82c to 76c at close of business. Just 2.5 weeks ago Austral stock reached a year high of 94c.
Output was 237,928 tonnes ROM for October, down from expected production of 275,000. The result stops the positive trend the mine has seen since June for ROM production. September production was 282,072t.
Austral blamed a number of new equipment technical and operating issues for the shortfall.
“The OEM’s are seeking to identify the causes of the equipment failure and rectification initiatives are well advanced. We continue to work closely with the OEM’s to ensure that operational issues will be effectively addresses in the shortest possible time,” Austral said.
Operational issues has meant a slower longwall advance rate, exacerbating the expected difficulties of extracting the first longwall panel in the new area.
Roof and floor convergence has increased stone dilution and reduced the rate of recovery of clean coal from ROM production.
On Monday the company also announced the resignation of director Michael Kiernan due to work commitments.
