Whitehaven’s share price has risen 14% over the past week after newly installed managing director Paul Flynn escorted analysts to the Narrabri mine and explained measures by the company to control the excessive moisture in the coal and the work being done to optimise the longwall performance.

“This is an extremely pleasing result that reflects the continuing ramp up of production at the Narrabri mine as the longwall moves into the advanced stages of its commissioning process,” Flynn said.

“The benefits of this railing performance flow through to increased sales and reduced take or pay charges.”

The increased railings flowed from careful management and co-ordination with Hunter Valley Coal Chain Coordinator, Pacific National and the Australian Rail Track Corporation, Flynn said.

For FY 2013, Whitehaven is projecting ROM coal production of 9.0 Mt (100% basis) and total coal sales of 9.0 Mt (100% basis), inclusive of sales of 0.9 Mt of purchased coal.

The ongoing ramp-up of Narrabri has led to a 99% increase in run of mine coal production during the March quarter to 2.55Mt.

The company said the Narrabri underground operation started to iron out glitches with its longwall in the March quarter with 1.31Mt ROM coal produced – up 23% from the December quarter.

The ramp-up is continuing positively to the target capacity of 6Mtpa.

At the end of the quarter the mine was producing at an annualised rate of 5.2Mtpa.

The turnaround is encouraging news for Flynn, who took over from company stalwart Tony Haggarty as questions were being asked about the quality of the product from the mine and the software system used to operate the Caterpillar longwall at Narrabri.

Flynn has been a non-executive director of Whitehaven since the merger with Aston in May 2012, prior to which he was one of Nathan Tinkler’s lieutenants as Tinkler Group Holdings MD from April 2011.

Whitehaven chairman Mark Vaile said an executive recruitment process found that Flynn’s combination of resources industry experience, financial acumen and executive leadership skills formed a highly attractive combination with the company’s recently expanded senior management team.

Flynn has made the ramp up of Whitehaven one of his top priorities and the company’s March quarter proved that his efforts are bearing fruit.

“Narrabri continues to work with Caterpillar to overcome the remaining commissioning issues,” the company said in its latest quarterly statement.

“Hardware and software modifications to the shearer are planned for the next quarter, which is aimed at lifting productivity levels, including other ongoing improvements as part of the longwall change-out.”

Thermal product moisture remains above acceptable levels whenever a pulverised coal injection fraction is produced in the CHPP.

“Efforts to reduce the thermal product moisture are underway and some success has been achieved to date,” Whitehaven said.

“The re-commissioning of the bypass crushing circuit remains on track for early May commencement.”