The positive results are sure to be enticing for prospective buyers, with Felix being circled by several suitors with which the company says it is continuing talks. It added no formal written offer had been made.

Felix said it planned to continue this financial year’s momentum into 2009 with strong cash flow expected to be used in the development of its Yarrabee and 80%-owned Moolarben mines.

Felix has held up Moolarben as the medium to long-term growth provider, while the new Yarrabee wash plant and Ashton longwall will provide expanded production in the short term.

During the 2008 year the Yarrabee open cut mine made sales of 1.6Mt, Minerva open cut exported 2.5Mt and Ashton longwall and open cut ramped up to export 3Mt.

Felix continued to vent its frustration over the ongoing mining lease dispute at Moolarben with neighbour Ulan Coal.

“It is unfortunate that a foreign owned mining company, Ulan Coal [Xstrata 90%/Mitsubishi 10%], has continued to challenge our right to develop this mine by using land ownership over parts of our exploration area EL6288 and our mining leases 1605 and 1606 and claiming certain improvements on the land should be excluded,” Felix said.

“As one of the major mining companies in New South Wales, Xstrata enjoys the benefits of the Mining Act over its many operations and now tries to find flaws in the act to frustrate Moolarben and in doing so, other mining companies in the state.”

Felix was trading up 3.25% mid-morning at $20.03.