Gloucester sold 434,000 tonnes during the quarter from its open cut operations in New South Wales, down 13% from the previous corresponding period.

Coking coal sales increased by 5%, pushed by the company’s desire to take advantage of a 270% hike in coking contract prices.

However, the increase came at the expense of thermal sales which fell 22%. Gloucester blamed the drop in sales to continued capacity restrictions at Newcastle Port.

Gloucester has rid itself of legacy thermal contracts with all sales under new contracts averaging more than $US100 per tonne.

The company said despite the turmoil and uncertainty in global financial markets it expected a record profit this financial year.

Gloucester was trading down 10.7% mid-morning today at $A3.99.