Run-of-mine production reached 98,948 tonnes in the March quarter, down 9% year-on-year and 37% below the record output for the December quarter.
Overburden removal was 47% worse than the previous quarter.
But Cockatoo does not operate the Bowen Basin mine and mining expenses are mainly measured in unit costs of production.
“As the company is not subject to stand-by penalties, the financial effect of the disruption to operations is limited,” it said.
While mining was set back, Cockatoo sold a record 84,405t of pulverised coal injection coal in the March quarter, accounting for 82% of total coal sales.
As PCI coal is reportedly around $US170/t for other June-quarter contracts, Cockatoo is negotiating with its steelmaking customers for new prices and terms.
Drilling at the Baralaba open cut and the Baralaba North project was held back by wet weather but Cockatoo will soon complete the integration of the geological models for both areas.
Conceptual mining for a combined 7-kilometre strike length will follow.
Further north, Cockatoo is using four open-hole rigs and one large-diameter rig to explore its Dingo project.
Over to Queensland’s Surat Basin, Cockatoo holds almost 20 coal exploration permits.
The Woori project is one of the most advanced, with Cockatoo working on an environmental impact statement while it proceeds with a mining lease application.
The project contains 84.3 million tonnes of measured resources over an area of 911.1 hectares.
Cockatoo’s Surat project stretches for 3800 square kilometres and resources were boosted to 415.7Mt about three weeks ago.
The junior also boosted resources at its Tin Hut Creek project by 47% to 118.6Mt and its Davies Road project 33% to 75.6Mt during the quarter.
While pursuing commitments to Queensland Rail’s Moura to Gladstone railway line upgrade and the consortium behind the Wiggins Island Coal Terminal project, Cockatoo submitted a formal expression of interest to participate in the Surat Basin Rail joint venture.
This JV aims to build a rail line to link the basin to Gladstone’s port.
Cockatoo ended March with a cash position of $A26 million.
Shares in the company are down 6.6% to 42.5c this morning.
