Gympie Gold has posted a 17% fall in net profit to $4.91 million for the year to June 30, 2000. Provision for deferred income tax of $1.1 million dragged its net profit down but the company said income tax was not expected to be payable for some years due to carried forward tax losses.
The company, with gold mining operations in Queensland and coal mining in the Hunter Valley, lifted operating profit before tax to $6.03 million from $5.92 million last year.
Coal sales of 712,000t were 10-15% under budget due mainly to the emphasis on development activities at Gympie and to equipment limitations at Southland Coal which are being rectified, the company said.
Wholly-owned coal subsidiary Southland Coal is preparing for the start-up of production next quarter in longwall panel SL2 and hopes to get to an annualised rate of 1.5 million tonnes per annum by December this year. This first panel from the large Bellbird South lease is planned to yield 2Mt semi-hard coking coal. Gympie said mining conditions in the new production area around SL 2 were far superior to those in the old area where SL 1 was located.
"For SL 2, the seam is uniform, unfaulted and much thicker at 5-9m rather than 3-4m in SL1. The coal is better quality in SL2 with lower ash (under 7%) and higher fluidity (+5,000 ddpm)," the company said.
The company said it was reviewing longer term plans with mine contract operator Colrok Australia for improvement and expansion.
"The coming year also sees the culmination of two years of growth preparations at Southland. Contract operator Colrok Australia has made a very large investment in money and skills to set up Southland Colliery for the larger seam sections of the Bellbird South lease area," said Gympie managing director Harry Adams.
"From November it should be full steam ahead with good gear in good seam conditions," Adams said.
