Bounty chairman Gary Cochrane told ILN the decision by Anglo, Bounty’s only customer, would continue to improve cash flows over the next 12 months as Bounty sought to expand its client base and provide development for the growing number of new slated longwall projects.

“It looks promising for the next 12 months despite the cost pressures now with lower coal prices,” he said.

“We are also looking to do thick seam work, multiple headings, standard mains and place changes, as well as development work for the number of longwall projects being planned.”

Bounty reported net cash outflow of $700,000 for the March quarter and its shares remain suspended from the Australian Securities Exchange.

It was rocked when Anglo announced it would be placing its Bundoora mine on care and maintenance in September last year.

The company had managed to negotiate with Anglo to ensure it continued work on its Aquila mine in the German Creek complex.

“Bounty looks forward to continuing its relationship with Anglo American,” Cochrane said.

“As owner and operator of one of the few thin-seam equipment fleets in Australia, we are a valuable prospective partner and service provider to coal companies wanting to extract remnant high-grade coal seam deposits that are inaccessible with conventional equipment.”

For the nine months to March 2012, Bounty reported a net inflow of $1.2 million.

During the March quarter, Bounty invested a further $200,000 in the overhaul of equipment, resulting in a total of $2.3 million for the year to date.