The stock opened on Monday at $1.97, bottoming out at $1.88 before closing at $1.96.
The less than inspiring early trading was blamed mainly on China’s recent move to slow the pace of economic growth, which has affected stocks across the board in recent days.
In addition to the China issues, the New South Wales government’s announcement that it planned to increase coal royalties also dampened sentiment towards Excel - despite Excel's claim the royalty change would have little impact on earnings.
Excel said there was strong demand from retail and institutional investors for its IPO. The success of the IPO raised the company’s market capitalization on listing to $365 million.
Excel Coal was formed in 1993 and earlier this year acquired 100% ownership of the New South Wales Metropolitan longwall from SouthCoal. Metropolitan was added to the assets of Wambo open cut in the Hunter Valley and Chain Valley underground mine near Lake Macquarie. The three mines are expected to produce 4.8 million saleable tonnes in the 2004 financial year.
Excel will also develop the Wilpinjong project near Mudgee, a large thermal coal resource with a low strip ratio. Mining is expected to commence in 2007 at a rate of three million saleable tonnes per annum, increasing to between five to seven million tonnes in 2009FY.
The Wambo expansion has a projected output of eight million tonnes, from three million per annum.
