Excel has been trading on the Australian Stock Exchange since May following the successful completion of the IPO. The company said planned production, sales and costs for 2005 at its three operating mines are in line with Prospectus forecasts.
Production and sales performance at the Wambo operation exceeded plan in 2004 though ROM production was down 4.6% on 2003 due to mine plan optimisation to produce the target 3 Mtpa of saleable production at lowest cost. Excel said planned sales and production for 2005 are in line with Prospectus forecasts.
Excel has received development consent for the Wambo Rail Project from the NSW Government and construction is planned to begin in the second half of calendar 2004.
At Excel’s only longwall mine, Metropolitan, lower production in the quarter reflected a May longwall move. The mine successfully widened the longwall face from 135m-158m as part of the May longwall move. A capital commitment was made to upgrade the drift conveyor system as part of an ongoing upgrade of Metropolitan’s production capacity.
Production and sales performance for 2004 were in line with plan and exceeded the prior year result.
Production at Excel’s Chain Valley operation also exceeded plan in 2004. Sales in 2004 were lower than in 2003 because sales in 2003 included a substantial liquidation of additional coal stocks acquired as part of the Wallarah Coal Joint Venture.
Excel plans to double production capacity at Chain Valley by December 2004 following the securing of new export contracts and approval from the NSW Government to increase road transport of coal.
Exploration and environmental impact studies are progressing on schedule at the Wilpinjong development project in preparation for the lodgement of a Development Application in 2005. Excel said it hopes to consolidate ownership of the Cosila coal project in Venezuela, in which it owns a 31% interest and is manager.
Government approvals have been received for the development of a 2 Mtpa open-cut mine to export premium thermal and PCI coals.
