Highlights
? Isaac Plains fully commissioned and successfully ramped-up
? Strong customer support received for both metallurgical and thermal coal products
? EBITDA Guidance for AFY09 AUD110 million to AUD120 million
The Isaac Plains Coal Mine is located approximately 7kms south east of the town of Moranbah in the Bowen Basin region of central Queensland. It is comprised of the Isaac Plains North and Isaac Plains South coal deposits, separated by a distance of approximately 15kms. Aquila owns a 50% interest in the Isaac Plains Coal Mine with Vale Australia Pty Limited (?Vale?) owning the other 50%. Subject to receipt of all regulatory approvals the project is planned to ramp-up to its nameplate capacity of 2.8mtpa of product, in line with the current Phase 2/3 expansion at the Dalrymple Bay Coal Terminal (?DBCT?), which should be completed later in AFY09.
The Isaac Plains Coal Mine is now fully commissioned and has received strong support from its customers for both its metallurgical (semi-hard coking coal and PCI coal) and thermal coal products, achieving prices that are consistent with the relevant benchmark pricing for each product.
As a consequence, Aquila?s current attributable EBITDA guidance for Isaac Plains in AFY09 is in the AUD110mln - AUD120mln range. Assuming full production ramp-up is achieved as anticipated, and a roll-over of current coal prices for JFY09, attributable EBITDA would substantially increase further in AFY10. Potential downside risks to the guidance are delays in receipt of regulatory approvals, delays in the ramp-up at DBCT and extreme weather events.
Isaac Plains is set to provide the earnings and cashflow to fund the further development of the Company?s interests in the Eagle Downs Coal Project and the Belvedere Coal Project, both located in the Bowen Basin, Queensland.
The key development assets in the hard coking coal portfolio are also held in joint venture with Vale, and comprise:
? The Eagle Downs Coal Project, a 780Mt hard coking coal project in which Aquila holds a 50% interest with Vale and for which the results of a Pre-Feasibility Study are due shortly; and
? The Belvedere Coal Project, in which Aquila holds a 24.5% interest with Vale holding a 51% interest, where the resource has recently been increased to 3.8Bt, an increase of 1.2Bt.
The Company?s total attributable JORC compliant Measured, Indicated and Inferred Resources from its coal projects is 2.6Bt of predominantly hard coking coal (please refer to Aquila?s previous announcements to the ASX, on 26th March 2008, 9th, 11th June 2008 and 1st July 2008, for detailed resource statements).
Aquila?s Queensland coal business is uniquely positioned, with its cashflow platform from the Isaac Plains Coal Mine and its joint venture relationship with Vale, to become a significant producer of hard coking coal.
Tony Poli
Executive Chairman
For further information regarding this announcement, please contact Tony Poli.
Telephone: (08) 9423 0111
Facsimile: (08) 9423 0133
Email address: mail@aquilaresources.com.au
Visit us at: www.aquilaresources.com.au
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