98th Sydney Mining Club Luncheon
Tony Haggarty,
Excel Coal MD
Excel Riding the Coal Price Wave
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On the 4th May 2004 when the Excel Coal $2.00 IPO shares leapt onto the market, they doubled in price in six months and reached the $8.00 mark within a year. Profits are booming with $53M reported for the December half year on sales of 3Mt of coal. A$100M placement was filled in February with barely a murmur by the market. Excel could not have caught the coal price wave with better timing.
With the opening of its new Hunter Millenium Mine just a month away, Tony Haggarty will give a hometown account of why Excel is excelling. In the Hunter, the ever-expanding Wambo Mine and Chain Valley are out-performing and on the South Coast the Metropolitan Colliery longwall is chewing along without significant 'dyke trouble'. .
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The 10Mtpa Wilpinjong mine got its approvals in February and started construction 10 days later. At the Millenium project, Excel's only Bowen Basin mine, a $35M swig of medicine has been swallowed on a cost blowout and a further $30M is likely. Shareholders seem to regard this as quite a fashionable problem for a company to have. In 2010, Excel plans to have broken through the 20Mtpa level. Not bad for a one year old! Don't miss it.
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