cost of coal per tonne has skyrocketed by AUD $30 per tonne to...

cost of coal per tonne has skyrocketed by AUD $30 per tonne to A$65.76 this half

interesting.. looks like amaam is potentially going to be mined using current port and road systems..

Amaam

Amaam is a potentially larger scale coking coal project. Management is in the process of re-assessing Amaam’s future production capacity and the extent to which it can be integrated into the existing operations. Management expects to complete this re-assessment by the year end.




For the six months ended 30 June 2019 the Group had a net loss of A$11.939 million (For six months to 30 June 2018: loss A$4.312 million) and at 30 June 2019 had net equity of A$14.062 million (31 December 2018: A$22.540 million). The Group’s primary operational focus during the six months ended 30 June 2019 was coal mining and the negotiation of coal sales agreements, preparation for the Group’s first transhipment of coal during the 2019 shipping season and ongoing coal testing and related CHPP design works. During the six months ended 30 June 2019, the Group mined 220kt of coal, concluded its first four coal sales agreements for 190kt of thermal coal and 55kt of semi-soft coking coal and received its first advance payments totalling A$4.467 million in March 2019. In June 2019, the Group completed loading the season’s first 45kt thermal coal shipment, 38kt of a 60kt cargo of semisoft coking coal cargo was loaded but not shipped as of 30 June, loading completed on 7 July 2019.

The underlying cost of coal mined and delivered to port increased in the first six months of 2019 due to unexpectedly continuing adverse geological conditions influencing the stripping ratio and related cost of removal of overburden, which increased from 3.3:1 in 2018 to 5.45:1 during the six months to 30 June 2019. The cost of coal mined and delivered to port was also adversely influenced by increased spending on fleet maintenance and the strengthening of the RUB against both the US$ and the A$ by 8.9% and 9.3%, respectively, as a result of which the full cost of coal mined and delivered to port was US$46.32/t (A$65.76/t) and the cash cost per tonne increased to US$37.97/t (A$53.91/t).

During the six months ended 30 June 2019, cash outflows from operating activities were A$16.961 million (six months to 30 June 2018: outflows of A$8.194 million).


3 haulage trucks written off

Three haulage trucks were impaired during the six months to 30 June 2019 as a result of damage arising from accidents for which
repairs to restore them to their previous operational condition were assessed as not economically justifiable. Accordingly, an
impairment charge of $0.460 million was recognised in the six months to 30 June 2019.