anouncement

8 April 2004
Austral Coal to raise $28.868 million
Directors today announced a capital raising of $ 28.868 million through the issue of
57.736 million new shares. The equity issue is fully underwritten by Wilson HTM
Corporate Finance Limited.
The raising will comprise a 1 for 3.25 non–renounceable entitlement issue to existing
shareholders combined at an issue price of $0.50 per share, a discount of 21.9% on the
last traded price of $0.64. This will be in two parts:
• An institutional entitlement offer to cornerstone investors at $0.50 per share
raising approximately $9.0 million with new shares to be issued on the 21 April
2004. This offer has been undertaken.
• A retail entitlement offer to remaining shareholders at $0.50 per share raising
$17.868 million closing 17 may 2004 in accordance with the provisions of a
prospectus issued today.
In addition there will be a placement of 4 million new shares at $0.50 to institutional
shareholders raising $2.0 million.
The total number of shares on issue following the completion of the equity raising will
be 232,380,617.
The proceeds of the raising will be utilised by the company to:
• Replenish short term working capital depleted by the early termination of
longwall operations in the Tahmoor lease and delay in the projected start up of
Tahmoor North now scheduled for June 2004. Difficulties in the development
and extraction of the old Tahmoor panel 21, with a consequential adverse impact
on development of Tahmoor North, caused the delayed start to Tahmoor North.
• To fund expenditure on Tahmoor North infrastructure which is critical to
maintain development and future continuity of longwall production operations.
With the major part of the Tahmoor mine’s new infrastructure now in place and the
new longwall system currently being installed underground, it is the company’s
intention to increase production from June 2004 to an annualised rate of 3mtpa for the
balance of 2004 and progressively increase annual production to average 3.5 mtpa over
the initial eight year life of Tahmoor North. With a buoyant market for coking coal
expected to be sustained for at least the next three years, the company’s profit and cash
generation capacity is expected to be significantly enhanced.
Directors believe that the company’s results to December 2004 will mirror this outlook
however the year will be a contrast of halves. Earnings to June 2004 will reflect the loss
of longwall production and the impact of the longwall delay and is expected to result in
a small loss. However, with the new high productivity longwall commencing in June, a
marked turnaround is forecast with Net Profit after Tax for the full year to December
2004 estimated to be in the range of $15 -18 million after allowing for the recently
announced amendments to the NSW coal royalty scheme.
Contacts: Ugo Cario, Managing Director or Stephen Peterson, Company Secretary on (02) 8256-
4700