News: Macarthur Coal H1 profit to rise

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Macarthur Coal Ltd (ASX:MCC) says its first half net profit will rise as a result of its transaction with Gloucester Coal Ltd (ASX:GCL) concerning their joint development Middlemount Coal Pty Ltd project in Queensland.



In December 2010, Macarthur Coal advised that it had completed a transaction with Gloucester Coal involving the exercise of Gloucester Coal's call option for an additional 20 per cent interest in Middlemount Coal.



Under the deal Macarthur Coal will receive $97.6 million, a discount to the nominal exercise price of $108 million.  



Macarthur Coal says the impact of the transaction and the reversal of derivative liabilities associated with the exercise of the option is likely to result in a first half net profit of between $138 million and $143 million for the six months to 31 December 2010, up from $39.7 million the same time a year earlier.  

First half operating profit guidance remains unchanged at between $97 million and $102 million.  



In the year to 30 June 2010, Macarthur Coal posted a net profit of $125 million.