core sector communique

Centennial Coal   

Delivering Increased Exports

• Net profit after tax of $31.1 million for the six months to 31 December 2009.
• Underlying operating net profit for the half-year is $24.2 million, after accounting for the impact of a non-cash unrealised A-IFRS hedge accounting gain.
• Equity ROM coal production of 7.4 million tonnes, with sales of 7.0 million tonnes, including 2.2 million tonnes of exports - an 18% increase in export volumes, compared to the prior corresponding period, as the Group continues to deliver into its strategic objective of increasing its proportion of export sales.
• Half-year production records at Angus Place and Mandalong.
• An interim dividend of 4 cents per share, 50% franked, has been declared, payable on 20 April 2010.
• Gearing (on a net debt to net debt plus equity basis) is 25.8%, with banking facilities in place until December 2011.
• Progress continues to be made on projects to expand the Group's export capability and increase exports, with:
  - the Airly Mine commencing underground development activities ahead of schedule; and
  - the Mandalong Haul Road almost complete, enabling it to accelerate its export sales.
• Increased export volumes, led by Mandalong, and improving prices will drive the second-half result.
• Export prices for the new Japanese fiscal year are yet to be determined; demand remains strong, with spot thermal prices recently around US$95 per tonne.

Commenting on the December 2009 Half-Year, Bob Cameron, Managing Director and Chief Executive Officer said:

"The December 2009 Half-Year has seen Centennial make substantial progress with the construction of Airly Mine and the Mandalong Haul Road, both of which will assist the Group to achieve higher export sales at a time of strong demand and higher prices.

With Airly commencing exports, and Mandalong ramping-up its export presence, Shareholders can look forward to an increased profit in the second-half."