Australian Pacific Coal: Dartbrook Mine Restart and Financial Update - September 2024
AQC (AQC) Share Update October 2024 Thursday 31st
Australian Pacific Coal Achieves Major Milestones in Dartbrook Mine Restart
Australian Pacific Coal Limited (ASX: AQC) has announced significant progress in the restart of the Dartbrook mine, alongside financial updates that ensure the project's stability and future growth.
Instant Summary:
- First coal to surface achieved in September 2024.
- 4 km conveyor system successfully commissioned.
- Greenfields Enterprise Agreement signed with the MEU.
- US$90 million Senior Debt Facility secured.
- A$20 million equity raise completed.
Operational Milestones
Australian Pacific Coal Limited has successfully brought coal to the surface at the Dartbrook mine for the first time in 18 years, marking a significant milestone in the mine's restart process. The 4 km conveyor system, a critical component for transporting coal from underground to the surface, was commissioned in September 2024.
The company has also signed a four-year Greenfields Enterprise Agreement with the Mining and Energy Union, approved by the Fair Work Commission. This agreement sets the foundation for future employment and operational activities at Dartbrook as the mine transitions from restoration to production.
Financial Developments
Financially, Australian Pacific Coal has secured a US$90 million Senior Debt Facility, contingent on establishing a A$20 million Junior Debt Facility. The company successfully raised A$20 million through an equity raise, which will fund its share of the Junior Debt Facility and provide working capital.
These financial arrangements ensure that Dartbrook is fully funded to meet its capital expenditure, working capital, and contingency needs through the ramp-up phase and into commercial production.
Future Outlook
Looking ahead, Australian Pacific Coal is focused on finalizing port and rail agreements and preparing to load its first train with Dartbrook coal. The company is also working on the MOD8 extension to extend operations at Dartbrook to 2033, with a formal submission expected before the end of CY2024.
The successful restart of coal production at Dartbrook and the financial stability provided by the debt facilities and equity raise are likely to have a positive impact on Australian Pacific Coal's stock. The company's ability to meet its operational and financial milestones positions it well for future growth and investor confidence.
Investor Reaction:
Analysts are likely to react positively to the news of the mine's restart and the financial arrangements, viewing them as strong indicators of the company's potential for growth. The confirmation of NEWC spec thermal coal also adds to the company's marketability in Asia.
Conclusion:
Investors should consider the positive developments at Australian Pacific Coal as a sign of the company's commitment to achieving its operational and financial goals. Continued progress at Dartbrook and successful execution of future plans will be key to maintaining investor confidence.