Australian Pacific Coal - Quarterly Activities Report - 30 June 2024
AUSTRALIAN PACIFIC COAL LIMITED (AQC) Share Update July 2024 Wednesday 31st
Australian Pacific Coal Reports Progress on Dartbrook Mine Restoration
Australian Pacific Coal Limited (ASX: AQC) has released its Quarterly Activities Report for the period ending 30 June 2024, highlighting significant progress in the restoration of the Dartbrook Mine and the upcoming target for first coal production.
Instant Summary:
- No recordable injuries or environmental incidents during the period.
- Underground restoration works on the Hunter Tunnel are on schedule; completion expected August 2024.
- Bulk sample coal cut and transported for testing; met coal analysis results expected in Q3 CY2024.
- First coal production targeting August-September 2024.
- Negotiations for offtake and port and rail agreements well advanced.
- Cash reserves at the Dartbrook Joint Venture totaled $20.4 million ($16.3 million net to AQC).
Restoration and Production Progress
Australian Pacific Coal Limited (AQC) has made substantial progress in the restoration and refurbishment of the Dartbrook Mine. The underground restoration works on the Hunter Tunnel are on schedule, with the roof and rib support program, first pass shotcrete, and installation of services pipelines (water and air) all 100% complete. The tunnel fit-out is currently underway, and the restoration is expected to be completed by August 2024.
Above ground, the refurbishment of the Coal Handling and Preparation Plant (CHPP) and train load-out facilities continues. The old hydraulic system for the train load-out has been removed, and the new system is ready for installation. The completion of the CHPP refurbishment is anticipated in Q1 CY2025.
Coal Production and Testing
AQC has successfully transported a bulk sample of coal from the Kayuga seam for testing to determine its metallurgical coal potential. The results of this analysis are expected in Q3 CY2024. The company is targeting first coal production in August-September 2024, with initial sales of unwashed coal. Sales of washed coal for export are expected to commence in the first quarter of 2025.
Financial and Corporate Updates
As of 30 June 2024, the Dartbrook Joint Venture had drawn down approximately US$36.9 million of the US$60 million restart capex debt facility. AQC held $1.5 million in available cash at the end of June 2024, with cash reserves at the Dartbrook Joint Venture totaling $20.4 million ($16.3 million net to AQC).
Additionally, the company has executed an Enterprise Agreement, which is currently awaiting approval by the Fair Work Commission. Negotiations for offtake and port and rail agreements are well advanced, further solidifying the company's path to first coal production.
The progress in restoration and the upcoming target for first coal production are positive indicators for AQC's stock. The successful completion of the Hunter Tunnel restoration and the commencement of coal production could lead to increased investor confidence and potentially a rise in stock price. The advanced negotiations for offtake and port and rail agreements further strengthen the company's position in the market.
Investor Reaction:
Analysts are likely to view the progress in restoration and the upcoming coal production target positively. The successful execution of the Enterprise Agreement and the advanced negotiations for offtake and port and rail agreements are expected to bolster investor confidence. However, the company's financial position and the successful completion of the restoration works will be closely monitored.
Conclusion:
Investors should keep an eye on the final stages of the restoration works and the upcoming coal production target. The successful completion of these milestones could significantly impact AQC's stock performance. Staying informed on the company's progress and strategic decisions will be crucial for making well-informed investment decisions.