26 October 2016
Quarterly Statement of Production, Development and Exploration, and First Half Resources Update CURRAGH ProductionOverburden removal for the quarter ended 30 September 2016 was 13.8 per cent higher than the previous quarter. The increase in overburden removal was driven by a higher strip ratio, resulting from a change to mine sequencing, with preparatory work undertaken to increase pre-strip of overburden to support expected increases in coal exposure and coal production in the coming quarter.
Coal production for the quarter was 2,615,000 tonnes, 11.8 per cent lower than the previous quarter. Metallurgical coal production of 1,647,000 tonnes was 23.0 per cent lower than the previous quarter and steaming coal production of 968,000 tonnes was 17.2 per cent higher than the previous quarter. The decline in coal production resulted primarily from wet weather conditions, with rainfall during the quarter being 57 per cent higher than the prior quarter and six times higher than the first quarter of the 2016 financial year. Furthermore, during the quarter, Curragh's Coal Handling and Preparation Plant underwent a seven day shutdown for routine maintenance.
DevelopmentThere was no significant development activity during the quarter.
ExplorationThere was no significant exploration activity during the quarter.
BENGALLA ProductionWesfarmers' share of coal production for the quarter was 812,000 tonnes, 3.3 per cent above the previous quarter due to mine sequencing. For the 12 months to 30 September 2016, Wesfarmers' share of coal production increased by 3.0 per cent to 3,382,000 tonnes.
DevelopmentThere was no significant development activity during the quarter.
ExplorationThere was no significant exploration activity during the quarter.
FIRST HALF UPDATEIn line with previous guidance, export metallurgical coal sales volumes at Curragh for the 2017 financial year are expected to be between 8.0 and 8.5 million tonnes. Due to the production disruptions experienced during the quarter, these sales volumes are expected to be weighted towards the second half of the financial year. Furthermore, approximately 50 per cent of Curragh's export metallurgical coal sales volumes in the second quarter of the 2017 financial year are expected to represent carryover tonnage.
At Curragh, the relatively high levels of carryover tonnage expected to be delivered in the second quarter will partially offset recent increases in metallurgical coal prices. As a result, the Resources business is expected to report a broadly breakeven earnings before interest and tax result for the first half of the 2017 financial year, subject to production, weather events, shipping and currency in the second quarter of the 2017 financial year.
For further information: Media InvestorsCathy Bolt Aleksandra Spaseska
Media and External Affairs Manager General Manager Investor Relations
+61 8 9327 4423 or +61 417 813 804 +61 8 9327 4416 or +61 488 911 678
c bolt @ wes f arm ers .c om .au as pas es k a @wes f arm ers .com .au
ATTRIBUTABLE PRODUCTION Quarterly Production Quarter ended ('000 tonnes) Change Mine Ownership Equity Interest Coal Type Sep 15 Jun 16 Sep 16 1Q17 v 1Q16 1Q17 v 4Q16Curragh | Wesfarmers Curragh Pty Ltd | 100% | Metallurgical Steaming | 2,369 941 | 2,139 826 | 1,647 | (30.5)% | (23.0)% |
968 | 2.9% | 17.2% | ||||||
Bengalla | Wesfarmers Bengalla Limited | 40% | Steaming | 814 | 786 | 812 | (0.2)% | 3.3% |
Equity | Yr to Sep 16 v | ||||||
Mine | Ownership | Interest | Coal Type | Sep 14 | Sep 15 | Sep 16 | Yr to Sep 15 |
Curragh | Wesfarmers Curragh Pty Ltd | 100% | Metallurgical Steaming | 9,099 3,512 | 9,145 3,286 | 6,594 3,290 | (27.9)% 0.1% |
Bengalla | Wesfarmers Bengalla Limited | 40% | Steaming | 3,396 | 3,285 | 3,382 | 3.0% |
Wesfarmers Ltd. published this content on 26 October 2016 and is solely responsible for the information contained herein.
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