The Gunnedah-based company  announced it’s annual results for the 2013-14 financial year yesterday, posting a significant improvement on last year’s $88.7 million loss. 

Fully absorbed costs fell nine per cent from an average of $76 per tonne in the last financial year to $69, while sales revenue was $755.4 million – 21 per cent higher than the previous year due to increased coal sales and slightly higher average coal price. 

There has also been a significant turnaround in cash flow from operations with $108.6 million generated by the current operations in the 2014 financial year, compared to the cash outflow of $32.3 million the previous year. 

There was good news for its operations overall.

Narrabri thermal coal produced at or better than benchmark specification.

The company also produced record production from Werris Creek, Tarrawonga and Narrabri mines during the year with saleable coal production reaching 8.2 million tonnes for the year – 23 per cent higher than the previous year.

The Maules Creek production is moving ahead, with the project over 50 per cent complete at year end and remains on time and on budget for the first coal to be railed in March 2015. 

The expansion of the Werris Creek mine was completed which increased production capacity at the mine to 2.5 million tonnes per annum. 

Whitehaven also announced that Narrabri successfully completed the second long-wall changeout on schedule and on budget and exceeded nameplate capacity after operating for only two years. 

Savings have also been captured by extending the current rail haulage contract until 2026.

Whitehaven Coal managing director Paul Flynn said the company completed an “extraordinary year by delivering on the many targets that the company set for itself early in the year”.

“Whitehaven is very positive about the longer term outlook for coal, especially the role that the high quality coals produced in the Gunnedah Basin will play,” Mr Flynn said.

“International forecasts conducted by the IEA and others indicate that global consumption will continue to grow for many years as developing countries lift their respective populations out of poverty.” 

During the 2014 financial year, Whitehaven and its joint partners contributed largely to the regional economy. 

More than $110 million was paid in wages, salaries, tax and superannuation to employees; total site operating costs of over $350 million was most spent in the Gunnedah and Narrabri region; a total of $70.8 million was paid to the NSW government in royalties; over $200 million was paid in rail and port costs while more than $150,000 was contributed towards the local community through donations and sponsorships.