Macarthur Coal Limited (MCC) said it now expected a post-tax profit for the 2009 financial year of between $155 million and $170 million, up to 127% higher than the 2008 profit. At the same time the company announced a capital raising of $190 million through the underwritten placement of 31.8 million new shares at $6.00 per share.
The price of $6.00 per share represents a 10.3% discount to the currently halted price of $6.62 per share.
The Aussie coal miner said the funds raised from the capital raising would be applied to a range of company activities, including the development of the $150 million Middlemount Mine project and pre-development activity at the Codrilla and Wilunga projects.
Looking the company’s forecast for the full-year, Macarthur coal said that despite not expecting any impairment charges to impact the result, the board would not commit to a full year dividend.
The company noted that the guidance remained dependent on congestion in the Goonyella coal chain, as well as changes in the valuation of financial derivatives from 31 December 2008.
The company, as a historical precedent, had paid 50% of NPAT as a dividend.
CEO and managing director Nicole Hollows, said the result came despite a reduction in steel demand in the second quarter.
“The anticipated profit for 2009 demonstrates the underlying strength of the company and our ability to adapt quickly by changing our production mix and markets where possible to meetrapidly changing demand,” Ms Hollows said.
Meanwhile, Macarthur Coal said its largest shareholder, CITIC, had indicated that it would take up approximately 23.39% of the intso placement to maintain its existing proportional ownership.
Commenting on the capital raising, Ms Hollows said it was necessary to fund the development of the Middlemount mine.
”The raising will also place Macarthur Coal in a position of strength when negotiating the refinancing of our corporate facility, due for expiry in June 2010,” Ms Hollows said.
