COAL MINERS DRILLED BY FLOOD
17 January 2011,
BRISBANE’S coal explorers are taking a big hit as floods continue to wreak havoc throughout Queensland’s key mining areas.
Macarthur Coal is the first to downgrade its profit guidance by as much as 22 per cent. It lowered its first-half profit guidance as a direct result of the floods. Based on preliminary results, first-half net profit after tax would be in the lower end of the guidance range of $97 million to $102m. Shares fell by as much as 2.6 per cent today, touching a low of $12.54, after the profit downgrade.
Queensland supplies half of the world's coking coal for steel manufacturing but up to 75 per cent per of mines are not operational due to the floods.