Straits posts strong first half

STRAITS Resources has announced a $6.5 million after tax profit for the first half of 2004.

The earnings resulted from a strong performance at the company’s Sebuku coal operation in Indonesia which is now turning out more than 2.5 million tonnes of coal a year.

Straits CEO Milan Jerkovic said the company had taken full advantage of the buoyant thermal coal market by lifting production and increasing operating efficiencies at Sebuku.

"Our strong financial performance for the half year was above expectations. The company achieved a gross profit of $12.8 million, a substantial turn around from the $500,000 loss achieved in the corresponding period of 2003," he said.

"Sebuku’s performance is expected to improve further and contributions to profit are forecast from the commencement of operations at Whim Creek and the Tritton Copper Mine coinciding with tight global copper supplies."

Straits has a 27 per cent interest in Tritton.

At the end of the half-year Straits had $67 million in cash reserves.