15/05/2008 - 15:41

Straits subsidiary reports $21m profit

15/05/2008 - 15:41

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West Perth based Straits Resources Ltd subsidiary, Straits Asia Resources Ltd, has posted a quarterly net profit of over $21 million ($US20.1 million), an increase of 139 per cent on the same quarter last year.

Straits subsidiary reports $21m profit

West Perth based Straits Resources Ltd subsidiary, Straits Asia Resources Ltd, has posted a quarterly net profit of over $21 million ($US20.1 million), an increase of 139 per cent on the same quarter last year.

 

Full announcement below:

Mainboard-listed Straits Asia Resources Limited ("Straits
Asia", SGX: SAR) today reported a 139% increase in net profit, to US$20.1 million, for the three
months ended 31 March 2008 compared to the same period in 2007. This was achieved on the
back of a 52% rise in Group revenue to $105.5 million.
The Group is on target for production of not less than 9 million tonnes of coal sales in the year.
The results also underscore the Group's success in integrating its Jembayan mine in the short
period of time since completing the acquisition in December 2007.

The drilling programme at Jembayan is delivering data that supports Straits Asia's belief that
the Group has a second, potential world class asset to compliment Sebuku. The programme
has added significantly to the information that was available at the time of acquisition and the
results are expected to be released later in the year.
Holding Company Restructure
On 17 April 2008 the holding company, Straits Resources Limited, announced that it is
proposing to distribute its entire 51% shareholding in Straits Asia to its own shareholders. The
restructure is progressing and is expected to be completed by September 2008. As part of the
restructure, Straits Asia is being offered 2 coal projects in Brunei and Madagascar that will set it
on a global path. Further announcements will be made in due course.
Chief Executive Officer's Comments
Mr Richard Ong Chui Chat, the Chief Executive Officer of Straits Asia said, "We set our
priorities on delivering production increases in 2008 and our Q1 results clearly show that
management is performing well on its promises.
"Straits Asia will be showing the benefit of the recent rise in coal prices in its results as the year
progresses and the benefit of the recent substantial increases in coal prices flow through under
our long-term contracts. I am very confident about the outcome for 2008 and the future.
"The discussions on restructure with our parent company are progressing well and I anticipate
that we will be giving more details to shareholders soon. We are looking at the new
opportunities that the restructure will give to Straits Asia in a very positive light."

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