Australian Pacific Coal (ASX: $AQC) Quarterly Activities Report highlights

Australian Pacific Coal (ASX: $AQC) has reported no recordable injuries or environmental incidents during the period ended 31 March 2024. The company reached Financial Close in January on a US$60 million Loan Note Subscription Agreement with Vitol Asia Pte Ltd, drawing ~US$25.20 million by the end of the March quarter. Orders for critical equipment and long lead items have been placed, and remediation work on the Hunter Tunnel is progressing on track. The company is developing an accelerated restart works program to enable increased production and sales volumes from the Dartbrook mine, targeting first coal production around mid-2024.

Executive Director and CEO (Interim) Ms Ayten Saridas comments

'Dartbrook is rapidly taking shape as we head towards our mid-year target for the production of first coal. The funding arrangement we completed in January demonstrates the market's confidence in the project and allows us to accelerate the procurement and installation of key infrastructure. We are planning to bring forward some ramp-up activities to start mining in a second panel sooner than originally forecast, which we expect will increase volumes from the start-up of production. This is an exciting time for everyone involved in Dartbrook, which is a high-quality asset with a product that remains in strong demand from international buyers.'

Quarterly report summary and outlook

Australian Pacific Coal (ASX: $AQC) has made significant progress in the Dartbrook mine restart, with no recordable injuries or environmental incidents during the period. The company's funding arrangement with Vitol Asia Pte Ltd allows for accelerated procurement and installation of key infrastructure, aiming to increase production and sales volumes. The company is targeting first coal production around mid-2024 and is evaluating the potential to produce semi-soft coking coal, which could generate positive financial outcomes for shareholders. With the ongoing progress and strong market demand, Australian Pacific Coal looks poised for a promising outlook in the coming quarters.