Shares in Whitehaven Coal have jumped after the coalminer said it expects to nearly double earnings in the first half of the 2016 financial year.
Whitehaven expects to lift underlying earnings to between $100 million and $105 million in first half, up from about $52 million in the previous corresponding period.
It confirmed it would be profitable in the first half and also slightly upgraded its full year coal production to between 19.5 million tonnes per annum to 20.1 million tonnes per annum.
Whitehaven's shares surged six per cent to close four cents stronger at 64.5 cents after having climbed as high as 80 cents during trading on Wednesday.
Whitehaven said in October it aimed to return to profit this financial year despite falling coal prices.
The company had said it expected a cost cutting program and higher volumes from its expanded mining capacity to drive the turnaround from last year's $330 million loss.
On Wednesday, the company said it expects cash margin in the first half to exceed last fiscal year's $13 per tonne margin.
The strong cash flow would enable it to reduce net debt over FY 2016.
The company will release December quarter production report on January 12, 2016 and the half year financial results on February 5.
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