Centennial Coal Co., reported an 87-fold increase in full-year profit after one-time gains from the sale of mines to Xstrata Plc.

Centennial, which booked a A$223 million profit from the sale of the Anvil Hill mine and its 86 percent stake in Austral Coal Ltd. last year, plans to start production at its new A$100 million underground coal mine at Airly, New South Wales state, in 2010. Prices for coking and thermal coal surged to records this year amid supply constraints and rising demand in Asia.

“The strength of our operations and high prices bode well for a significant uplift in profitability for the 2009 financial year,” Chief Executive Officer Bob Cameron said in the statement.

Centennial, which booked a A$223 million profit from the sale of the Anvil Hill mine and its 86 percent stake in Austral Coal Ltd. last year, plans to start production at its new A$100 million underground coal mine at Airly, New South Wales state, in 2010. Prices for coking and thermal coal surged to records this year amid supply constraints and rising demand in Asia.

Centennial, the third-best performer on Australia’s benchmark index this year, rose 1.5 percent to A$4.77 as of 10:08 on the exchange. The stock has gained 60 percent this year, compared with a 23 percent decline in the S&P/ASX 200 Index.

Profit from continuing operations rose to a record A$64.3 million from $6.8 million a year earlier, Centennial said. Sales increased 8.8 percent to A$763.9 million on higher prices for both coking and thermal coal.

Centennial’s share of coal sales from 12 mines in New South Wales state for the year was 15.4 million metric tons, down 7 percent from a year earlier. Its Airly mine is expected to start at an initial output rate of 1.6 million tons a year.

The company supplies about 47 percent of the state’s coal- fired electricity. The company exports about a third of its coal to power stations and steel mills Japan, Korea, India and Europe through ports at Newcastle and Port Kembla.

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