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Heavy trading of shares of Atlantic Coal plc (LSE:ATC) cut the price down a tenth of its value yesterday, as the US-focussed coal producer revealed the cost of operating the business for the first six months of its current fiscal year diluted whatever revenues it earned for the January-June period.
By 9:30 AM GMT, over 40 million shares swapped ownership, drilling the shares down -10.5% to 0.33 pence, in a massive trading in reaction to the 23% increase in the company’s pre-tax losses.
In the report submitted today, Atlantic increased its pre-tax losses from US$1.05 million in the comparable period last year to US$1.36 million this year, despite a 79% jump in gross profit.
But according to the coal miner’s Chairman, Adam Wilson, the first six months has been “an active and successful period for Atlantic”.
Amist falling prices of the commodity, Atlantic raised revenue by approximately 18% from US$7.48 million to US$8.86 million and significantly earned over US$460,000 in gross profit to US$1.306 million, during the same period.
Production at its flagship mine, the Stockton Colliery in North East Pennsylvania, has hit record highs during the second quarter, according to Steve Best, Atlantic’s Managing Director.
Back in April, the company said it will be able to achieve its target of 160,000 tonnes per annum production, which will put the company as a mid-tier producer of coal.
The bulk of the expenses incurred by Atlantic was from its investment programme, including a railroad diversion geared towards greater production by gaining access to 1 million tonnes of “unworkable” coal reserves, exploration, and due diligence cost in relation to a potential takeover of additional mining assets in Pennsylvania.
Speaking of the company’s thrust for the rest of the year, Mr. Wilson sees the company to increase its presence in the region.
Company Spotlight
Atlantic Coal plc is a UK-incorporated company focussed on surface coal mining with assets in the United States. Shares of the company are listed on the Alternative Investment Market.
