Production update (4905E)
07 April 2011 - 7:00PM
UK Regulatory
TIDMATC
RNS Number : 4905E
Atlantic Coal PLC
07 April 2011
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
7 April 2011
Atlantic Coal plc ("Atlantic" or the "Company")
Production update
Atlantic Coal plc, the AIM listed open cast coal production and
processing company with activities in Pennsylvania, USA, is pleased
to announce a production update for the three months ended 31 March
2011 from the Stockton Colliery ('Stockton'), its opencast
anthracite operation in Pennsylvania.
During the quarter, Atlantic mined 120,850 tons of run-of-mine
coal ('ROM') and removed 658,785 bank cubic yards (BCYs) of
overburden. 62,000 tons of ROM coal was washed which produced
28,376 tons of clean coal. Sales for the quarter were 31,238 tons
at an average price of U$134.25 per ton. In excess of 90,000 tons
of good quality run-of-mine coal is also held as stock. These
levels are in spite of the winter weather which caused some
production curtailment. The Company is increasing weekly working
hours to increase production in the current quarter and remains on
target to produce an estimated 450,000-500,000 tons of ROM for
2011.
Production Summary:
Overburden Production Average
Run-of-minel Removed Tonnage Coal Sales Price Revenue
(tons) (bcy) (tons) (tons) (US$) (US$)
------------- ------------ ----------- ------------ ------------ --------
120.850 658.785 28.376 31.238 134.25 4.2m
------------- ------------ ----------- ------------ ------------ --------
The coal pricing environment remains strong and continues to
benefit from the high alternative demand for coking coal. The Board
believes that prices will at least equal the average price in the
current quarter as a minimum dealer summer discount price will be
offset by higher industrial prices.
Atlantic Managing Director Steve Best said, "This has been a
positive period for the Company during which we have focussed on
driving growth in the business through increasing production at
Stockton and identifying consolidation opportunities in the
Pennsylvanian anthracite fields. Our production profile for the
last quarter was close to that of our best three months achieved in
2010, despite severe weather conditions experienced throughout the
region, and I am confident that our committed investment at
Stockton will continue to improve the mine economics and
subsequently build shareholder value."
**ENDS**
For further information on the Company, visit:
www.atlanticcoal.com or contact:
Steve Best Atlantic Coal plc Tel: 020 3328 5670
Nick Naylor Allenby Capital Limited Tel: 020 3328 5656
Alex Price Allenby Capital Limited Tel: 020 3328 5656
Peter Rose FoxDavies Tel: 020 3463 5030
Simon Leathers FoxDavies Tel: 020 3463 5010
Hugo de Salis St Brides Media & Finance Tel: 020 7236 1177
Ltd
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
Notes
Atlantic Coal plc is an AIM listed coal production and
processing company focussed predominantly on open cast mining and
the processing of anthracite coal in Pennsylvania, USA. The
Company's primary asset is the Stockton Colliery, a producing
surface coal mine and adjacent anthracite preparation plant
encompassing an area of approximately 900 hectares located in Hazel
Creek in North-East Pennsylvania, which has current Proven Reserves
of 4.2 million tons run-of-mine coal.
Atlantic's strategy is to create a significant mid-tier coal
company; both through the expansion of activities at Stockton and
identifying additional sites in Pennsylvania to build its
production and resource profile, primarily by acquiring defined
assets in stable, recognised, high quality coal regions. The Board
has identified opportunities to expand within the region and is
involved in ongoing negotiations regarding adjacent sites, with the
intention of acting as a regional consolidator in the Pennsylvanian
Coal Field. Expansion within the local area has the potential to
minimise upfront deal costs as a result of existing and proven
infrastructure, equipment, facilities and market demand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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