Atlantic Coal PLC Quarterly Production Update (7158I)
30 July 2012 - 4:00PM
UK Regulatory
TIDMATC
RNS Number : 7158I
Atlantic Coal PLC
30 July 2012
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
30 July 2012
Atlantic Coal plc ("Atlantic" or the "Company")
Quarterly Production Update
Change of Broker
Atlantic Coal plc, the AIM-listed opencast coal production and
processing company with activities in Pennsylvania, USA, is pleased
to announce a positive production update from the Stockton Colliery
("Stockton"), its opencast anthracite operation, for the three
months ended 30 June 2012.
Highlights
-- 18.8% increase in clean coal production compared to Q1 2012
due to successful diversion of Norfolk Southern Railroad
-- 57.7% increase in removal of bank cubic yards and 3% increase in run-of-mine coal washed
-- Average sales price realised was US$166.85 due to continued
strong demand for high quality anthracite
-- The Board anticipates production to increase further and is
targeting production of more than 155,000 tons for 2012
Atlantic Managing Director Steve Best said, "The successful
diversion of the railroad in April has transformed our production
profile at Stockton, and I am pleased to report that this is
reflected in our increased quarter on quarter results. I am
confident that this production increase will accelerate further
over the coming months as we focus our attention on reserves
contained within the prime Mammoth Seam. The Company equalled its
total 2011 ROM production of 208,730 tons in July 2012.
"Additionally, it is important to note that, unlike recent
trends in the thermal coal sector, we continue to experience solid
demand for our high quality product. This creates a positive
pricing environment in which to implement our growth strategy to
consolidate our position in the productive Pennsylvanian anthracite
field."
Detailed Information
Production increased 18.8% to 37,686 tons of clean coal during
Q2 2012 compared to output achieved in the previous quarter (Q1
2012: 31,729 tons). During the period, Atlantic removed 1,128,981
bank cubic yards ("BCY") of overburden (Q1 2012: 715,691 BCY).
88,762 tons of run-of-mine ("ROM") coal were washed (Q1 2012:
85,911 tons). Demand for Stockton's high quality anthracite remains
strong and, in line with this, the Company achieved an average
sales price of US$166.85 for its Pennsylvanian anthracite (Q1 2012:
US$166.30), excluding by-product #5.
The successful completion of the Norfolk Southern Railroad
diversion in April 2012 has enabled Atlantic to access
approximately 1.0 million tons of previously unworkable reserves
and to achieve improved efficiency. The Company is confident that
production will continue to increase incrementally during the
remainder of 2012 and is targeting clean coal production of more
than 155,000 tons for the year to 31 December 2012. This target is
in line with an independent mining report produced by Mine
Engineers Inc, which predicted that production of 160,000 tons of
clean coal is achievable for the year.
Q2 2012 Production Summary:
Run-of-mine washed (tons) Overburden Clean Coal Production Average
Removed (bank cubic yards) (tons) Price per ton (US$)
88,762 1,128,981 37,686 166.85
Change of Broker
The Company announces that, with immediate effect, its joint
brokers are Allenby Capital Limited and Cornhill Capital Limited.
Allenby Capital Limited remains as nominated adviser.
**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
Mark Connelly Allenby Capital Limited Tel: 020 3328 5656
Stefan Olivier Cornhill Capital Ltd Tel: 020 7710 9618
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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