LONDON (Alliance News) - Atlantic Coal PLC Tuesday said that improved mining conditions at the Stockton anthracite mine mean it can be confident about the rest of 2015.
The AIM-listed anthracite coal mining company, which operates in the US state of Pennsylvania, reported that clean coal production increased to 45,669 tons in the first quarter of its financial year, which ended on March 31, from 34,451 tons in the corresponding period of the prior year.
Total first quarter coal sales, including clean coal sales of 34,916 tons and run of mine sales of 9,440 tons, increased to 44,356 tons from 36,449 tons. The company's clean coal stockpile increased to 18,185 tons from 1,396 tons.
Atlantic Coal pointed out that in the current cut it is now mining almost solid coal in the 29 feet thick Mammoth seam. The company expects improved operational costs and higher remaining reserves as it thinks it will be the Mammoth seam with higher levels of coal remaining.
Managing Director Steve Best said that Chairman Adam Wilson, who is based in the US, is making "substantial progress" at the Stockton mine.
According to Best, the chairman is undertaking work "in relation to management process and cost savings at Stockton and also establishing new investor interest in the potential acquisition of anthracite reserves, mining operations and washing plant capacity to achieve our objective of being a leading Pennsylvania anthracite producer".
Best said the company's first-quarter performance improved despite a "desperately cold" winter in Pennsylvania. Best said the company could have achieved record clean coal production if it hadn't been hindered by the harsh winter conditions.
"We are pleased to be able to report the positive developments in relation to the 29 feet thick Mammoth seam. Our overall sales volumes are good and I am pleased to report that the average price for Q1 was up slightly on Q4 2014 in what is a competitive market," Best said.
The managing director also commented on the new Komatsu PC3000 hydraulic excavator, saying it is now operation. In addition, most of the new fleet of Komatsu plant is now on site and operational with the remainder expected before the end of April.
Atlantic Coal shares were up 21% at 0.163 pence on Tuesday morning, one of the best performers in the AIM All-Share.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
