LONDON (Alliance News) - Atlantic Coal PLC shares rose on Thursday after it reported a large rise in sales in the second quarter after it began selling run of mine anthracite coal at the start of 2015, and the company said it has beefed up its stockpiles in preparation for the winter.
Atlantic Coal shares were up 10% to 0.110 pence per share on Thursday morning, one of the best performers on the AIM All-share.
The US-based coal miner reported a 12% rise in run of mine anthracite production in the second quarter of 160,583 tonnes from the 136,981 tonnes produced in the first quarter.
Clean coal production "remained strong" at 45,129 tonnes compared to 45,669 tonnes in the previous quarter despite operations being shutdown for 16 days in the period to make improvements to the washing plant.
Sales of run-of-mine anthracite coal began at the start of 2015, making a huge contribution to overall sales in the second quarter, which totalled 61,684 tonnes comprised of 38,851 tonnes of clean coal and 22,833 tonnes of anthracite coal.
Those combined sales compare to the 44,356 tonnes sold in the first quarter of 2015 and 39,298 tonnes in the second quarter of 2014, when it was only selling clean coal.
"Despite the usual fall in demand during the spring, we have managed to achieve a healthy level of coal sales levels thanks to the decision by the board to start selling run of mine coal in addition to our usual clean coal sales," said Managing Director Steve Best.
Atlantic Coal has also beefed up its stockpile of both clean coal and run of mine anthracite coal in preparation for the upcoming winter in the US. At the end of the second quarter the company's clean coal stockpile stood at 24,463 tonnes compared to 12,210 tonnes a year earlier. The run of mine anthracite coal stockpile stood at 103,047 tonnes.
"With our production capability, improved mining conditions and a healthy clean coal and ROM inventory the directors look forward with confidence to the second half of the year and the winter season when we anticipate an increase in both sales volumes and prices," said Best.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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