(Alliance News) - Bens Creek Group PLC shares dropped early Thursday, after it reported that its interim loss widened on higher costs.
Bens Creek is owner of a metallurgical coal mine in the US state of West Virginia. Its shares were down 11% to 11.08 pence each in London on Thursday morning.
Pretax loss widened to USD13.7 million in the six months that ended September 30 from USD11.7 million a year earlier.
Finance costs increased to USD2.4 million from USD1.5 million. Depletion & depreciation costs climbed to USD4.8 million from GBP3.8 million.
Revenue rose by 36% to USD23.5 million from USD17.4 million, but cost of goods sold nearly doubled to USD22.4 million from USD12.2 million.
Bens Creek produced 204,998 tons of metallurgical coal in the recent half-year, doubled from 99,928 a year before.
However, the average price received fell to USD118 a ton from USD166. Without that price fall, the company would have recorded a small profit, said Chief Executive Adam Wilson
"Overall, the outlook has improved for us, and we look forward with growing confidence to the coming months," Wilson said.
"With both Avani and Integrity in place, the company will continue to establish its branded coal in markets worldwide. As ever I thank all of our staff for their continued commitment and support to the business and we are hopeful that we will be able soon to deliver positive returns to our shareholders."
By Sophie Rose, Alliance News senior reporter
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Bens Creek (BEN)