Bens Creek Group PLC - US-focused metallurgical coal miner - Signs first offtake agreement for wished Hi-Vol-B metallurgical coal with Integrity Coal Sales Inc.
The agreement is for 22,000 short ton of product a month for a 12-month period from January 2022 until December 2022, and covers around 50% of the expected production volumes of Bens Creek's annual production under the existing mine plan.
The agreed sales price will be linked to the Metallurgical Coal Assessment Index published by S&P Global Platts on a daily basis, which was USD305 per metric tonne on Monday, with the equivalent price for a short ton being USD277.
"We are delighted that strong investor demand at the time of our very recent IPO has been followed by strong customer demand for our product. We are therefore pleased to have secured the company's first offtake agreement with Integrity Coal Sales, a stalwart in the US coal industry, at close to prevailing market prices, for approximately 50% of our expected annual production plan. As we look to move into production during fourth quarter 2021, we will in due course seek to secure additional sales agreements with Integrity or with third-party customers," says Chief Executive Officer Adam Wilson.
Current stock price: 11.88 pence, up 16% on Thursday
Year-to-date change: up 13% since listing on Tuesday
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Bens Creek (BEN)