Market Report UK/A17 Nov 2008 19:13
In its September quarterly update, coal miner Energybuild (EBG) was able to report solid progress at both its underground and surface coal mines in South Wales and stated that it remains on track to reach its annual production targets. 35,000 tonnes were produced from underground as the scheduled development work continued. 33,000 tonnes were sold at an average price of 85 pounds per tonne, whilst average operating costs stood at 79 pounds per tonne. As planned, the second half will bring an increase in production once the current development phase is completed and the company is confident of achieving its 265,000 tonnes per year end target and lower cash costs. "The company remains confident of performing 'in line with expectations despite the turbulent economic climate'," commented broker Seymour Pierce. "Based on our current numbers this means a pre-tax profit around 3.5 million pounds," it added, keeping its 'BUY' stance. Energybuild shares finished flat at 16p.