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15 May 2009 07:00
For Immediate Release 15 May, 2009
UK COAL PLC ("UK COAL")
Interim Management Statement
UK COAL today issues its Interim Management Statement for the period from the beginning of the current financial year, 28 December 2008, to today's date.
As we announced in our 2008 full year financial results on 27 April 2009, production in the first quarter was 1.7m tonnes (2008: 1.7 m tonnes). Since the quarter end, deep mines production has continued broadly in line with expectations, with Daw Mill producing slightly ahead of expectations, Welbeck in line and Thoresby and Kellingley slightly below. Development work in all deep mines has progressed in line with, or ahead of, targets. Surface mine production at the start of the year was affected by the weather and a relatively increased focus on stripping overburden, although this production is expected to be recovered during the year.
As we announced on 27 April 2009, in the period since the end of the previous financial year we have negotiated new or amended old long-term supply contracts with our electricity generator customers, Drax, EON and EDFE, and have added a significant new core customer, Scottish and Southern Energy. These contracts have materially increased our long-term contracted coal prices and our short-term cash flows. Further details of these new contractual arrangements and the improved cashflows that result were given in the 2008 full year results announcement.
On 28 January 2009, we announced that we had sold our 50% share in Coal4Energy to our partners, Hargreaves Services PLC for a total cash consideration of £9.0m.
Harworth Estates, UK COAL's property business, continues to progress as expected.
Other than the information contained in this Interim Management Statement there have been no material events or transactions in the period from 28 December 2008 to 14 May 2009 which have affected UK COAL and its financial position.
Enquiries:
UK Coal:
David Brocksom/ Tel: 01302 755 002
Jon Lloyd
Media:
Citigate Dewe Rogerson Tel: 020 7638 9571
Anthony Carlisle Mobile: 07973 611 888
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