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17 Jan 2011 07:00
UK COAL PLC
("UK COAL" or "the Group")
Trading Update for the year ended December 2010
Strong 4th quarter production
Monday, 17th January 2011: UK COAL today provides its full year trading update in advance of the publication of its preliminary results for the year ended 25 December 2010 in April 2011.
Trading Review
Mining
Our focus on safety continues, resulting in an improved performance with a 20% reduction in lost time injuries.
Total production for the year ended 25 December 2010 was about 7.2mt, of which 5.8 million tonnes was from the deep mines and 1.5 million tonnes from the surface mines, consistent with the statement made on 30 November 2010.
m tonnes | Q4 2010 | Q4 2009 | FY 2010 | FY 2009 |
On-going deep mines | ||||
Daw Mill | 1.0 | 0.5 | 2.6 | 2.9 |
Kellingley | 0.3 | 0.3 | 1.5 | 1.0 |
Thoresby | 0.5 | 0.2 | 1.5 | 0.8 |
Total on-going Deep Mines | 1.8 | 1.0 | 5.6 | 4.7 |
Surface Mines | 0.5 | 0.4 | 1.5 | 1.3 |
Total on-going Production | 2.3 | 1.4 | 7.0 | 6.0 |
Welbeck
Total Production | -
2.3 | 0.2
1.6 | 0.2
7.2 | 1.0
7.0 |
Property
We have made good progress both on our programme to dispose of around 8,000 acres of surplus agricultural land, out of our total agricultural portfolio of around 30,000 acres and on other property sales.
In total, in the year, we exchanged on properties with a sales value of £28.5m, equating to £26.3m after costs and related land purchases, of which £22.7m was received before the year end with the balance due in 2011. Overall we expect a small loss for the year on property disposals.
We are expecting a non-cash revaluation loss for the year, reflecting the market for the larger residential development sites in particular, of approximately £30m.
Net Borrowings
Including the proceeds of property disposals, overall net bank and other debt (excluding restricted cash balances) at the end of December 2010 was £243 million, including prepayments and loans from generators of £101 million (December 2009: £182 million, including £68 million of prepayments and loans from generators).
For further information please contact:
Media: Anthony Carlisle, Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571Mobile: +44 (0)7973 611 888
Analysts and investors:
Jonson Cox (Executive Chairman, UK COAL) Tel: +44 (0) 1302 755 002
David Brocksom (Finance Director, UK COAL) Tel: +44 (0) 1302 755 013
Nick Cox-Johnson, Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571
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