Stockton Update for Six Months to 30 June 2011 (3603K)
July 14 2011 - 1:00AM
UK Regulatory
TIDMATC
RNS Number : 3603K
Atlantic Coal PLC
14 July 2011
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
14 July 2011
Atlantic Coal plc ("Atlantic" or the "Company")
Stockton Update for Six Months to 30 June 2011
& Revision of Annual Production Target
Atlantic Coal plc, the AIM listed open cast coal production and
processing company with activities in Pennsylvania, USA, announces
an update from the Stockton Colliery ("Stockton"), its opencast
anthracite operation in Pennsylvania.
Production of clean coal and the levels of overburden removed
increased in comparison with the corresponding period in 2010
largely as a result of the utilisation of the Liebherr 9250 19-yard
bucket hydraulic excavator ("Liebherr"), which commenced operations
in June 2010. There was a 65% increase in production of run-of-mine
coal ("ROM") to 121,251 tons (2010: 73,550 ROM tons) and a 17%
increase in overburden removed to 1,641,727 bank cubic yards
("BCYs") (2010: 1,393,864 BCYs). 123,037 tons of ROM coal was
washed, representing an increase of 21% (2010: 101,381 ROM tons),
producing 59,553 tons of clean coal - an increase of 62%. 60,515
tons were sold during the last six months at an average price for
prepared coal of US$136.14 and, including by-product, an overall
average sale price of US$126.12. ROM stocks were 36,593 tons (2010:
18,853).
The Company's 17 year old DeMag H185 excavator ("DeMag") has
experienced mechanical difficulties primarily due to age and a lack
of availability of replacement parts in the market. Accordingly,
its utilisation levels have been affected, which, in tandem with
time delays caused by unusually bad weather, has translated into a
revision of the targeted annual production to 300,000 tons of ROM
for 2011 from 450,000-500,000 tons of ROM. However, these results
are considerably improved in comparison to H1 2010, highlighting
the positive impact of the new Liebherr. With this in mind, the
Board anticipates that the second Liebherr, scheduled to be
operational during Q1 2012, will also enhance excavation capacity
and facilitate increased ROM tons supplied to the wash plant.
Atlantic Managing Director Steve Best said, "Production over the
last six months has increased in comparison with the equivalent
period last year and we have made headway in clearing the
overburden at Stockton, which is particularly positive at this time
as local and global demand for our product remains high. The
reduction in our annual production target is naturally
disappointing and to a certain extent beyond our control, but we
look forward to the arrival of the second Liebherr in the first
quarter of 2012 and anticipate that this will enhance excavation
capacity and facilitate increased ROM tons supplied to the wash
plant."
**ENDS**
For further information on the Company, visit:
www.atlanticcoal.com or contact:
Steve Best Atlantic Coal plc Tel: 020 3328 5670
Nick Naylor Allenby Capital Limited Tel: 020 3328 5656
Alex Price Allenby Capital Limited Tel: 020 3328 5656
Peter Rose FoxDavies Tel: 020 3463 5030
Simon Leathers FoxDavies Tel: 020 3463 5010
Hugo de Salis St Brides Media & Finance Tel: 020 7236 1177
Ltd
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
Notes
Atlantic Coal plc is an AIM listed coal production and
processing company focussed predominantly on open cast mining and
the processing of anthracite coal in Pennsylvania, USA. The
Company's primary asset is the Stockton Colliery, a producing
surface coal mine and adjacent anthracite preparation plant
encompassing an area of approximately 900 hectares located in Hazel
Creek in North-East Pennsylvania, which has current Proven Reserves
of 4.2 million tons run-of-mine coal.
Atlantic's strategy is to create a significant mid-tier coal
company; both through the expansion of activities at Stockton and
identifying additional sites in Pennsylvania to build its
production and resource profile, primarily by acquiring defined
assets in stable, recognised, high quality coal regions. The Board
has identified opportunities to expand within the region and is
involved in ongoing negotiations regarding adjacent sites, with the
intention of acting as a regional consolidator in the Pennsylvanian
Coal Field. Expansion within the local area has the potential to
minimise upfront deal costs as a result of existing and proven
infrastructure, equipment, facilities and market demand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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