Atlantic Coal plc ("Atlantic" or the "Company")
Increased Production From Stockton Coal Mine
Atlantic Coal plc, the AIM-listed anthracite coal mining company operating in Pennsylvania, USA, is delighted to announce a positive production update for the three months ended 30 September 2012, from its Stockton mine ("Stockton") located near Hazleton, PA.
Key production fundamentals:
· Excellent 130% increase in clean coal production year on year to achieve record production of 44,633 tons (Q3 2011: 19,424)
· 38% increase in clean coal sold year on year to 33,336 tons (Q3 2011: 24,111)
· Run-of-mine ("ROM") coal washed more than doubled year on year to 107, 625 tons (Q3 2011: 50,816 tons)
· 935,767 bank cubic yards ("BCY") of overburden removed (Q3 2011: 833,055 BCY)
· Significant improvement in strip ratio of overburden to clean coal to 21.0 (Q3 2011: 42.9) - photographs of the exposed Mammoth Seam are available in the gallery section of the Company's website: www. atlanticcoal.com/Gallery/
· Robust levels of stock pile inventory, run-of-mine (42,416 tons) and clean coal (23,435 tons) targeted for sale during the lucrative winter home heating season
· Average sales price realised was US$148.49 excluding by product # 5 (Q3 2011: US$146.98) - continued strong national demand for high quality anthracite but slight quarter on quarter price drop experienced due to cyclical slower summer period
Atlantic Managing Director Steve Best said, "This is an exciting time for Atlantic as production at Stockton continues to build upon the record figures reported in Q2 2012. Stockton's production profile has been transformed since the successful completion of the railroad diversion in April 2012, as evidenced by the 130% increase in production and the 38% increase in sales of clean coal year on year.
"These results strengthen our position in the region, and with options currently held over a number of larger anthracite sites, further details of which were contained in our recent interim statement, and each with the potential to enlarge our portfolio substantially, we look forward to the coming months with optimism. We will update shareholders on the status of these transactions at the appropriate time.
"In addition, Atlantic has completed reclamation work on nearly 1,000 acres of the former Gowen Mine. This is further good news for the Company, producing environmental improvements and representing the completion of a major programme of expenditure."
Q3 2012 Production Summary:
Run-of-mine washed (tons)
|
Overburden
Removed (bank cubic yards)
|
Clean Coal Production
(tons)
|
Average
Price per ton (US$)
|
107,625
|
935,767
|
44,633
|
148.49 excluding by product #5
|
