Atlantic Coal PLC Q2 2013 Production Update (1451K)

TIDMATC

RNS Number : 1451K

Atlantic Coal PLC

26 July 2013

Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining

26 July 2013

Atlantic Coal plc ("Atlantic Coal" or the "Company")

Q2 2013 Production Update

Atlantic Coal, the AIM listed anthracite coal mining company operating in Pennsylvania, USA, is pleased to provide a production update for the quarter ended 30 June 2013 from its Stockton Anthracite Mine ("Stockton"), located near Hazleton, Pennsylvania.

Q2 Key Production and Sales Fundamentals:

-- Run of Mine ("ROM") anthracite production experienced a 24.4% quarter on quarter increase to 122,616 tons (Q1 2013: 98,529 tons)

-- ROM stockpiles stood at 91,599 tons which is a 265% increase in comparison to Q1 2013 - the intention is to take advantage of anticipated improved pricing environment later in the year

-- Clean coal production for the period was 30,641 tons (Q1 2013: 53,131 tons) and clean coal sales stood at 23,761 tons (Q1 2013: 53,324 tons) in response to a combination of the usual fall off in demand in the spring and also to softening prices

   --    Average sales price of anthracite was US$126.40 (Q1 2013: US$139.84) 

-- Overburden removal during the period stood at 291,732 bank cubic yards ("BCY") (Q1 2013: 847,434 BCY)

Production Summary:

 
 Overburden Removed (BCY)   Clean Coal Production (tons)   Coal Sales (tons)   Average Price (US$/ton) 
         291,732                       30,641                   23,761                 126.40 
 

Atlantic Coal's Managing Director Steve Best said, "While anthracite prices have been depressed over the last year and suppliers have sought to reduce inventory, Atlantic Coal has weathered this period successfully. We have taken the decision to decrease costs by significantly reducing overburden removal but the continued strong ROM production demonstrates the on-going effectiveness of our operations at Stockton. We have also taken the decision to stockpile ROM production rather than process it at current price levels, in order to take advantage of an anticipated improved pricing environment in H2 2013 as demand typically increases during the winter months. Our ability to rapidly modify our production, processing and sales in reaction to a constrained pricing environment is testament to the flexible operational model we have built at Stockton and we look forward to providing further updates regarding progress at both this asset, and our 410 acre Pott and Bannon site, over the coming months."

**ENDS**

For further information on the Company, visit: www.atlanticcoal.com or contact:

 
 Steve Best         Atlantic Coal plc           Tel: [phone] 
 Nick Naylor        Allenby Capital Limited     Tel: [phone] 
 Mark Connelly      Allenby Capital Limited     Tel: [phone] 
 Elisabeth Cowell   St Brides Media & Finance   Tel: [phone] 
                     Ltd 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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