Walter said it expected to announce metallurgical coal sales of 2.8 million tons for Q1, up 9% from Q4 2012, as well as reporting a slight improvement in realized metallurgical coal prices.

Metallurgical coal production is also expected to be up 12% to a total of 2.8Mt but thermal coal sales are expected to be 40% lower than Q4 2012.

“Improvements across our operations over the past several months reflect the success of our ongoing initiatives,” Walter chief executive officer Walt Scheller said in a statement.

“Along with the progress we continue to make in our operations, we are also pleased with the recent actions taken to increase our financial flexibility.

“As to the current market, we have seen stronger demand and improved pricing, with second quarter benchmark prices of $172 per metric ton for hard coking coal and $141 per metric ton for low volatile pulverized coal injection.

“We believe all these factors position us well as we look ahead to the remainder of 2013.”

The company plans to release its Q1 2013 results and hold its earnings conference call on May 2.

Walter’s battle with UK investment group Audley Capital continues for control of the Walter boardroom.

Audley says it feels Walter Energy has “failed to deliver shareholder value” since the company’s takeover of Western Coal, accusing the miner of mismanagement and proposing new members for the company’s board.

Shareholders will have a chance to vote for or against Audley's nominees at Walter’s annual general meeting on April 25.

Walter's shares rose 5.7% to $25.50 in aftermarket trading.