Atlantic Coal swimming in production in Q3

WHILE many operators are feeling the coal market pinch, US-based and London-listed Atlantic Coal more than doubled production over the third quarter – even achieving a record at its flagship Pennsylvania mine.
Atlantic Coal swimming in production in Q3 Atlantic Coal swimming in production in Q3 Atlantic Coal swimming in production in Q3 Atlantic Coal swimming in production in Q3 Atlantic Coal swimming in production in Q3

Courtesy Atlantic Coal.

Donna Schmidt

The company, which wrapped up a railway diversion project in April that transformed its production efficiency, enjoyed a 130% year-on-year jump in clean coal production with 44,633 tonnes from its Stockton mine in Hazleton.

Its third-quarter 2011 total was 19,424t.

The company also sold 38% more coal than in the previous year. It recorded 33,336t for the period just ended versus 24,111t in last year’s comparable quarter.

Run-of-mine coal washed also more than doubled over 2011 to 107, 625t from 50,816t.

Realized prices did drop quarter on quarter due to a cyclical demand slowdown over the summer, but third-quarter average sales prices were $148.49, up from $146.98, on continued strong national demand for high quality anthracite.

Company officials said that it was also ready for the northern winter, with robust stockpile levels. It has targeted 42,416t run-of-mine and 23,435t clean coal for sale over during the season.

At least one analyst agreed with the miner’s perspective.

“While most other US producers cut production, Atlantic has been able to increase production and maintain prices as it produces anthracite for the domestic retail market,” a FoxDavies analyst said.

“We expect prices should pick up again in the third quarter as we head into the winter period in North America.”

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