Massey, which is being taken over by Alpha Natural Resources in an $8.5 billion deal, reported its fourth straight quarterly loss despite a record 10.3 million tons of total coal production.

“Total shipments of metallurgical coal declined by 4 per cent year over year,” the company said. “The slight decline in metallurgical coal shipments compared to first quarter 2010 was due primarily to lost production from UBB.”

Massey further reported that produced coal revenue per ton reached an all-time record high of $80.96 during the quarter, an increase of 20% over the corresponding period a year ago. The higher volume and higher realization generated record high produced coal revenue of $831.3 million for the first quarter 2011, which represents an increase of 45% year-on-year.

Massey's chief executive and president Baxter F. Phillips Jr said: "We are pleased with our progress in improving our operations and bringing shipments back in line with our expectations.

“We recognize that a lot of work remains to bring costs in line to improve net profitability. We believe our operations can achieve cost improvements as the year progresses."

Massey's average cash cost per ton for the first quarter of 2011 was $66.04 compared to $55.38 in the first quarter of 2010. The increase was due largely to higher fixed cost absorption on lower than planned production, higher sales costs related to higher average sales prices, and increased costs for mining supplies and labor.

The higher cash costs were offset by the reported higher revenue per ton, resulting in an improvement cash margin per ton. The operating cash margin per ton in the first quarter of 2011 was $14.92 compared to $12.00 in the first quarter of 2010.

The first quarter 2011 results included approximately $5.4 million in pre-tax transaction expenses related to the planned merger with Alpha Natural Resources.