NCC’s sales during the period were 368,000 tons, down 1% on year from 372,000t in 2006 but was a 9.4% drop over tonnage sold during the previous quarter.

The Appalachian producer’s revenue also suffered, down just over 7% on year to $US19 million from $20.5 million. Moreover, that total was almost a 12% decrease from the previous quarter.

To compound the news, and in line with the weak figures, coal production for its first quarter was 300,792t, though the on-year reduction was just 5.6% from 318,607t.

On the flip side, NCC said its net and operating losses had reduced. The operating loss narrowed to $4.3 million on year from $6.2 million.

Net loss was similar, reflecting a 22% decrease to $6 million during the first quarter from $7.7 million loss in the corresponding period. It was also down 20% from the $7.5 million loss reported in the fourth quarter.

NCC said a significant capital quotient, one that stood for 55% of the decrease from the 2006 first quarter to the 2007 first quarter, was the repair costs of its highwall miner damaged last year, which totaled $1.8 million.

“Our efforts are paying off and it’s evident in the results of this quarter,” explained NCC president Daniel Roling.

“We’ve made improvements designed to reduce costs and have completed the investments needed to increase production capacity.

“As a result, we are now well-positioned to increase our production when the time is right.”

He noted that, much like its contemporaries, inventory overrun and soft prices have left the company on shaky ground.

“Looking forward, we are hopeful of a more balanced market going into the summer months.

“For our part, we have sustained, and will continue to sustain, ourselves by focusing on containing costs in preparation for the future.”

National Coal employs about 240 people and produces coal in Tennessee and Kentucky for utilities in the southeastern US.