The loss was in line with previous forecasts by the company, who commented the fourth quarter was typically a difficult period.

"Our fourth quarter results were within our projections and our underground mining operations performed better," said Massey CEO Don Blankenship.

Coal sales volume for the quarter remained relatively flat, at 10.3 million tons in 2003 versus 10.4 million tons in 2002. Produced coal revenues of $323.1 million were up slightly in the 2003 fourth quarter and EBITDA increased 17% to $40.2 million from $34.3 million in the fourth quarter of 2002.

"As has been widely reported, the coal marketplace remains very strong, both domestically and abroad. The combination of high natural gas prices, the improving economy, the weak dollar, higher ocean freight rates and limited coal supply from Central Appalachia has all contributed to this improvement,” said Blankenship.

“Moreover, while coal demand for electricity generation is currently expected to grow by over 2% in 2004, metallurgical coal demand has also accelerated. We believe that the shortage of coal to meet the demand is more than a short-term phenomenon," he said.

For the full year, produced coal revenues decreased 4% from 2002 to $1.26 billion and coal sales volume decreased by 3% to 41.0 million tons. The Company reported an after-tax loss for the year of $40.2 million, including a $7.9 million accounting charge.

Massey said it projected sales of 45 to 47 million tons in 2004, with sales commitments currently at 45 million tons. The average sales price per ton for 2004 is expected to be between $33 and $34, compared to an average sales price per ton of $31.44 for the fourth quarter of 2003 and $30.79 for the full year 2003. Current sales commitments for 2005 and 2006 total approximately 38 and 14 million tons, respectively, at higher sales prices.

Blakenship said he expected a relatively weak first quarter due to weather-related operational and shipping issues, combined with some lower-priced carryover tonnage. Four longwalls have also been scheduled to move to new panels during the first quarter.