This was due to the $4.95 per tonne decrease in the average realised coal price and 5% lower coal sales volume attributable to the impact of second quarter production issues at its La Caypa mine in Colombia.

The Canadian-based company’s focus on mitigating the effects of the adverse geological conditions that occurred at the La Caypa mine in the second quarter of 2014 resulted in a reduced operating loss in the third quarter of 2014 of $600,000 when compared to the second quarter of 2014 operating loss of $3.5 million.

Pacific Coal Resources executive chairman Hernan Martinez said: “In the third quarter of 2014, we were able to maintain year to date general and administrative expenses below forecasted amounts.

“I am happy to report that management's efforts at the La Caypa mine, to improve cash flow after experiencing some challenges in the second quarter, have shown positive results with an increase in production in the third quarter of 2014.

“We aim to further develop the south pit at La Caypa to maximise its coal production and strengthen our focus on core assets by disposing of the remaining interest in the Barranquilla port.

“As we announced in October 2014, we have signed a joint operating agreement at Cerro Largo with Sloane Mining Services Sucursal Colombia, and expect production to resume at Cerro Largo by December of this year.

“This new agreement will provide the company with a steady cash flow to address the liquidity concerns of the company.”

The company produced 285,167 tonnes of coal in the third quarter of 2014, bringing the total for the first nine months of 2014 to 837,827t.

With production of 92,000t in October 2014, the company now expects that 2014's total annual production will be about 1.1Mt.