UK Coal just misses sales expectations

UK Coal has released total expected 2008 coal sales results, with group production falling to 7.9 million tonnes, just shy of the 8Mt foreshadowed in October which was an 8% cut to earlier annual sales guidance.
UK Coal just misses sales expectations UK Coal just misses sales expectations UK Coal just misses sales expectations UK Coal just misses sales expectations UK Coal just misses sales expectations

Miners at UK Coal's shuttered Daw Mill

Blair Price

Total sales from the London-listed company’s deep mines reached 6.2Mt for the year, with Daw Mill in the West Midlands outperforming 2007 by 45% with a record 3.2Mt, Kellingley in Yorkshire hitting 1.2Mt and Thoresby and Wellbeck in Nottinghamshire both clearing 900,000t.

Meanwhile, annual sales from the surface mines got to 1.7Mt, a slight improvement from 1.5Mt in 2007.

The total sales figures for 2007 and 2008 excluded the group’s Malby operation and were identical at 7.9Mt.

UK Coal said the total sales output in the December quarter was 2.4Mt, better than the 2007 December quarter result of 1.8Mt and reflecting improvements from Thoresby and Kellingley in overcoming geological conditions.

As of this week, the Durham County Council approved the extraction of 1.25Mt of coal at the company’s Park Wall North site near Tow Law.

UK Coal said overall net debt, excluding restricted cash balances, for the December quarter was around £140 million.

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