James River Coal Company announced that it had net income of USD 0.8 million for the second quarter of 2011 and net loss of USD 6.8 million for the six months ended June 30th 2011. Second quarter and the six months ended June 30th 2011 results include USD 10.4 million and USD 14.4 million respectively, of after tax charges related to the International Resource Partners LP acquisition and refinancing of our debt. The 2011 results are compared to net income of USD 19.9 million for the second quarter of 2010 and net income of USD 43.1 million for the six months ended June 30th 2010.

Capital expenditures for the second quarter were USD 38.2 million and USD 58.3 million for the six months ended June 30th 2011. Additionally, a payment of USD 516.0 million was made for the IRP acquisition. The base purchase price of USD 475.0 million for the IRP acquisition was increased by working capital (as defined in the agreement) that exceeded USD 18.5 million. Included in the working capital of IRP were the following: USD 116.9 million of accounts receivable, USD 16.1 million inventory and USD 54.6 million of accounts payable. The accounts receivable balance was collected in the normal course of business.

Mr Peter T Socha chairman and CEO said that “We are very pleased with our progress this quarter. We completed the acquisition of International Resource Partners LP and its subsidiary Logan & Kanawha in mid-April. The integration of these acquisitions has gone very well. We also successfully managed several positive changes to our balance sheet. The mines had a better quarter and are continuing to adjust to several regulatory changes. Lastly, we are beginning to see much more sales and contracting activity in both Central Appalachia and the Midwest."