It is reported that UK Coal is continuing the progress in its recovery with year to date production in line with company expectations and debt reducing further.
In a trading update, the group announced that total production in the third quarter was 1.8 million tonnes of coal down from 2.2 million tonnes a year earlier making year to date production of 5.9 million tonnes.
Deep mine production was down at 1.4 million tonnes from 1.7 million in the previous third quarter. While its Kellingley and Thoresby operations continued to mine ahead of plan, the challenges of working through a fault and seeking agreement to changes in working practices, have restrained development and production at Daw Mill. However, the issues have been addressed.
Surface mine production was 0.4 million tonnes in the third quarter, down from 0.5 million but ahead of management expectations. Net bank debt has continued to reduce and at September 24 2011 was at GBP 68 million compared with GBP 141 million at the end of December.
Property disposals have generated around GBP 26 million of receipts in the third quarter including GBP 23 million in respect of sales exchanged in the first half with year to date receipts of GBP 59 million. Regarding the sale of properties, Harworth Estates has continued to make good progress with disposals that realised GBP 3 million in the third quarter, bringing the total value of disposals to around GBP 80 million since November 2010. UK Coal recorded a profit on property disposals of around GBP 2 million for the year to date.
As part of its recovery plan, the company is also seeking to deliver value from major Brownfield sites, the biggest of which is Waverley in South Yorkshire with 710 acres. On the residential part of this site, UK Coal exchanged conditional contracts with Taylor Wimpey, Barratt Homes and Harron Homes on the first phase of the construction for 254 homes.
On the Waverley Advanced Manufacturing Park, it has exchanged a contract with Rolls-Royce 17.4 acres to build a manufacturing unit.
(Sourced from www.proactiveinvestors.co.uk)
