Allegiance Coal CEO Mr Jon Romcke said “"The results for the June quarter demonstrate the impact of strong coal prices coupled with improvement in the production capability of both the Black Warrior and New Elk mines where the quarterly ROM production figures were the best on record since Allegiance commenced operations. Unfortunately, the ability of the mine to port logistics chain to keep pace with production has affected the timeliness of cashflow receipts for the Company from sales and inventory finance arrangements. We are working to address the logistics constraints and improve the working capital position at Allegiance. As we manage the challenges of our assets, the Board has commenced a strategic review with the purpose of assessing the optimal approach to each of its assets and the overall liquidity profile of the Company.”Run-of-mine coal production for June quarter across the Group totalled 220kt against 148KT for March quarter, an increase of 48% continuing the strong upward trend, but still considerably below our target. Black Warrior ROM coal production for June quarter totalled 85KT compared to 56KT in the prior quarter while New Elk ROM coal production for June quarter totalled 135KT compared to 92KT for the prior quarter.Average coal sales prices in June quarter were USD 258 per tonne against USD 261 per tonne in the prior quarter ranging from USD360 per tonne for high-vol A to USD 222 per tonne for a trial cargo of high-vol B product.Coal sales revenue for June quarter totalled USD 32.1 million compared to USD 14.5 million in the prior quarter.Ongoing delays at McDuffie Coal Terminal caused a New Elk 80KT vessel scheduled to load on 25 June to be delayed with loading now scheduled in July.Allegiance Coal is a publicly listed Australian company focused on the development, operation and supply of steel making coal to the seaborne market. With operating mines in southeast Colorado, central Alabama, as well as a development project in northwest British Columbia, Allegiance is well placed to supply steel making coal to both the Pacific and Atlantic markets.
Allegiance Coal CEO Mr Jon Romcke said “"The results for the June quarter demonstrate the impact of strong coal prices coupled with improvement in the production capability of both the Black Warrior and New Elk mines where the quarterly ROM production figures were the best on record since Allegiance commenced operations. Unfortunately, the ability of the mine to port logistics chain to keep pace with production has affected the timeliness of cashflow receipts for the Company from sales and inventory finance arrangements. We are working to address the logistics constraints and improve the working capital position at Allegiance. As we manage the challenges of our assets, the Board has commenced a strategic review with the purpose of assessing the optimal approach to each of its assets and the overall liquidity profile of the Company.”Run-of-mine coal production for June quarter across the Group totalled 220kt against 148KT for March quarter, an increase of 48% continuing the strong upward trend, but still considerably below our target. Black Warrior ROM coal production for June quarter totalled 85KT compared to 56KT in the prior quarter while New Elk ROM coal production for June quarter totalled 135KT compared to 92KT for the prior quarter.Average coal sales prices in June quarter were USD 258 per tonne against USD 261 per tonne in the prior quarter ranging from USD360 per tonne for high-vol A to USD 222 per tonne for a trial cargo of high-vol B product.Coal sales revenue for June quarter totalled USD 32.1 million compared to USD 14.5 million in the prior quarter.Ongoing delays at McDuffie Coal Terminal caused a New Elk 80KT vessel scheduled to load on 25 June to be delayed with loading now scheduled in July.Allegiance Coal is a publicly listed Australian company focused on the development, operation and supply of steel making coal to the seaborne market. With operating mines in southeast Colorado, central Alabama, as well as a development project in northwest British Columbia, Allegiance is well placed to supply steel making coal to both the Pacific and Atlantic markets.
