<p>Allegiance Coal’s coal sales for the December quarter totalled 68,000 tonnes generating USD 8 million in revenue, a significant increase from USD 1.7 million generated in the September quarter driven by the commencement of export sales. Coal sales for the March quarter are forecast to be 133,000 tonnes based on coal sold and committed for delivery with revenue forecast to increase threefold on the December quarter.</p><p>Black Warrior run-of-mine production for the quarter totalled 51,000 tonnes vs 48,000 tonnes for the prior quarter. The increase was due in part to the arrival in November of the new 3600 Hitachi excavator replacing the 1200 Hitachi in waste rock removal. More significant productivity gains are anticipated with the arrival of the 150 tonne dump truck fleet in January and February.</p><p>New Elk ROM production for the quarter totalled 77,000 tonnes, down 21% from 98,000 tonne in the prior quarter. The reduction was due to a decision to realign the underground Main headings. Realignment of the headings will provide quicker access to panel mining and overall better mine development and production. The decision was taken to do this in the December quarter while the mine continued to build its work force and manage the impact of COVID so that when both production units are fully manned, the mine would be set up for both units to optimise productivity.</p><p>That was a prudent decision with New Elk underground production work force numbers increasing substantially over the last month following a sustained recruitment campaign in the December quarter to the point where the mine is now fully manned with two production units, delivering four production shifts per 24 hour day, five days per week as of 1 February 2022. The increase in production shifts coupled with a better mine layout is anticipated to lead to a significant improvement in production both immediate and long term, subject of course to successfully managing the ongoing impact of COVID.</p><p>Carbonisation tests undertaken on Black Warrior’s premium Mary Lee Blue Creek seams confirmed a CSR greater than 60% validating the coals’ status as a hard coking coal and has led to a 20 000 t trial shipment to a European steel mill this quarter which, if successful, could lead to a term supply contract based on high vol A index pricing.</p>
<p>Allegiance Coal’s coal sales for the December quarter totalled 68,000 tonnes generating USD 8 million in revenue, a significant increase from USD 1.7 million generated in the September quarter driven by the commencement of export sales. Coal sales for the March quarter are forecast to be 133,000 tonnes based on coal sold and committed for delivery with revenue forecast to increase threefold on the December quarter.</p><p>Black Warrior run-of-mine production for the quarter totalled 51,000 tonnes vs 48,000 tonnes for the prior quarter. The increase was due in part to the arrival in November of the new 3600 Hitachi excavator replacing the 1200 Hitachi in waste rock removal. More significant productivity gains are anticipated with the arrival of the 150 tonne dump truck fleet in January and February.</p><p>New Elk ROM production for the quarter totalled 77,000 tonnes, down 21% from 98,000 tonne in the prior quarter. The reduction was due to a decision to realign the underground Main headings. Realignment of the headings will provide quicker access to panel mining and overall better mine development and production. The decision was taken to do this in the December quarter while the mine continued to build its work force and manage the impact of COVID so that when both production units are fully manned, the mine would be set up for both units to optimise productivity.</p><p>That was a prudent decision with New Elk underground production work force numbers increasing substantially over the last month following a sustained recruitment campaign in the December quarter to the point where the mine is now fully manned with two production units, delivering four production shifts per 24 hour day, five days per week as of 1 February 2022. The increase in production shifts coupled with a better mine layout is anticipated to lead to a significant improvement in production both immediate and long term, subject of course to successfully managing the ongoing impact of COVID.</p><p>Carbonisation tests undertaken on Black Warrior’s premium Mary Lee Blue Creek seams confirmed a CSR greater than 60% validating the coals’ status as a hard coking coal and has led to a 20 000 t trial shipment to a European steel mill this quarter which, if successful, could lead to a term supply contract based on high vol A index pricing.</p>
