Interim Management Statement

RNS Number : 9151L

UK Coal PLC

14 May 2010

 



14 May 2010

UK COAL PLC ("UK COAL")

Interim Management Statement

UK COAL today issues its Interim Management Statement for the period from the beginning of the current financial year, 27 December 2009, to today's date.

The following information is as announced in our 2009 full year financial results on 26 April 2010.

Production in the first quarter was 1.0 m tonnes (2009: 1.7 m tonnes) of which 0.8 m tonnes was from deep mines (2009: 1.4 m tonnes) and 0.2 m tonnes was from surface mines (2009: 0.3 m tonnes).  First quarter has been affected by the delayed start to the new face at Daw Mill, along with lower performance from Kellingley and Thoresby, as they mined the last of the coal through poor geology in their old seams.

Daw Mill started the ramp up of its new face on the weekend of the 25 April 2010, and is continuing to ramp up production. Kellingley and Thoresby have now finished the ramp up in their new faces and are both producing in line with expectations. Welbeck mined the last of its coal on 11 May 2010, and is now starting the closure process.

Surface mine production at the start of the year was affected by the weather, although production is now recovering with the improvement in conditions.

Harworth Estates, UK COAL's property business, continues to progress as expected. As previously announced, since the start of the year we have received planning committee approval for our two applications at Waverley.  Further, we continue to progress the disposal of some of our surplus agricultural land, in doing so helping to reduce our overall levels of debt.

At the end of the first quarter 2010, net debt, including generator loans/prepayments but excluding restricted cash balances, was £236.0 million of which generator balances were £77.4 million. We have arranged an increase of up to £20 million in our banking facilities, and a £10 million loan facility with Peel Holdings, to provide increased headroom, in particular over the next seven months to reflect the peak funding, and therefore headroom, requirement for the Group.

CORPORATE ACTIVITY

On 9 March 2010, following press speculation, we announced that we had received a very preliminary approach regarding a potential merger transaction. The matter remains at an early stage and we would continue to stress that there is no certainty that a transaction will result.

Other than the information contained in this Interim Management Statement there have been no material events or transactions in the period from 27 December 2009 to  14  May 2010 which have affected UK COAL and its financial position.

Enquiries:

Media:

Citigate Dewe Rogerson                   
Anthony Carlisle

Tel: [phone] / Mobile: [phone]

Analysts and investors:

Jon Lloyd

Chief Executive, UK COAL PLC

Tel: [phone]

David Brocksom                                

Group Finance Director, UK COAL PLC

Tel: [phone]

Citigate Dewe Rogerson                   
Nick Cox-Johnson

Tel: [phone] / Mobile [phone]

 

END

 

 

IMSEAASDFFSEEAF