Production on target for UK Coal
UK Coal said today that development work in all deep mines has progressed in line with, or ahead of targets.
The Doncaster-based group reported that production in the first quarter was 1.7 million tonnes with performance by deep mine Daw Mill slightly ahead of projections.
Surface mine production however was affected by weather at the start of the year although production is expected to recover over the coming year.
UK Coal said that as a result of negotiating new or amended old long-term contracts with electricity generator customers Drax, E.ON and EDFE, coal prices had been materially increased – as have short-term cash flows.
The group has also added Scottish and Southern Energy as a customer.
Harworth Estates, its property business, continues to progress “as expected”.
In April, the group announced it had seen an increase in sales of 19.5% last year to £392.5m but made a pre-tax loss of £15.6m because its property portfolio failed to continue to gain in value.
However, it added that values of its property holdings remained “reslient” at £422m thanks to the twin benefits of progress with planning consents and the increase of agricultural land prices.
