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Energybuild Group Plc: Interim review for the six months ended 31 December 2009

Friday, February 12th, 2010

Energybuild Group Plc, the Welsh producer of deep mined premium anthracite coal and surface mined coal, is pleased to announce its interim results for the six months ended 31 December 2009. The Group is developing coal opportunities in South Wales including the Aberpergwm Colliery and the Nant y Mynydd opencast site, which provide access to large reserves located between the Neath and Dulais valleys, as well as a joint venture coal tip recovery operation and a joint venture aggregates business. Energybuild’s coal is sold primarily into the Aberthaw power station and into the wholesale and retail sized coal markets.
Overview
– Gross profit of £224,000 (2008: £1,689,000)
– Net loss of £99,000 (2008 profit: £841,000)
– Current cash position of £8,266,000 (2008: £3,510,000) with no bank borrowings
– Successful issue of circa £14,500,000 (gross) in new shares completed in December 2009, supported by Western Coal Corp. who increased its shareholding to 54.7% in the Group
– Aberpergwm Colliery:
. Production of clean coal from the mine was 42,000 tonnes for the six months (2008: 65,000)
. Development work on schedule to increase coal production to a targeted rate of 750,000 tonnes per annum by 2013
– Nant y Mynydd opencast mine:
. The new opencast site began producing in mid December 2009 and despite an initial delay of 10 months, is on schedule to produce 105,000 tonnes per annum by 2011
. 53,000 tonnes were produced in the six months to December 2008
– £253,000 profit generated from 50% joint venture coal-tip recovery operation
– Five-year sales contract for supply of sized coal with Evans & Reid, a large UK coal distributor
– Continued sandstone sales from Nant y Mynydd
– Trial of Pulverised Coal Injection (‘PCI’) coal to Corus Port Talbot commenced September 2009 and progressing well
NB: Comparatives are the half year ended 31 December 2008
Energybuild Managing Director Rhidian Davies said, “Our target remains to expand our production to 750,000 tonnes of high quality anthracite by 2013. To this end the advancement of the drift mine continues and our development schedule on the 18ft and 9ft seams are continuing as anticipated. The successful placement in December, issuing equity worth £14.5 million, finished the year on a high, as it not only provided a huge endorsement of the quality of our assets from investors but also secured the financing for the next phase of our targeted development programme.
“We are excited about our coal assets in South Wales, including the Aberpergwm Colliery and the Nant y Mynydd opencast site, as well as our joint venture coal tip recovery operation and we look forward to working with our new majority shareholder, Western Coal Corp., as we look to maximise the potential of our assets.”
(Ref 819)

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