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Bens Creek Group PLC shares dropped early Thursday, after it reported that its interim loss widened on higher costs.
Bens Creek is owner of a metallurgical coal mine in the US state of West Virginia. Its shares were down 11% to 11.08 pence each in London on Thursday morning.
Pretax loss widened to $13.7 million in the six months that ended September 30 from $11.7 million a year earlier.
Finance costs increased to $2.4 million from $1.5 million. Depletion & depreciation costs climbed to $4.8 million from £3.8 million.
Revenue rose by 36% to $23.5 million from $17.4 million, but cost of goods sold nearly doubled to $22.4 million from $12.2 million.
Bens Creek produced 204,998 tons of metallurgical coal in the recent half-year, doubled from 99,928 a year before.
However, the average price received fell to $118 a ton from $166. Without that price fall, the company would have recorded a small profit, said Chief Executive Adam Wilson
‘Overall, the outlook has improved for us, and we look forward with growing confidence to the coming months,’ Wilson said.
‘With both Avani and Integrity in place, the company will continue to establish its branded coal in markets worldwide. As ever I thank all of our staff for their continued commitment and support to the business and we are hopeful that we will be able soon to deliver positive returns to our shareholders.’
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