Trading Statement

RNS Number : 5427Z

UK Coal PLC

17 January 2011

 



UK COAL PLC

("UK COAL" or "the Group")

Trading Update for the year ended December 2010

Strong 4^th quarter production

Monday, 17^th January 2011: UK COAL today provides its full year trading update in advance of the publication of its preliminary results for the year ended 25 December 2010 in April 2011.

Trading Review

Mining

Our focus on safety continues, resulting in an improved performance with a 20% reduction in lost time injuries.

Total production for the year ended 25 December 2010 was about 7.2mt, of which 5.8 million tonnes was from the deep mines and 1.5 million tonnes from the surface mines, consistent with the statement made on 30 November 2010.

m tonnes	Q4 2010	Q4 2009	FY 2010	FY 2009
On-going deep  mines
Daw Mill	1.0	0.5	2.6	2.9
Kellingley	0.3	0.3	1.5	1.0
Thoresby	0.5	0.2	1.5	0.8
Total on-going Deep Mines	1.8	1.0	5.6	4.7
Surface Mines	0.5	0.4	1.5	1.3
Total on-going Production	2.3	1.4	7.0	6.0
Welbeck Total Production	- 2.3	0.2 1.6	0.2 7.2	1.0 7.0

Property

We have made good progress both on our programme to dispose of around 8,000 acres of surplus agricultural land, out of our total agricultural portfolio of around 30,000 acres and on other property sales.

In total, in the year, we exchanged on properties with a sales value of £28.5m, equating to £26.3m after costs and related land purchases, of which £22.7m was received before the year end with the balance due in 2011.  Overall we expect a small loss for the year on property disposals.

We are expecting a non-cash revaluation loss for the year, reflecting the market for the larger residential development sites in particular, of approximately £30m.

Net Borrowings

Including the proceeds of property disposals, overall net bank and other debt (excluding restricted cash balances) at the end of December 2010 was £243 million, including prepayments and loans from generators of £101 million (December 2009: £182 million, including £68 million of prepayments and loans from generators).

For further information please contact:

Media: Anthony Carlisle, Citigate Dewe Rogerson Tel: [phone]
Mobile: [phone]

Analysts and investors:

Jonson Cox (Executive Chairman, UK COAL) Tel: [phone]

David Brocksom (Finance Director, UK COAL) Tel: [phone]

Nick Cox-Johnson, Citigate Dewe Rogerson Tel: [phone]

 

END

 

 

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