Bens Creek Group PLC Operational update and notice of results (2315M)
13 Septiembre 2023 - 1:00AM
UK Regulatory
TIDMBEN
RNS Number : 2315M
Bens Creek Group PLC
13 September 2023
13 September 2023
Bens Creek Group plc
("Bens Creek" or the "Company")
Operational update and notice of results
Bens Creek Group plc (AIM:BEN), the owner of a metallurgical
coal mine in North America supplying the steel industry, provides
the following operational update.
Highwall miners
After a period of reduced production, primarily as a result of
damage to highwall miner 81 following a mining incident, the
Company has now returned to full production. Both of Bens Creek's
highwall miners are now fully activated and, since Monday, 11
September 2023, the Company has introduced a second shift for both
highwall miners.
During August 2023, in which the Company had only one highwall
miner in action until late in the month, Bens Creek produced 42,000
tons of clean coal. This was the Company's highest monthly
production and includes over 10,000 tons of clean coal produced
from the Company's underground mining operations as detailed below.
The Company also shipped four trains during August 2023 delivering
44,000 tons of clean coal.
The Company has reduced the per ton cost of production payable
to its contractor by $3 per ton and the Company anticipates further
reductions in this cost as production increases and volume
discounts are agreed. Additionally, the Company has recently
completed a project to install a direct line of power to one of its
highwall miners, which is expected to result in further cost
savings on power use.
The Company can also confirm that the sale of its own highwall
miner (#20) to Civic LLC completed in early August 2023 in
accordance with the terms set out in this announcement released by
the Company on 22 December 2022.
New mining permit
The Company is pleased to have received confirmation from the
West Virginia Department of Environmental Protection that its
recent application to extend the surface mining area has been
approved, subject to public review. This approval, which has come
very quickly, will, in the Board's view, significantly reduce the
likelihood of any production hiatus occurring in the future.
Underground mining
The Company has been focussed on improved efficiency,
particularly in the production of clean coal from its underground
mining operations. The Company's underground mining costs have been
reduced to $111 per ton. The Company produced 24,207 tons of run of
mine ("ROM") coal in August 2023, with recovery rates rising from
35% to 43%, thereby producing over 10,498 tons of clean coal. The
Company is anticipating a ROM production of approximately 30,000
tons in September 2023.
Metallurgical coal price
Earlier this year there was a sustained period of falling
metallurgical coal prices which has negatively affected both the
Company's cash flow and its profitability. The Company has now seen
a recent reversal of this trend and the price of high-vol B
metallurgical coal, which had reached a low of $191 per ton in
August 2023, has recently recovered to $210 a ton as at 8 September
2023.
Notice of results
Bens Creek expects to announce its full year results for the
year to 31 March 2023 on Wednesday, 27 September 2023.
Adam Wilson, Chief Executive Officer of Bens Creek,
commented:
"We are delighted to be able to report that the two highwall
miners have started double shift production. This is a significant
milestone, especially when added to the record coal production
month in August. It is also very pleasing to see the record
underground mine production in August in terms of ROM coal
produced, clean coal and thus recovery (43.4%). The addition of a
second mining permit is also a huge benefit to the Company. We
expect September's coal production to exceed August's numbers. We
also note that the high-vol B metallurgical coal price has now
risen from its August low of $191 to $210 per ton."
For further information please contact:
Bens Creek Group plc
Adam Wilson, CEO +44 (0) 204 558
Peter Shea, Chief of Staff 2300
Allenby Capital Limited (Nominated
Adviser and Joint Broker)
Nick Athanas / Nick Naylor / George
Payne (Corporate Finance)
Kelly Gardiner (Sales and Corporate
Broking) +44 (0) 203 328 5656
WH Ireland Limited (Joint Broker) +44 (0) 207 220
Harry Ansell / Katy Mitchell 1666
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