29 Nov | Purchase – Atlantic Coal
To quote from the tin, Atlantic Coal are:
a coal production and processing company, focussed predominantly on open cast mining and the processing of high-grade, low emission coal. Its primary asset is the Stockton Colliery, a union free opencast anthracite mining and processing operation in the Pennsylvania Coal Field, US.
The Company has a highly experienced team, whose expertise and knowledge is being utilised to position Atlantic Coal as a consolidator in the sector, targeting known coal regions in stable political environments. In line with this, the Board aims to leverage the revenue generated from Stockton to acquire suitable assets and build its production profile and resource base.
ATC released interims up to June 30, 2010 in late September which showed increased revenue and a reduction in loss and included this statement from Managing Director Steve Best:
“We are extremely pleased with the developments that we have made at Stockton over the last six months. The arrival of the Liebherr R9250 19.6-yard bucket hydraulic excavator in April 2010 has resulted in production approaching record levels. Although the six monthly figures show a distinct improvement, it is important to recognise that the true benefits of all the restructuring and development initiatives have not fully impacted this current reporting period. This gives your Board great confidence for the future performance of the Company.”
According to Stockmarketsreview.com:
Currently the mine is operating on two shifts a day, five days a week taking advantage of strong demand for coal.
The other piece of very positive news is that due to the closure of a neighboring mine, the market for anthracite in Pennsylvania has tightened up considerable and Atlantic Coal are now struggling to meet demand. Normally stocks are built up in summer and run down in winter. This situation is expected to continue for at least 18 months, and this is placing upward pressure on anthracite prices.
We’re not expecting huge things to happen overnight with Atlantic Coal but they seem to be making all the right noises and with prices hitting new lows in September, taking a stake in Atlantic Coal now seemed like a punt worth taking.
As always do a ton of your own research and if you’re after a sure thing, pay Kiva a visit and help a third world entrepreneur get themselves up and running.
Thanks again for stopping by.