Atlantic Coal, an AIM-listed open cast coal production and processing company, saw a widening of half year losses after exceptional expenses and rising administrative expenses offset a 79 per cent leap in gross profit.
Consequently, the loss from ordinary activities before tax widened from $1.05m to $1.37m year-on-year, on revenues of $8.87m (2011 H1: $7.48m), which fell as a result of costs of the rail road diversion, exploratory drilling and due diligence costs.
Cost of sales rose from $6.64m to $7.36m, giving gross profit of $1.51m compared to $0.84m the previous year. Administration expenses increased from $1.15m to $1.68m year-on-year, while exceptional expenses for the six months totalled $0.82m, compared to nil the same period the previous year.
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Basic losses per share rose 0.01 cents to 0.04 cents.
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Clean coal production during the period rose 16.6% from 59,553 to 69,415 tons, boosted by the investment in on-site machinery that has been made to ensure that production is maximised. Production in the second quarter reached record highs, up 18.8% on the previous quarter.
Atlantic Coal Managing Director Steve Best said: "This has been a period of exciting progress in terms of delivering on our strategy to become a mid-tier producer of anthracite in Pennsylvania. Production at Stockton reached record highs during the second quarter of 2012. We are confident this momentum will be built on and were particularly pleased to receive a report from independent consultants that production of 160,000 tons per annum of clean coal at Stockton is achievable during 2012, as announced on April 18th 2012.
"We are continuing with our due diligence on a number of possible acquisition sites over which we have secured lease options, which, if successful, will fulfil our strategy and with domestic demand for our product consistently strong, I believe we are increasingly well-placed to capitalise upon this and build value for shareholders."
The net asset position of the group at the period end was $11.91m.
The share price fell 13.16% to 0.33p by 14:49.
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