Armstrong Energy clocked up a loss of US$7.8 million in Q3 despite reporting a rise of US$700,000 in coal sales revenues for the quarter. This compares to a loss of US$7.9 million over the same period last year.
In the nine months to September, the company lost US$17.2 million – down from a US$18.9 million loss over the same period in 2013. Coal sales revenues for the nine-month period were up US$25.4 million year-on-year to US$336.1 million.
The increase in coal sales revenues was attributable to “favourable volume variance of approximately 0.3 million short t […] and a favourable price variance of US$13 million year-over-year due to favourable customer mix and higher year-over-year contract prices,” the company said in a statement.
Anticipated coal sales for the rest of the year are all committed at an average price of US$46.85. Looking forward to 2015, the company said it had 8.7 million short to priced and committed at an average price of US$48.18.
Amrstrong Energy currently operates seven coal mines in the Illinois Basin in western Kentucky with about 570 million t of proven and probable coal reserves.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/14112014/world-coal-armstrong-energy-announces-q3-loss-despite-rise-in-coal-sales-revenues-coal1573/