Bens Creek losses widen as it maintains operational progress

(Sharecast News) - North American metallurgical coal miner Bens Creek reported a significant first-half milestone on Thursday, as it produced 204,998 tons of clean metallurgical coal, marking a 105% increase compared to the same period last year. The AIM-traded firm said it successfully delivered 18 trains, reflecting a 125% increase from the prior year's figure of eight trains.

All of the trains were sold through Integrity Coal sales, including an order that was shipped to ArcelorMittal, one of the world's largest steel producers.

As of 30 September, the group held 42,728 clean tons of coal in inventory, demonstrating a 122% increase compared to last year.

Furthermore, both highwall miners were fully activated and operational from September.

Despite the operational achievements, the group recorded an EBITDA loss of $6.5m for the period, widening slightly from the $6.4m it reported for the same period in 2022.

Since the end of the period, Bens Creek announced a significant development on 30 November as its subsidiary BC Operations entered into its first agreement with Avani for the delivery of three-unit trains, totalling 33,000 short tons of coal.

The delivery of coal was expected to be completed by the end of January.

"We have now successfully completed the transition of the business and are moving towards full production," said chief executive officer Adam Wilson.

"During the period we have unfortunately suffered from weakness in pricing putting our cash flow under pressure.

"We were delighted to enjoy the support of both Avani and JCAM who assisted us by providing debt facilities during difficult months, and Integrity, with whom we have continued our strong relationship."

Wilson said some of the company's competitors did not have the same level of support, issuing WARN notices ahead of making substantial redundancies.

"We are pleased that we were able to avoid taking any such action."

"Overall, the outlook has improved for us, and we look forward with growing confidence to the coming months.

"With both Avani and Integrity in place, the company will continue to establish its branded coal in markets worldwide."

Reporting by Josh White for Sharecast.com.