Andrew Bell, Regency Chairman, comments: “MET faced some maintenance and availability problems in September, and third party sales still require to be built up to the planned levels.
Further to the announcement of 4 September 2018, Regency Mines Plc, the natural resource exploration and development company with interests in hydrocarbons and base metals, announces September production numbers for its 47% owned associate Mining Equity Trust (MET), LLC (“MET”).
MET sold 44,020 tons of coal in September and achieved total revenues of $1,959,036, against levels forecast on August 2018 of 59,250 tons of coal for a total revenue of $2,695,440. This forecast had reflected the level being achieved on a daily basis in the latter part of August 2018. For the ten month period to June 2019 MET retains its expectation of 692,196 tons of coal sales for total revenues of $30,468,239.
MET produces metallurgical coal from its operations at Richlands, Southwest Virginia. Cedar Bluff lies in the Central Appalachian region in Virginia, USA, a centre of high quality coal production. Metallurgical coal is, among other uses, an essential ingredient in primary steel making for which there currently is no substitute.
The Southwest Virginia coalfields produce a variety of coals including steam, metallurgical, and industrial use coals. Steam and metallurgical coal is generally shipped by rail and truck to power plants and steel plants in the Eastern and Midwestern United States. Higher value metallurgical coals are also transported by rail to Hampton Roads, Virginia, the largest export terminal in the US, where it is shipped to international customers.
Andrew Bell, Regency Chairman, comments: “MET faced some maintenance and availability problems in September, and third party sales still require to be built up to the planned levels. However these issues have been promptly addressed and despite a planned 12 day downtime for one of the two high wall miners as it is moved to a new location, we expect October and November sales to revert to planned levels. Revenues per ton sold are improving and we expect this trend to continue.
At the new location, we have the option to introduce a second shift as demand builds. The new location also offers reduced haulage costs to its key customers.
We also welcome the appointment of Jamie Ketron as President and CEO of MET’s operating subsidiary Omega Holdings, LLC. Her experience as CFO at Omega and her business CV make her a highly qualified appointment to the role.
The market for metallurgical coals continues strong.”
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