Energybuild Group Plc (LON:EBG), the South Wales anthracite miner, announced today it had lost £99,000 for the six month period of July to December 2009. However, the company said that it was confident it would regain its losses in the following half year.
Energybuild mines and sells clean coal in South Wales for Aberthaw power station and wholesale and retail markets. In Q2 2009, it saw turnover half to £4.5million, a loss it says is attributable to a lack of opencast production and recession-induced price falls.
Although production at the company's principal site, Aberpergwn colliery, fell 35 % to 42,000 tonnes in the first half of the year, Managing Director, Rhidian Davies maintains development work in on track to increase output 750,000 tonnes by 2013. He adds that since December's £14.5 million rights issue at 15 pence per share, they have raised the cash balance from £3.5 million to £8.3 million. Davies commented:
““Our target remains to expand our production to 750,000 tonnes of high quality anthracite by 2013. The successful placement in December, issuing equity worth £14.5 million, finished the year on a high, as it not only provided a huge endorsement of the quality of our assets from investors but also secured the financing for the next phase of our targeted development programme.”
The Energybuild share price is down 1p this morning, now trading at 16.5p.
