Australia's Allegiance Coal sees worst intraday session on strategic review launch

Allegiance Coal

19/07/2022 02:20

** Shares of coal miner Allegiance Coal  AHQ.AX  slump as
much as 60.7% to A$0.220, mark their biggest intraday pct fall 
    ** Co says in light of operating performance of its mines,
it has started a strategic review focusing on optimising its
assets and enhancing liquidity profile  urn:newsml:reuters.com:*:nASX2rtT4V
    ** Says it has been unable to successfully ramp up
production to previous expectations at its two operating mines -
Black Warrior and New Elk
    ** Co posts group run-of-mine (ROM) coal production for June
quarter of 220 kt, up 48% on March quarter, but still below its
target of 300 kt per quarter  urn:newsml:reuters.com:*:nASXbqTf1P
    ** Legacy coal sales contract, production constraints,
staffing issues and poor logistics have led New Elk mine to run
at operating cash flow loss
    ** Adds that it has entered into a A$5 mln ($3.40 mln)
equity facility with Regal Funds Management
    ** Shares hit their lowest since March 6, 2019
    ** More than 4.6 mln shares change hands, 6.8 times the
30-day average of 678,497 shares
    ** As of last close, stock up 14.3% this year

    ($1 = 1.4695 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))