30th Oct 2013 10:27
LONDON (Alliance News) - Beacon Hill Resources PLC Wednesday said it chose to reduce production in its third quarter as it focused on upgrading its wash plant during a period of low commodity prices.
The steel and coal production company, operating in the Tete province of Mozambique, said its saleable coal production fell 32% to 17,859 tonnes for the three months ended September 30 from 26,370 tonnes the previous year.
The company said it chose to lower production at its Minas Moatize Coking Coal project due to record low coking coal prices and focused on its planned Phase 2B and phase 2C wash plant upgrade in order to achieve higher profitability from its ore.
Beacon Hill said that funding discussions are progressing with a senior debt provider to finance the capital expenditure related to the Phase 2B and Phase 2C expansion.
The company announced during the period an updated reserve of 39.4 million tonnes of ore, with 16.2 million tonnes saleable coal, including 8.3 million tonnes coking coal at the Minas Moatize mine.
Beacon Hill shares were down 12% to 1.09 pence, putting it in the top ten AIM losers Wednesday morning.
By Tom McIvor; [email protected]; @TomMcIvor1
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