Bens Creek has issued a mining update outlining progress at their North American metallurgical coal assets including mining in a new permit area, plant facility upgrade, and steps to double daily production.
The updated ignited early interest in Bens Creek shares with the coal miner trading up over 10% in the first hour of trading on Monday.
However, as the session progressed, Bens Creek shares faded the early rally and traded just 2% higher at 24p at the time of writing.
After a blistering start to life as a listed company, Bens Creek shares have suffered dearly since the highs around 100p this year.
The key data from today’s announcement is the 2,500 tons of run of mine coal production in a single day at a higher clean coal recovery of 62%.
Investors will be looking forward to production increasing over the next year as capacity is improved.
The Bens Creek CEO summarised the mining update saying he was ‘confident that 2023 will be a good year for Bens Creek’ as the measures bear fruit.
“The set up to allow us to move from a contracted fleet to an owner operated fleet with two highwall miners is nearly completed. This, together with the remediation of the infrastructure (from what was a previously idle mine) and the commencement on the underground mine for the creation of a first walking super section, is nearing completion,” said Adam Wilson, Chief Executive Officer of Bens Creek.
“An update on resources and the issue of a new mining permit have taken place at an expedited pace over the last twelve months and we remain confident that 2023 will be a good year for Bens Creek. The regular train deliveries and inventory build are now expected to commence alongside the increased production. As with all mining projects, more production spreads the cost across more tonnage and thus reduces the average unit cost per ton, thereby increasing margins.”