UK Coal announces losses of £129.1m
UK Coal had been in merger talks with Hargreaves Services but has had to put these talks on hold after reporting a loss of £129.1m for 2009. They put this down to low coal prices and low coal production in its deep mines. The company also has debts of £236m which are greater than the actual value of the company at £177m. A report by Minorca Opencast Protest Group shows that this is just continuing the trend of the last 8 years where the company lost over £110m. With most of its deep mines set to close by the end of the decade it will have a bigger dependency on its open-cast mines. There are 3 open-cast mines set to open this year but it could be costly as opposition to them is proving fierce. UK Coals long-term plans are likely to be property development of their open-cast mines.
MOPG’s report on the financial health has now been updated – and their health has got worse!! See Briefing Note D2 UK Coal plc and the Financial risks associated with the Minorca Application @ http://www.leicestershirevillages.com/measham/mopg-briefing-notes-series.html