In an operational update, the miner said its metallurgical production for the quarter ended June 30 totaled 2.9 million metric tonnes, up 7% over the first quarter of this year on a rise in output from its low- and mid-vol Alabama mines.

However, Walter expects to report second quarter sales of 2.4Mt, 300,000 metric tonnes less than the previous quarter due to late arrival of vessels.

At the same time, coal cash cost of sales per million tonnes would likely only have risen 2%.

Walter said the result was due to a charge to restate ending inventory at the lower of cost or market reflecting a projected decline of met coal and low-vol PCI prices in the third period.

Excluding the LCM charge to ending inventory, officials noted, met coal cash cost of sales per million metric tons would see a slight improvement over the first quarter of this year.

Finally, met coal cash cost of production per metric tonne, Walter said, was projected to decline more than 10%, or more than $10/Mt, versus the initial 2013 quarter.

Production cost per for each million metric tonnes at its low and mid-vol Alabama mines fell 14%; in Canada, per-tonne met cash costs of production also declined even though it reported lower production volumes.

“We significantly reduced costs in the second quarter led by strong performance from our Alabama premium hard coking coal mines,” CEO Walt Scheller said.

“I am pleased with our operational progress. However, our financial results for the quarter still reflect the significant ongoing weakness in the global met coal market.

“While the short-term outlook for global met coal pricing remains depressed, we continue to maintain our focus on operating safely and efficiently, lowering costs and improving our financial performance.”

Walter moved to release its preliminary numbers ahead of the release of its second quarter report and earnings call, which has been scheduled for August 1.