The company is further into the red than last year, suffering a widening over last year's third-quarter net loss of $8.4 million.
For the nine months ending September 30, James River's loss now sits at $35.6 million.
However, company chief Peter Socha said he was happy overall with the "fundamental dynamics" of the business' development.
"The mines are currently performing well," Socha said.
"The productivity impact of the new safety regulations is still present, but we are adjusting, [and] the previously announced changes to our mine portfolio are progressing on schedule. Lastly, but very importantly, coal prices are starting to rise after a prolonged slump."
He said that the industry as a whole - including James River - was seeing a strong tie between productivity and cost trends.
"This has been particularly true during the past several quarters as the industry adjusts to the new regulatory environment," he noted.
While the company is happy with the performance of its production portfolio over the period, it said its CAPP production was below expectations, to the tune of 70,000 tons.
"The return of Mine 77 to production in November 2007 ... should both increase production and lower cash costs going forward," the company said.
James River offered updates on two of its operations, the first being its Bledsoe complex's Dollar Branch mine. Production at Dollar - which was one of two mines developed to replace the company's BL4 mine - commenced in August.
It also continues work to rehabilitate its Mine 77, which was idled in June to begin work to move crews and equipment to a northern reserve block. Due to an agreement with federal regulators to seal off the old section in accordance with new rules, progress was slowed on the project by about two months.
"The company finished the construction of 33 new 120psi seals in October. MSHA approved the resumption of coal production on November 1," the company said.
Socha looked ahead for James River with confidence saying the company believed that the coal market is beginning to find a new pricing level that is not impeded by excess inventories.
"Our significant open position for 2008 and 2009 deliveries will allow us to capitalise on these strengthening markets," he said.
