The company’s revenue jumped 34% to $US277.9 million for the period ended June 30 versus the same period last year when it reported $208.1 million.
After reporting a net loss of $10.2 million in 2007’s second quarter, ICG saw net income of $12.6 million for the June quarter. Its bottom line includes a pre-tax gain of $22.9 million from an exchange of reserves in Eastern Kentucky that the company wrapped up in June.
ICG president Ben Hatfield said the company’s results, particularly in June, were the best in its history.
“Both our operating and financial performance improved significantly in the second quarter,” he said.
“This quarter was the first reporting period to begin reflecting the positive effects of our new mine development projects, which have arrived online just in time to benefit from the current strength in the global coal market.
“Going forward, we expect that our strategic decision to develop these new mining complexes will yield substantial benefits."
To take advantage of the strong coal market, he said that ICG will continue to look at cost-effective ways to expand its production base.
“The acquisition of the Powell Mountain operation in May, and the planned fourth-quarter purchase of a large surface-mining shovel spread to boost ICG Hazard output, are good examples of this growth strategy,” Hatfield said.
The Powell Mountain complex will add an estimated 250,000 tons this year and, going forward, about 1 million tons per annum at full output. Hazard, meanwhile, will up production by 500,000tpa beginning next year.
The company’s “disciplined marketing strategy” is also working for it, Hatfield said.
“During the second quarter, we reached agreements on 10 new term contracts with eight different customers, representing approximately 5.1 million tons of predominantly steam coal at average prices exceeding $105 per ton,” Hatfield said.
“The company still retains sizeable open positions that allow for further forward sales in the currently strong pricing environment.”
ICG also commented on its new Beckley complex in Raleigh County, which has seen a slowed progress from a regional shortage of experienced workers.
It also has been making revisions to the operation’s mine plan in order to maintain the main entries on a long-term basis, another factor to its slow pace, but officials said Beckley should reach target annual production of 1.4Mt during the last quarter of this year.
Its Sentinel production went up 23% during the period versus the period prior, and is almost at its projected annual production rate of 1.5Mt.
“Like Beckley, the Sentinel mine production ramp-up has been slowed by the shortage of experienced labour,” the company said.
ICG has been highlighted for safe production recently, including ICG Eastern which received the National Award for Excellence in surface coal mining by the US Department of Interior's Office of Surface Mining for its Birch River mining complex.
“The National Award for Excellence is the latest of several awards recognising ICG Eastern for its excellent safety and environmental performance,” said the company.
“Within the last year, ICG Eastern received the Greenlands Award (the West Virginia Department of Environmental Protection's most prestigious reclamation award), and the Kenes C Bowling National Mine Reclamation Award from the Interstate Mining Compact Commission, which covers all the coal producing regions of the United States.
“ICG Eastern has earned these state and national awards while operating as one of the company's strongest and most consistent operational and financial performers.”
