For the period ended June 30, the Appalachian region-focused company’s revenues totalled $31.6 million, a 67% jump from the $18.9 million reported during the same period of 2007.

According to officials, its revenue has climbed at a compound annual growth rate of 63% since its establishment.

Its tonnage of coal sold for the quarter was up to 458,245 tons, an increase of 23% over the 2007 corresponding quarter’s total of 372,341t.

National Coal president Daniel Roling said the loss was primarily due to the breakdown of a dragline at one of its Alabama surface operations.

“[It] impacted second-quarter revenues by approximately $5.5 million and reduced production by about 80,000 tons,” he said.

“The full impact of the dragline being out of service for five months was a loss in production of about 110,000 tons, and an estimated impact on revenues of about $7.7 million.”

As the dragline, an arterial machine for surface mining, was removed from service, Roling pointed out that the mine’s crews were forced to use more truck and loader equipment in its absence. The unit went back into full production service on July 28 at the Poplar Springs operation.

“Resuming this production, in addition to the production coming from the newly opened Crescent Valley and Davis Creek surface mines in Alabama, and the opening of two underground mines in Tennessee, should have a significant and positive impact on our third-quarter results,” he said.

In other areas of National Coal’s mining operations, Roling said production was increasing in line with its upped expectations linked to stronger product demand.

“Because we had mines permitted and bonded in Tennessee, we were able to bring on additional production without making significant added investments in infrastructure improvements,” he said.

“When faced with unexpected challenges, the company was in a strong position that did not require it to back down from planned operational improvements.”

National Coal also celebrated a reserve expansion during the period, having acquired 1.4 million tons of recoverable coal in Tennessee for $500,000.

In early August, the company also purchased an adjoining tract in the state’s eastern region for $7 million that includes an additional 2.3Mt.

Both tracts are next to property that National Coal already controls and for which it holds permits.

“It is highly probable there is potential to significantly increase the reserve base on these newly acquired tracts through additional exploration,” Roling added of the news.

National Coal underwent new contract negotiations for future sales earlier this year as well as the renegotiation of an existing supply agreement that upped selling prices per ton.

Officials noted, however, that while these new agreements went into effect during the second quarter, it will be the second half of the year before evidence of them is seen through increased shipments.

Meanwhile, the company is working to reopen a captive railroad to shoulder increased shipments to its Baldwin preparation facility.

“Both the railroad and the Baldwin facility are expected to become fully operational during the third quarter of 2008,” said National Coal.

“Management is presently in advanced discussions with other customers on other coal supply agreements and intends to pursue additional opportunities as they arise during the remainder of 2008.”

Looking ahead, Roling said National Coal’s top priority was the promotion of organic growth – it is seeking to increase its existing reserve base by 5Mt per annum by the end of 2011.

While the company feels it can meet the milestone organically, it will continue to look at strategic property opportunities near its current holdings as well as increasing its reserves.

While the company’s output features only steam coal, it is confident in the potential for metallurgical coal production in its future.

“National Coal has total committed tonnage of 1.3 million tons for the balance of 2008 and 2.1 million tons for 2009,” officials said of its deals in the short term.