The company had $C7.2 million in revenues in its fourth quarter, compared to $C9.2 million in its third quarter ending December 31 2004. Additionally, net income fell from a positive $C1.7 million in the third quarter to a $C2.3 million loss in the fourth quarter.

Production increased in the last half of the year, a trend not paralleled by sales. Production numbers jumped from 137,5754 tonnes to 153,922t in the last quarter of the year, while sales fell from 146,203t in the third quarter to 97,402t by year end.

Pine Valley president Graham Mackenzie attributed many financial shortcomings to rail issues and higher costs due to production levels. The company began production in its Willow Creek mine in August 2004; its first coal shipments departed the following month.

Also, despite weather delays earlier in the year, Mackenzie informed shareholders that construction of a coal preparation plant is expected to be completed by the northern autumn of this year. The plant is estimated to have an annual capacity of 3Mt.

Looking forward, McKenzie said the company had contracted to sell some 735,000t of PCI and coking coal to its customer base in Asia and Europe at an average price of about $US103 per tonne. Additionally, it has contracted with customers in Asia to deliver an additional 1.5Mt over multi-year terms of up to five years.