Central-Appalachia producer ICG was formed by W L Ross & Co to acquire the principal operations of then-bankrupt Horizon Natural Resources in October 2004.
"We have begun to see improvements in operations from the roughly $US100 million labour-saving capital expenditure program we began to implement last year, and expect this program to continue to create both lower costs and increased production over the course of the next nine months. These savings and increased revenues will be fully reflected in 2006," ICG chairman Wilbur Ross said.
Revenue was $US153 million and operating income totalled $US20.1 million for the March quarter. EBITDA was $US29.2 million.
Ross remained positive on future earnings. “Coal stockpiles at utilities generally remain at low levels despite a warmer than normal heating season this winter. Steam coal prices in Central Appalachia spot market have been resilient in holding near $US60 per ton, or about 20% above last year's levels. About 80% of ICG's first quarter sales volume originated in Central Appalachia," he said.
ICG said it eliminated $US1.47 billion of predecessor liabilities in the Horizon bankruptcy process. At March 31 2005, cash totalled $US25 million and the company had an additional $US60.1 million of unused borrowing capacity.
ICG has an estimated 510 million tons of reserves of low sulphur steam coal located principally in West Virginia, Kentucky and Illinois.
