Looks like the company was under-capitalised and unable to fund the equipment and works needed to properly operate its current mines and had some staffing issues ..Originally Posted by Ferg
Strategic Review
The Company has been unable to successfully ramp up production to previous expectations at its two
operating mines. In addition, the Company has been unable to secure medium term equipment financing at
both Black Warrior and New Elk, which has driven lower than expected performance. In light of the lack of
available financing, the Company is considering different capital initiatives to fund equipment acquisition and
upgrades at both mines.
Legacy coal sales contracts at New Elk, coupled with production constraints, staffing issues and poor logistics
performance in transporting coal to port, have meant that the mine is running at an operating cash flow loss
which has significantly constrained cash flows.
It is currently unclear if Black Warrior or New Elk have the capability to meet, within a material margin,
previously advised target production rates. As such the Board has made the decision to commence a strategic
review. The outcome of the strategic review is expected before the end of August 2022.
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