James River Coal will review its strategic options
RICHMOND, Va. (AP) — James River Coal said Friday it will explore strategic options, including a sale of all or part of the company or a capital investment.
James River said it could make the investment through debt or equities. The company said it has not decided to make any specific transaction and may not enter into one.
The Richmond, Va., company amended its revolving credit agreement so it has access to credit during the review, but it didn't provide specifics.
In the quarter ended in September, the company reported it had $71 million of available liquidity and long-term debt of $425.4 million. Its third-quarter loss widened to $25.5 million, or 73 cents per share. Revenue totaled $150.2 million, down 48 percent from the 2012 quarter.
James River mines thermal coal for power generation and metallurgical coal used to produce steel. The company has implemented a series of production slowdowns and closures as the coal industry struggled with soft demand and falling prices. In March 2013 James River Coal idled several mines and cut back production at others, and in September it shut down production at several mines in eastern Kentucky and laid off 525 employees. In November it idled four more mines.
Shares of James River Coal Co. fell 3 cents to 74 cents during regular trading, then added 23 percent to 91 cents in after-hours trade. The stock is down 79 percent from its 52-week high of $3.50, reached last May.