30 May 2014 – profit warning
The group has revealed that pressure on coke prices and delays in commencing mining operations in the first half mean that the company will not make up the shortfall in production. This will lead to profits being between £3m and £5m lower than current expectations of £62m for the financial year ending tomorrow. Assuming profits come in at £57m for earnings per share of 125p, the shares do not look expensive – although in the short-term some nervousness may surround the share price we believe the stock remains a LONG TERM BUY.