Shares of Bens Creek took a hit after the company announced a temporary reduction in production capability due to a mining incident earlier this month. The West Virginia-based miner reported that a highwall miner machine at its metallurgical coal mine was temporarily withdrawn from service pending repairs and necessary benching. Thankfully, there were no injuries on site and the company has received regulatory approval to complete the recovery process with the machine expected to be in service by mid-August. Despite the disruption, Bens Creek is confident that it will fulfill all current orders.
To support an increase in its earthmoving fleet and working capital requirements, Bens Creek has raised $6.5 million through unsecured loan notes issued to its largest shareholder, Avani Resources. The loan notes have a term of two years at an annual interest rate of 15.1%. Chief Executive Adam Wilson expressed gratitude towards Avani for its commitment to the business during this extended period of pressure on coal prices.
Overall, Bens Creek remains optimistic about its future prospects and the successful resolution of its current challenges.
