STOCKS NEWS EUROPE-UK Coal falls after update
Shares in UK Coal (UKC.L) fall 1.3 percent after the company issues a trading update, with Numis Securities increasing its 2009 pretax loss estimate for the firm by 12 million pounds.
Britain's biggest coal producer says its third-quarter revenue fell 20 percent on reduced average sales price and it expects deep mines output for the year to be at the lower end of its previously estimated range due to uncertainty regarding its Kellingley colliery output. [ID:nBNG494605]
As a result of a fatality in Kellingley last Sunday and the subsequent Health & Safety Exec investigation, the mine will be closed for a 2-3 week period leading to its deep mine tonnage forecast falling to 6.2m/t from 6.4m/t, Numis sayd in a note.
The broker says this, alongside a slightly lower than expected realised coal price, is leading it to raise its 2009 pretax loss estimate to 91.2 million pounds from 79.2 million.
However, the broker says the short-term news has little bearing on the longer term asset value of the group and it retains its 136 pence target price and "buy" rating on UK Coal.
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