U.K. Coal Biggest Loser in FTSE on Restructuring: London Mover
U.K. Coal Plc (UKC), a mining company based in northern England, was the biggest loser in the FTSE All-Share Index (ASX) today after saying it will restructure its business and may close the Daw Mill mine.
U.K. Coal fell 28 percent to 21.25 pence, the lowest closing price since it began trading in London in June 1993. The stock has lost 25 percent this year, valuing the Doncaster-based miner at 63.6 million pounds ($99.8 million).
“The company has today commenced consultation on the potential closure of Daw Mill by early 2014,” U.K. Coal said in a statement. “Although U.K. Coal’s other mines are performing broadly in line with expectations, production at Daw Mill is around 175,000 tons behind budget.”
The company is in talks with Lloyds Banking Group Plc to address funding requirements, it said.
Howard Seymour, a London-based analyst at Numis Securities Ltd., placed his buy recommendation, made in August, under review today.