If there hasn’t been enough public arguing in Washington, D.C., the coal industry has been tossed into the limelight as well with the U.S. Environmental Protection Agency on a quest to clean-up coal plants and the resulting reverberations that could be felt.
With the EPA seeking to reduce carbon-dioxide pollution, the chatter resulting from this move could lead to possibly slashing jobs in the States and driving energy prices higher at the same time. Two things that wouldn’t exactly leave people cheering in the streets. Pretty much disgusted with all that the EPA stands for, Republican presidential hopeful Newt Gingrich is calling for the EPA to be shut down entirely, stating that the organization is "hostile to all new technology, hostile to local community control, hostile to the business community, [and] hostile to the marketplace.”
With nearly 50% of all U.S. power coming from coal, any changes of any real substance should be considered very carefully as it is an industry that is still thriving and essential.
Showcasing the prowess of small businesses in the coal space, America West Resources, Inc. (OTCBB:AWSR) is boasting record rates in 2011. The Salt Lake City-based company is a domestic compliant (low sulfur) coal producer with operations in Central Utah. The Company’s principle asset is its Horizon Mine, located about 100 miles (160 kilometres) south of Salt Lake City, which it has owned and operated since 2003.
In the first half of 2011, America West has produced nearly 200,000 tons of thermal coal at its Horizon Mine. Revenues are generated almost exclusively through the sale of the coal to U.S. utility companies operating coal-fired plants who use it for heating water to create steam to turn turbines, with electricity being the end product.
Today, America West released its results from operations for the three- and six-month periods ending June 30, 2011. Second-quarter revenue topped any other quarter in the Company’s history with a rise to $4.01 million being reported as compared to $3.38 million during the year prior quarter; a climb of 16%. This represented the third consecutive quarter of double-digit revenue growth for America West.
Net loss declined 12.5% from $4.37 million to $3.88 million, which included $2.2 million in one-time and non-cash charges. Coal production surged, with the second quarter producing 102,000 tons and more than a 50% increase over the 64,000 tons produced during the same quarter in 2010.
On a six-month basis, revenues rose 67% from 2010 to 2011; registering $4.48 million and $7.49 million, respectively. Loss from operations decreased 19% from $4.29 million to $3.38 million.
From the end of December 2010 to the end of the June 2011, America West Resources balance sheet added nearly $7 million in total assets and dropped more than $2 million in liabilities.
The news of record revenue and coal production hasn’t exactly sparked the share value as perhaps investors had already baked-in the data in the last few weeks with anticipation of solid figures. Shares had dropped as low as 41 cents during the second week of August, but have since recovered to touch 88 cents last week and were still looming right in that vicinity at the closing bell Tuesday.
