I was going to buy these when at 108p few months ago but never had the courage. They reached new heights of about 134p recently but have slipped to around 113p at present.

They have a massive yield of 10%.

Does anyone have any views about buying into these.

I would be content to just have 10 or 20 per cent increase over the next year on thse if i got my 10 % divi.

Thanks

AN EARLY LOOK AT SHARES MAGAZINE
15 April, 2010 08:08:41 AM


The Cover Story
* Double your money (Ten stocks set to bounce back): - Begbies Traynor, Connaught, Datacash, Game Group, Findel, HMV, Luminar, Omega Insurance, Paypoint, UK Coal

Dunno what it says............anyone have a copy??????????

From Shares Mag this week:
Share price: 50.3p
Share price low since 1 Jan 2007: 49p (2 Mar 10)
All-time high: 541.6p (15 May 96)
Support level: 49.0p
"The troubled miner has seen its market valuation fall from nearly 1 billion in May 2008 to a mere 150 million. The shares have been hit by operational problems with its underground mines and writedowns in its property portfolio. Coal miner-to-haulage group Hargreaves Services (HSP:AIM) has proposed a merger, having already worked closely with UK Coal in the past on the Maltby colliery, which it subsequently bought, and a previous joint venture called Coal4Energy. Speculation 28% shareholder Peel Land and Property was preparing a bid had given some support to UK Coals share price earlier this year, but the revelation it was Hargreaves instead doing the talking has subsequently seen the share price weaken again. Buying the shares is high risk, yet UK Coals turnaround potential remains intact. After recent writedowns, its property portfolio is still worth 394 million and offers huge potential for building homes and office space.
Net debt stands at 180 million. The priority is to sort out the deep mining issues. A merger with Hargreaves would be a bonus and is not a prerequisite of the turnaround story. If UK Coal goes it alone, we believe the share price has already factored in mining risks and there is considerable upside on the property developments."
(DC)

cheers Harry.

UKC... UK Coal Chart starting to look positive. Caught MACD moving above signal line which as proved to be very positive in charts of late. I suppose we would be looking to take out short term resistance at 75p first stop.

Coal in big demand......

should help UKC.

http://business.timesonline.co.uk/tol/business/markets/article7100308.ece

Chart starting to look very positive....

This chap usually does very well from his investments.......


19/04/2010

Odey holding interests in both UK Coal and Hargreaves
Business Financial Newswire

Odey Asset Management has this morning revealed that it has an effective 2.96% holding in UK Coal, through direct holdings and derivatives, and a similarly effective 5.03% holding in Hargreaves Services.

On March 10 Heargreaves Services confirmed that it was in the early stages of merger discussions with UK Coal.

Losses have widen from 15 million to 129 million... that's bad.

It is also running out of cash, and it needs to sell its land now.
SELL at 52p

Half-year losses grow at UK Coal as financing costs bite.


In a trading update for the half-year to 26th June, UK Coal said its overall operating loss for the period, including its share of its joint ventures, is expect to be around 52m before revaluation movements and non-trading exceptionals.

Exceptional legal and professional fees of approximately 7.5m were incurred in the first half, principally relating to the refinancing exercise. These, together with around 1m of Harworth maintenance costs, will be treated as exceptional items in the period.

As a result, first half exceptional finance costs are expected to be around 10m (H1 2009: nil), and non-trading exceptional costs are expected to be around 8.5m (H1 2009: 3.7m).

Interest and other financing costs are expected to be around 13.5m (H1 2009: 10.2m), excluding the arrangement fees and the write off of previously hedged fair value movements referred to above.

The total first half pretax loss is expected to be around 94m (H1 2009: 81.5m).

Net debt excluding restricted cash and generator loans/prepayments at 26 June 2010 is expected to be around 170m (December 2009: 114.3m). Including generator loans/prepayments, but excluding restricted cash, net debt is expected to be around 255m (December 2009: 181m).

The Group said it continues to prioritise its safety culture and has seen some significant steps on a long journey in a number of areas in the first half of 2010. In particular, there has been a 50% reduction in the number of major injuries in the first half of 2010 compared to 2009.

Average realised sales price: Reflecting the rise in the world coal price over the period together with the move from our legacy contracts towards new supply contracts, the average realised sales price for the first half of 2010 was 1.97/GJ (H1 2009: 1.80/GJ, FY 2009: 1.87/GJ).

The outstanding tonnage to be delivered under legacy contracts continues to fall and the mix of supply is moving more towards the previously announced new or amended long-term contracts, which significantly increases our long-term contracted coal prices and our short-term cash flows. The legacy contracts will have been largely fulfilled by the end of this year, leaving only a further 2.6m tonnes to be delivered, predominantly in 2011.

Production: Total first half production was 2.7m tonnes (H1 2009: 3.7m tonnes, FY 2009: 7.0m tonnes), of which deep mine production was 2.2m tonnes and surface mine production was 0.5m tonnes (H1 2009: 3.0m tonnes and 0.7m tonnes respectively, FY 2009: 5.7m tonnes and 1.3m tonnes respectively).

UK Coal losses 'unacceptable, says chairman


Mining, property and power company UK Coal plc posted a pre-tax loss of 124.6m, edging down from its previous loss of 129.1m, for the year to December 25.

However, new chairman Jonson Cox said the group had delivered a further year of poor operational performance, bringing it to 'three years of unacceptable performance in a row'.

A wide-ranging strategic recovery review to tackle deep-rooted problems was well advanced, said Cox.

Revenue for the year was up 11% to 351.2m from 316.0m.

Operating loss before non-trading exceptionals was down 20.1% to 74.3m from 93.1m.

Loss per share was 41.8p, against the previous loss of 72.9p.

The group - Britain's biggest producer of coal - reported improved production despite a four-month gap at the Daw Mill colliery, with the total rising to 7.2m tonnes from 7.0m tonnes.

Average sales price rose 5.3% to 1.97 per gigajoule from 1.87.

Property sales met the target with 24m sold in 2010, resulting in a loss of 0.5m.

Cox, who joined as chairman in November, said the board was 'determined to arrest the trend of under-delivery and to seek value for our shareholders'.

He added, 'The viability of UK Coal over the medium term depends on appropriately rewarding the equity capital required to finance the business. The board fully appreciates that investors deserve a far better return than they have experienced over recent years.

Cox said the causes of the group's severe losses were 'deeply rooted and require a complete overhaul of strategy and execution'. Production levels had consistently fallen short of expectations and operating costs had grown relentlessly.

Each of the three ongoing deep mines had underperformed its investment programme in developing new coal-faces at some point in the last three years.

The company had become over-reliant on debt, which had risen from 94m in 2006 to 242m in 2010.

UK Coal had relied heavily on the potential of its property portfolio, both to underpin future value and to use as security for its banking facilities.

It was now clear that the property projections under Project Worth, presented in the 2009 accounts to be 615m in 2012 rising to 820m in 2014, were 'neither realistic nor deliverable in the context of current market conditions'.

Cox said, 'It is clear that the group is in a poor position: over-financed by debt, encumbered with production costs which are too high and over-exposed to the market for brownfield property.'

These included repudiation of an unaffordable RPI pay award which would have cost 5m, pruning of allowances and a significant reduction in the size of the head office.

As a result, a 12m cost reduction for 2011 was expected compared with the group's original budgets.

It had also 'made clear to all parties' the need to close the group's current final salary pension schemes.

Lloyds Banking Group had agreed to extend the group's borrowing facilities while the board undertook a full review of the business.

A friend keeps recommending this one. Bought a small number a while ago.

Will John Whittaker finally get his wallet out, he's had a couple of refusals now I'm sure the miners would be more appreciative than the actors!

UKC taking a bad hit again...


The Company has today commenced consultation on the potential closure of Daw Mill by early 2014 at the point when current and largely-developed coal panels will have been mined. The Company has suspended developments for exploitation beyond the end of 2013 but retains the option to resume developments, re-open the mine or extend its life, to exploit the mines considerable long-term resources. This would only happen under a lower risk operating model.

Although UK Coal's other mines are performing broadly in line with expectations, production at Daw Mill is around 175,000 tonnes behind budget. To achieve UK Coal's plans for 2012, Daw Mill needs safely to increase production to target levels on its 303s coalface by May and to recover and resume production on the 32s coalface.

I don't hold this leaky bucket, but separated by lack of knowledge means I look for an opportunity to invest . . . and I see a fight on one side with Unions, devoted to striking a good deal even though the mine is close to closure (so all they have is a pay cheque).
Yet on the other a company that has hived off its silver to prop up mounting losses . . .so the sp is really only a "hope" that it won't get worse. - Which is largely a function of Unions - Grief, who'd be there by choice?
If they have to close shop and settle their Creditors.... will there be enough to let current shareholers get their money back, or - more likley you'd be lucky to receive 30p in the £1 - i.e. somewhere near the 12p it reached only recently.

hlyeo98, what's yr take, you post a lot on this stock; are you still holding in hope?
EDIT:(1Jn2012)- Bt a few at 10p . . . . AGM soon. I like their Real-Estate operation.
EDIT (8Jn2012)_ oh deary, 8p beckons. I see Yield is 0%, missed that.
EDIT-5Nov- Oh deary, prep for Namechange restructuribg drops sp 25%....Now 4p9

UK Coal (LSE: UKC.L - news) sheds nearly 15 percent as the coal miner says its first-half revenue fell 23 percent to 198.3 million pounds as a result of significantly lower sales volumes, leading to an operating loss before non-trading exceptional items of 6.0 million pounds, a turnaround from a 35.2 million profit at the same stage last year.

Fire-hit Daw Mill coal mine set to close

A Warwickshire coal mine hit by an underground fire last month is to close.

The majority of the 650 workers at Daw Mill Colliery will be made redundant in the move.

The colliery had been due to close next year but after the fire on 22 February owners UK Coal said it was possible commercial mining might not resume at the site.

About 56 million tonnes of coal is estimated to remain there.

UK’s biggest coal miner on verge of collapse