Hallador Swings to Loss, Plans to Close Mine
Carlisle Mine in Sullivan County is owned by Hallador Energy Co. (photo courtesy: Sunrise Coal LLC)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowTerre Haute-based Hallador Energy Co. (Nasdaq: HNRG) is reporting a full-year net loss of $59.9 million in 2019, compared to net income of $7.6 million the previous year. Additionally, Chief Executive Officer Brent Bilsland says the company has decided to permanently close its Carlisle Mine in Sullivan County.
In its annual earnings report, Bilsland says the decision to close the mine came “after experiencing negative free cash flow at Carlisle over the past 18 months.”
In January, Hallador announced it was temporarily idling production at the mine, which led to the layoffs of 90 employees. The company said at the time that it would shift production to its operations in the Knox County town of Oaktown.
Bilsland says the closure of the mine “will further reduce our overall cost structure, maximize per ton margins and, reduce current and future (capital expenditure) by utilizing Carlisle equipment and parts at Oaktown. As we reduce coal and parts inventories, we will generate significant cash to be utilized for debt reduction.”
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