Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of coal mining firm Bens Creek Group (LON: BEN) are rallying Friday morning after its subsidiary Ben's Creek Operations and Mega Highwall Mining entered into a contract mining services agreement.
The deal will see Mega Highwall take charge of the production of Bens Creek Operations metallurgical coal reserves for an initial 12 month period.
The contract allows for a minimum production capability of 40,000 tons of metallurgical coal per month or 480,000 tons annually.
The 2 companies have agreed to a fixed price per ton of coal produced for the duration of the 12 month contract period.
Mega Highwall will deploy a single highwall miner designed to meet the target sales volumes disclosed in the signed offtake agreement between the company and Integrity Coal.
Adam Wilson, CEO of Bens Creek, said: “In our recent IPO on AIM we set out some clear operational benchmarks for the company, including the signing of a mining contract with a third-party contractor.
“We are delighted to announce this new mining services agreement, following the offtake agreement that we entered into last week. We are now well on our way to commence revenue generation from our significant mining asset.”
Bens Creek shares have surged over 16.5% to 20.4p following the news.
Bens Creek shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are BEN shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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