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Hargreaves Services - Moots exit from deep coal mining with little pain

October 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • HSP
  • Price:
  • 730p
Overshadowing otherwise good looking results for the year to 31 May was news that Hargreaves is ready to throw in the towel on its deep coal mine at Maltby. Although it had said just two months ago that it expected mining operations to resume   in September, a subsequent discovery of gas leaks makes the site unsafe and Hargreaves will formally announce whether it is closing the mine in October. The shares initially fell sharply on the news but then bounced to levels higher than they started from after investors came around to the view that it’s removing deep-mining risk altogether and is probably a good thing. Maltby itself did not impact on 2012 results as the gas leaks only arose post the year-end. Underlying pre ...

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