Coal mining company Traxis Resources Inc. said Thursday that it “tried and failed” to turn a profit in the first quarter after losing $5.8 million.
Traxis shares fell 2.8 per cent to $17.90 on the Toronto Stock Exchange.
Traesco said it had booked $1.3 million in revenue from the sale of its assets, including assets in its existing mines in Centralia, Washington, Oregon and South Dakota.
Traysco also said it will reduce its coal mining and export business by about $3.4 million, as it expects to reduce output in the region.
The company said that “it was very difficult” for the company to earn a profit during the first half of the year due to lower coal prices, and that it is reducing production and exports to the United States.
The downturn has left the company in a precarious position, according to investors.
The loss comes after the company’s stock surged more than 400 per cent last year, and Traxismens shares have gained more than 300 per cent.
It is also the largest coal mining loss in Canada since 2006.
Traxes is the second-largest producer of coal in the United State and one of the largest producers of natural gas.