Corsa Coal Announces Financial Results for First Quarter 2021

FRIEDENS, Pa., May 5, 2021

Unless otherwise noted, all dollar amounts in this news release are expressed in United States dollars and all ton amounts are short tons (2,000 pounds per ton).  Pricing and cost per ton information is expressed on a free-on-board, or FOB, mine site basis, unless otherwise noted.

First Quarter 2021 Highlights

• Corsa reported net and comprehensive loss of $4.4 million, or $(0.05) per share attributable to shareholders, for the three months ended March 31, 2021 compared to a loss of $5.8 million, or $(0.06) per share attributable to shareholders, for the three months ended March 31, 2020.
• Corsa's adjusted EBITDA⁽¹⁾ was $0.1 million for the three months ended March 31, 2021 compared to $6.4 million for the three months ended March 31, 2020. Corsa's EBITDA⁽¹⁾ was $0.1 million for the three months ended March 31, 2021 compared to $1.3 million for the three months ended March 31, 2020.
• Cash production cost per ton sold⁽¹⁾ was $79.15 for the three months ended March 31, 2021, an increase of $8.03 per ton, or 11%, as compared to the three months ended March 31, 2020.
• Cash flow provided by operating activities was $1.5 million for the three months ended March 31, 2021 compared to $8.3 million for the three months ended March 31, 2020.
• Total revenues were $24.6 million for the three months ended March 31, 2021 compared to $46.8 million for the three months ended March 31, 2020.
• Low volatile metallurgical coal sales tons, comprised of "Company Produced" tons and "Value Added Services" purchased coal tons, were 251,465 and 6,495, respectively, in the three months ended March 31, 2021 compared to 384,750 and 29,576, respectively, in the three months ended March 31, 2020. In the three months ended March 31, 2021, Corsa did not sell any "Sales and Trading" purchased coal tons, which are treated as pass-through from a profitability perspective, compared to 34,587 tons in the three months ended March 31, 2020.
• Corsa's average realized price per ton of metallurgical coal sold⁽¹⁾ was $86.62 per short ton for all metallurgical qualities in the three months ended March 31, 2021 compared to $90.49 in the three months ended March 31, 2020. This average realized price for the first quarter 2021 is the approximate equivalent of between $112 to $117 per metric ton on an FOB vessel basis⁽²⁾. For the first quarter 2021, Corsa's sales mix included 68% of sales to domestic customers and 32% of sales to international customers.
• Following the end of the quarter, QKGI Legacy Holdings, LP delivered a notice of redemption in respect of their 170,316,639 Redeemable Units of Wilson Creek Energy, LLC specifying a May 31, 2021 redemption date. The Company will elect to satisfy the redemption by issuing 8,515,831 Common Shares.

(1)

This is a non-GAAP financial measure.  See "Non-GAAP Financial Measures" below.

(2)

Similar to most U.S. metallurgical coal producers, Corsa reports sales and costs per ton on an FOB mine site basis and denominated in short tons.  Many international metallurgical coal producers report prices and costs on a delivered-to-the-port basis (or "FOB vessel basis"), thereby including freight costs between the mine and the port.  Additionally, Corsa reports sales and costs per short ton, which is approximately 10% lower than a metric ton.  For the purposes of this figure, we have used an illustrative freight rate of $25-$30 per short ton.  Historically, freight rates rise and fall as market prices rise and fall.  As a note, most published indices for metallurgical coal report prices on a delivered-to-the-port basis and denominated in metric tons. ARIVA.DE Börsen-Geflüster Kurse CORSA COAL CORP. -   0,00%

Peter Merritts, Chief Executive Officer of Corsa, commented, "I am pleased to announce that the Company achieved its first positive quarterly Adjusted EBITDA since the second quarter of 2020, posted its highest revenues since the second quarter of 2020 and increased its revenue and sales volumes by 46% and 33%, respectively, over the previous quarter.  Due to the pandemic and depressed coal markets last year, each successive quarter of 2020 resulted in lower production and higher costs per ton produced.  That trend was reversed in the first quarter of 2021 with a 42% increase in metallurgical coal production and a 6% decrease in cash costs per ton produced compared to the fourth quarter of 2020.  Our first quarter cash production costs per ton sold, which were higher than expected and higher than those reported in recent quarters, were impacted by adverse geological conditions encountered at one of our underground mines.  The cash production costs per ton sold from our other mines were in line with those experienced in 2020 and we anticipate that our overall cash production costs per ton sold will be at lower levels in the second quarter of 2021.

Although improved from recent quarters, our financial results reflect the continued unique challenges of the global metallurgical coal market with robust domestic demand and volatility in the export spot market.  While spot market prices rose only slightly over the course of the quarter, instances of significantly increased pricing due to limited supply support our outlook that the export market will stabilize and improve through the course of the year. 

In response, we began to increase staffing levels during the quarter to raise production levels to meet existing sales contracts and be better positioned to act on spot sales opportunities in the export market.  We will continue to use a measured, disciplined approach to return to a pre-COVID-19 production level that delivers acceptable results in the export metallurgical coal market and improves profitability for our shareholders."

2021 First Quarter Sales Metrics

Corsa's metallurgical coal sales figures are comprised of three types of sales: (i) selling coal that Corsa produces ("Company Produced"); (ii) selling coal that Corsa purchases and provides value added services (storing, washing, blending, loading) to make the coal saleable ("Valued Added Services"); and (iii) selling coal that Corsa purchases on a clean or finished basis from suppliers outside the Northern Appalachia region ("Sales and Trading").  For the three months ended March 31, 2021, Corsa's sales were broken down into the following categories.

Financial and Operations Summary

	For the three months ended
	March 31,
(in thousands)		2021			2020
Mining and processing costs	$	18,851 Werbung Mehr Nachrichten zur CORSA COAL CORP. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 19.05.24 - dpa-AFX dpa-AFX-Überblick: UNTERNEHMEN - Die wichtigsten Meldungen vom Wochenende 19.05.24 - wallstreet:online ... Paradigmenwechsel: Stehen Value-Aktien nach der Magnificent-Seven-Rallye vor einem Comeback? 19.05.24 - dpa-AFX China leitet Anti-Dumping-Untersuchung gegen Chemikalien aus EU ein