Canada NewsWire
CANONSBURG, PA, March 7, 2017
CANONSBURG, PA, March 7, 2017 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the "Company"), a premium quality metallurgical, thermal and industrial coal producer, today reported financial results for the three months and full year ended December 31, 2016. Corsa has filed its audited consolidated financial statements for the years ended December 31, 2016 and 2015, related management's discussion and analysis and its annual information form under its profile on www.sedar.com, as well as updated technical reports for its Northern Appalachia ("NAPP") Division and Central Appalachia ("CAPP") Division properties.
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).
Fourth Quarter 2016 and Full Year 2016 Highlights
| | For the three months ended | | |||||||||
| | December 31, 2016 | | |||||||||
(in thousands except per ton amounts) | | NAPP - | | | NAPP - | | | CAPP | | |||
Tons sold | | 242 | | | 66 | | | 151 | | |||
| | | | | | | ||||||
Realized price per ton sold(1) | | $ | 101.99 | | | $ | 45.20 | | | $ | 58.83 | |
Cash production cost per ton sold(1) | | 67.05 | | | $ | 37.74 | | | 44.95 | | ||
Cash margin per ton sold(1) | | $ | 34.94 | | | $ | 7.46 | | | $ | 13.88 | |
| | For the year ended | | |||||||||
| | December 31, 2016 | | |||||||||
(in thousands except per ton amounts) | | NAPP - | | | NAPP - | | | CAPP | | |||
Tons sold | | 669 | | | 235 | | | 499 | | |||
| | | | | | | ||||||
Realized price per ton sold(1) | | $ | 79.66 | | | $ | 40.85 | | | $ | 59.95 | |
Cash production cost per ton sold(1) | | 62.39 | | | 42.83 | | | 50.29 | | |||
Cash margin per ton sold(1) | | $ | 17.27 | | | $ | (1.98) | | | $ | 9.66 | |
| |
(1) | This is a non-GAAP financial measure. See "Non-GAAP Financial Measures" below. |
(2) | Fixed costs include the following: idle mine expense, corporate and administrative expense, non-financed maintenance and growth capital expenditures, reclamation and water treatment cash payments, cash collateral release related to reclamation bonds, restricted cash contributions to the Global Treatment Trust Fund, debt service payments, cash collateral funding for workers' compensation, transportation contract liquidated damages payments, bond premiums and proceeds from asset sales. |
George Dethlefsen, Corsa's Chief Executive Officer, commented, "2016 marked a year of operational achievement for Corsa Coal, as the company set a company record for safety performance, reduced production costs per ton at both operating divisions, drove meaningful reductions in fixed costs, and grew quarter-over-quarter metallurgical sales volumes by over 25% for each of the last three quarters of the year. We enter 2017 on firm financial footing, with low levels of debt, strong profit margins and a positive free cash flow outlook for the business.
Average realized metallurgical coal prices are expected to increase by approximately 50% in the first quarter of 2017, as legacy contracts roll off and as Corsa's export volumes increase. Demand for metallurgical coal exports from the United States remains high, as we believe the global seaborne market remains in a supply deficit. The decline in seaborne metallurgical coal prices seen in December through mid-February has turned around in recent weeks as inventory destocking has reversed and we are seeing increased solicitations for shipments both domestically and internationally. On the strength of higher steel and coke prices and expectations for increased infrastructure spending, we expect demand growth to be a major story in 2017 for metallurgical coal.
Executing on the Company's strategy of growth, both through organic development and through acquisitions, remains a top priority. The development of the Acosta Deep Mine is on schedule for a second quarter 2017 start date and the project is fully financed with cash on hand. We will begin work at two surface mines at the NAPP Division in the second quarter of 2017 and are evaluating additional low volatile metallurgical coal mines in our portfolio for additional growth. Additionally, we have added a crew to the Quecreek Mine and upgraded mining equipment at the Casselman Mine, both of which should lead to higher production levels moving forward. Corsa's growth will be driven by our portfolio of permitted mines, our emerging sales and trading platform, our customer relationships, and our existing preparation plant infrastructure at the NAPP Division, which can accommodate throughput of four million saleable tons per year."
Financial and Operations Summary
| | For the three months ended | | For the year ended | |||||||||||||||||||||
| | December 31, | | December 31, | |||||||||||||||||||||
| | | | | | Increase | | | | | | | | Increase | | ||||||||||
| | 2016 | | | 2015 | | | (Decrease) | | | 2016 | | 2015 | | | (Decrease) | | ||||||||
Revenues (000's) | | $ | 37,728 | | | $ | 26,564 | | | $ | 11,164 | | | $ | 96,986 | | | $ | 129,342 | | | $ | (32,356) | | |
| | | | | | | | | | | | | |||||||||||||
Cost of sales(2) (000's) | | $ | 42,291 Werbung Mehr Nachrichten zur CORSA COAL CORP. Aktie kostenlos abonnieren
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