Corsa Coal Announces Financial Results for Second Quarter 2016

CANONSBURG, PA, Aug. 10, 2016

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).

Second Quarter 2016 Highlights

• Spot prices for metallurgical coal have risen by over 35% on a year-to-date basis. Corsa has the ability to produce and sell significantly more tons of metallurgical coal over the short term should market conditions continue to improve.
• During the three months ended June 30, 2016, Corsa continued to successfully execute on its fixed cost reduction initiatives. Corsa reached an agreement with an insurer to release certain portions of the reclamation bond cash collateral to fund certain reclamation projects, which totaled $757,000 in the three months ended June 30, 2016. Corsa also successfully renegotiated the transportation contract liquidated damages contract to increase liquidity over the next 18 months and defer the final payment for two years until November 2020. Successful progress has also been made to reduce idle mine expenses, lower capital expenditures, reduce corporate and administrative expenses, lower minimum royalty payments and reduce water treatment costs.
• NAPP variable cost reduction efforts have been successful with the cash production cost per ton sold⁽¹⁾ for metallurgical coal decreasing 11.0% [from $66.66 to $59.34] in the three months ended June 30, 2016 compared to the prior year comparable quarter.
• Corsa's operations continue to achieve industry leading safety performance, with violation per inspection day rates that are 50% lower than the national average.
• In June 2016, Corsa raised Cdn $3.15 million by way of a private placement of 63,000,000 common shares of Corsa (56,000,000 of which were closed on a brokered basis and 7,000,000 of which were closed on a non-brokered basis) to fund working capital and for general corporate purposes. In connection with the private placement, Corsa also issued a total of 3,360,000 compensation warrants to the lead agent for the brokered portion of the private placement. Each compensation warrant entitles the holder to purchase one common share of Corsa at Cdn $0.05, exercisable for a period of 24 months.
• Key Operating Metrics:

		For the three months ended
		June 30, 2016 ARIVA.DE Börsen-Geflüster Kurse CORSA COAL CORP. -   0,00%
(in thousands except per ton amounts)		NAPP - Metallurgical Coal			NAPP - Thermal Coal			CAPP
Tons sold		143			66			97
Realized price per ton sold(1)		$	60.73		$	43.59		$	62.89
Cash production cost per ton sold(1)		59.34			46.09			60.05
Cash margin per ton sold(1)		$	1.39		$	(2.50)		$	2.84

⁽¹⁾ This is a non-GAAP financial measure. See "Non-GAAP Financial Measures" below.

George Dethlefsen, Chief Executive Officer of Corsa, commented, "Spot prices for metallurgical coal are at their highest levels in 2016, and have risen approximately 35% over the first seven months of 2016.  Increased Chinese imports, supply rationalization globally, and higher steel demand have served to put supply and demand for low volatile metallurgical coal in balance.  This has led to a rise in Corsa's international sales opportunities both in Europe and Asia, and has pushed domestic pricing higher.  We believe the move up in prices has been driven by an improvement in the fundamentals and the stage is set for a continued rise in the second half of 2016.  The 5-year downward cycle for metallurgical coal pricing that we have recently emerged from has been the longest and deepest in the last 60 years.  We believe that the market has turned the corner and the outlook for metallurgical coal producers has improved.

Despite the upward trend in 2016, metallurgical coal prices remain at levels approximately 70% below their 2011 peak and we remain focused on our fixed and variable cost reduction initiatives.  A large volume of April export shipments reduced our average realized metallurgical sales price per ton in Q2, and had a negative impact on profitability.  The effect of higher export prices has already been realized in our Q3 shipments and will favorably impact profitability for the remainder of 2016.  At our CAPP Division, we have scaled back production levels in response to market conditions for thermal coal.  This led to increased costs per ton in Q2 as a result of lower fixed cost absorption.  In the months ahead, production levels have the potential to increase based upon ongoing thermal and industrial coal market opportunities.

We are currently focused on growth opportunities, both through organic projects and acquisitions, to build on our existing platform of permitted mines, coal processing infrastructure, mining equipment, and customer relationships.  With the continued improvement in metallurgical coal markets, we will actively seek to add to our production and sales volumes through projects with attractive rates of return."

Financial and Operations Summary

		For the three months ended									For the six months ended
		June 30,									June 30,
								Increase									Increase
		2016			2015			(Decrease)			2016			2015			(Decrease)
Revenues (000's)		$	18,662		$	39,670		$	(21,008)		$	35,275		$	71,036		$	(35,761)
Cost of sales(3) (000's)		$	22,560		$	46,641		$	(24,081)		$	42,236		$	99,317		$	(57,081)
Corporate and administrative expense (000's)		$	2,638		$	4,512		$	(1,874)		$	5,745		$	8,651		$	(2,906)
Net and comprehensive income (loss) for the period (000's)		$	(8,052)		$	(11,720)		$	3,668		$	(16,349) 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 24.04.24 - PR Newswire BlackRock Income and Growth Investment Trust Plc - Transaction in Own Shares 24.04.24 - PR Newswire Fidelity Emerging Markets Ltd - Monthly Factsheet 24.04.24 - PR Newswire Boeing Company - First Quarter Financial Results Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59