Corsa Coal Announces Financial Results for Third Quarter 2016

CANONSBURG, PA, Nov. 9, 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).

Third Quarter 2016 Highlights

• Spot prices for metallurgical coal have risen by approximately 250% on a year-to-date basis. Corsa plans to increase production and sell significantly more tons of metallurgical coal over the coming quarters. Corsa commenced development work at the Acosta Deep Mine in Somerset County, Pennsylvania, which is forecasted to produce 375,000 tons per year of low volatile metallurgical coal once fully operational. Coal production at the mine is anticipated to begin in the second quarter of 2017 and ramp up over the course of the year.
• In October 2016, Corsa raised Cdn $23 million by way of a private placement of 230,000,000 common shares of Corsa (138,880,000 of which were closed on a brokered basis and 91,120,000 of which were closed on a non-brokered basis) to fund mine development, general corporate and working capital purposes.
• NAPP variable cost reduction efforts have been successful with the cash production cost per ton sold⁽¹⁾ for metallurgical coal decreasing 10.2% [from $66.90 to $60.07] in the three months ended September 30, 2016 compared to the prior year comparable quarter.
• CAPP variable cost reduction efforts have been successful with the cash production cost per ton sold⁽¹⁾ for thermal coal decreasing 6.7% [from $53.74 to $50.16] in the three months ended September 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 September 2016, Corsa was notified that it was awarded $3,000,000 in funding under the Pennsylvania Redevelopment Assistance Capital Program (the "RCAP") to develop an underground coal mine in Somerset County subject to certain conditions, including but not limited to: (i) completing the Redevelopment Assistance application; (ii) confirmation that at least 50% of the required non-state funds necessary to complete the project are secured at the time of application; (iii) execution of a grant agreement; and (iv) commencement of construction within six months of the grant agreement. Once all the aforementioned conditions have been met, the grant will be released on a periodic basis and Corsa will be reimbursed for certain expenditures which Corsa will offset against the capitalized development costs.
• Corsa reached a settlement with the United States Environmental Protection Agency and the Pennsylvania Department of Environmental Protection on the alleged Clean Water Act violations in the amount of $6.5 million. The entire $6.5 million was released from an escrow that was established in connection with the Company's acquisition of PBS Coals, Inc. The Company was also reimbursed for its legal expenses from this escrow. As a result of this escrow release, the settlement of this matter had no impact to the cash flows of Corsa.
• Key Operating Metrics:

		For the three months ended
		September 30, 2016
(in thousands except per ton amounts)		NAPP - Metallurgical Coal ARIVA.DE Börsen-Geflüster Kurse CORSA COAL CORP. -   0,00%				NAPP - Thermal Coal				CAPP
Tons sold		177				61				152
Realized price per ton sold(1)		$	69.48			$	39.64			$	56.07
Cash production cost per ton sold(1)		60.07				43.07				50.16
Cash margin per ton sold(1)		$	9.41			$	(3.43)			$	5.91

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

George Dethlefsen, Chief Executive Officer of Corsa, commented, "Extreme global shortages of metallurgical coal have caused prices to increase 250% since earlier in the year.  Corsa is taking steps to maximize coal production and sales to capitalize on the favorable market environment.  In September, we commenced development work at the Acosta deep mine, which is scheduled to be in production in the second quarter of 2017.  We have also increased capacity utilization at existing mines, have redirected tons sold under thermal contracts to the metallurgical market, and are exploring incremental growth opportunities within our portfolio of permitted mines.  We expect Corsa's metallurgical coal sales volumes to increase by over 70% in 2017 and we expect the 2017 sales mix to be heavily weighted towards the higher-priced export market.  We will be providing further guidance on production and sales during the fourth quarter.

The prolonged downturn in metallurgical coal prices over the past several years has left coal producers in a weakened position to respond quickly with new supply.  With low metallurgical coal inventories globally, production difficulties in China and Australia, and signs of improvement in global steel pricing, we believe that metallurgical coal pricing will remain at elevated levels for an extended period of time.

Corsa has received increased interest for metallurgical coal sales from both international and domestic steel companies over the past few months.  Due the acceleration of metallurgical coal prices occurring in the middle of the third quarter, the impacts on our realized pricing for international orders will begin to be seen in the fourth quarter results.  We expect average realized prices for Q4 2016 to increase by approximately 40% over Q3 2016 levels and a further increase in average realized prices in Q1 2017 as calendar year 2016 contracts roll off and as higher priced export orders are shipped.  We are anticipating strong cash flows in Q4 2016 and into 2017 as a result of these increases in metallurgical coal prices.  Corsa's customer relationships, preparation plant infrastructure, rail access and coal storage capacity allows for full participation in the seaborne market and significant operating leverage to the rising price environment."

Financial and Operations Summary

	For the three months ended												For the nine months ended
	September 30,												September 30,
									Increase												Increase
	2016				2015				(Decrease)				2016				2015				(Decrease)
Revenues (000's)	$	23,983			$	31,742			$	(7,759)			$	59,258			$	102,778			$	(43,520)
Cost of sales(3) (000's)	$	25,643			$	33,606			$	(7,963)			$	67,879			$	132,923			$	(65,044)
Corporate and administrative expense (000's)	$	3,281			$	3,864			$	(583)			$	9,026			$	12,515			$	(3,489)
Net and comprehensive income (loss) for the period (000's)	$	(7,106)			$	(9,288)			$	2,182			$	(23,455)			$	(46,635) 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 18.04.24 - PR Newswire BlackRock Sustainable American Income Trust Plc - Transaction in Own Shares 18.04.24 - PR Newswire Miton UK Microcap Trust Plc - Director/PDMR Shareholding 18.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59