Corsa Files Fiscal 2012 Financial Results
TORONTO, Feb. 12, 2013 /PRNewswire/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") announces that it has filed its Audited Consolidated Financial Statements and Management's Discussion and Analysis for the fiscal year ended November 30, 2012 on SEDAR and has posted these documents to its website www.corsacoal.com.
Fiscal 2012 highlights included:
Metallurgical coal sales of 332,000 clean tons at an average realized
price of $148 per ton
An updated technical review on the Acosta Deep Project and on the Keyser
Project as well as its surface mines and projects (full details were
published in the January 21, 2013 press release)
The Casselman Mine updated technical report.
Production at the Casselman Mine ramped up in the third and fourth
quarters as mining conditions improved and a second continuous mining
The Company completed the purchase of the Keyser low volatile metallurgical coal
Completed a $22 million private placement of common shares
- Refinanced the $25 million bridge loan
Refer to the Audited Consolidated Financial Statements and Management's Discussion and Analysis filed for the details of the financial performance of the Company and the matters referred to in this release including the technical reports and independent qualified person.
Production and Sales
The Company sold 332,000 tons of metallurgical coal at an average realized price of $148 per ton in 2012, (252,000 tons at an average realized price of $167 per ton in 2011).
Production of metallurgical coal from the Company's operations was 372,000 raw tons in 2012, of which 228,000 tons was from the Casselman Mine and 144,000 tons was from surface mines. In 2011, the Casselman Mine produced 37,000 raw tons and the surface mines produced 164,000 tons. The increase in production at the Casselman Mine resulted from the Mine being operational for the full year in 2012 compared with five months in 2011 and a significant improvement in mining conditions.
The Company purchases raw metallurgical coal from third parties for blending and processing at the Preparation Plant. In 2012, the Company purchased 211,000 raw tons of metallurgical coal (238,000 raw tons in 2011). The requirement for purchased coal decreased in 2012 as production from the Company's mines was greater in 2012 than 2011. The Company also purchased 8,000 clean tons of metallurgical coal in 2012.
The Preparation Plant processed 579,000 raw tons of metallurgical coal in 2012 compared with 365,000 raw tons in 2011 and produced 339,000 clean tons in 2012 compared with 226,000 tons in 2011. The increase in production resulted from a full year of operations in 2012 compared with six months in 2011. The Preparation Plant was under construction in early 2011 and began operating in June 2011.
Production of thermal coal from surface mines was 112,000 tons in 2012 compared with 169,000 tons in 2011. The Company sold 122,000 tons of thermal coal at an average realized price of $35 per ton in 2012 compared to 142,000 tons at an average realized price of $39 per ton in 2011.
As a result of global economic conditions and demand for steel, the metallurgical coal industry has experienced a slowdown that began in the fall of 2011 and has continued resulting in declining prices. While this weakness in the market has continued into the first quarter of 2013, the Company believes there are signs there may be a modest recovery in the demand and price for metallurgical coal over the course of 2013.
While the metallurgical coal market, as expected, continued to be weak into 2013, the Company has continued to be successful in achieving sales as a result of the quality of its low volatile metallurgical coal product. In addition to meeting its Q4 guidance, as at December 31, 2012 the Company had sales contracts and purchase orders for 170,000 tons of metallurgical coal for 2013 of which approximately 25,000 tons have been shipped. The Company continues to actively market its high quality low volatile metallurgical coal and is in discussions with domestic and international buyers. Currently, the Company is shipping coal and continues to match production to actual sales and does not have unnecessary inventories of unsold coal. While the Company remains optimistic that further sales will be achieved, it only reports future sales based on currently contracted volumes. For these reasons, the Company is not in a position to provide full production, sales and cost guidance for 2013 beyond the sales it has currently under contract until sales levels can be more accurately forecast.
Information about Corsa
Corsa's main operating subsidiary is Wilson Creek Energy LLC based in Somerset County, Pennsylvania. Its primary business is the mining, processing and selling of metallurgical coal, as well as actively exploring, acquiring and developing resource properties consistent with its coal business.
Certain information set forth in this press release contains "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of future plans and operations and are based on current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "estimates", "expects" "anticipates", "believes", "projects", "plans", "outlook", "capacity" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: risks that the actual production or sales for the 2013 fiscal year will be less than projected production or sales for these periods; risks that the prices for coal sales will be less than projected or expected; liabilities inherent in coal mine development and production including restarting idled mines; geological, mining and processing technical problems; inability to obtain required mine licenses, mine permits and regulatory approvals or renewals required in connection with the mining and processing of coal; risks that the Company's coal preparation plant will not operate at production capacity during the relevant period, unexpected changes in coal quality and specification; variations in the coal mine or coal preparation plant recovery rates; dependence on third party coal transportation systems; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; changes in the regulations with respect to the use, mining and processing of coal; changes in regulations on refuse disposal; the effects of competition and pricing pressures in the coal market; the oversupply of, or lack of demand for, coal; inability of management to secure coal sales or third party purchase contracts; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of coal products, including labour stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; the ability to purchase third party coal for processing and delivery under purchase agreements; and management's ability to anticipate and manage the foregoing factors and risks. The forward-looking statements and information contained in this press release are based on certain assumptions regarding, among other things, future prices for coal; future currency and exchange rates; the Company's ability to generate sufficient cash flow from operations and access capital markets to meet its future obligations; the regulatory framework representing royalties, taxes and environmental matters where the Company conducts business; coal production levels; and the Company's ability to retain qualified staff and equipment in a cost-efficient manner to meet its demand. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue reliance on forward-looking statements. The Company does not undertake to update any of the forward-looking statements contained in this press release unless required by law. The statements as to the Company's capacity to produce coal are no assurance that it will achieve these levels of production or that it will be able to achieve these sales levels.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Corsa Coal Corp.