Pacific Coal Resources Ltd. announces Financial Results for the Second Quarter of 2011 and Conference Call
TORONTO, Aug. 29, 2011 /PRNewswire/ - Pacific Coal Resources Ltd. (TSXV: PAK) announced today the release of its unaudited interim consolidated financial results for the three and six months ended June 30, 2011, together with its Management's Discussion and Analysis. These documents will be available on the Company's website at www.pacificcoal.ca and at www.sedar.com.
Luis Carvajales, the Company's Chief Executive Officer, commented, "The second quarter results represent considerable progress made at our La Divisa Cerro Largo mine as we completed the implementation of the integrated mine plan. Cerro Largo's contribution will have a positive impact on our production and revenues for the balance of the year. We are pleased to be on track to meet our production target of 1.8 million tonnes this year."
For the second quarter ended June 30, 2011, the Company reported revenues of $35.5 million, due to the production and sales at the Company's La Caypa and La Divisa ("Cerro Largo") mines, including sales of coal purchased to third parties. During the second quarter of 2011, the Company sold 376,332 tonnes of coal and produced 307,528 tonnes of coal.
Selected Highlights
Three months ending June 30, 2011 |
Six months ending June 30, 2011 |
|
Tonnes produced | 307,528 | 669,300 |
Tonnes sold | 376,332 | 757,200 |
(in US$ millions) | ||
Revenue | 35.5 | 72.4 |
EBITDA | (1.7) | 1.9 |
Net income (loss) | (8.8) | (47.5) |
Total assets | 383.1 | |
Long-term debt | 9.0 | |
Shareholders' equity | 271.8 |
Production from Cerro Largo, prior to the acquisition by the Company on March 29, 2011, was 110,875 tonnes in the first quarter, with total production at Cerro Largo for the first six months of 2011 at 125,730 tonnes of which 14,855 belong to the Company. During the second quarter of 2011, the Cerro Largo operation was principally dedicated to mine development, and completing the implementation of the integrated mine plan. Please refer to the Company's operational update press release dated July 6, 2011 which is available on www.sedar.com and the Company's website at www.pacificcoal.ca.
Capital Expenditures as at August 29, 2011
Capital expenditures for 2011 are expected to be $154.2 million, including $5.2 million for exploration, $15.0 million for development, $105 million for acquisitions (earmarked for Chianto and Masering, and for the Baranquilla port), $14.0 million for infrastructure, and $15.0 million for equipment. The balance of the capital budget for the remainder of 2011 totals $33.2 million and includes capital for $5.2 million for exploration, $5.0 million for development, $11.0 million for infrastructure and $12.0 million for equipment.
Outlook
For the remainder of 2011, Pacific Coal is on course to sell approximately 1.0 million tonnes from La Caypa and Cerro Largo combined at a weighted average sales price of US$100 per tonne. The third and fourth quarter will show a significant decrease in the strip ratio at Cerro Largo, while during the second quarter, efforts were focused on implementing the integrated mine plan, which involved a substantial amount of waste removal.
Revised mine plans implemented at both La Caypa and Cerro Largo will continue to improve efficiency, productivity and cash costs, while maximizing quality specifications that will provide additional market opportunities when available.
Pacific Coal continues to enhance shareholder value through the exploration and development of its producing La Caypa and Cerro Largo mines. The exploration program at La Tigra commenced during the second quarter of 2011, with the objective of obtaining a National Instrument 43-101 resource estimate by the first quarter of 2012, and aiming to start production in the third quarter of 2012. The Company expects to produce 2.6 million to 2.9 million tonnes of thermal coal in 2012 from combined operations.
Pacific Coal believes that with its solid asset base and leading position in the Colombian coal market, it is well-positioned to benefit from the resurgence of interest in the coal sector in Colombia, particularly for the export seaborne market.
Management will hold a conference call on Tuesday, August 30, 2011 at 9:00 a.m. Eastern Time to discuss the second quarter results and current operations. Analysts and interested investors are invited to participate as follows:
Toronto & International: 1 (647) 427-7450
North America: 1 (888) 231-8191
Conference ID: 96066553
Playback of the conference call will be available starting two hours after the completion of the call and up to 11:59 pm Eastern Time on September 14, 2011. To access the playback, please call either 1-855-859-2056 (toll free) or 416-849-0833 with the above conference ID.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining company focused on coal, coking coal, asphalt and asphaltite exploration, development and production from prospective producing, development-stage and exploration-stage properties in Colombia. The Company has acquired or entered into agreements to acquire various interests in several operating coal mines and projects, representing a substantive coal and asphaltite exploration and production area throughout Colombia. Pacific Coal is committed to implementing its exploration and development strategy with a comprehensive environment, safety and community program, meeting international standards of best practice.
Forward Looking Information:
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pacific Coal to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Pacific Coal disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. 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. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Pacific Coal S.A.
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