Toronto Stock Exchange: XRG
(All Amounts in $US unless otherwise stated)
KNOXVILLE, TN, April 21 /PRNewswire-FirstCall/ - Xinergy Ltd., (TSX:XRG) ("Xinergy" or the "Company"), a US Central Appalachian producer of high quality coal, today announced the release of preliminary Q1 2011 financial and operating results for the three months ended March 31, 2011.
Based on currently available information, the Company estimates that for the three months ended March 31, 2011: (i) tons sold was 554,000; (ii) tons produced was 466,000; (iii) coal revenues was in the range of $43,000,000 to $43,500,000; (iv) revenue per ton sold was in the range of $77.62 to $78.52; (v) cost of coal sales was in the range of $34,750,000 to $35,250,000; (vi) cash cost per ton produced was in the range of $58.00 to $62.00; (vii) general and administrative expenses was in the range of $3,600,000 to $3,650,000; (viii) depreciation, depletion and amortization was in the range of $9,650,000 to $9,750,000; and (ix) net interest expense was $2,289,000.
This preliminary information, which has been prepared by and is the responsibility of management, is subject to additional data becoming available and the finalization of customary closing procedures for the three-month period ended March 31, 2011. Our actual results could be materially different from our estimates. In addition, Coulter and Justus, P.C., the Company's independent auditors, have not completed their procedures with respect to the financial information for the three months ended March 31, 2011, nor have they expressed any opinion or other form of assurance with respect to the estimated ranges presented above or their achievability.
Commenting on the Company's preliminary Q1 results, Xinergy's Chairman and CEO, Jon E. Nix said, "The first three months of 2011 were both rewarding and challenging. We executed our growth strategy on all cylinders in Q1 with the acquisition of our first metallurgical property, Greenbrier, as well as closing on the fully permitted Brier Creek thermal reserves. We are extremely pleased with the significant additions that we made to our reserves this quarter, which positions us for continued growth in the near future. Several factors, however, caused our revenues to fall short of our expectations. Coal revenues for the quarter were adversely impacted by the deferral by one of our largest customers of the purchase of approximately 90,000 tons at a price per ton of $115.00 that was scheduled for shipment during the quarter, and by an increase in sales at lower than expected spot pricing of lower quality coal, which we did in order to avoid continued inventory loss."
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiaries, Xinergy Corp. and Xinergy of West Virginia, Inc., is engaged in coal mining in eastern Kentucky and West Virginia. Currently, Xinergy sells high quality coal to electric utilities and industrial companies throughout the south-eastern United States. For more information, please visit www.xinergycorp.com.
This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Xinergy's future outlook. Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the Company's filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2010, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.
SOURCE Xinergy Ltd.