TORONTO,
Sept. 19, 2012 /PRNewswire/ - Corsa
Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") is pleased to
announce that during the third quarter of 2012 the Company sold
138,000 clean tons of metallurgical coal at an average realized
price of US$152 per clean ton in line
with its published guidance of 140,000 tons. As well, the Company
sold 37,000 tons of thermal coal during the quarter at an average
price of $32 a ton. For the nine
months ended August 31, 2012, the
Company has sold 275,000 clean tons of metallurgical coal at an
average realized price of $153 per
ton and 96,000 tons of thermal coal at an average realized price of
$34 a ton. The realized prices
reflect the sale of some carry over tons from a 2011 sales
contract.
For the nine months ended August 31, the Company produced a total of
289,000 tons of raw met coal from its own mines and purchased a
total of 212,000 tons of raw met coal from third parties.
Casselman Mine
Q3 was a breakthrough quarter for the Company's
Casselman underground mine.
The disturbed low seam area at the mine entrance has been mined
through and the coal seam is currently 44 to 46 inches at the face
with very good mining conditions. In addition, the Company has
utilized a contract miner who has provided the additional required
staffing to expand the mine to two units. The mine is now
currently operating with two continuous mining units working two
shifts with a third maintenance shift. The mine production
has ramped up successfully from approximately 11,000 raw tons in
June to 42,000 raw tons in August with in plant recoveries
exceeding 63% on unscreened ROM coal. This represents an
underground productivity rate in excess of 4.5 tons per man hour.
The result has been a significant improvement in mining costs per
ton. When combined with improved recoveries in the plant and
the improved raw coal and refuse handling, the Company continues to
improve its competitiveness in the current tight
market. The mine produces a high quality low vol
product, which management believes is very well suited for domestic
steel producers and coking operations as well as the seaborne
market.
Outlook
While the met coal market had shown some signs
of strengthening in calendar Q2, it has shown a sharp decline in
both demand and prices in calendar Q3 and the outlook for calendar
Q4 is for a weaker market. In the face of declining demand and
uncertain sales levels and pricing for fiscal Q4, the Company has
continued to match production to sales and accordingly does not
have unnecessary inventories of unsold coal. Based on purchase
orders and scheduled trains the Company expects to ship
approximately 32,000 clean tons of metallurgical coal in
September. The Company will continue to market its high
quality low vol met coal to domestic buyers and in the spot market,
and while it believes it can be successful in achieving additional
sales it is not in a position to provide further fiscal Q4 sales
guidance at this time. The Company is also focused on sales
contracts for the 2013 fiscal year and is in discussions with both
domestic buyers and buyers for the seaborne market. For the
remainder of the year the Company will continue to adjust its
production and third party purchases to match actual demand and
sales orders.
Caution
The estimated coal production, purchases, sales
and processing of coal disclosed in this press release are
considered to be forward looking information. Readers are cautioned
that actual results may vary from this forward looking information.
There can be no assurance as to when or if the required permits
will be issued. Actual production, sales, shipments, purchases,
total cash costs and sales and processing costs are subject to
variation based on a number of risks and other factors referred to
under the heading "Forward-Looking Statements" as well as actual
demand and sales orders received. Costs will be impacted by
production levels actually achieved.
Information about Corsa
Corsa's main operating subsidiaries are Wilson
Creek Energy LLC and Maryland Energy Resources LLC based in
Somerset, 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.
Forward-Looking Statements
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 transactions referred
to will not be completed; risks that the actual production or sales
will be less than projected production or sales for these periods;
risks that the prices for coal sales will be less than projected;
liabilities inherent in coal mine development and production;
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 in 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 in the countries in which 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.