TORONTO,
Oct. 11, 2012 /PRNewswire/ - Corsa
Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") announces that it
has filed its Condensed Interim Consolidated Financial Statements
and Management's Discussion and Analysis for the three months and
nine months ended August 31, 2012 on
SEDAR and has posted these documents to its website
www.corsacoal.com.
Third Quarter highlights included:
- Positive cash flow from operations of $3.5 million
- Metallurgical coal sales of 138,000 tons at an average realized
price of $152 per ton
- Casselman Mine expansion to two mining units completed with
production increasing to 44,000 tons for August
Refer to the Condensed Interim 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.
Don Charter,
President and Chief Executive Officer, stated "This was an
important quarter for Corsa. With the successful production and
development ramp up at the Casselman mine and shipping of 138,000 tons of
met coal, in line with guidance, we have made significant
improvements in our competitive position in this tight market. Cash
mining costs at Casselman have
been reduced by 36 percent to $51 a
ton and processing costs have been reduced by 43 percent to
$13. The increased volume with
reduced costs resulted in the Company achieving positive cash flow
from operations. We continue to actively market our high quality
low-vol met coal while improving operating costs."
Outlook
The global demand for steel is down and the
demand for metallurgical coal has experienced a continuing slowdown
that began in the fall of 2011 resulting in declining prices. The
US coal industry continues to be challenged and a number of
producers have announced reductions in production. Nonetheless, the
Company's second quarter 2012 production met guidance and it was
able to double second quarter 2012 sales in third quarter 2012
shipping 138,000 tons. With the continued decline in the market,
based on purchase orders and expected trains, the Company expects
to ship at least 32,000 clean tons of metallurgical coal in fourth
quarter 2012. While the Company continues to actively market its
high quality low vol metallurgical coal, which it believes is well
suited to domestic users as well as the seaborne market, presently
the Company is not in a position to provide production, sales and
cost guidance beyond the sales it has currently under contract
until sales levels can be more accurately forecast.
For the remainder of the fiscal year, the
Company will continue to adjust its production to match actual
demand and sales orders. The Company has temporarily idled its
surface mines and does not have large unsold inventories.
Operations have continued at the Casselman Mine to meet fourth
quarter 2012 expected sales and to ensure an appropriate operating
inventory. However, the Company will be temporarily idling this
mine and keeping it in readiness for an immediate restart pending
an increase in sales levels.
Information about Corsa
Corsa's main operating subsidiaries are Wilson
Creek Energy LLC and Maryland Energy Resources 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.
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 the actual production
or sales for the fourth quarter of 2012 and 2012 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;
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 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.
Non IFRS Measures
This press release contains references to "cash
flow from Operations" and "cash mining costs" which do not have a
standardized meaning under IFRS. See the Condensed Interim
Consolidated Financial Statements and the Management Discussion and
Analysis for a reconciliation to IFRS measures.
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.
