TORONTO, Sept. 27 /CNW/ - Coalcorp Mining Inc. (TSX-CCJ) announced today
its results for the year ended June 30, 2007. The company reported a net loss
of $76.2 million or $1.16 per share as compared to a loss of $2.8 million or
$0.14 per share in the same period last year (all figures in U.S. dollars). In
2006, the Company changed its year end from May 31 to June 30 and therefore
the current fiscal year was thirteen months as compared to twelve months in
the previous year.
For the thirteen months ended June 30, 2007, the Company realized
revenues of $103.5 million based on sales of 2.4 million tonnes of coal at an
average realized price of US$42 per tonne as compared to revenue of
$26.2 million in the prior year derived from sales of 0.7 million tonnes sold
at an average price of $37 per tonne.
Total coal production in the period amounted to 2.5 million tonnes as
compared to 0.8 million tonnes in the same period last year. Mine operating
costs in the year averaged US$35 per tonne, with transport and handling costs
adding an additional US$7 per tonne.
Mine operating costs remain above normal due to above-average stripping
ratios. At La Francia, the stripping ratio was 9.5:1 versus a life-of-mine
average of 5.9:1 based on an additional 2.0 million tonnes removed that was
expensed in the period but not related to current production, which is
expected to reduce costs in the future. At Caypa, the stripping ratio was
9.9:1 versus a life-of-mine average of 7.6:1 based on an additional
1.6 million tonnes removed that was expensed in the period but not related to
current production, which is expected to reduce costs in the future.
In addition, a number of non-operating items contributed to the loss
reported in the period. A non-cash unrealized foreign exchange loss of
$24.3 million was recorded to reflect the strengthening of the Colombian peso
relative to the U.S. dollar. Also, general and administrative expenses totaled
$14.6 million with a portion of this amount related to one-time consulting and
engineering fees related to the various projects currently underway. In
addition, a write-off of $13.6 million was recorded with respect to certain
exploration properties which were disposed of in the year.
In fiscal 2008, Coalcorp is expected to produce 3.7 million tonnes, with
stripping ratios at La Francia and Caypa expected to improve to approximately
7.2:1 and 9.0:1 respectively, with a corresponding improvement in direct
operating costs. Coal sales already booked for next year include 1.0 million
tonnes FOT at an average price of $39 per tonne and 1.7 million tonnes FOB at
an average price of $55 per tonne.
After capital investments of $38 million, the Company had unrestricted
cash and short-term investments amounting to $66.0 million at June 30, 2007.
In addition, the Company had $12.9 million of restricted cash that will become
available in the next 12 months to fund capital projects.
Access to the Fenoco rail system is scheduled to commence in December of
this year, enabling higher value FOB sales from La Francia. The 30-year
concession for the river port at Capulco was granted earlier this year and is
fully permitted, with construction to commence upon completion of detailed
engineering. The Cartagena port facility, which was also granted a 30-year
concession earlier this year, will see construction commence upon approval of
its environmental plan.
The company recently received a draft feasibility study with respect to
development of Pit C/D at La Francia and the adjoining La Francia II property
and expects to receive the final report in the near future.
A conference call will be held on Friday, September 28, 2007, at 9:30 am
Eastern Daylight Time to discuss the year end results. Call-in details are as
Toronto & International: (416) 644-3415
North America: (800) 732-6179
Complete Financial Statements and Management's Discussion and Analysis
are available from our website under "Investor Info" or on SEDAR at
Coalcorp is a coal mining, exploration and development company with
interests in the La Francia and La Caypa coal mines and related infrastructure
projects and a number of coal exploration properties, all located in Colombia.
Further information can be obtained by visiting our website www.coalcorp.ca.
This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward looking statements
are detailed from time to time in the company's periodic reports filed with
the British Columbia Securities Commission and other regulatory authorities.
The Company has no intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Michael Davies, Chief Financial Officer, (416)