TORONTO, Feb. 11 /CNW/ - Coalcorp Mining Inc. (TSX-CCJ) announced today
its results for the three and six month periods ended December 31, 2007.
Financial figures quoted herein are all in U.S. dollars. Total coal production
in the second quarter increased to 721,000 tonnes from 563,000 tonnes in the
first quarter and 607,000 tonnes in the second quarter last year. Mine
operating costs in the current quarter decreased to an average of $28 per
tonne from $39 per tonne in the first quarter and $35 per tonne in the second
quarter last year on the strength of a decrease in the La Francia mine's
stripping ratio to 5.9:1 from 9.2:1 in the first quarter and 8.7:1 a year ago.
For the six months ended December 31, 2007, total coal production amounted to
1.3 million tonnes compared with 1.5 million tonnes in the seven month period
last year. Due to the change in the Company's fiscal year end to June 30th
last year, the comparative year-to-date period includes an additional month.
Revenues in the second quarter increased to $33.1 million based on sales
of 740,000 tonnes at an average realized price of $45 per tonne compared with
$26.6 million in the prior period derived from sales of 602,000 tonnes sold at
an average price of $44 per tonne. Revenues for the six month period ended
December 31, 2007 totalled $52.8 million based on sales of 1.2 million tonnes
at an average realized price of $43 per tonne compared with $62.9 million from
1.4 million tonnes at $44 per tonne during the seven month period last year.
In the second quarter, Coalcorp reported a net loss of $13.5 million or
$0.15 per share as compared to a loss of $23.0 million or $0.41 per share in
the second quarter last year. For the six months ended December 31, 2007,
Coalcorp reported a net loss of $21.4 million or $0.24 per share compared with
a net loss of $33.7 million or $0.59 per share in the seven month period ended
December 31, 2006.
Coalcorp reduced its cash used in operations in the second quarter to
$6.1 million, essentially the semi-annual interest payment due on the senior
notes. After capital investments of $13.4 million and $6.9 million of funds
released from restricted cash, the Company had unrestricted cash and
short-term investments amounting to $30.2 million at December 31, 2007. In
addition, the Company had $1.8 million of restricted cash that will become
available in the next quarter to fund capital projects.
In fiscal 2008, Coalcorp is expected to produce 2.7 million tonnes, with
stripping ratios at La Francia and Caypa expected to improve to approximately
7.2:1 and 9.5:1, respectively, with a corresponding improvement in direct
operating costs compared to the prior year. Coalcorp has initiated mine
development plans at both mines to extend pit operations to increase its
production in fiscal 2009 and is currently making arrangements to expand its
mine contractor resources at La Francia to support the planned growth. Sales
already booked for the balance of fiscal 2008 comprise 1.5 million tonnes FOB
port at an average price of $66 per tonne. This includes recent contracts
entered to deliver 300,000 tonnes FOB port at an average price of $86 per
tonne in January and February, 70,000 tonnes FOB port at $100 per tonne in
March and 70,000 tonnes FOB port at $90 per tonne in the fourth quarter to
improve operating cash flow.
On February 6, 2008, Coalcorp received approval of its application for an
environmental license for the Fenoco rail connection. Construction of the rail
branch is expected to begin within the next two months and will take up to six
months to complete.
On January 21, 2008, Coalcorp announced it had completed its review of
available port concessions in Barranquilla and has elected to partner with an
existing concession holder to jointly develop a multi-purpose port, initially
to be designed to handle 10 million tonnes of coal per year and ultimately
30 million tonnes per year. Preliminary design work is underway.
Commenting on the processes by which the Company was able to work with
the Colombian government in obtaining the above-noted licenses, Serafino
Iacono, CEO of the Company, stated that "our excellent relations with the
government are a direct result of fourteen years of on the ground experience
in Colombia and working collaboratively with successive administrations. We
are pleased that we can now move forward to the next steps with our
As previously announced, the Company has initiated a review of strategic
alternatives to maximize shareholder value. These alternatives may include,
but are not limited to, strategic alliances, capital restructuring including
debt and equity financing, mergers, acquisitions, a sale of all or part of the
business, or such other alternatives that are considered to be in the best
interest of the Company's shareholders.
Complete Financial Statements and Management's Discussion and Analysis
are available from our website under "Investor Info" or on SEDAR at
A conference call will be held on Tuesday, February 12, 2008, at 9:00
a.m. Eastern Daylight Time to discuss the second quarter results. Call-in
details are as follows:
Toronto & International: (416) 644-3420
North America: (800) 732-1073
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)