TORONTO, Dec. 15, 2014 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") will host its Analyst Day on Tuesday, December 16, 2014. During the Analyst Day presentation, senior management will provide more detail on Corsa's operational base, certain cost improvement initiatives, and the ongoing integration of PBS Coals. An updated Investor Presentation for the Analyst Day has been published to the Company's website at www.corsacoal.com.
Corsa is also pleased to announce its preliminary outlook for fiscal 2015 based on current market conditions. Unless otherwise specified, all financial information is presented in U.S. dollars.
Highlights for 2015 Preliminary Outlook
- Production and purchased coal volumes of 1.5 to 1.7 million tons of metallurgical coal for the Northern Appalachian Division ("NAPP") and 0.8 to 0.9 million tons of thermal and industrial coal for the Central Appalachian Division ("CAPP").
- Cash production cost per ton sold(1) of $73 to $78 per ton for NAPP and $57 to $62 per ton for CAPP.
- Consolidated general and administrative expenses of $9.5 to $11.5 million.
- Consolidated maintenance capital expenditures of $8.5 to $10.5 million
(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures".
Management uses cash production cost per ton sold as an internal measurement of operating performance for Corsa's mining and processing operations. Management believes this non-GAAP measure provides useful information for investors as it provides information in addition to GAAP measures to assist in their evaluation of the operating performance of Corsa. Reference is made to the Management's Discussion and Analysis for the three and nine months ended September 30, 2014 for a reconciliation of non-GAAP measures to GAAP measures.
The estimated production and purchase volumes, cash production cost, general and administrative expenses, and capital expenditures disclosed in this news release are considered to be forward looking information. Readers are cautioned that actual results may vary from this forward looking information. Actual production, cash production costs and expenditures are subject to variation based on a number of risks and other factors referred to under the heading "Forward-Looking Statements" below as well as demand and sales orders received.
Information about Corsa
Corsa is one of the leading suppliers of premium-quality metallurgical coal, an essential ingredient in the production of steel, which is necessary for the secular trends in global urbanization. Our core business is supplying metallurgical coal with the highest safety, yield, and strength characteristics to domestic steel producers while being a strategic source of supply in the Atlantic and Pacific basin markets. We also offer a high heat content, low delivered cost coal to major utilities and industrial users in the Southeast region of the U.S.
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 relating to projected production and purchase volumes, cash production costs, general and administrative expenditures and capital expenditures for the 2015 fiscal year 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 Corsa'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 2015 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 or expected; 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 Corsa'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 with 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, coal sales being consistent with expectations; future prices for coal; future currency and exchange rates; Corsa'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 where Corsa conducts business; coal production levels; Corsa's ability to retain qualified staff and equipment in a cost-efficient manner to meet its demand; and Corsa being able to execute its program of operational improvement and initiative to realize cost synergies following the completion of Corsa's acquisition of PBS. 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. Corsa does not undertake to update any of the forward-looking statements contained in this press release unless required by law. The statements as to Corsa'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 in no way passed on the merits of this news 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.
For further information: Paul D. Caldwell, Chief Financial Officer and Corporate Secretary, Corsa Coal Corp., 416-214-9800, [email protected], www.corsacoal.com