TSX: WTN & WTN.DB and AIM: WTN
VANCOUVER, Nov. 8 /CNW/ - Western Canadian Coal Corp. (TSX: WTN & WTN.DB
and AIM: WTN) (the "Company") yesterday despatched copies of its annual report
and the notice of its annual general meeting to its shareholders. Shareholders
have also received a letter from the Chairman of the Company, John Byrne,
which contains the following statement:
"Since the preparation and printing of the Annual Report dispatched with
this letter there has been a continued rise in the value of the Canadian
dollar against the US Currency.
Since our fiscal year end we have seen a 25 percent increase in the
Canadian dollar relative to the US dollar. On an annualized basis, this would
impact our sales by over $50 million.
Our fiscal 2008, which commenced April 1, 2007, has seen hard coking coal
prices within the industry average US$ 94 per tonne. Since Western Canadian
Coal is a new producer for global steelmakers, we have had to offer incentives
to ensure a smooth entry into the marketplace.
Western Canadian Coal has high expectations alongside its shareholders.
Unfortunately, low prices and the unprecedented rise of the Canadian dollar
have resulted in low revenues. Combine the low revenues with some operational
issues at the Wolverine mine and these expectations have not been met. We
believe we have identified the operational issues and have moved quickly to
rectify the situation. Tangible results will not be immediate, however our
goal is to be back on track by the 2008 fiscal year end.
This turnaround will coincide with expected strong coal prices for the
2008 coal year, which will commence April 1, 2008. With recent hard coking and
PCI coal sales at US$ 35 per tonne higher than current contract prices, we are
optimistic about significant coal price increases in the coming year.
Most importantly, your Company's coal has been well received in the
market place. We are currently near completion in negotiating long-term
contracts with several major global steel mills which will provide continued
While financial results may be viewed as poor in the near term, we are
optimistic about the upcoming coal year and will continue to manage the
company to maximize shareholder value for the long-term."
Copies of the annual report, notice of annual general meeting and the
letter to shareholders can be found on the Company's website:
This release may contain forward-looking statements that may involve
risks and uncertainties. Such statements relate to the Company's expectations,
intentions, plans and beliefs. As a result, actual future events or results
could differ materially from those suggested by the forward-looking
statements. Readers are referred to the documents filed by the Company on
SEDAR. Such risk factors include, but are not limited to, changes in commodity
prices; strengths of various economies; the effects of competition and pricing
pressures; the oversupply of, or lack of demand for, the Company's products;
currency and interest rate fluctuations; various events which could disrupt
operations; the Company's ability to obtain additional funding on favourable
terms, if at all; and the Company's ability to anticipate and manage the
foregoing factors and risks. Additionally, statements related to the quantity
or magnitude of coal deposits are deemed to be forward-looking statements. The
reliability of such information is affected by, among other things,
uncertainties involving geology of coal deposits; uncertainties of estimates
of their size or composition; uncertainties of projections related to costs of
production; the possibilities in delays in mining activities; changes in plans
with respect to exploration, development projects or capital expenditures; and
various other risks including those related to health, safety and
WESTERN CANADIAN COAL CORP.
"John W. Hogg"
President and Chief Executive Officer
ABOUT WESTERN CANADIAN COAL
Western Canadian Coal Corp. produces 3.4 million tonnes of high quality
metallurgical coal from two mines located in the northeast of British
Columbia. The company also has interests in various coal properties in
northern and southern British Columbia and a 50% interest in the Belcourt
Saxon Limited Partnership, which was formed to explore and develop the
Belcourt and Saxon group of properties in northern BC. Currently, these
properties provide the company with an estimated 25 years of coal reserves.
The Company's shares are traded on the Toronto Stock Exchange (TSX: WTN) and
the Alternative Investment Market of the London Stock Exchange (AIM: WTN).
For further information:
For further information: David Jan, Manager, Investor Relations and
Corporate Development, firstname.lastname@example.org