Metallurgical coal sales volume increases
141% for the full year 2017 compared to 2016 levels
Record level of profitability achieved for
Corsa
Organic growth story on track with second
new mine expected to be put into production this month
CANONSBURG, PA, March 13,
2018 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa"), a premium
quality metallurgical coal producer, today reported financial
results for the three months and full year ended December 31,
2017. Corsa has filed its audited consolidated financial
statements for the years ended December 31, 2017 and 2016,
related management's discussion and analysis and its annual
information form under its profile on www.sedar.com. Corsa
also announced the completion of the sale of its Central Appalachia
division as previously announced on March 7,
2018.
Unless otherwise noted, all dollar amounts in this news release
are expressed in United States
dollars and all ton amounts are short tons (2,000 pounds per
ton). Pricing and cost per ton information is expressed on a
free-on-board, or FOB, mine site basis, unless otherwise
noted.
Fourth Quarter and Full Year 2017 Highlights
- Corsa reported net and comprehensive income of $62.2 million, or $0.56 per share, for the fourth quarter of 2017,
compared to net and comprehensive loss of $10.7 million, or $0.13 per share, for the fourth quarter of 2016.
For the year ended December 31, 2017,
Corsa reported net and comprehensive income of $83.7 million, or $0.72 per share, compared to net and
comprehensive loss of $34.1 million,
or $0.44 per share, for the year
ended December 31, 2016.
-
- Corsa's net and comprehensive income for the fourth quarter and
full year 2017 was impacted by a net asset impairment reversal of
$66.2 million which is primarily due
to the improvement in the metallurgical coal market partially
offset by an impairment charge at the CAPP Division as a result of
the divestiture that occurred in 2018.
- Operating cash flows for the fourth quarter and year ended
December 31, 2017 were $6.3 million and $31.1
million, respectively compared to cash provided operations
of $4.0 million for the fourth
quarter 2016 and cash used in operations of $2.7 million for the year ended December 31, 2016.
- Total revenue was $58.3 million
for the fourth quarter of 2017, an improvement of 54% as compared
to the fourth quarter 2016. Total revenue was $263.9 million for the year ended December 31, 2017, an improvement of 172% as
compared to the 2016 year. Metallurgical coal sales volumes
increased 41% compared to the fourth quarter of 2016 and 141%
compared to the 2016 full year.
- Corsa's adjusted EBITDA(1) was $9.4 million and $8.0
million at its NAPP Division and on a consolidated basis,
respectively, for the three months ended December 31, 2017 and $51.9 million and $47.3
million at its NAPP Division and on a consolidated basis,
respectively, for the year ended December
31, 2017.
- Corsa achieved an average realized price per ton of
metallurgical coal sold(1) at its NAPP Division of
$122.25 in the fourth quarter of
2017, an increase of 20% as compared to the fourth quarter of 2016.
This average realized price is the approximate equivalent of
$178 to $185 on a free-on-board vessel
basis(2) and is comprised of a mix of 24% sales to
domestic customers and 76% sales to international customers.
- The Acosta Mine successfully commenced production in early
June 2017. Conditions at the mine are
favorable and a fourth production shift was added in early 2018.
The mine has currently reached run-rate production levels this
month and is expected to produce 400,000 tons per year of low
volatile metallurgical coal.
- The Horning Mine is expected to begin production this month.
Located near Somerset,
Pennsylvania, the Horning Mine is expected to produce
approximately 125,000 to 180,000 tons per year of high quality, low
volatile metallurgical coal.
|
(1)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
|
(2)
|
Similar to most U.S.
metallurgical coal producers, Corsa reports sales and costs per ton
on an FOB mine site basis and denominated in short tons. Many
international metallurgical coal producers report prices and costs
on a delivered-to-the-port basis, thereby including freight costs
between the mine and the port. Additionally, Corsa reports
sales and costs per short ton, which is approximately 10% lower
than a metric ton. For the purposes of this figure, we have
used an illustrative freight rate of $30-$35 per short ton.
Historically, freight rates rise and fall as market prices rise and
fall. As a note, most published indices for metallurgical
coal report prices on a delivered-to-the-port basis and denominated
in metric tons.
|
George Dethlefsen, Chief
Executive Officer of Corsa, commented, "2017 was a year of
tremendous growth and record profitability for Corsa, driven by
volume growth across all of our metallurgical coal platforms and a
strong overall market environment for steel and metallurgical
coal.
A year ago, we laid out milestones related to increasing
production at our NAPP Division, expanding our Sales and Trading
platform, and increasing utilization at our preparation
plants. We accomplished all of these objectives in
2017. Overall, metallurgical coal sales at Corsa grew by
141%, we acquired several new international customers and one new
domestic customer, and we restarted our Shade Creek preparation
plant. We opened the Acosta Deep Mine in June of last year,
which is going well, we opened two surface mines and this month we
expect to begin production at the Horning Mine. In addition,
we expect to begin production at the Keyser deep mine, another low
volatile metallurgical coal mine in Somerset County, Pennsylvania in 2019.
The production from these three mines, in combination with
production from our existing mines, is anticipated to double
Corsa's low volatile metallurgical coal production in 2019 as
compared to 2017 levels.
The sale of our CAPP Division divests Corsa of its thermal coal
mining assets and establishes Corsa as a pure play metallurgical
coal producer. This move enables our team to focus its time
and resources exclusively on our metallurgical growth initiatives
and avoids future environmental liabilities and end-of-mine closure
costs in Tennessee.
In the fourth quarter 2017, we had multiple shipments delayed by
weather disruptions to the export logistics chain, thereby
impacting metallurgical sales volumes and profitability. We
are optimistic that these issues will get resolved in the near
term. Our outlook for the future remains bullish. The
steel and coke markets globally are very healthy, creating strong
demand for our product. Domestically, steel prices are
soaring, which has already stimulated incremental steel production
and incremental demand for metallurgical coal. Supply for
metallurgical coal remains tight globally, particularly for the
premium qualities. We remain focused on all four aspects of
our growth strategy, including the development of our permitted
mines, exploration and permitting efforts, investing in our Sales
and Trading platform and pursuing acquisitions."
Fourth Quarter 2017 Sales Metrics
Metallurgical Coal Sales Volume
Corsa's metallurgical coal sales in fourth quarter 2017 were
341,578 tons, an increase of 42% from fourth quarter 2016
levels. Full year 2017 metallurgical coal sales volumes were
up 141% as compared to 2016 levels. A twelve month history of
Corsa's metallurgical coal sales volumes is presented below.
Corsa's metallurgical coal sales figures are comprised of three
types of sales: (i) selling coal that Corsa produces ("Company
Produced"); (ii) selling coal that Corsa purchases and provides
value added services (storing, washing, blending, loading) to make
the coal saleable ("Valued Added Services"); and (iii) selling coal
that Corsa purchases on a clean or finished basis from suppliers
outside the Northern Appalachia region ("Sales and Trading").
For the full year of 2017, Corsa's sales were broken down into the
following categories.
|
Metallurgical Coal
Sales by Category (Tons)
|
|
Q1
2017
|
|
Q2
2017
|
|
Q3
2017
|
|
Q4
2017
|
|
2017
YTD
|
|
Company
Produced
|
196,777
|
|
194,075
|
|
248,798
|
|
172,255
|
|
811,905
|
|
Purchased - Value
Added Services
|
63,940
|
|
79,523
|
|
81,115
|
|
92,257
|
|
316,835
|
|
Purchased - Sales and
Trading
|
34,545
|
|
124,267
|
|
245,167
|
|
77,066
|
|
481,045
|
|
Total
|
295,262
|
|
397,865
|
|
575,080
|
|
341,578
|
|
1,609,785
|
Financial and Operations Summary
|
|
For the three
months ended
|
|
For the years
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
|
2017
|
|
2016
|
|
(Decrease)
|
|
2017
|
|
2016
|
|
(Decrease)
|
|
Revenues
|
|
$
|
58,283
|
|
$
|
37,728
|
|
$
|
20,555
|
|
$
|
263,932
|
|
$
|
96,986
|
|
$
|
166,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
|
$
|
9,300
|
|
$
|
42,291
|
|
$
|
(32,991)
|
|
$
|
157,146
|
|
$
|
110,170
|
|
$
|
46,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
|
$
|
4,785
|
|
$
|
4,208
|
|
$
|
577
|
|
$
|
17,897
|
|
$
|
13,234
|
|
$
|
4,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
income (loss) for the period
|
|
$
|
62,234
|
|
$
|
(10,685)
|
|
$
|
72,919
|
|
$
|
83,684
|
|
$
|
(34,140)
|
|
$
|
117,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities
|
|
$
|
6,313
|
|
$
|
3,991
|
|
$
|
2,322
|
|
$
|
31,067
|
|
$
|
(2,719)
|
|
$
|
33,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
8,010
|
|
7,239
|
|
771
|
|
47,319
|
|
5,358
|
|
41,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
322
|
|
242
|
|
80
|
|
1,475
|
|
669
|
|
806
|
|
NAPP – thermal
coal
|
|
49
|
|
66
|
|
(17)
|
|
215
|
|
235
|
|
(20)
|
|
CAPP – thermal
coal
|
|
146
|
|
151
|
|
(5)
|
|
539
|
|
499
|
|
40
|
|
CAPP – metallurgical
coal
|
|
20
|
|
—
|
|
20
|
|
135
|
|
—
|
|
135
|
|
Total
|
|
537
|
|
459
|
|
78
|
|
2,364
|
|
1,403
|
|
961
|
|
(1) This
is a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
|
(2) Cost
of sales consists of the following:
|
|
|
For the three
months ended
|
|
For the years
ended
|
|
|
December
31,
|
|
December
31,
|
|
(in
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Mining and processing
costs
|
|
$
|
20,591
|
|
$
|
18,407
|
|
$
|
85,176
|
|
$
|
62,875
|
|
Purchased coal
costs
|
|
17,835
|
|
5,376
|
|
80,937
|
|
8,459
|
|
Royalty
expense
|
|
1,927
|
|
1,721
|
|
8,186
|
|
5,561
|
|
Amortization
expense
|
|
3,390
|
|
7,000
|
|
15,808
|
|
18,884
|
|
Transportation costs
from preparation plant to customer
|
|
5,210
|
|
1,178
|
|
23,498
|
|
4,097
|
|
Idle mine
expense
|
|
112
|
|
579
|
|
1,072
|
|
1,658
|
|
Tolling
costs
|
|
725
|
|
—
|
|
1,533
|
|
38
|
|
Change in estimate of
reclamation provision
|
|
6,347
|
|
2,769
|
|
6,199
|
|
2,769
|
|
Impairment
adjustments of mineral properties
|
|
(66,224)
|
|
—
|
|
(66,224)
|
|
—
|
|
Write-off of advance
royalties and other assets
|
|
12
|
|
997
|
|
315
|
|
1,228
|
|
Obsolete inventory
reserve
|
|
—
|
|
3,523
|
|
—
|
|
3,523
|
|
Other
costs
|
|
775
|
|
741
|
|
646
|
|
1,078
|
|
|
$
|
(9,300)
|
|
$
|
42,291
|
|
$
|
157,146
|
|
$
|
110,170
|
|
For the three
months ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
Variance
|
|
2017
|
|
2016
|
|
Variance
|
|
Realized price per
ton sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal(1)
|
$
|
122.25
|
|
$
|
101.99
|
|
$
|
20.26
|
|
$
|
125.56
|
|
$
|
79.66
|
|
$
|
45.90
|
|
NAPP – thermal
coal(1)
|
$
|
46.31
|
|
$
|
45.20
|
|
$
|
1.11
|
|
$
|
45.01
|
|
$
|
40.85
|
|
$
|
4.16
|
|
CAPP – thermal and
metallurgical coal(1)
|
$
|
59.54
|
|
$
|
58.83
|
|
$
|
0.71
|
|
$
|
62.37
|
|
$
|
59.95
|
|
$
|
2.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal(1)(2)
|
$
|
89.23
|
|
$
|
67.05
|
|
$
|
(22.18)
|
|
$
|
74.18
|
|
$
|
62.39
|
|
$
|
(11.79)
|
|
NAPP – thermal
coal(1)(2)
|
$
|
39.76
|
|
$
|
37.74
|
|
$
|
(2.02)
|
|
$
|
41.56
|
|
$
|
42.83
|
|
$
|
1.27
|
|
CAPP – thermal and
metallurgical coal(1)
|
$
|
57.89
|
|
$
|
44.95
|
|
$
|
(12.94)
|
|
$
|
60.54
|
|
$
|
50.29
|
|
$
|
(10.25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal(1)(3)
|
$
|
89.43
|
|
$
|
67.05
|
|
$
|
(22.38)
|
|
$
|
84.45
|
|
$
|
62.39
|
|
$
|
(22.06)
|
|
NAPP – thermal
coal(1)(3)
|
$
|
39.76
|
|
$
|
37.74
|
|
$
|
(2.02)
|
|
$
|
41.56
|
|
$
|
42.83
|
|
$
|
1.27
|
|
CAPP – thermal and
metallurgical coal(1)
|
$
|
57.89
|
|
$
|
44.95
|
|
$
|
(12.94)
|
|
$
|
60.54
|
|
$
|
50.29
|
|
$
|
(10.25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal(1)
|
$
|
32.82
|
|
$
|
34.94
|
|
$
|
(2.12)
|
|
$
|
41.11
|
|
$
|
17.27
|
|
$
|
23.84
|
|
NAPP – thermal
coal(1)
|
$
|
6.55
|
|
$
|
7.46
|
|
$
|
(0.91)
|
|
$
|
3.45
|
|
$
|
(1.98)
|
|
$
|
5.43
|
|
CAPP – thermal and
metallurgical coal(1)
|
$
|
1.65
|
|
$
|
13.88
|
|
$
|
(12.23)
|
|
$
|
1.83
|
|
$
|
9.66
|
|
$
|
(7.83)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
|
9,392
|
|
$
|
6,663
|
|
$
|
2,729
|
|
$
|
51,883
|
|
$
|
5,359
|
|
$
|
46,524
|
|
CAPP
|
(120)
|
|
1,486
|
|
(1,606)
|
|
(473)
|
|
3,329
|
|
(3,802)
|
|
Corporate
|
(1,262)
|
|
(910)
|
|
(352)
|
|
(4,091)
|
|
(3,330)
|
|
(761)
|
|
Total
|
$
|
8,010
|
|
$
|
7,239
|
|
$
|
771
|
|
$
|
47,319
|
|
$
|
5,358
|
|
$
|
41,961
|
|
(1) This
is a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
|
(2) Cash
production cost per ton sold excludes purchased coal. This
Non-GAAP financial measure is defined in more detail in "Non-GAAP
Financial Measures" below.
|
|
(3) Cash
cost per ton sold includes purchased coal. This Non-GAAP
financial measure is defined in more detail in "Non-GAAP Financial
Measures" below.
|
Guidance(1)
Corsa's updated guidance for the year ending December 31, 2018 is as follows:
|
|
|
|
(all dollar
amounts in U.S. dollars and tonnage in short tons)
|
|
Full Year
2018
|
|
|
|
|
Metallurgical Coal
Sales Tons(2)
|
|
|
|
|
Company
Produced
|
|
1.1 - 1.3 million
short tons
|
|
|
Purchased - Value
Added Services
|
|
0.3 - 0.4 million
short tons
|
|
|
Purchased - Sales and
Trading
|
|
0.7 - 1.1 million
short tons
|
|
Total Metallurgical
Coal Sales Tons
|
|
2.1 - 2.8 million
short tons
|
|
|
|
|
Share of
Metallurgical Coal Sales Tons
|
|
|
|
|
% Domestic Sales at
the mid-point
|
|
19%
|
|
|
% Export Sales at the
mid-point
|
|
81%
|
|
|
|
|
Metallurgical Coal
Sales Tons Commitments(4)
|
|
|
|
|
Committed at the
mid-point
|
|
73%
|
|
|
Committed and Priced
at the mid-point
|
|
42%
|
|
|
|
|
Cash Production
Cost per ton sold (FOB Mine)
|
|
|
|
|
NAPP Division
Metallurgical Coal(3)(4)
|
|
$70 - $74 per short
ton
|
|
|
CAPP Division
Metallurgical and Thermal Coal(3)
|
|
$64 - $70 per short
ton
|
|
|
|
|
General and
Administrative Expenses(5)
|
|
|
|
|
NAPP
Division
|
|
$8.0 - $10.0
million
|
|
|
CAPP
Division
|
|
< $1.0
million
|
|
|
Corporate
Division
|
|
$5.0 - $7.0
million
|
|
Total
Corsa
|
|
$13.0 - $17.0
million
|
|
|
|
|
Note: Selling
expenses are forecasted to be covered by margins from Sales and
Trading tons sold.
|
|
|
|
|
Maintenance
Capital Expenditures per ton sold(6)
|
|
|
|
|
2018 Full
Year
|
|
$7 per short ton
sold
|
|
|
2018-2020 Forecasted
Average
|
|
$3-$4 per short ton
sold
|
|
(1)
|
Guidance projections
("Guidance") are considered "forward-looking statements" and
"forward looking information" and represent management's good faith
estimates or expectations of future production and sales results as
of the date hereof. Guidance is based upon certain
assumptions, including, but not limited to, future cash production
costs, future sales and production and the availability of coal
from other suppliers that the Company may purchase. Such
assumptions may prove to be incorrect and actual results may differ
materially from those anticipated. Consequently, Guidance
cannot be guaranteed. As such, investors are cautioned not to
place undue reliance upon Guidance, forward-looking statements and
forward looking information as there can be no assurance that the
plans, assumptions or expectations upon which they are placed will
occur.
|
|
(2)
|
Corsa's metallurgical
coal sales figures are comprised of three types of sales: (i)
selling coal that Corsa produces ("Company Produced"); (ii) selling
coal that Corsa purchases and provides value added services
(storing, washing, blending, loading) to make the coal saleable
("Value Added Services"); and (iii) selling coal that Corsa
purchases on a clean or finished basis from suppliers outside the
Northern Appalachia region ("Sales and Trading").
|
|
(3)
|
This is a non-GAAP
financial measure. See "Cautionary Statement Regarding
Certain Measures of Performance" above for more
information.
|
|
(4)
|
Cash Production Cost
per ton sold excludes purchased coal.
|
|
(5)
|
Exclusive of
stock-based compensation and selling related commissions, bank fees
and finance charges.
|
|
(6)
|
Tons sold excludes
purchased coal used in the Sales and Trading platform.
|
Coal Pricing Trends and Outlook
NAPP Division
Following a softening price environment in the early part of the
fourth quarter of 2017, strong demand and a tight supply worked
together to support increased spot prices for low volatile
metallurgical coal prices both in the fourth quarter of 2017 and
well into 2018. The global metallurgical coal market remains
tight, with little high quality met coal available for
purchase. Fourth quarter 2017 logistics issues led to long
vessel queues in Australia and a
resulting premium for high quality metallurgical coal cargos.
Severe weather on the United
States east coast also disrupted coal mining operations,
limited railroad activities, and shut down export terminals late in
the quarter putting additional upward pressure on spot
prices. Chinese domestic metallurgical coal prices remain
elevated due to strong steel production and government policy
initiatives to decrease coal production capacity and consolidate
coal production. The forward curve for low volatile
metallurgical coal prices for calendar 2018 is supported by high
levels of steel production globally, including the Indian market
which is poised to become the world's second largest steel
producing country. Steel production in the United States also remains strong with
continued economic growth, the potential for significant
infrastructure spending, and the recent steel trade actions which
have lifted prices and profitability for the steel producers.
We continue to see high levels of interest for low, medium, and
high vol coals from our international customers.
The NAPP Division's geographic proximity to over 50% of domestic
coke production capacity and short rail distance and multiple
options to access the Maryland and
Virginia export terminals solidify
Corsa's ability to serve both domestic and international
customers. Our Sales and Trading platform operations also
give us the ability to market a greater variety of products, access
more users and increases our ability to respond to sales
opportunities.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's audited consolidated financial statements for
the years ended December 31, 2017 and 2016 and related
management's discussion and analysis, filed under Corsa's profile
on www.sedar.com, for details of the financial performance of Corsa
and the matters referred to in this news release.
Non-GAAP Financial Measures
Management uses realized price per ton sold, cash production
cost per ton sold, cash cost per ton sold, cash margin per ton sold
and adjusted EBITDA as internal measurements of financial
performance for Corsa's mining and processing operations.
These measures are not recognized under International Financial
Reporting Standards ("GAAP"). Corsa believes that, in
addition to the conventional measures prepared in accordance with
GAAP, certain investors and other stakeholders also use these
non-GAAP financial measures to evaluate Corsa's operating and
financial performance; however, these non-GAAP financial measures
do not have any standardized meaning and therefore may not be
comparable to similar measures presented by other issuers.
Accordingly, these non-GAAP financial measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP. Reference is made to the
management's discussion and analysis for the three months and full
year ended December 31, 2017 for a reconciliation and
definitions of non-GAAP financial measures to GAAP measures.
Corsa defines adjusted EBITDA as EBITDA (earnings before
deductions for interest, taxes, depreciation and amortization)
adjusted for change in estimate of reclamation provision for
non-operating properties, impairment and write-off of mineral
properties and advance royalties, gain (loss) on sale of assets and
other costs, stock-based compensation, non-cash finance expenses
and other non-cash adjustments. Adjusted EBITDA is used as a
supplemental financial measure by management and by external users
of our financial statements to assess our performance as compared
to the performance of other companies in the coal industry, without
regard to financing methods, historical cost basis or capital
structure; the ability of our assets to generate sufficient cash
flow; and our ability to incur and service debt and fund capital
expenditures. Management also uses adjusted EBITDA for the
purposes of making decisions to allocate resources among segments
or assessing segment performance.
Qualified Person
All scientific and technical information contained in this news
release has been reviewed and approved by Peter V. Merritts, Professional Engineer and the
Company's President - NAPP Division,
who is a qualified person within the meaning of National Instrument
43-101 - Standards of Disclosure for Mineral Projects.
Caution
The estimated coal sales, projected market conditions and
potential development 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 sales 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 a coal mining company focused on the production and
sales of metallurgical coal, an essential ingredient in the
production of steel. Our core business is producing and selling
metallurgical coal to domestic and international steel and coke
producers in the Atlantic and Pacific basin markets.
Earnings Call
Members of management will host a conference call on
Wednesday, March 14, 2018 at
4:00 p.m. (Eastern time) to discuss
the Company's results. To access the call from Canada and the U.S., dial 1.888.231.8191
(Toll Free). To access the
call from other locations, dial 1.647.427.7450 (International)
The live webcast will be available at:
http://event.on24.com/wcc/r/1610371-1/93BCB05E3664914CBD0515B74E91E107
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 relating to projected sales, coal prices, coal
production, mine development, the capacity and recovery of Corsa's
preparation plants, expected cash production costs, geological
conditions, future capital expenditures and expectations of market
demand for coal, 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", "capacity", "hope", "forecast", "anticipate", "could" 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 2018 fiscal year will be less
than projected production or sales for this period; risks that the
prices for coal sales will be less than projected; liabilities
inherent in coal mine development and production; 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 preparation plants will not operate at
production capacity during the relevant period, unexpected changes
in coal quality and specification; variations in the coal mine or
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
labor 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 in the countries in
which 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 initiatives. 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 the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Corsa Coal Corp.
