CANONSBURG, PA, Aug. 28,
2018 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the
"Company"), a premium quality metallurgical coal producer, today
reported financial results for the three and six months ended
June 30, 2018. Corsa has filed its unaudited condensed interim
consolidated financial statements for the three and six months
ended June 30, 2018 and 2017 and related management's
discussion and analysis under its profile on www.sedar.com.
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.
Second Quarter Highlights
- Corsa reported net and comprehensive loss from continuing
operations of $4.9 million, or
$0.05 per share, for the second
quarter 2018, compared to net and comprehensive income from
continuing operations of $5.7
million, or $0.04 per share,
for the second quarter 2017.
- Operating cash flows used in continuing operations for the
second quarter 2018 were $4.6 million
compared to operating cash flows from continuing operations of
$3.0 million for the second quarter
2017.
- Total revenue from continuing operations was $57.3 million for the second quarter 2018, an
improvement of 6% as compared to the second quarter 2017.
- Corsa's adjusted EBITDA(1) was $5.7 million and $4.3
million at its Northern Appalachia division ("NAPP" or "NAPP
Division") and on a consolidated basis, respectively, for the
second quarter 2018. Corsa's EBITDA(1) was $4.5 million and $2.3
million at its NAPP Division and on a consolidated basis,
respectively, for the second quarter 2018.
- Corsa sold a total of 392,334 tons of metallurgical coal in the
second quarter 2018. On a first half year-to-date basis, low
volatile metallurgical coal sales volumes are up 25% versus first
half 2017 levels, and total metallurgical sales volumes are up 45%
as compared to the first half of 2017. This growth has been
accomplished despite significant supply chain disruptions to export
terminals and rail service.
- Corsa achieved an average realized price per ton of
metallurgical coal sold(1) at its NAPP Division of
$115.52 for all metallurgical
qualities in the second quarter 2018, this average realized price
is the approximate equivalent of $160
to $166 on an FOB vessel
basis(2) and is comprised of a mix of 25% sales to
domestic customers and 75% sales to international customers.
- At the Casselman mine, a
successful transition was made from February through June to cross
under a stream and access the northeast reserve base. This
transition, which is now completed, required using extra roof
support and other measures which limited production and increased
mining costs.
- The Acosta mine achieved its
full forecasted production run-rate in June, as goals related to
staffing levels, mining equipment deliveries and regulatory
approvals have been met.
|
(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, "Metallurgical coal and
steel markets remain very healthy as forward pricing for exports
appears strong through 2019 and domestic prices are poised to rise
in 2019. Corsa continued to pursue its operational and sales growth
objectives during the second quarter. In the second quarter, we
invested heavily in our operations to remain on track for our
growth projections. Multiple operational milestones were achieved
in the quarter which are expected to have a positive effect on the
long-term value of the mine, but had short-term negative effects on
profitability given the mining conditions that were involved.
At our flagship Casselman mine,
we have now successfully made the connection to the northeastern
reserve base. This required mining under a stream and
incurring additional roof support costs and slower mining advance
from February through June. Because this travel way will be used
daily for years, we undertook additional operational measures to
ensure the long-term integrity of this area. We have now
successfully mined through this area and have returned to using
conventional mining techniques. At our Acosta mine, during the second quarter, we
continued our ramp up of the mine. In June we completed this
effort, with June production reaching full run-rate levels. All
phases of the ramp up are finalized, including staffing, regulatory
approvals, equipment deliveries, and mining a significant portion
of the main travel way for the mine. Similar to Casselman, in July and August, productivity
and operating costs have been reflective of conventional mining
techniques. Developing a new reserve area at Casselman and ramping up Acosta are major accomplishments that are
expected to pay dividends in future periods. We have experienced
more favorable geology and mining conditions at both Acosta and Casselman in the third quarter and expect this
trend to continue in the quarters ahead.
With our mining equipment upgrade cycle completed as of this
month, we believe we have positioned the company very well for the
years ahead. We now have three underground mines (Casselman, Acosta, and Horning) with long-term reserve
life and a full complement of rebuilt or new equipment. This will
reduce maintenance capital expenditures in the coming years and
will also improve productivity underground. Corsa's cash
position at the end of the quarter was impacted by our mining
equipment upgrade investment, timing of export customer receipts,
geologic conditions at Casselman,
the Acosta mine ramp-up and
demurrage expenses related to port congestion. We forecast positive
free cash flow for the remainder of the year as cash mining costs
return to expected levels and the mining equipment upgrades have
been finished.
Our customers' end markets remain very strong, particularly
domestically, where steel prices are near 10-year highs and steel
production is expected to increase in the second half of this year
and into 2019. We are currently in a sold out position through
November and for the year are 94% committed with our existing order
book. The domestic low volatile metallurgical coal market is
particularly tight, as production interruptions at existing
operations have recently impacted supply. Globally, the supply
chain is stretched thin and metallurgical coal producers continue
to experience problems in getting their coal to market. Port
congestion and rail service continue to be industry-wide problems.
In the second quarter, Corsa incurred $1.5
million of demurrage expense and had several trains pushed
into the third quarter. Metallurgical coal demand is robust,
which has supported both spot pricing as well as the forward
outlook for prices, which is currently at healthy levels for the
coming years.
We have a positive outlook for our business and believe that we
are now well positioned with our mining operations and sales to
capitalize on a very strong steel and metallurgical coal
market."
Second Quarter 2018 Sales Metrics
Metallurgical Coal Sales Volume
Corsa's metallurgical coal sales in second quarter 2018 were
392,334 tons, an increase of 6% from second quarter 2017 levels. An
eighteen-month history of Corsa's metallurgical coal sales volumes,
adjusted for discontinued operations, is presented above.
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 six months ended June 30, 2018, Corsa's sales were broken down
into the following categories.
|
Metallurgical Coal
Sales by Category (Tons)
|
|
|
Q1
2018
|
|
Q2
2018
|
|
YTD
2018
|
|
Company
Produced
|
|
242,511
|
|
194,051
|
|
436,562
|
|
Purchased - Value
Added Services
|
|
145,856
|
|
88,393
|
|
234,249
|
|
Purchased - Sales and
Trading
|
|
169,354
|
|
109,890
|
|
279,244
|
|
Total
|
|
557,721
|
|
392,334
|
|
950,055
|
Financial and Operations Summary
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
|
2018
|
|
2017
|
|
(Decrease)
|
|
2018
|
|
2017
|
|
(Decrease)
|
|
Revenues
|
|
$
|
57,331
|
|
$
|
54,338
|
|
$
|
2,993
|
|
$
|
137,779
|
|
$
|
106,717
|
|
$
|
31,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
|
$
|
55,097
|
|
$
|
42,540
|
|
$
|
12,557
|
|
$
|
125,826
|
|
$
|
79,419
|
|
$
|
46,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
|
$
|
5,100
|
|
$
|
3,598
|
|
$
|
1,502
|
|
$
|
11,557
|
|
$
|
7,314
|
|
$
|
4,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
(loss) income for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the period from
continuing operations
|
|
$
|
(4,889)
|
|
$
|
5,665
|
|
$
|
(10,554)
|
|
$
|
(2,932)
|
|
$
|
17,534
|
|
$
|
(20,466)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (used in)
provided by operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
activities from
continuing operations
|
|
$
|
(4,556)
|
|
$
|
3,001
|
|
$
|
(7,557)
|
|
$
|
3,215
|
|
$
|
17,895
|
|
$
|
(14,680)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
4,305
|
|
$
|
11,264
|
|
$
|
(6,959)
|
|
$
|
15,166
|
|
$
|
27,418
|
|
$
|
(12,252)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
392
|
|
370
|
|
22
|
|
950
|
|
665
|
|
285
|
|
|
|
(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 six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
(in
thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Mining and processing
costs
|
|
$
|
17,107
|
|
$
|
11,251
|
|
$
|
37,447
|
|
$
|
24,261
|
|
Purchased coal
costs
|
|
20,146
|
|
19,982
|
|
48,561
|
|
34,159
|
|
Royalty
expense
|
|
1,041
|
|
1,441
|
|
3,124
|
|
3,310
|
|
Amortization
expense
|
|
6,233
|
|
2,895
|
|
12,422
|
|
6,143
|
|
Transportation costs
from preparation plant to customer
|
|
9,884
|
|
6,403
|
|
22,785
|
|
9,398
|
|
Idle mine
expense
|
|
131
|
|
233
|
|
240
|
|
548
|
|
Tolling
costs
|
|
696
|
|
355
|
|
1,131
|
|
355
|
|
Write-off of advance
royalties and other assets
|
|
—
|
|
112
|
|
5
|
|
170
|
|
Other
costs
|
|
(141)
|
|
(132)
|
|
111
|
|
1,075
|
|
|
$
|
55,097
|
|
$
|
42,540
|
|
$
|
125,826
|
|
$
|
79,419
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2018
|
|
2017
|
|
Variance
|
|
2018
|
|
2017
|
|
Variance
|
|
Realized price per
ton sold(1)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
115.52
|
|
$
|
121.77
|
|
$
|
(6.25)
|
|
$
|
117.25
|
|
$
|
137.01
|
|
$
|
(19.76)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
93.46
|
|
$
|
65.34
|
|
$
|
(28.12)
|
|
$
|
92.49
|
|
$
|
70.04
|
|
$
|
(22.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
97.65
|
|
$
|
82.40
|
|
$
|
(15.25)
|
|
$
|
93.64
|
|
$
|
85.08
|
|
$
|
(8.56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
17.87
|
|
$
|
39.37
|
|
$
|
(21.50)
|
|
$
|
23.61
|
|
$
|
51.93
|
|
$
|
(28.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
|
$
|
5,660
|
|
$
|
12,059
|
|
$
|
(6,399)
|
|
$
|
17,879
|
|
$
|
29,263
|
|
$
|
(11,384)
|
|
Corporate
|
|
(1,355)
|
|
(795)
|
|
(560)
|
|
(2,713)
|
|
(1,845)
|
|
(868)
|
|
Total
|
|
$
|
4,305
|
|
$
|
11,264
|
|
$
|
(6,959)
|
|
$
|
15,166
|
|
$
|
27,418
|
|
$
|
(12,252)
|
|
|
|
(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 is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
|
(3)
|
Cash cost per ton
sold includes purchased coal. This is a non-GAAP financial
measure. See "Non-GAAP Financial Measures" below.
|
|
(4)
|
In light of the
divestiture of the Company's Central Appalachia division, the
Company has decided to no longer highlight non-GAAP measures
related to thermal coal as this type of coal no longer represents a
material portion of the Company's business. See "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)
|
|
Updated
Guidance
Full Year 2018
|
|
Previous
Guidance(2)
Full Year 2018
|
|
Change to
Previous
Guidance
|
|
|
|
|
|
|
|
|
Metallurgical Coal
Sales Tons(3)
|
|
|
|
|
|
|
|
|
Company
Produced
|
|
1.0
million
|
|
1.0 - 1.2
million
|
|
0.0 - (0.2)
million
|
|
|
Purchased - Value
Added Services
|
|
0.4 - 0.5
million
|
|
0.4 - 0.5
million
|
|
—
|
|
|
Purchased - Sales and
Trading
|
|
0.7 - 0.8
million
|
|
0.7 - 1.1
million
|
|
0.0 - (0.3)
million
|
|
Total Metallurgical
Coal Sales
Tons
|
|
2.1 - 2.3
million
|
|
2.1 - 2.8
million
|
|
0.0 - (0.5)
million
|
|
|
|
|
|
|
|
|
Share of
Metallurgical Coal Sales Tons
|
|
|
|
|
|
|
|
|
% Domestic Sales at
the mid-point
|
|
27%
|
|
21%
|
|
6%
|
|
|
% Export Sales at the
mid-point
|
|
73%
|
|
79%
|
|
(6)%
|
|
|
|
|
|
|
|
|
Metallurgical Coal
Sales Tons Commitments(7)
|
|
|
|
|
|
|
Committed at the
mid-point
|
|
94%
|
|
80%
|
|
14%
|
|
|
Committed and Priced
at the mid-point
|
|
79%
|
|
61%
|
|
18%
|
|
|
|
|
|
|
|
|
Cash Production
Cost per ton sold (FOB Mine)(4)
|
|
|
|
|
|
|
NAPP Division
Metallurgical Coal(5)
|
|
$82 - $84
|
|
$78 - $82
|
|
$4 - $2
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses(6)
|
|
|
|
|
|
|
|
|
NAPP
Division
|
|
$9.0 - $10.0
million
|
|
$8.0 - $10.0
million
|
|
$1.0 - $0.0
million
|
|
|
Corporate
Division
|
|
$6.5 - $7.0
million
|
|
$5.0 - $7.0
million
|
|
$1.5 - $0.0
million
|
|
Total
Corsa
|
|
$15.5 - $17.0
million
|
|
$13.0 - $17.0
million
|
|
$2.5 - $0.0
million
|
|
|
|
|
|
|
|
|
Note: Selling
expenses are forecasted to be covered by margins from Sales and
Trading tons sold.
|
|
|
|
|
|
|
|
|
Maintenance
Capital Expenditures per ton sold(7)
|
|
|
|
|
|
|
2018 Full
Year
|
|
$9
|
|
$9
|
|
—
|
|
|
2018-2020 Forecasted
Average
|
|
$4
|
|
$4
|
|
—
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Previous Guidance was
presented in the Company's MD&A for the three months ended
March 31, 2018 dated May 9, 2018.
|
|
(3)
|
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").
|
|
(4)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures" below for more
information.
|
|
(5)
|
Cash Production Cost
per ton sold excludes purchased coal.
|
|
(6)
|
Exclusive of
stock-based compensation and selling related commissions, bank fees
and finance charges.
|
|
(7)
|
Tons sold excludes
purchased coal used in the Sales and Trading platform.
|
Coal Pricing Trends and Outlook
Current market conditions continue to be supportive for
metallurgical coal demand globally and domestically. We expect
growing demand from our US customers as they expect to increase
blast furnace output in 2018 and 2019. US steel production is up
approximately 2.9% year-to-date ("YTD"). Spot inquiries from our US
customers indicate strong demand and further tightening supply
chains. As a result, several US buyers have moved up their
2019 buying process to earlier in the year.
Global steel demand remains strong as well and continues to
drive a healthy US export market. Global steel production is up 5%
YTD and has experienced 26 consecutive months of positive growth.
Global steel capacity utilization is approximately 78%.
China continues to hit daily steel
production records, and their production is up 6.3% YTD while
India is up 5.5% YTD. Corsa has
been able to benefit from the strong export market by accessing our
international customer base in conjunction with our Value Added
Services and Sales and Trading platforms. By utilizing these
platforms, we continue to access third party supplies that
complement our production to meet varied export requirements, as
well as expand our customer reach.
Throughout this year, we have witnessed extreme congestion at
ports which began due to extreme weather conditions and continued
as both thermal and metallurgical coal exports markets remained
strong. This has created bottlenecks throughout the domestic
and export supply chains. We continue to witness difficulties in
accessing qualified labor and adequate trucking capacity due to a
tight labor market. This is a manifestation of a strong US
economy and high demand for qualified workers driven by energy and
manufacturing. The international metallurgical coal price indices
are likely to remain volatile as the market digests the uncertainty
of trade discussions as well as the impact of limited supply growth
amidst transportation issues. Given these points, the forward
curve on international metallurgical coal price indices points
towards a constructive forward price environment and we expect
pricing to stay above the 90th percentile of the global marginal
cost curve over the coming quarters, which we believe to be
$150 per metric ton. As of
August 27, 2018, the calendar 2019
forward curve for premium low vol metallurgical coal is at a
midpoint of $182 per metric ton and
the calendar 2020 forward curve is at $168 per metric ton. This compares to a spot
price today of $183, suggesting that
the market expects to remain tight over the coming years.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's unaudited condensed interim consolidated
financial statements for the three and six months ended
June 30, 2018 and 2017 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 and six months ended
June 30, 2018 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, August 29, 2018 at
10:00 a.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:
https://event.on24.com/wcc/r/1824893/64AF3489BCDF149C9A4B4452F2846860
Forward-Looking Statements
Certain information set forth in this press release contains
"forward-looking statements" and "forward-looking
information" (collectively, "forward-looking statements")
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.
