FRIEDENS, Pa., March 1,
2022 /CNW/ - Corsa Coal Corp. (TSXV: CSO) (OTCQX: CRSXF) ("Corsa"
or the "Company"), a premium quality metallurgical coal producer,
today reported financial results for the three months and full year
ended December 31, 2021. Corsa has filed its audited
consolidated financial statements for the years ended
December 31, 2021 and 2020, related management's discussion
and analysis and its annual information form 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 ("FOB"), mine site basis, unless otherwise noted.
Fourth Quarter and Full Year 2021 Highlights
- Key financial results and operational statistics are shown
below:
|
|
Three months
ended
|
|
Years
ended
|
|
|
December
31,
|
|
December
31,
|
|
(in millions
except per share, per ton and sales tons)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net and comprehensive
income (loss)
|
|
$
|
2.8
|
|
$
|
(13.0)
|
|
$
|
1.4
|
|
$
|
(63.7)
|
|
Non-cash asset
impairment adjustment (included above)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(41.7)
|
|
Diluted earnings
(loss) per share
|
|
$
|
0.03
|
|
$
|
(0.13)
|
|
$
|
0.02
|
|
$
|
(0.60)
|
|
Cash provided by
(used in) operating activities
|
|
$
|
1.0
|
|
$
|
(0.2)
|
|
$
|
4.0
|
|
$
|
10.7
|
|
Total
revenue
|
|
$
|
40.1
|
|
$
|
16.8
|
|
$
|
131.5
|
|
$
|
128.5
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
2.0
|
|
$
|
(1.4)
|
|
$
|
9.0
|
|
$
|
4.4
|
|
EBITDA(1)
|
|
$
|
7.0
|
|
$
|
(9.2)
|
|
$
|
20.3
|
|
$
|
(41.8)
|
|
|
|
|
|
|
|
|
|
|
Average realized
price per ton of metallurgical coal sold(1)
|
|
$
|
131.64
|
|
$
|
82.03
|
|
$
|
105.81
|
|
$
|
81.77
|
|
Cash production cost
per ton sold(1)
|
|
$
|
101.65
|
|
$
|
77.11
|
|
$
|
87.07
|
|
$
|
71.24
|
|
|
|
|
|
|
|
|
|
|
Company produced
metallurgical coal sales tons
|
|
230,315
|
|
190,412
|
|
1,058,575
|
|
1,199,034
|
|
Purchased
metallurgical coal sales tons
|
|
47,612
|
|
3,674
|
|
79,445
|
|
172,956
|
|
Total metallurgical
coal sales tons
|
|
277,927
|
|
194,086
|
|
1,138,020
|
|
1,371,990
|
|
|
|
|
|
|
|
|
|
- Corsa's average realized price for the fourth quarter 2021 is
the approximate equivalent of between $195 to $200 per
metric ton on an FOB vessel basis(2). For the
fourth quarter 2021, Corsa's sales mix included 58% of sales to
domestic customers and 42% of sales to international
customers.
|
(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 (or "FOB vessel 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
$45-$50 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.
|
Kevin M. Harrigan, Interim
President and Chief Executive Officer of Corsa, commented, "Our
fourth quarter 2021 results reflect the continuation of the
challenging mining conditions and labor-related productivity issues
that we experienced in the second and third quarters of the
year. The second half of 2021 was one of the most challenging
periods in the history of our company for production and costs, but
I know that our talented team is committed to overcoming these
issues and is focused on the actions needed to return to normal
production levels and costs in 2022."
"Our results do reflect the impacts of significant issues that
are common across the coal mining and manufacturing
industries. The shortage of experienced and skilled labor and
increased COVID-19 related absenteeism have and continue to limit
our production capabilities. Our cash production costs were
driven higher by increased prices for purchased goods and services
as well as limited availability of outside labor, parts, and
supplies. The logistical performance issues that are common
across our industry alter or delay deliveries of coal to our
customers and impact our commercial results."
"Fortunately, in the fourth quarter of 2021, Corsa began to
realize stronger market prices for coal sales and materially
completed our fourth quarter 2021 contract commitments which were
made earlier in 2021 before the dramatic increase in metallurgical
coal prices. We expect to recognize the full impact of higher
priced sales in 2022 as realizations improve significantly over the
2021 contract and spot market prices, and believe that our focus,
actions and commitments will generate improved returns for our
shareholders."
Financial and Operations Summary
|
For the three
months ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
2021
|
|
2020
|
|
(Decrease)
|
|
2021
|
|
2020
|
|
(Decrease)
|
|
Revenues
|
$
|
40,050
|
|
$
|
16,835
|
|
$
|
23,215
|
|
$
|
131,475
|
|
$
|
128,486
|
|
$
|
2,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
$
|
36,128
|
|
$
|
26,900
|
|
$
|
9,228
|
|
$
|
128,366
|
|
$
|
144,402
|
|
$
|
(16,036)
|
|
Cost of sales - asset
impairment
|
-
|
|
-
|
|
-
|
|
-
|
|
41,684
|
|
(41,684)
|
|
Total cost of
sales(2)
|
$
|
36,128
|
|
$
|
26,900
|
|
$
|
9,228
|
|
$
|
128,366
|
|
$
|
186,086
|
|
$
|
(57,720)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
$
|
3,330
|
|
$
|
2,997
|
|
$
|
333
|
|
$
|
9,853
|
|
$
|
10,057
|
|
$
|
(204)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
income (loss) for the period
|
$
|
2,756
|
|
$
|
(13,042)
|
|
$
|
15,798
|
|
$
|
1,409
|
|
$
|
(63,723)
|
|
$
|
65,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities
|
$
|
979
|
|
$
|
(188)
|
|
$
|
1,167
|
|
$
|
3,955
|
|
$
|
10,694
|
|
$
|
(6,739)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
|
7,037
|
|
$
|
(9,249)
|
|
$
|
16,286
|
|
$
|
20,347
|
|
$
|
(41,812)
|
|
$
|
62,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$
|
1,996
|
|
$
|
(1,431)
|
|
$
|
3,427
|
|
$
|
8,963
|
|
$
|
4,390
|
|
$
|
4,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
278
|
|
194
|
|
84
|
|
1,138
|
|
1,372
|
|
(234)
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Mining and processing
costs
|
$
|
22,043
|
|
$
|
13,933
|
|
$
|
86,728
|
|
$
|
80,080
|
|
Purchased coal
costs
|
8,116
|
|
243
|
|
12,118
|
|
13,856
|
|
Royalty
expense
|
1,636
|
|
945
|
|
5,858
|
|
6,149
|
|
Amortization
expense
|
3,682
|
|
3,335
|
|
16,408
|
|
19,825
|
|
Transportation costs
from preparation plant to customer
|
2,356
|
|
401
|
|
6,650
|
|
13,236
|
|
Idle mine
expense
|
284
|
|
153
|
|
777
|
|
447
|
|
Tolling
costs
|
442
|
|
119
|
|
960
|
|
912
|
|
Change in estimate of
reclamation and water treatment provision
|
(3,310)
|
|
7,513
|
|
(3,310)
|
|
7,791
|
|
Limestone
costs
|
201
|
|
141
|
|
909
|
|
457
|
|
Write-off of advance
royalties and other assets
|
-
|
|
-
|
|
-
|
|
484
|
|
Other
costs
|
678
|
|
117
|
|
1,268
|
|
1,165
|
|
Cost of
sales
|
$
|
36,128
|
|
$
|
26,900
|
|
$
|
128,366
|
|
$
|
144,402
|
|
Cost of sales - asset
impairment
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
41,684
|
|
Total cost of
sales
|
$
|
36,128
|
|
$
|
26,900
|
|
$
|
128,366
|
|
$
|
186,086
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
Variance
|
|
2021
|
|
2020
|
|
Variance
|
|
Realized price per
ton sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
|
131.64
|
|
$
|
82.03
|
|
$
|
49.61
|
|
$
|
105.81
|
|
$
|
81.77
|
|
$
|
24.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
|
101.65
|
|
$
|
77.11
|
|
$
|
(24.54)
|
|
$
|
87.07
|
|
$
|
71.24
|
|
$
|
(15.83)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
|
113.61
|
|
$
|
76.77
|
|
$
|
(36.84)
|
|
$
|
90.50
|
|
$
|
72.35
|
|
$
|
(18.15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
|
18.03
|
|
$
|
5.26
|
|
$
|
12.77
|
|
$
|
15.31
|
|
$
|
9.42
|
|
$
|
5.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)(000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
|
8,276
|
|
$
|
(8,116)
|
|
$
|
16,392
|
|
$
|
24,517
|
|
$
|
(38,256)
|
|
$
|
62,773
|
|
Corporate
|
(1,239)
|
|
|
(1,133)
|
|
(106)
|
|
(4,170)
|
|
(3,556)
|
|
(614)
|
|
Total
|
$
|
7,037
|
|
$
|
(9,249)
|
|
$
|
16,286
|
|
$
|
20,347
|
|
$
|
(41,812)
|
|
$
|
62,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)(000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
|
2,981
|
|
$
|
(775)
|
|
$
|
3,756
|
|
$
|
12,128
|
|
$
|
6,954
|
|
$
|
5,174
|
|
Corporate
|
(985)
|
|
|
(656)
|
|
(329)
|
|
(3,165)
|
|
(2,564)
|
|
(601)
|
|
Total
|
$
|
1,996
|
|
$
|
(1,431)
|
|
$
|
3,427
|
|
$
|
8,963
|
|
$
|
4,390
|
|
$
|
4,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
Coal Pricing Trends and Outlook
Price levels opened the fourth quarter 2021 at $390.00/metric ton ("mt") delivered-to-the-port
("FOBT") for spot deliveries of Australian premium low volatile
metallurgical coal and closed the quarter at $357.25/mt FOBT. The quarterly average price for
the fourth quarter of 2021 was $368.92/mt FOBT for Australian premium low
volatile metallurgical coal, compared to $263.66/ mt FOBT in the third quarter of 2021,
and traded in a range from a high of $403.00/mt FOBT to a low of $315.50/mt FOBT.
The World Steel Association reported that through December,
global crude steel production increased by 3.6% in 2021 versus 2020
with the U.S. up 18.3%, India up
17.8%, Japan up 14.9%,
Brazil up 14.7%, Turkey up 12.7%, Germany up 12.3%, Russia up 6.1%, South Korea up 5.2%, and China down 3.0%. The largest regional
increases were recognized in Africa at 26.7%, South America at 17.8%, North America at 19.2%, and European Union at
15.4%. All other regions recorded year-over-year increases.
According to the U.S. Energy Information Administration (the
"EIA"), U.S. metallurgical coal exports in 2021 totaled 47.2
million tons as compared to 42.1 million tons in 2020, for an
increase of 12.1%, and domestic coke plant coal consumption was
17.8 million tons in 2021 as compared to 14.4 million tons in 2020
for an increase of 23.3%. Hot-rolled steel coil prices
decreased in the fourth quarter from the highs recorded earlier in
the year as production decreased in China due to regulatory controls and market
demand for steel products normalized. From the beginning of 2021
through the end of the year, hot-rolled steel coil prices rose 55%,
39% and 13% in the U.S., Northern
Europe and China,
respectively.
Global steel demand is forecasted to increase by 2.2% in 2022
over 2021 according to the World Steel Association Short Range
Outlook released in October 2021. Comparing the expected 2022
global steel demand to the pre-COVID-19 pandemic 2019 steel demand
levels indicates an increase of 7.3% with increases in each of the
regional areas, driven primarily by growth in China and Turkey. Chinese steel demand
in 2022 is expected to remain flat compared to 2021, but will be an
increase of 8.6% over 2019. Excluding China, 2022 steel
demand from the rest of the world will increase by 4.7% over 2021
and increase by 6.1% over 2019. Regionally, the collective
2022 demand from the United
States, Canada and
Mexico is forecasted to increase
by 5.4% over 2021 and 0.9% over 2019; European Union 2022 demand
from the is forecasted to increase by 5.5% over 2021 and 5.7% over
2019; the collective 2022 demand from Asia and Oceania (excluding China) is forecasted to increase by 4.3% over
2021 and 3.7% over 2019; and Central and South America collective 2022 demand is
forecasted to increase by 0.9% over 2021 and 4.8% over
2019.
January 2022 spot market pricing
for Australian premium low volatile metallurgical coal opened at
$357.75/mt FOBT, closed the month at
$444.50/mt FOBT and traded in a range
from a high of $444.50/mt FOBT to a
low of $357.75/mt FOBT for an average
price of $408.85/mt FOBT.
February 2022 spot market pricing
opened the month at $444.50/mt FOBT,
at mid-month was $442.50/mt FOBT and
traded in a range from a high of $445.00/mt FOBT to a low of $438.75/mt FOBT for an average price of
$442.53/mt FOBT. Through
January 2022, the World Steel
Association reported that global crude steel production decreased
by 6.1% versus 2021 with China
down 11.2%, Turkey down 7.8%,
Brazil down 4.8%, Japan down 2.1%, India up 4.7%, and the United States up 4.2%. Regionally,
Asia and Oceania, which includes
China and India, was down 8.2 %, the EU was down 6.8%,
South America was down 3.3%, and
North America was up 2.5%. Through
mid- February 2022, hot-rolled steel
coil prices have increased China
by 5.7% and Northern Europe by
2.9%, while decreasing in the U.S. by 11.3%.
After opening the first quarter of 2022 at $357.75/mt FOBT and trading at $442.50/mt FOBT in mid-February, the forward
curve for the balance of the first quarter of 2022 according to the
SGX TSI index is trading at $402.38/mt FOBT with February at $432.00/mt FOBT and March at $389.00/mt FOBT. Forward curve pricing for the
balance of 2022 is trading at an average of $299.67/mt FOBT with the first quarter at a high
of $402.38/mt FOBT and the fourth
quarter at a low of $272.00/mt FOBT.
The forward curve for 2023 is indicating pricing at an average of
$261.84/mt FOBT. Increased global
steel demand and high levels of global steel production are driving
the demand and supporting higher prices for metallurgical coal.
Trade tensions between China and
Australia remain and continue to
influence the international metallurgical coal market supply routes
and metallurgical coal export pricing dynamics. Domestically, coke
plant coal consumption is expected to increase year-over-year and
according to the EIA and is forecasted to be 17.8 million tons in
2021 and 20.2 million tons in 2022 as compared to 18.0 million tons
in 2019. Metallurgical coal exports from the United State are
expected to be 47.2 million tons in 2021, a 12% increase over 2021,
and domestic coke plant coal consumption is forecasted to be 20.2
million tons, an increase of 23.3% over 2021.
See "Risk Factors" in the Company's annual information form
dated March 1, 2022 for the year ended December 31, 2021 for an additional discussion
regarding certain factors that could impact coal pricing trends and
outlook, as well as the Company's ongoing operations.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's audited consolidated financial statements for
the years ended December 31, 2021 and 2020 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
Corsa uses certain non-GAAP financial measures to measure its
performance internally and to assist in business decision-making as
well as providing key performance information to senior
management. 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.
Management uses the following non-GAAP financial measures:
- EBITDA - earnings before deductions for interest, taxes,
depreciation and amortization;
- Adjusted EBITDA - EBITDA adjusted for change in estimate
of reclamation and water treatment 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;
- Realized price per ton sold - revenue from coal sales
less transportation costs from the mine site to the loading
terminal divided by tons of coal sold. Management evaluates our
operations based on the volume of coal we can safely produce or
purchase and sell in compliance with regulatory standards, and the
prices we receive for our coal. Our sales volume and sales prices
are largely dependent upon the terms of our contracts, for which
prices generally are set based on an index. We evaluate the price
we receive for our coal on an average realized price on an FOB mine
site per short ton basis;
- Cash production cost per ton sold - cash production
costs of sales excluding purchased coal costs, all included within
cost of sales, divided by tons of produced coal sold. Cash
production cost is based on cost of sales and includes items such
as manpower, royalties, fuel, and other similar production related
items, pursuant to IFRS, but relate directly to the costs incurred
to produce coal and sell it on an FOB mine site basis. Cash
production cost per ton sold is used as a supplemental financial
measure by management and by external users to assess our operating
performance as compared to the operating performance of other
companies in the coal industry. Purchased coal is excluded as the
purchased coal costs are based on market prices of coal purchased
and not the cost to produce the coal;
- Cash cost purchased coal per ton sold - purchased coal
costs divided by tons of purchased coal sold. Management uses this
measure to assess coal purchases against the market price at which
this coal will be sold;
- Cash cost per ton sold - cash production costs of sales,
included within cost of sales, divided by total tons sold.
Management uses cash cost per ton sold to assess our overall
financial performance on a per ton basis to include the Company's
production and purchased coal cost in total; and
- Cash margin per ton sold - calculated difference between
realized price per ton sold and cash cost per ton sold. Cash margin
per ton sold is used by management and external users to assess the
operating performance as compared to the operating performance of
other coal companies in the coal industry.
For a reconciliation of non-GAAP financial measures to GAAP
measures, see the tabular presentation at the end of this news
release.
Qualified Person
All scientific and technical information contained in this news
release has been reviewed and approved by David E. Yingling, Professional Engineer and the
Company's mining engineer, who is a qualified person within the
meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
Caution
Potential developments and market conditions discussed in this
news release are considered to be forward looking
information. Readers are cautioned that actual results may
vary from this forward-looking information. See
"Forward-Looking Statements" below.
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.
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 including, but not limited to,
statements relating to the expected price volatility of the
metallurgical coal market, the future demand for steel and its
production, and the availability of its supply, changes to sales
margins and expected profitability constitutes forward-looking
statements which include management's assessment of future plans
and operations and are based on current internal expectations,
assumptions and beliefs, which may prove to be incorrect. Some of
the forward-looking statements may be identified by words such as
"will", "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. These risks and
uncertainties include, but are not limited to: changes in market
conditions, governmental or regulatory developments as a result of
the COVID-19 pandemic or otherwise, the operating status and
capabilities of our customers and competitors; various events which
could disrupt operations and/or the transportation of coal
products, including labor stoppages, the outbreak of disease and
severe weather conditions; and management's ability to anticipate
and manage the foregoing factors and risks. 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.
Non-GAAP Financial Measures Reconciliation
EBITDA and Adjusted EBITDA for the three months ended
December 31, 2021 and 2020
|
For the three
months ended
|
|
For the three
months ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss) from continuing operations
|
$
|
4,330
|
|
$
|
(1,574)
|
|
$
|
2,756
|
|
$
|
(11,631)
|
|
$
|
(1,411)
|
|
$
|
(13,042)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
3,682
|
|
-
|
|
3,682
|
|
3,335
|
|
-
|
|
3,335
|
|
Interest
expense
|
264
|
|
335
|
|
599
|
|
180
|
|
278
|
|
458
|
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
8,276
|
|
(1,239)
|
|
7,037
|
|
(8,116)
|
|
(1,133)
|
|
(9,249)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in estimate of
reclamation and water treatment provision (a)
|
(3,310)
|
|
-
|
|
(3,310)
|
|
7,513
|
|
-
|
|
7,513
|
|
Stock-based
compensation (b)
|
-
|
|
29
|
|
29
|
|
-
|
|
(14)
|
|
(14)
|
|
Net finance (income)
expense, excluding interest expense (c)
|
(771)
|
|
86
|
|
(685)
|
|
(171)
|
|
21
|
|
(150)
|
|
Gain on disposal of
assets (d)
|
(1,750)
|
|
-
|
|
(1,750)
|
|
(37)
|
|
-
|
|
(37)
|
|
Other (income) costs
(e)
|
536
|
|
139
|
|
675
|
|
36
|
|
470
|
|
506
|
|
Adjusted
EBITDA
|
$
|
2,981
|
|
$
|
(985)
|
|
$
|
1,996
|
|
$
|
(775)
|
|
$
|
(656)
|
|
$
|
(1,431)
|
|
(a)
|
A component of cost
of sales and results from changes in the estimated undiscounted
cash flows and risk-free discount rate used in calculating the
present value of the reclamation and water treatment provision for
properties where mining has ceased.
|
|
(b)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(c)
|
Components of finance
expense and income excluding interest expense.
|
|
(d)
|
Reflects the amounts
included in other income related to the disposal of assets not
utilized in the Company's mining operations.
|
|
(e)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
EBITDA and Adjusted EBITDA for the years ended December 31, 2021 and 2020
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss) from continuing operations
|
$
|
7,048
|
|
$
|
(5,639)
|
|
$
|
1,409
|
|
$
|
(58,804)
|
|
$
|
(4,919)
|
|
$
|
(63,723)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
16,408
|
|
-
|
|
16,408
|
|
19,825
|
|
-
|
|
19,825
|
|
Interest
expense
|
1,061
|
|
1,469
|
|
2,530
|
|
723
|
|
1,274
|
|
1,997
|
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
89
|
|
89
|
|
EBITDA
|
24,517
|
|
(4,170)
|
|
20,347
|
|
(38,256)
|
|
(3,556)
|
|
(41,812)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment
(a)
|
-
|
|
-
|
|
-
|
|
41,684
|
|
-
|
|
41,684
|
|
Write-off of advance
royalties and other assets (b)
|
-
|
|
-
|
|
-
|
|
484
|
|
-
|
|
484
|
|
Change in estimate of
reclamation and water treatment provision (c)
|
(3,310)
|
|
-
|
|
(3,310)
|
|
7,791
|
|
-
|
|
7,791
|
|
Stock-based
compensation (d)
|
-
|
|
155
|
|
155
|
|
-
|
|
282
|
|
282
|
|
Net finance (income)
expense, excluding interest expense (e)
|
(47)
|
|
360
|
|
313
|
|
2,169
|
|
192
|
|
2,361
|
|
Gain on disposal of
assets (f)
|
(1,982)
|
|
-
|
|
(1,982)
|
|
(60)
|
|
-
|
|
(60)
|
|
Employee retention
credit (g)
|
(6,769)
|
|
(98)
|
|
(6,867)
|
|
-
|
|
-
|
|
-
|
|
PPP loan grant income
(h)
|
(1,126)
|
|
-
|
|
(1,126)
|
|
(6,978)
|
|
(249)
|
|
(7,227)
|
|
Other (income) costs
(i)
|
845
|
|
588
|
|
1,433
|
|
120
|
|
767
|
|
887
|
|
Adjusted
EBITDA
|
$
|
12,128
|
|
$
|
(3,165)
|
|
$
|
8,963
|
|
$
|
6,954
|
|
$
|
(2,564)
|
|
$
|
4,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Reflects the non-cash
adjustment to reduce the carrying values of mineral properties and
plant and equipment.
|
|
(b)
|
A component of cost
of sales and results from the termination of various lease
agreements which the Company does not intend to mine.
|
|
(c)
|
A component of cost
of sales and results from changes in the estimated undiscounted
cash flows and risk-free discount rate used in calculating the
present value of the reclamation and water treatment provision for
properties where mining has ceased.
|
|
(d)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(e)
|
Components of finance
expense and income excluding interest expense.
|
|
(f)
|
Reflects the amounts
included in other income related to the disposal of assets not
utilized in the Company's mining operations.
|
|
(g)
|
A component of other
income which reflects the amounts the Company is expected to
receive related to a refundable tax credit.
|
|
(h)
|
Reflects the amounts
forgiven associated with loans received by the Company.
|
|
(i)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
Realized price per ton sold for the three months ended
December 31, 2021 and 2020
|
For the three
months ended
|
|
For the three
months ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$
|
39,838
|
|
$
|
212
|
|
$
|
40,050
|
|
$
|
16,589
|
|
$
|
246
|
|
$
|
16,835
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(594)
|
|
-
|
|
(594)
|
|
(95)
|
|
-
|
|
(95)
|
|
Transportation costs
from preparation plant to customer
|
(2,356)
|
|
-
|
|
(2,356)
|
|
(382)
|
|
(19)
|
|
(401)
|
|
Limestone
revenue
|
(292)
|
|
-
|
|
(292)
|
|
(198)
|
|
-
|
|
(198)
|
|
Net coal sales (at
preparation plant)
|
$
|
36,596
|
|
$
|
212
|
|
$
|
36,808
|
|
$
|
15,914
|
|
$
|
227
|
|
$
|
16,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
278
|
|
3
|
|
281
|
|
194
|
|
5
|
|
199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per
ton sold (at preparation plant)
|
$
|
131.64
|
|
$
|
70.67
|
|
$
|
130.99
|
|
$
|
82.03
|
|
$
|
45.40
|
|
$
|
81.11
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton sold for the years ended December 31, 2021 and 2020
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$
|
129,669
|
|
$
|
1,806
|
|
$
|
131,475
|
|
$
|
127,535
|
|
$
|
951
|
|
$
|
128,486
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(1,543)
|
|
-
|
|
(1,543)
|
|
(1,345)
|
|
-
|
|
(1,345)
|
|
Transportation costs
from preparation plant to customer
|
(6,647)
|
|
(3)
|
|
(6,650)
|
|
(13,101)
|
|
(135)
|
|
(13,236)
|
|
Limestone
revenue
|
(1,070)
|
|
-
|
|
(1,070)
|
|
(898)
|
|
-
|
|
(898)
|
|
Net coal sales (at
preparation plant)
|
$
|
120,409
|
|
$
|
1,803
|
|
$
|
122,212
|
|
$
|
112,191
|
|
$
|
816
|
|
$
|
113,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
1,138
|
|
47
|
|
1,185
|
|
1,372
|
|
25
|
|
1,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per
ton sold (at preparation plant)
|
$
|
105.81
|
|
$
|
38.36
|
|
$
|
103.13
|
|
$
|
81.77
|
|
$
|
32.64
|
|
$
|
80.89
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton sold, cash production cost per ton sold,
and cash cost per sales and trading purchased coal per ton sold for
the three months ended December 31,
2021 and 2020
|
For the three
months ended
|
|
For the three
months ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$
|
21,846
|
|
$
|
197
|
|
$
|
22,043
|
|
$
|
13,706
|
|
$
|
227
|
|
$
13,933
|
|
Purchased coal
costs
|
8,102
|
|
14
|
|
8,116
|
|
243
|
|
-
|
|
243
|
|
Royalty
expense
|
1,636
|
|
-
|
|
1,636
|
|
945
|
|
-
|
|
945
|
|
Total cash costs of
tons sold
|
$
|
31,584
|
|
$
|
211
|
|
$
|
31,795
|
|
$
|
14,894
|
|
$
|
227
|
|
$
15,121
|
|
Total tons
sold
|
278
|
|
3
|
|
281
|
|
194
|
|
5
|
|
199
|
|
Cash cost per ton
sold (at preparation plant)
|
$
|
113.61
|
|
$
|
70.33
|
|
$
|
113.15
|
|
$
|
76.77
|
|
$
|
45.40
|
|
$
75.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
|
31,584
|
|
$
|
211
|
|
$
|
31,795
|
|
$
|
14,894
|
|
$
|
227
|
|
$
15,121
|
|
Less: purchased
coal
|
(8,102)
|
|
-
|
|
(8,102)
|
|
(243)
|
|
-
|
|
(243)
|
|
Cash cost of produced
coal sold
|
$
|
23,482
|
|
$
|
211
|
|
$
|
23,693
|
|
$
|
14,651
|
|
$
|
227
|
|
$
14,878
|
|
Tons sold -
produced
|
231
|
|
3
|
|
234
|
|
190
|
|
5
|
|
195
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
|
101.65
|
|
$
|
70.33
|
|
$
|
101.25
|
|
$
|
77.11
|
|
$
|
45.40
|
|
$
76.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
|
8,102
|
|
$
|
-
|
|
$
|
8,102
|
|
$
|
243
|
|
$
|
-
|
|
$
243
|
|
Tons sold - purchased
coal
|
47
|
|
-
|
|
47
|
|
4
|
|
-
|
|
4
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
|
172.38
|
|
$
|
-
|
|
$
|
172.38
|
|
$
|
60.75
|
|
$
|
-
|
|
$
60.75
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton sold, cash production cost per ton sold,
and cash cost per sales and trading purchased coal per ton sold for
the years ended December 31, 2021 and
2020
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$
|
86,347
|
|
$
|
381
|
|
$
|
86,728
|
|
$
|
79,267
|
|
$
|
813
|
|
$
|
80,080
|
|
Purchased coal
costs
|
10,781
|
|
1,337
|
|
12,118
|
|
13,853
|
|
3
|
|
13,856
|
|
Royalty
expense
|
5,858
|
|
-
|
|
5,858
|
|
6,149
|
|
-
|
|
6,149
|
|
Total cash costs of
tons sold
|
$
|
102,986
|
|
$
|
1,718
|
|
$
|
104,704
|
|
$
|
99,269
|
|
$
|
816
|
|
$
|
100,085
|
|
Total tons
sold
|
1,138
|
|
47
|
|
1,185
|
|
1,372
|
|
25
|
|
1,397
|
|
Cash cost per ton
sold (at preparation plant)
|
$
|
90.50
|
|
$
|
36.55
|
|
$
|
88.36
|
|
$
|
72.35
|
|
$
|
32.64
|
|
$
|
71.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
|
102,986
|
|
$
|
1,718
|
|
$
|
104,704
|
|
$
|
99,269
|
|
$
|
816
|
|
$
|
100,085
|
|
Less: purchased
coal
|
(10,781)
|
|
-
|
|
(10,781)
|
|
(13,853)
|
|
-
|
|
(13,853)
|
|
Cash cost of produced
coal sold
|
$
|
92,205
|
|
$
|
1,718
|
|
$
|
93,923
|
|
$
|
85,416
|
|
$
|
816
|
|
$
|
86,232
|
|
Tons sold -
produced
|
1,059
|
|
47
|
|
1,106
|
|
1,199
|
|
25
|
|
1,224
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
|
87.07
|
|
$
36.55
|
|
$
|
84.92
|
|
$
|
71.24
|
|
$
|
32.64
|
|
$
|
70.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
|
10,781
|
|
$
|
-
|
|
$
|
10,781
|
|
$
|
13,853
|
|
$
|
-
|
|
$
|
13,853
|
|
Tons sold - purchased
coal
|
79
|
|
-
|
|
79
|
|
173
|
|
-
|
|
173
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
|
136.47
|
|
$
|
-
|
|
$
|
136.47
|
|
$
|
80.08
|
|
$
|
-
|
|
$
|
80.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the three months ended
December 31, 2021 and 2020
|
For the three
months ended
|
|
For the three
months ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per
ton sold (at preparation plant)
|
$
|
131.64
|
|
$
|
70.67
|
|
$
|
130.99
|
|
$
|
82.03
|
|
$
|
45.40
|
|
$
|
81.11
|
|
Cash cost per ton
sold (at preparation plant)
|
$
|
113.61
|
|
$
|
70.33
|
|
$
|
113.15
|
|
$
|
76.77
|
|
$
|
45.40
|
|
$
|
75.98
|
|
Cash margin per ton
sold
|
$
|
18.03
|
|
$
|
0.34
|
|
$
|
17.84
|
|
$
|
5.26
|
|
$
|
-
|
|
$
|
5.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the years ended December 31, 2021 and 2020
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per
ton sold (at preparation plant)
|
$
|
105.81
|
|
$
|
38.36
|
|
$
|
103.13
|
|
$
|
81.77
|
|
$
|
32.64
|
|
$
|
80.89
|
|
Cash cost per ton
sold (at preparation plant)
|
$
|
90.50
|
|
$
|
36.55
|
|
$
|
88.36
|
|
$
|
72.35
|
|
$
|
32.64
|
|
$
|
71.64
|
|
Cash margin per ton
sold
|
$
|
15.31
|
|
$
|
1.81
|
|
$
|
14.77
|
|
$
|
9.42
|
|
$
|
-
|
|
$
|
9.25
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Corsa Coal Corp.