Corsa Files Second Quarter 2013 Financial Results
Production and Sales
References in this news release to "Q2 2013" means the three months ended May 31, 2013 and to "6M 2013" means the six months ended May 31, 2013, unless otherwise noted.
Production of raw metallurgical coal from the Company's mines was 123,000 tons in Q2 2013, of which 116,000 tons were from the Casselman mine and 7,000 tons were from surface mines. Production of raw metallurgical coal from the Company's operations was 183,000 tons in 6M 2013; of which 165,000 tons were from the Casselman Mine and 18,000 tons were from surface mines.
The Company has the ability to purchase raw metallurgical coal from third parties in order to increase the amount available for blending and processing at the Preparation Plant. In Q2 2013, the Company purchased 2,000 tons of raw metallurgical coal. In 6M 2013, the Company purchased 8,000 tons of raw metallurgical coal.The Preparation Plant processed 119,000 tons of raw metallurgical coal in Q2 2013 and produced 77,000 tons of clean metallurgical coal. The Preparation Plant processed 175,000 tons of raw metallurgical coal in 6M 2013 and produced 115,000 tons of clean metallurgical coal in 6M 2013. The increase in production resulted from the increase in sales orders. The average recovery rate in the plant was 64.7% in Q2 2013 and 65.7% in 6M 2013. The Company expects the average recovery rate for the balance of fiscal 2013 to be between 60% and 70%. Production of thermal coal from surface mines was 11,000 tons in Q2 2013 and 14,000 tons in 6M 2013. The thermal coal production is ancillary to metallurgical coal production. In Q2 2013, the Company sold 83,000 tons of clean metallurgical coal at an average realized price of $105 per ton and 16,000 tons of thermal coal at an average realized price of $28 per ton. In 6M 2013, the Company sold 119,000 tons of clean metallurgical coal at an average realized price of $104 per ton and 10,000 tons of raw metallurgical coal at an average realized price of $63 per ton and 49,000 tons of thermal coal at an average realized price of $35 per ton. Outlook While the metallurgical coal market continued to be volatile, the Company has continued to be successful in achieving sales as a result of the quality of its low volatile metallurgical coal product. The Company's current guidance for fiscal 2013 is clean metallurgical coal sales of between approximately 300,000 and 320,000 clean tons, of which 119,000 tons have been sold in the first six months of the year leaving approximately 181,000 to 201,000 tons for the balance of the year. In addition, the Company currently expects clean metallurgical coal sales of between 45,000 and 60,000 tons in the first fiscal quarter of 2014. This guidance is based on currently contracted sales which are direct to both domestic and international steel producers. The Company continues to actively market its high quality low volatile metallurgical coal and match production to actual sales.
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