Pacific Coal Resources has announced financial results for Q3 204 and provided an operational update on its coal mining assets.
The company indicated it was pleased with results, largely due to improvements in cash flow at its La Caypa coal mine, which produced 285 167 t of coal over the quarter. This brought total production for the year so far to 837 827 t.
Coal revenues of US$ 33.1 million for Q3 2014 were approximately 50% above Q2 2014, mainly attributable to the 48% higher volume of coal sold. Despite the Company's effort, coal revenues in the third quarter of 2014 were 9% below the third quarter a year ago due to the US$4.95/t decrease in the average realised coal price and 5% lower coal sales volume attributable to the impact of Q2 2014 production issues at La Caypa on coal sales early in Q3 2014.
Hernan Martinez, executive chairman of Pacific Coal, said: “we were able to maintain year to date general and administrative expenses below forecasted amounts. I am happy to report that management's efforts at the La Caypa mine, to improve cash flow after experiencing some challenges in the second quarter, have shown positive results with an increase in production in the third quarter of 2014.”
Pacific Coal has signed a joint operating agreement for the Cerro Largo mine with Sloane Mining Services Sucursal Colombia, and expects production to resume at Cerro Largo by December of this year. The company hopes this new agreement will provide a steady cash flow to address the liquidity concerns of the company.
The company intends to further develop the south pit at La Caypa to increase coal production. The firm is also looking to divest its interest in the Barranquila Port.
The company reported a reduced operating loss of US$ 0.6 million when compared to the Q2 2014 operating loss of US$ 3.5 million. The operating stripping ratio was reduced to 11.91:1 in the third quarter of 2014 from the previous quarter high of 14.09:1. Correspondingly, Adjusted EBITDA for Q3 2014 improved over the Q2 2014 loss of US$ 4.9 million to a loss of US$ 1.9 million.
Pacific Coal continues to concentrate on the production of thermal coal, following a refocusing of strategic goals in 2013.
Adapted from press release by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/01122014/pacific-coal-resources-q3-results-1627/