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Corsa Coal announces 3Q18 financial results

Published by
World Coal,


Corsa Coal Corp. has reported financial results for 3Q18 and for the first nine months of 2018.

3Q18 Highlights

  • Corsa reported net and comprehensive loss from continuing operations of US$1.5 million, or US$0.02 per share, for 3Q18, compared to net and comprehensive income from continuing operations of US$7.5 million, or US$0.07 per share, for 3Q17. Net and comprehensive loss from continuing operations for 3Q18 includes US$6.7 million of amortisation expense of which US$2.7 million, or US$0.03 per share, resulted from the asset impairment reversal that took place in December 2017.
  • Corsa’s adjusted EBITDA was US$9.9 million and US$8.5 million at its Northern Appalachia division (“NAPP” or “NAPP Division”) and on a consolidated basis, respectively, for 3Q18. Corsa’s EBITDA was US$9.5 million and US$6.9 million at its NAPP Division and on a consolidated basis, respectively, for 3Q18.
  • Operating cash flows provided by continuing operations for 3Q18 were US$6.5 million, which was consistent with operating cash flows for 3Q17.
  • Total revenue from continuing operations was US$61.6 million for 3Q18, a decrease of 2% as compared to 3Q17. The decrease in revenue was attributable to the expiration of a thermal coal contract in December 2017.
  • Corsa sold a total of 455 525 t of metallurgical coal in 3Q18. On a year-to-date basis, low volatile metallurgical coal sales volumes are up 17% versus 2017 comparable period levels, and total metallurgical sales volumes are up 22% as compared to year-to-date September 2017. This growth has been accomplished despite supply chain disruptions to export terminals and rail service.
  • Corsa achieved an average realised price per ton of metallurgical coal sold at its NAPP Division of US$106.99 for all metallurgical qualities in 3Q18. This average realised price is the approximate equivalent of US$151 to US$157 on an FOB vessel basis. For low volatile metallurgical coal sold, Corsa achieved the approximate equivalent of US$157 to US$162 on an FOB vessel basis. Corsa’s sales mix for 3Q18 included 40% of sales to domestic customers and 60% of sales to international customers.
  • Cash production cost per ton sold was US$77.94 for 3Q18, a decrease of US$15.52/t as compared to 2Q18. Cash production cost per ton sold increased US$7.65/t, or 11% as compared to 3Q17.
  • Corsa is at an advanced stage on discussions and expects to refinance or extend the maturity of its term loan beyond the August 2019 maturity date.

George Dethlefsen, CEO of Corsa, commented: “In the third quarter of 2018 we began to realise returns on the investments made during the first half of the year, and we believe these investments will yield further improvement in the quarters ahead. Overall, our cash mining costs per ton sold were down 16% in the third quarter 2018 compared to first half 2018 levels. This improvement in cash mining costs per ton sold in the third quarter of 2018 was the result of experiencing more favourable geology and putting in service newly rebuilt mining equipment at the Casselman mine. At the Acosta mine, we achieved full production levels and achieved our highest quarterly production rate since beginning the mine.”

Members of management will host a conference call on today at 10:00 a.m. (Eastern time) to discuss the company’s results. To access the call from Canada and the US, 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 here.

Read the article online at: https://www.worldcoal.com/coal/08112018/corsa-coal-announces-3q18-financial-results/

 

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