Corsa Coal has reported earnings of US$1.67 million in 2015, a fall of US$1.05 million on the previous year. Earnings from its Northern Appalachian (NAPP) operations rose substantially, however, from US$917 000 in 2014 to US$2.02 million in 2015.
NAPP performance was driven by productivity improvement and cost reduction efforts, which outpaced the decline in average realised prices. “These efforts led to cash operating margin and adjusted EBITDA rising in 2015 versus 2014 levels,” the company said.
The company also substantially completed mine development for the Cooper Ridge Deep Mine in Central Appalachia (CAPP). The mine is expected to enter full production in 2Q16 and will reposition Corsa’s CAPP business into the speciality and industrial coal markets – markets with typically generate premium pricing.
Corsa’s CAPP business saw revenues fall y/y in 2015 to US$4.06 million from US$7.75 million in 2014. Average realised prices for the company's CAPP coal was US$66.53 per short t, down from US$67.95 per short t in 2014.
“Both of Corsa's operating divisions are well positioned to grow in the years ahead, with the mines, mining permits, coal processing infrastructure, and mining equipment in place to expand production once market conditions recover,” said George Dethlefsen, Corsa’s CEO.
“Our advantaged position on the delivered cost curve, premium coal qualities and financial sponsorship will enable Corsa to capitalise on future opportunities. In addition to our pipeline of organic growth projects, we will continue to pursue acquisitions to grow the company at a time when coal asset values remain at historically low levels."
Looking ahead to 2016, Corsa expects total sales of 1.525 million – 1.825 million short t. Sales from its NAPP business are forecast at 850 000 – 1.05 million short t, including metallurgical coal sales of 600 000 – 700 000 short t and thermal coal sales of 250 000 – 350 000 short t.
CAPP sales are expected to total 675 000 – 775 000 short t of thermal and industrial coal.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/31032016/corsa-coal-reports-2015-earnings-2016-491/