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Thu, April 12, 2012 CanAm Reports Coal Sales of 50,000 Tons for Q4, Up Nearly 6-Fold From the Prior Year
April 12, 2012 09:01 ET
CanAm Reports Coal Sales of 50,000 Tons for Q4, Up Nearly 6-Fold From the Prior Year
CALGARY, ALBERTA--(Marketwire - April 12, 2012) - CanAm Coal Corp. (TSX VENTURE:COE) (OTCQX:COECF) ("CanAm" or the "Company") is pleased to report coal sales for the fourth quarter ending December 31, 2011. Coal sales of 49,852 tons were achieved in the fourth quarter of 2011 as compared to 8,526 tons in Q4 of 2010 or an increase of 41,326 tons. The fourth quarter only represents a two month quarter as the Company changed its year-end from January 31, 2012 to December 31, 2011. For the eleven month period ended December 31, 2011, coal sales were 256,221 tons as compared to 42,198 tons in the prior year or a six-fold increase. For 2010, sales have been shown on a comparable basis.
| Two Month Period | Eleven Month Period | |||
| Ended Dec 31, | Ended Dec 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Metallurgical coal | 9,152 | 6,302 | 52,355 | 32,231 |
| Thermal coal | 40,700 | 2,224 | 203,866 | 9,967 |
| Total | 49,852 | 8,526 | 256,221 | 42,198 |
Sales for the quarter were characterized by:
- Contribution of 37,613 tons of coal sales from the Company's 50% ownership in BCC's three operating mines, Bear Creek, Old Union and Gooden Creek. All of BCC's mines produce high quality thermal coal. In November and December, BCC did not broker any third party coal.
- Coal sales at the Powhatan mine were 12,239 tons as compared to 8,526 tons in the prior year or an increase of 44%. Coal sales were below target as production slowed down as a result of a lower than usual recovery rate on thermal coal, greater than usual equipment downtime during a cycle of higher than average strip ratios and extra vacation days taken over the Christmas holiday period.
- The mix of metallurgical/thermal coal for the fourth quarter at the Powhatan mine was 75/25% as a result of a lower recovery rate on the thermal coal. The ratio of metallurgical/thermal coal for the eleven month period ended December 31, 2011 at the Powhatan mine was 57/43%. The Company's target coal mix is 60/40%.
"Another solid quarter in a difficult coal market as we continue to leverage our coal contracts with our customers and sell every ton of coal we can produce. Although production was slightly below target for the quarter we finished our eleven month fiscal year with over 250,000 tons of coal sales. Certainly 2011 was a pivotal year for CanAm as we reap the rewards from our 50% acquisition of Birmingham Coal & Coke and continue this momentum into 2012 as we set our sight on coal sales of 500,000 tons for this upcoming year", said Tim Bergen, CEO of CanAm.
The Company will release its full fourth quarter financial results at the end of April 2012.
About CanAm Coal Corp.
CanAm is a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. CanAm's main activities and assets include its four operating coal mines in Alabama, the exclusive rights to a proprietary Coal to Liquids technology which converts coal into liquid fuels (such as oil, jet fuel) at an economical cost with zero airborne emissions and the Buick Coal Project which holds significant coal resources, 188 million indicated and 103 million inferred resources, in Colorado, USA (see the technical report entitled "Limon Ligni te Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007). Other coal and related opportunities continue to be evaluated on an ongoing basis.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at [ www.sedar.com ]. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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.
