TORONTO, Dec. 15, 2014 /CNW/ - Corsa Coal Corp. (TSXV:
CSO) ("Corsa" or the "Company") will host its Analyst Day on
Tuesday, December 16, 2014. During
the Analyst Day presentation, senior management will provide more
detail on Corsa's operational base, certain cost improvement
initiatives, and the ongoing integration of PBS Coals. An updated
Investor Presentation for the Analyst Day has been published to the
Company's website at www.corsacoal.com.
Corsa is also pleased to announce its preliminary outlook for
fiscal 2015 based on current market conditions. Unless otherwise
specified, all financial information is presented in U.S.
dollars.
Highlights for 2015 Preliminary Outlook
- Production and purchased coal volumes of 1.5 to 1.7 million
tons of metallurgical coal for the Northern Appalachian Division
("NAPP") and 0.8 to 0.9 million tons of thermal and industrial coal
for the Central Appalachian Division ("CAPP").
- Cash production cost per ton sold(1) of $73 to $78 per ton
for NAPP and $57 to $62 per ton for
CAPP.
- Consolidated general and administrative expenses of
$9.5 to $11.5 million.
- Consolidated maintenance capital expenditures of $8.5 to $10.5 million
(1) Non-GAAP financial measure. See "Non-GAAP Financial
Measures".
Non-GAAP Measures
Management uses cash production cost per ton sold as an internal
measurement of operating performance for Corsa's mining and
processing operations. Management believes this non-GAAP measure
provides useful information for investors as it provides
information in addition to GAAP measures to assist in their
evaluation of the operating performance of Corsa. Reference is made
to the Management's Discussion and Analysis for the three and nine
months ended September 30, 2014 for a
reconciliation of non-GAAP measures to GAAP measures.
Caution
The estimated production and purchase volumes, cash production
cost, general and administrative expenses, and capital expenditures
disclosed in this news release are considered to be forward looking
information. Readers are cautioned that actual results may vary
from this forward looking information. Actual production, cash
production costs and expenditures are subject to variation based on
a number of risks and other factors referred to under the heading
"Forward-Looking Statements" below as well as demand and sales
orders received.
Information about Corsa
Corsa is one of the leading suppliers of premium-quality
metallurgical coal, an essential ingredient in the production of
steel, which is necessary for the secular trends in global
urbanization. Our core business is supplying metallurgical coal
with the highest safety, yield, and strength characteristics to
domestic steel producers while being a strategic source of supply
in the Atlantic and Pacific basin markets. We also offer a high
heat content, low delivered cost coal to major utilities and
industrial users in the Southeast region of the U.S.
Forward-Looking Statements
Certain information set
forth in this press release contains "forward-looking statements"
and "forward-looking information" under applicable securities laws.
Except for statements of historical fact, certain information
contained herein relating to projected production and purchase
volumes, cash production costs, general and administrative
expenditures and capital expenditures for the 2015 fiscal year
constitutes forward-looking statements which include management's
assessment of future plans and operations and are based on current
internal expectations, estimates, projections, assumptions and
beliefs, which may prove to be incorrect. Some of the
forward-looking statements may be identified by words such as
"estimates", "expects" "anticipates", "believes", "projects",
"plans", "outlook", "capacity" and similar expressions. These
statements are not guarantees of future performance and undue
reliance should not be placed on them. Such forward-looking
statements necessarily involve known and unknown risks and
uncertainties, which may cause Corsa's actual performance and
financial results in future periods to differ materially from any
projections of future performance or results expressed or implied
by such forward-looking statements. These risks and uncertainties
include, but are not limited to: risks that the actual production
or sales for the 2015 fiscal year will be less than projected
production or sales for these periods; risks that the prices for
coal sales will be less than projected or expected; liabilities
inherent in coal mine development and production including
restarting idled mines; geological, mining and processing technical
problems; inability to obtain required mine licenses, mine permits
and regulatory approvals or renewals required in connection with
the mining and processing of coal; risks that Corsa's coal
preparation plant will not operate at production capacity during
the relevant period, unexpected changes in coal quality and
specification; variations in the coal mine or coal preparation
plant recovery rates; dependence on third party coal transportation
systems; competition for, among other things, capital, acquisitions
of reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in commodity
prices and exchange rates; changes in the regulations with respect
to the use, mining and processing of coal; changes in regulations
on refuse disposal; the effects of competition and pricing
pressures in the coal market; the oversupply of, or lack of demand
for, coal; inability of management to secure coal sales or third
party purchase contracts; currency and interest rate fluctuations;
various events which could disrupt operations and/or the
transportation of coal products, including labour stoppages and
severe weather conditions; the demand for and availability of rail,
port and other transportation services; the ability to purchase
third party coal for processing and delivery under purchase
agreements; and management's ability to anticipate and manage the
foregoing factors and risks. The forward-looking statements and
information contained in this press release are based on certain
assumptions regarding, among other things, coal sales being
consistent with expectations; future prices for coal; future
currency and exchange rates; Corsa's ability to generate sufficient
cash flow from operations and access capital markets to meet its
future obligations; the regulatory framework representing
royalties, taxes and environmental matters where Corsa conducts
business; coal production levels; Corsa's ability to retain
qualified staff and equipment in a cost-efficient manner to meet
its demand; and Corsa being able to execute its program of
operational improvement and initiative to realize cost synergies
following the completion of Corsa's acquisition of PBS. There can
be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The reader is
cautioned not to place undue reliance on forward-looking
statements. Corsa does not undertake to update any of the
forward-looking statements contained in this press release unless
required by law. The statements as to Corsa's capacity to produce
coal are no assurance that it will achieve these levels of
production or that it will be able to achieve these sales
levels.
The TSX Venture Exchange has in no way passed on the
merits of this news release. Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Corsa Coal Corp.