FRIEDENS, Pa., April 13,
2023 /CNW/ - Corsa Coal Corp. (TSXV: CSO)
(OTCQX: CRSXF) ("Corsa" or the "Company"), a premium quality
metallurgical coal producer, today reported financial results for
the three months and year ended December 31, 2022. Corsa
has filed its audited consolidated financial statements for the
years ended December 31, 2022 and 2021, related management's
discussion and analysis and its annual information form under its
profile on www.sedar.com.
Unless otherwise noted, all dollar amounts in this news release
are expressed in United States
dollars and all ton amounts are short tons (2,000 pounds per
ton). Pricing and cost per ton information is expressed on a
free-on-board ("FOB"), mine site basis, unless otherwise noted.
Fourth Quarter and Full Year 2022 Highlights
- Key financial results and operational statistics are shown
below:
|
|
Three months
ended
|
|
Years
ended
|
|
|
December
31,
|
|
December
31,
|
(in millions
except per share, per ton and sales tons)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net and comprehensive
(loss) income
|
|
$
(16.3)
|
|
$ 2.8
|
|
$
(27.7)
|
|
$
1.4
|
Diluted (loss) earnings
per share
|
|
$
(0.16)
|
|
$ 0.03
|
|
$
(0.27)
|
|
$ 0.02
|
Cash (used in) provided
by operating activities
|
|
$ (0.2)
|
|
$ 1.0
|
|
$ 7.8
|
|
$
4.0
|
Total
revenue
|
|
$
38.9
|
|
$ 40.1
|
|
$
165.9
|
|
$ 131.5
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ (2.2)
|
|
$ 2.0
|
|
$ 7.1
|
|
$
9.0
|
EBITDA(1)
|
|
$
(12.8)
|
|
$ 7.0
|
|
$
(12.9)
|
|
$ 20.3
|
|
|
|
|
|
|
|
|
|
Average realized price
per ton of metallurgical coal sold(1)
|
$ 152.48
|
|
$ 131.64
|
|
$ 158.03
|
|
$
105.81
|
Cash production cost
per ton sold(1)
|
|
$ 143.51
|
|
$ 101.65
|
|
$ 134.07
|
|
$ 87.07
|
|
|
|
|
|
|
|
|
|
Company produced
metallurgical coal sales tons
|
|
192,442
|
|
230,315
|
|
828,242
|
|
1,058,575
|
Purchased metallurgical
coal sales tons
|
|
28,445
|
|
47,612
|
|
131,722
|
|
79,445
|
Total metallurgical
coal sales tons
|
|
220,887
|
|
277,927
|
|
959,964
|
|
1,138,020
|
|
|
|
|
|
|
|
|
|
- Corsa's average realized price for the fourth quarter 2022 is
the approximate equivalent of between $218 to $223 per
metric ton on an FOB vessel basis(2). For the
fourth quarter 2022, Corsa's sales mix included 62% of sales to
domestic customers and 38% of sales to international
customers.
(1)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
(2)
|
Similar to most U.S.
metallurgical coal producers, Corsa reports sales and costs per ton
on an FOB mine site basis and denominated in short tons. Many
international metallurgical coal producers report prices and costs
on a delivered-to-the-port basis (or "FOB vessel basis"), thereby
including freight costs between the mine and the port.
Additionally, Corsa reports sales and costs per short ton, which is
approximately 10% lower than a metric ton. For the purposes
of this figure, we have used an illustrative freight rate of
$45-$50 per short ton. Historically, freight rates rise and
fall as market prices rise and fall. As a note, most
published indices for metallurgical coal report prices on a
delivered-to-the-port basis and denominated in metric
tons.
|
Kevin M. Harrigan, Interim President
and Chief Executive Officer of Corsa, commented, "The 2022 calendar
year was one of the most difficult ever for Corsa with numerous
operational and employee resource challenges that started at the
outset of the year and continued into the fourth quarter. We
are proud to say, based on the hard work and dedication of our
employees, that we believe each of the mines are positioned to be
more productive with lower costs in the coming year reflecting
improved geological conditions, additional mining personnel and an
increasingly experienced workforce. To date we have
experienced improved operational performance with our mines
producing over 240,000 tons in the first quarter 2023, our best
production quarter since the third quarter 2021, and expect the
mining conditions to be favorable compared to the 2022
performance."
"The Company is pleased with the final resolution of the U.S.
Department of Justice investigation, where no charges were brought
against the Company, any of its subsidiaries or any current
employees, and is looking forward to now focusing on the future of
the Company. We remain committed to the highest standards of
integrity and as we conduct our business with uncompromising ethics
and a steadfast focus on legal compliance. Additionally, a
negotiated amendment to the Company's credit facility with KeyBank
National Association resulted in increased flexibility to achieve
the financial covenants of the loan and provides additional runway
as we focus on improving Corsa's financial performance."
"Our Company recognizes that our employees are our biggest
resource and we will continue to focus on our team through
additional hiring, increased training and driving retention.
We look forward to the coming year with a renewed sense of optimism
as we expect increased operations at our deep and surface mines
that deliver improved results for our employees and our
shareholders."
Financial and Operations Summary
|
For the three months
ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
(in
thousands)
|
2022
|
|
2021
|
|
(Decrease)
|
|
2022
|
|
2021
|
|
(Decrease)
|
Revenues
|
$
38,854
|
|
$
40,050
|
|
$
(1,196)
|
|
$ 165,891
|
|
$ 131,475
|
|
$
34,416
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
$
51,442
|
|
$
36,128
|
|
$
15,314
|
|
$ 172,499
|
|
$ 128,366
|
|
$
44,133
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
$ 3,301
|
|
$ 3,330
|
|
$
(29)
|
|
$
10,204
|
|
$ 9,853
|
|
$
351
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
(loss) income for the period
|
$
(16,302)
|
|
$ 2,756
|
|
$
(19,058)
|
|
$
(27,729)
|
|
$ 1,409
|
|
$
(29,138)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (used in) provided
by operating activities
|
$
(174)
|
|
$
979
|
|
$
(1,153)
|
|
$ 7,793
|
|
$ 3,955
|
|
$ 3,838
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
(12,752)
|
|
$ 7,037
|
|
$
(19,789)
|
|
$
(12,923)
|
|
$
20,347
|
|
$
(33,270)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$
(2,185)
|
|
$ 1,996
|
|
$
(4,181)
|
|
$ 7,070
|
|
$ 8,963
|
|
$
(1,893)
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
221
|
|
278
|
|
(57)
|
|
960
|
|
1,138
|
|
(178)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This is
a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
(2) Cost of
sales consists of the following:
|
|
|
For the three months
ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Mining and processing
costs
|
$
26,650
|
|
$
22,043
|
|
$
106,385
|
|
$
86,728
|
Purchased coal
costs
|
6,639
|
|
8,116
|
|
24,570
|
|
12,118
|
Royalty
expense
|
1,741
|
|
1,636
|
|
6,623
|
|
5,858
|
Amortization
expense
|
2,635
|
|
3,682
|
|
11,833
|
|
16,408
|
Transportation costs
from preparation plant to customer
|
1,982
|
|
2,356
|
|
7,296
|
|
6,650
|
Idle mine
expense
|
316
|
|
284
|
|
1,427
|
|
777
|
Tolling
costs
|
272
|
|
442
|
|
1,503
|
|
960
|
Limestone
costs
|
134
|
|
201
|
|
620
|
|
909
|
Change in estimate of
reclamation and water treatment provision
|
10,837
|
|
(3,310)
|
|
10,837
|
|
(3,310)
|
Other costs
|
236
|
|
678
|
|
1,405
|
|
1,268
|
Total cost of
sales
|
$
51,442
|
|
$
36,128
|
|
$
172,499
|
|
$
128,366
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
Variance
|
|
2022
|
|
2021
|
|
Variance
|
Realized price per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
152.48
|
|
$ 131.64
|
|
$ 20.84
|
|
$
158.03
|
|
$ 105.81
|
|
$ 52.22
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
143.51
|
|
$ 101.65
|
|
$
(41.86)
|
|
$
134.07
|
|
$
87.07
|
|
$
(47.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
144.98
|
|
$ 113.61
|
|
$
(31.37)
|
|
$
138.44
|
|
$
90.50
|
|
$
(47.94)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
7.50
|
|
$
18.03
|
|
$
(10.53)
|
|
$
19.59
|
|
$
15.31
|
|
$ 4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
(000's)
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$ (11,849)
|
|
$
8,276
|
|
$
(20,125)
|
|
$
(8,676)
|
|
$ 24,517
|
|
$
(33,193)
|
Corporate
|
(903)
|
|
(1,239)
|
|
336
|
|
(4,247)
|
|
(4,170)
|
|
(77)
|
Total
|
$ (12,752)
|
|
$
7,037
|
|
$
(19,789)
|
|
$ (12,923)
|
|
$ 20,347
|
|
$
(33,270)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
(1,487)
|
|
$
2,981
|
|
$
(4,468)
|
|
$
9,404
|
|
$ 12,128
|
|
$
(2,724)
|
Corporate
|
(698)
|
|
(985)
|
|
287
|
|
(2,334)
|
|
(3,165)
|
|
831
|
Total
|
$
(2,185)
|
|
$
1,996
|
|
$
(4,181)
|
|
$
7,070
|
|
$
8,963
|
|
$
(1,893)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This is
a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
(2) Cash
production cost per ton sold excludes purchased coal. This is
a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
(3) Cash
cost per ton sold includes purchased coal. This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
Coal Pricing Trends and Outlook
Price levels opened the fourth quarter 2022 at $270.50/metric ton ("mt") delivered-to-the-port
("FOBT") for spot deliveries of Australian premium low volatile
metallurgical coal and closed the quarter at $294.50/mt FOBT. The quarterly average price for
the fourth quarter of 2022 was $282.39/mt FOBT for Australian premium low
volatile metallurgical coal, compared to $249.17/mt FOBT in the third quarter of 2022, and
traded in a range from a high of $350.50/mt FOBT to a low of $245.25/mt FOBT.
The forward curve pricing for the balance of 2023, according to
the SGX TSI index, is trading at an average of $300.00/mt FOBT with the second quarter at a high
of $309.00/mt FOBT and the fourth
quarter at a low of $292.00/mt
FOBT. The forward curve for 2024 is indicating pricing at an
average of $287.84/mt FOBT. Increased
global steel demand and high levels of global steel production are
driving the demand and supporting higher prices for metallurgical
coal. Limited supply-side response, constrained logistics and
inflationary mining cost pressures continue to support high
metallurgical coal prices in the near future.
See "Risk Factors" in the Company's annual information form
dated April 13, 2023 for the year ended December 31, 2022 for an additional discussion
regarding certain factors that could impact coal pricing trends and
outlook, as well as the Company's ongoing operations.
First Quarter 2023 Update
The Company's first quarter 2023 sales volumes are expected to
be higher than the fourth quarter of 2022 and in-line with
historical levels. Metallurgical coal selling prices are
expected to be meaningfully higher than the fourth quarter of 2022
as we recognize the higher sales prices of our 2023 fixed price
contracts and increase our participation in the metallurgical coal
spot market. Cash cost of sales are expected to be lower than
the previous quarter as mining conditions and efficiencies are
improved but will remain elevated compared to historical
levels. Selling, general and administrative expenses are
expected to be lower than the fourth quarter 2022 and will be
similar to the average amount from the first three quarters of
2022. The main priorities of the Company are increasing efficient
production, reducing costs, and increasing our ability to
participate in the metallurgical coal spot market. We are
committed to improving the Company's balance sheet with minimized
downside financial risk but are also focused on organic growth
opportunities to complement our existing operations. The Company's
capital allocation and deployment strategy will be aligned with
these priorities and the Company's financial position.
Corsa committed over 900,000 tons at an FOB mine price of nearly
$179/ton for the calendar year
2023. The price per ton is the equivalent of $287/mt FOBT for Australian premium low volatile
metallurgical coal. The volumes and price per ton were
impacted by nearly 153,000 carryover tons which were priced at the
2022 fixed price contract rate.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's audited consolidated financial statements for
the years ended December 31, 2022 and 2021 and related
management's discussion and analysis, filed under Corsa's profile
on www.sedar.com, for details of the financial performance of Corsa
and the matters referred to in this news release.
Non-GAAP Financial Measures
Corsa uses certain non-GAAP financial measures to measure its
performance internally and to assist in business decision-making as
well as providing key performance information to senior
management. These measures are not recognized under
International Financial Reporting Standards ("GAAP"). Corsa
believes that, in addition to the conventional measures prepared in
accordance with GAAP, certain investors and other stakeholders also
use these non-GAAP financial measures to evaluate Corsa's operating
and financial performance; however, these non-GAAP financial
measures do not have any standardized meaning and therefore may not
be comparable to similar measures presented by other issuers.
Accordingly, these non-GAAP financial measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP.
Management uses the following non-GAAP financial measures:
- EBITDA - earnings before deductions for interest, taxes,
depreciation and amortization;
- Adjusted EBITDA - EBITDA adjusted for change in estimate
of reclamation and water treatment provision for non-operating
properties, impairment and write-off of mineral properties and
advance royalties, gain (loss) on sale of assets and other costs,
stock-based compensation, non-cash finance expenses and other
non-cash adjustments. Adjusted EBITDA is used as a supplemental
financial measure by management and by external users of our
financial statements to assess our performance as compared to the
performance of other companies in the coal industry, without regard
to financing methods, historical cost basis or capital structure;
the ability of our assets to generate sufficient cash flow; and our
ability to incur and service debt and fund capital
expenditures;
- Realized price per ton sold - revenue from coal sales
less transportation costs from the mine site to the loading
terminal divided by tons of coal sold. Management evaluates our
operations based on the volume of coal we can safely produce or
purchase and sell in compliance with regulatory standards, and the
prices we receive for our coal. Our sales volume and sales prices
are largely dependent upon the terms of our contracts, for which
prices generally are set based on an index. We evaluate the price
we receive for our coal on an average realized price on an FOB mine
site per short ton basis;
- Cash production cost per ton sold - cash production
costs of sales excluding purchased coal costs, all included within
cost of sales, divided by tons of produced coal sold. Cash
production cost is based on cost of sales and includes items such
as manpower, royalties, fuel, and other similar production related
items, pursuant to IFRS, but relate directly to the costs incurred
to produce coal and sell it on an FOB mine site basis. Cash
production cost per ton sold is used as a supplemental financial
measure by management and by external users to assess our operating
performance as compared to the operating performance of other
companies in the coal industry. Purchased coal is excluded as the
purchased coal costs are based on market prices of coal purchased
and not the cost to produce the coal;
- Cash cost purchased coal per ton sold - purchased coal
costs divided by tons of purchased coal sold. Management uses this
measure to assess coal purchases against the market price at which
this coal will be sold;
- Cash cost per ton sold - cash production costs of sales,
included within cost of sales, divided by total tons sold.
Management uses cash cost per ton sold to assess our overall
financial performance on a per ton basis to include the Company's
production and purchased coal cost in total; and
- Cash margin per ton sold - calculated difference between
realized price per ton sold and cash cost per ton sold. Cash margin
per ton sold is used by management and external users to assess the
operating performance as compared to the operating performance of
other coal companies in the coal industry.
For a reconciliation of non-GAAP financial measures to GAAP
measures, see the tabular presentation at the end of this news
release.
Qualified Person
All scientific and technical information contained in this news
release has been reviewed and approved by David E. Yingling, Professional Engineer and the
Company's mining engineer, who is a qualified person within the
meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
Caution
Potential developments and market conditions discussed in this
news release are considered to be forward looking
information. Readers are cautioned that actual results may
vary from this forward-looking information. See
"Forward-Looking Statements" below.
Information about Corsa
Corsa is a coal mining company focused on the production and
sales of metallurgical coal, an essential ingredient in the
production of steel. Our core business is producing and selling
metallurgical coal to domestic and international steel and coke
producers in the Atlantic and Pacific basin markets.
Forward-Looking Statements
Certain information set forth in this press release contains
"forward-looking statements" and "forward-looking information"
(collectively, "forward-looking statements") under applicable
securities laws. Except for statements of historical fact, certain
information contained herein including, but not limited to,
statements relating to the expected price volatility of the
metallurgical coal market, the future demand for steel and its
production, and the availability of its supply, changes to sales
margins and expected profitability, the expected sales volumes and
cash costs of sales of the Company in the first quarter of 2023,
along with the Company's main priorities and its capital allocation
and deployment strategy in 2023, constitute forward-looking
statements which include management's assessment of future plans
and operations and are based on current internal expectations,
assumptions and beliefs, which may prove to be incorrect. Some of
the forward-looking statements may be identified by words such as
"will", "estimates", "expects" "anticipates", "believes",
"projects", "plans", "capacity", "hope", "forecast", "anticipate",
"could" 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. These risks and
uncertainties include, but are not limited to: changes in market
conditions, governmental or regulatory developments as a result of
the COVID-19 pandemic or otherwise, the operating status and
capabilities of our customers and competitors; various events which
could disrupt operations and/or the transportation of coal
products, including the geological conditions at the Company's
mines, the conflict in Ukraine,
labor stoppages, the outbreak of disease and severe weather
conditions; and management's ability to anticipate and manage the
foregoing factors and risks. 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 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.
Non-GAAP Financial Measures Reconciliation
EBITDA and Adjusted EBITDA for the three months ended
December 31, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
Net and comprehensive
income (loss) from continuing operations
|
$(14,928)
|
|
$
(1,374)
|
|
$(16,302)
|
|
$ 4,330
|
|
$
(1,574)
|
|
$ 2,756
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
2,635
|
|
-
|
|
2,635
|
|
3,682
|
|
-
|
|
3,682
|
Interest
expense
|
444
|
|
471
|
|
915
|
|
264
|
|
335
|
|
599
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
EBITDA
|
(11,849)
|
|
(903)
|
|
(12,752)
|
|
8,276
|
|
(1,239)
|
|
7,037
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Department of
Justice Disgorgement (a)
|
1,200
|
|
-
|
|
1,200
|
|
-
|
|
-
|
|
-
|
Change in estimate of
reclamation and water treatment provision (b)
|
10,837
|
|
-
|
|
10,837
|
|
(3,310)
|
|
-
|
|
(3,310)
|
Stock-based
compensation (c)
|
-
|
|
44
|
|
44
|
|
-
|
|
29
|
|
29
|
Net finance (income)
expense, excluding interest expense (d)
|
(1,720)
|
|
47
|
|
(1,673)
|
|
(771)
|
|
86
|
|
(685)
|
Loss (gain) on disposal
of assets (e)
|
38
|
|
-
|
|
38
|
|
(1,750)
|
|
-
|
|
(1,750)
|
Other costs
(f)
|
7
|
|
114
|
|
121
|
|
536
|
|
139
|
|
675
|
Adjusted
EBITDA
|
$
(1,487)
|
|
$ (698)
|
|
$
(2,185)
|
|
$ 2,981
|
|
$ (985)
|
|
$ 1,996
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The Company entered
into a declination agreement in which the U.S. Department of
Justice declined to prosecute the Company and the Company agreed to
pay the disgorgement amount.
|
(b)
|
A component of cost of
sales and results from changes in the estimated undiscounted cash
flows and risk-free discount rate used in calculating the present
value of the reclamation and water treatment provision for
properties where mining has ceased.
|
(c)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
(d)
|
Components of finance
expense and income excluding interest expense.
|
(e)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
(f)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
EBITDA and Adjusted EBITDA for the years ended December 31, 2022 and 2021
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
Net and comprehensive
income (loss) from continuing operations
|
$(21,948)
|
|
$
(5,781)
|
|
$(27,729)
|
|
$ 7,048
|
|
$
(5,639)
|
|
$ 1,409
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
11,833
|
|
-
|
|
11,833
|
|
16,408
|
|
-
|
|
16,408
|
Interest
expense
|
1,439
|
|
1,534
|
|
2,973
|
|
1,061
|
|
1,469
|
|
2,530
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
EBITDA
|
(8,676)
|
|
(4,247)
|
|
(12,923)
|
|
24,517
|
|
(4,170)
|
|
20,347
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Employee retention
credit (a)
|
-
|
|
-
|
|
-
|
|
(6,769)
|
|
(98)
|
|
(6,867)
|
U.S. Department of
Justice Disgorgement (b)
|
1,200
|
|
-
|
|
1,200
|
|
-
|
|
-
|
|
-
|
Paycheck Protection
Program grant income (c)
|
-
|
|
-
|
|
-
|
|
(1,126)
|
|
-
|
|
(1,126)
|
Change in estimate of
reclamation and water treatment provision (d)
|
10,837
|
|
-
|
|
10,837
|
|
(3,310)
|
|
-
|
|
(3,310)
|
Restructuring charges
(e)
|
-
|
|
886
|
|
886
|
|
-
|
|
-
|
|
-
|
Stock-based
compensation (f)
|
-
|
|
56
|
|
56
|
|
-
|
|
155
|
|
155
|
Net finance (income)
expense, excluding interest expense (g)
|
5,787
|
|
285
|
|
6,072
|
|
(47)
|
|
360
|
|
313
|
Loss (gain) on disposal
of assets (h)
|
186
|
|
-
|
|
186
|
|
(1,982)
|
|
-
|
|
(1,982)
|
Other costs
(i)
|
70
|
|
686
|
|
756
|
|
845
|
|
588
|
|
1,433
|
Adjusted
EBITDA
|
$
9,404
|
|
$
(2,334)
|
|
$
7,070
|
|
$
12,128
|
|
$
(3,165)
|
|
$ 8,963
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
A component of other
income which reflects the amounts the Company is expected to
receive related to a refundable tax credit.
|
(b)
|
The Company entered
into a declination agreement in which the U.S. Department of
Justice declined to prosecute the Company and the Company agreed to
pay the disgorgement amount.
|
(c)
|
Reflects the amounts
forgiven associated with loans received by the Company.
|
(d)
|
A component of cost of
sales and results from changes in the estimated undiscounted cash
flows and risk-free discount rate used in calculating the present
value of the reclamation and water treatment provision for
properties where mining has ceased.
|
(e)
|
Reflects the separation
costs associated with the Company's previous President and Chief
Executive Officer and Chief Operating Officer.
|
(f)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
(g)
|
Components of finance
expense and income excluding interest expense.
|
(h)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
(i)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
Realized price per ton sold for the three months ended December 31, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
Revenue
|
$
35,993
|
|
$
2,861
|
|
$
38,854
|
|
$
39,838
|
|
$ 212
|
|
$
40,050
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(183)
|
|
-
|
|
(183)
|
|
(594)
|
|
-
|
|
(594)
|
Transportation costs
from preparation plant to customer
|
(1,982)
|
|
-
|
|
(1,982)
|
|
(2,356)
|
|
-
|
|
(2,356)
|
Limestone
revenue
|
(130)
|
|
-
|
|
(130)
|
|
(292)
|
|
-
|
|
(292)
|
Net coal sales (at
preparation plant)
|
$
33,698
|
|
$
2,861
|
|
$
36,559
|
|
$
36,596
|
|
$ 212
|
|
$
36,808
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
221
|
|
27
|
|
248
|
|
278
|
|
3
|
|
281
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
152.48
|
|
$
105.96
|
|
$
147.42
|
|
$
131.64
|
|
$
70.67
|
|
$
130.99
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton sold for the years ended December 31, 2022 and 2021
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
Revenue
|
$161,285
|
|
$
4,606
|
|
$165,891
|
|
$
129,669
|
|
$
1,806
|
|
$
131,475
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(1,664)
|
|
-
|
|
(1,664)
|
|
(1,543)
|
|
-
|
|
(1,543)
|
Transportation costs
from preparation plant to customer
|
(7,274)
|
|
(22)
|
|
(7,296)
|
|
(6,647)
|
|
(3)
|
|
(6,650)
|
Limestone
revenue
|
(634)
|
|
-
|
|
(634)
|
|
(1,070)
|
|
-
|
|
(1,070)
|
Net coal sales (at
preparation plant)
|
$151,713
|
|
$
4,584
|
|
$156,297
|
|
$
120,409
|
|
$
1,803
|
|
$
122,212
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
960
|
|
44
|
|
1,004
|
|
1,138
|
|
47
|
|
1,185
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
158.03
|
|
$
104.18
|
|
$
155.67
|
|
$
105.81
|
|
$
38.36
|
|
$
103.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton sold, cash production cost per ton sold, and cash
cost per purchased coal per ton sold for the three months ended
December 31, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$
25,837
|
|
$ 813
|
|
$
26,650
|
|
$
21,846
|
|
$ 197
|
|
$
22,043
|
Purchased coal
costs
|
4,487
|
|
2,152
|
|
6,639
|
|
8,102
|
|
14
|
|
8,116
|
Royalty
expense
|
1,717
|
|
24
|
|
1,741
|
|
1,636
|
|
-
|
|
1,636
|
Total cash costs of
tons sold
|
$
32,041
|
|
$
2,989
|
|
$
35,030
|
|
$
31,584
|
|
$ 211
|
|
$
31,795
|
Total tons
sold
|
221
|
|
27
|
|
248
|
|
278
|
|
3
|
|
281
|
Cash cost per ton sold
(at preparation plant)
|
$
144.98
|
|
$
110.70
|
|
$
141.25
|
|
$
113.61
|
|
$
70.33
|
|
$
113.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
32,041
|
|
$
2,989
|
|
$
35,030
|
|
$
31,584
|
|
$ 211
|
|
$
31,795
|
Less: purchased
coal
|
(4,487)
|
|
-
|
|
(4,487)
|
|
(8,102)
|
|
-
|
|
(8,102)
|
Cash cost of produced
coal sold
|
$
27,554
|
|
$
2,989
|
|
$
30,543
|
|
$
23,482
|
|
$ 211
|
|
$
23,693
|
Tons sold -
produced
|
192
|
|
27
|
|
219
|
|
231
|
|
3
|
|
234
|
Cash production cost
per ton sold (at preparation plant)
|
$
143.51
|
|
$
110.70
|
|
$
139.47
|
|
$
101.65
|
|
$
70.33
|
|
$
101.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
4,487
|
|
$
-
|
|
$
4,487
|
|
$ 8,102
|
|
$
-
|
|
$ 8,102
|
Tons sold - purchased
coal
|
29
|
|
-
|
|
29
|
|
47
|
|
-
|
|
47
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
154.72
|
|
$
-
|
|
$
154.72
|
|
$
172.38
|
|
$
-
|
|
$
172.38
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton sold, cash production cost per ton sold, and cash
cost per purchased coal per ton sold for the years ended
December 31, 2022 and 2021
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$104,413
|
|
$
1,972
|
|
$106,385
|
|
$
86,347
|
|
$ 381
|
|
$
86,728
|
Purchased coal
costs
|
21,886
|
|
2,684
|
|
24,570
|
|
10,781
|
|
1,337
|
|
12,118
|
Royalty
expense
|
6,599
|
|
24
|
|
6,623
|
|
5,858
|
|
-
|
|
5,858
|
Total cash costs of
tons sold
|
$132,898
|
|
$
4,680
|
|
$137,578
|
|
$
102,986
|
|
$
1,718
|
|
$
104,704
|
Total tons
sold
|
960
|
|
44
|
|
1,004
|
|
1,138
|
|
47
|
|
1,185
|
Cash cost per ton sold
(at preparation plant)
|
$
138.44
|
|
$
106.36
|
|
$
137.03
|
|
$ 90.50
|
|
$
36.55
|
|
$ 88.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$132,898
|
|
$
4,680
|
|
$137,578
|
|
$
102,986
|
|
$
1,718
|
|
$
104,704
|
Less: purchased
coal
|
(21,886)
|
|
-
|
|
(21,886)
|
|
(10,781)
|
|
-
|
|
(10,781)
|
Cash cost of produced
coal sold
|
$111,012
|
|
$
4,680
|
|
$115,692
|
|
$
92,205
|
|
$
1,718
|
|
$
93,923
|
Tons sold -
produced
|
828
|
|
44
|
|
872
|
|
1,059
|
|
47
|
|
1,106
|
Cash production cost
per ton sold (at preparation plant)
|
$
134.07
|
|
$
106.36
|
|
$
132.67
|
|
$ 87.07
|
|
$
36.55
|
|
$ 84.92
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
21,886
|
|
$
-
|
|
$
21,886
|
|
$
10,781
|
|
$
-
|
|
$
10,781
|
Tons sold - purchased
coal
|
132
|
|
-
|
|
132
|
|
79
|
|
-
|
|
79
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
165.80
|
|
$
-
|
|
$
165.80
|
|
$
136.47
|
|
$
-
|
|
$
136.47
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the three months ended December 31, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
Realized price per ton
sold (at preparation plant)
|
$
152.48
|
|
$
105.96
|
|
$
147.42
|
|
$
131.64
|
|
$
70.67
|
|
$
130.99
|
Cash cost per ton sold
(at preparation plant)
|
$
144.98
|
|
$
110.70
|
|
$
141.25
|
|
$
113.61
|
|
$
70.33
|
|
$
113.15
|
Cash margin per ton
sold
|
$ 7.50
|
|
$
(4.74)
|
|
$ 6.17
|
|
$ 18.03
|
|
$ 0.34
|
|
$ 17.84
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the years ended December 31, 2022 and 2021
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
Realized price per ton
sold (at preparation plant)
|
$
158.03
|
|
$
104.18
|
|
$
155.67
|
|
$
105.81
|
|
$
38.36
|
|
$
103.13
|
Cash cost per ton sold
(at preparation plant)
|
$
138.44
|
|
$
106.36
|
|
$
137.03
|
|
$ 90.50
|
|
$
36.55
|
|
$ 88.36
|
Cash margin per ton
sold
|
$
19.59
|
|
$
(2.18)
|
|
$
18.64
|
|
$ 15.31
|
|
$ 1.81
|
|
$ 14.77
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Corsa Coal Corp.