Pacific Coal Resources Ltd. announces third quarter results
TORONTO, Nov. 29, 2011 /PRNewswire/ – Pacific Coal Resources Ltd. (TSXV: PAK)
has filed today its interim condensed consolidated financial statements
for the three and nine months ended September 30, 2011, together with
its Management’s Discussion and Analysis (“MD&A”) for the corresponding
period. These documents will be posted on the Company’s website at www.pacificcoal.ca and at www.sedar.com.
Luis Carvajales, Chief Executive Officer, commented: “I am pleased with
the progress the Company is making to implement mine plans at both La
Caypa and Cerro Largo, which aim to progressively reduce costs, and
ensure firm, guaranteed sales volumes going forward at contract prices
at a premium to market. With a full trucking fleet now in place, we are
in a good position to ramp up production at both Cerro Largo and CI
Jam. Year to date, we produced 1.2 million tonnes of coal, which
demonstrates a track record of execution over the last three quarters,
and we remain on track to produce at our budgeted production target of
1.6 million to 1.8 million tonnes for the year. ”
Financial and Operating Summary
A summary of the financial and operating results for the three and nine
months ended September 30, 2011 is as follows:
2011 Third Nine Period from Quarter months incorporation 2010 ended on September May 4, 2010 30, to 2011 September 30, 2010 Operational Tonnes of 400,909 303,879 1,070,209 494,677 coal produced Average 7.61 8.38 7.38 9.18 stripping ratio - operations Tonnes of 460,189 343,779 1,217,389 578,442 coal sold (1) Average realized price per tonne sold $ 101.01 $ 97.98 $ 97.65 $ 87.51 Operating 4.12 12.55 10.18 5.56 margin per tonne sold (2) Financial Revenues $ $ 33,682 $ 118,877 $ 50,617 46,485 Gross margin (937) 3,860 6,370 2,450 Net (loss) earnings attributed to Shareholders (1,126) 3,723 (46,380) 2,313 Basic and fully diluted (loss) earnings per share 0.00 0.08 (0.16) 0.08 Total assets 392,112 83,598 392,112 83,598 at period end Total 32,021 14,445 32,021 14,445 long-term debt at period end
(1) Includes coal purchased from third parties for sale.
(2) See “Additional Financial Measures” in MD&A.
Third Quarter Highlights
-- Through the first nine months of 2011, production amounted to 1.2(1) million tonnes of coal. Pacific Coal is on track to produce 1.6(1)million to 1.8(1) million tonnes of coal in 2011. -- Total revenues for the third quarter of 2011 increased to $46.5 million on the strength of 460,189 tonnes of coal sold at an average realized price of $101.01 per tonne. Total revenues for the first nine months of 2011 amounted to $118.9 million. -- Operating costs in the third quarter of 2011 increased by approximately $9 per tonne, compared with the first half of 2011, mainly associated with an increase in the royalties at La Caypa, which are prepaid and expected to decrease going forward. Higher transportation and port services costs also impacted operating expenses and, with a full committed trucking fleet in place, these costs are expected to decline as well in coming quarters. -- Pacific Coal has entered into a sales purchase agreement with LCC Group, an established energy services company based in Northern Ireland, for the supply of 700,000 tonnes per annum, commencing upon completion of deliveries under their existing contract and extending the relationship between the two companies to 2019. Management has estimated the value of this agreement at approximately $350 million based on conservative forward prices for coal. -- Exploration at both the La Caypa and Cerro Largo mines has been undertaken in coordination with SRK pursuant to updating the National Instrument 43-101 ("NI 43-101") technical reports in connection with open pit and underground resources at both mines. -- Progress is being made in the expansion of installed capacity for coke production at CI Jam and activities associated with development of the Barranquilla port. -- Exploration at La Tigra is progressing and geophysical studies have been undertaken (due to be finalized by mid-December); a NI 43-101 technical report is expected by the second quarter of 2012. -- The Company commenced a Normal Course Issuer Bid in July 2011 and to-date has repurchased approximately 2% of its issued and outstanding common shares for cancellation.
(1) Includes 0.1 million tonnes produced in the first quarter of
2011 at Cerro Largo prior to the March 2011 acquisition.
Management will hold a conference call on Wednesday, November 30, 2011
at 10:30 a.m. (Eastern Time) to discuss the third quarter 2011 results.
Call-in details are as follows:
Toronto & International: (647) 427-7450 North America: (888) 231-8191 Conference ID: 32099208
A playback of this conference call will be available by dialling (416)
849-0833 or 1 (855) 859-2056 with the above conference ID number until
December 14, 2011.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining company focused
on coal, coking coal, asphalt and asphaltite exploration, development
and production from prospective, producing, development-stage and
exploration-stage properties in Colombia. The Company has acquired or
entered into agreements to acquire various interests in several
operating coal mines and projects, representing a substantive coal and
asphaltite exploration and production area throughout Colombia. Pacific
Coal is committed to implementing its exploration and development
strategy with a comprehensive environment, safety and community
program, meeting international standards of best practice.
Forward Looking Information:
This news release contains “forward-looking information”, which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects.
Often, but not always, forward-looking statements can be identified by
the use of words such as “plans”, “expects”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or
believes” or variations (including negative variations) of such words
and phrases, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Pacific Coal to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Forward-looking statements
contained herein are made as of the date of this press release and
Pacific Coal disclaim, other than as required by law, any obligation to
update any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if management’s
estimates or opinions should change, or otherwise. 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. Accordingly, the reader is cautioned
not to place undue reliance on forward-looking statements.
Neither 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 news release.
SOURCE Pacific Coal Resources Ltd.