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Last updated on April 16, 2014 at 21:24 EDT

Corsa Files First Quarter 2013 Financial Results

April 23, 2013

TORONTO, April 23, 2013 /PRNewswire/ – Corsa Coal Corp. (TSXV: CSO) (“Corsa” or
the “Company”) announces that it has filed its Condensed Interim
Consolidated Financial Statements and Management’s Discussion and
Analysis for the three months ended February 28, 2013 on SEDAR and has
posted these documents to its website www.corsacoal.com. References in this press release to “Q1″ means the three months ended
February 28, 2013 unless otherwise noted.

Highlights

        --  Metallurgical Coal Sales

            The Company sold 36,000 tons of clean metallurgical coal and
            10,000 tons of raw metallurgical coal in Q1 and increased its
            2013 metallurgical coal sales guidance to between approximately
            300,000 to 320,000 tons. On April 2, 2013 the Company announced
            entering into a sales arrangement with Hyundai Steel.

        --  Mineral Reserves and Resources

            On March 6, 2013, the Company filed a new technical report to
            satisfy the requirements of National Instrument 43-101 ("NI
            43-101") on www.sedar.com
            with respect to the Acosta Deep Project, the Keyser Project and
            certain surface mines and properties, and is entitled the
            "Wilson Creek Energy, LLC Technical Report on Coal Resources
            and Reserves, Somerset-Cambria Coal Complex, Somerset-Cambria
            Counties, Pennsylvania, USA, December 1, 2012".

        --  Keyser Project

            In December 2012, the Companycompleted the purchase of the
            rights to mine the Lower Kittanning coal seam under
            approximately 2,300 acres in the Jenner and Conemaugh Townships
            in Somerset County, Pennsylvania referred to as the Keyser
            Project.

        --  Financing and Acquisition

            On March 21, 2013,the Company entered into a binding agreement
            with Quintana Kopper Glo Investment, LLC which, when the
            transactions contemplated are fully completed, will result in
            the Company having raised a total of $40 million and acquiring
            Kopper Glo, a Tennessee based coal producer, from Quintana and
            Quintana having acquired a control position in Corsa.

Refer to the Condensed Interim Consolidated Financial Statements and
Management’s Discussion and Analysis filed for the details of the
financial performance of the Company and the matters referred to in
this release including the technical reports and independent qualified
person.

Production

The Company’s production of metallurgical coal from operations was a
total of 60,000 raw tons in Q1 of which 49,000 tons were from the
Casselman Mine. The Company processed 56,000 raw tons of metallurgical
coal in Q1 producing 38,000 clean tons.  The Company sold 36,000 clean
tons of metallurgical coal at an average realized price of $102 per ton
and 10,000 raw tons of metallurgical coal at an average realized price
of $63 per ton in Q1.

The recently signed sales contracts were not in place during the early
part of Q1, and as a result, production of coal was not at full
capacity during the quarter as the Company matches its production to
its sales and delivery schedule.  First quarter sales were consistent
with a very weak met coal market.  However, in spite of the low
production, the Company was very successful in its cost control
achieving underground mining costs at the Casselman Mine of US$46 per
ton, down from the 2012 fiscal year average of US$55 per ton.  With its
fiscal 2013 guidance of 300,000 to 320,000 of metallurgical coal sales,
it has ramped up production significantly in order to meet its delivery
schedule for the balance of the year. With this increased production at
Casselman the Company expects to achieve lower per ton mining costs as
well as reduced processing costs.

Outlook

While the metallurgical coal market, as expected, continued to be weak
into the first quarter of fiscal 2013, the Company has continued to be
successful in achieving sales as a result of the quality of its low
volatile metallurgical coal product. The Company’s current guidance for
fiscal 2013 is metallurgical coal sales of between approximately
300,000 and 320,000 clean tons, of which 36,000 tons were sold in Q1
leaving approximately 264,000 to 284,000 tons for the balance of the
year. The Company believes there are indications of an improving price
environment from that of the first quarter. In addition, the Company
currently expects metallurgical coal sales of between 45,000 and 60,000
clean tons in the first fiscal quarter of 2014. This guidance is based
on currently contracted sales which are direct to both domestic and
international steel producers. The Company continues to actively market
its high quality low volatile metallurgical coal and match production
to actual sales.

Update on the Quintana Transaction

A summary of the Quintana transaction (the “Transaction”) and of related
documents is set out in Corsa’s material change report dated March 28,
2012, available on sedar.com.

In accordance with the requirements of the TSX Venture Exchange (the
“Exchange”), Corsa will be submitting for review to the Exchange a
Filing Statement in respect of the Transaction.  The Filing Statement
requires the preparation of a NI 43-101 compliant technical report on
Kopper Glo’s material property and preparation of historical and pro
forma financial statements in accordance with requirements of Canadian
Securities Administrators. The Transaction is targeted to close in July
2013.

Trading in the common shares of Corsa resumed on the Exchange on April
11, 2013 following a normal course trading halt upon the initial
announcement of the Transaction.

Completion of the Transaction is subject to a number of conditions,
including Exchange acceptance and disinterested shareholder approval. 
The Transaction cannot close until the required shareholder approval is
obtained. There can be no assurance that the Transaction will be
completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing
Statement or Management Information Circular to be prepared in
connection with the Transaction, any information released or received
with respect to the Transaction may not be accurate or complete and
should not be relied upon.  Trading in the securities of Corsa should
be considered highly speculative.

The Exchange has in no way passed upon the merits of the proposed
transaction and has neither approved nor disapproved the contents of
this press release.

Information about Corsa

Corsa’s main operating subsidiary is Wilson Creek Energy LLC based in
Somerset County, Pennsylvania.  Its primary business is the mining,
processing and selling of metallurgical coal, as well as actively
exploring,   acquiring   and   developing   resource   properties
consistent with its coal business.

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 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 the Company’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 2013 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; risk that the required approvals for
the Transaction will not be obtained and that the Transaction will not
be completed; 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 the Company’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,
future prices for coal; future currency and exchange rates; the
Company’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
the Company conducts business; coal production levels; and the
Company’s ability to retain qualified staff and equipment in a
cost-efficient manner to meet its demand. 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. The Company does not
undertake to update any of the forward-looking statements contained in
this press release unless required by law. The statements as to the
Company’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 neither approved nor disapproved the
contents of this press 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.


Source: PR Newswire