canam coal corp (COE) Snapshot

CanAm Coal Corp. reported unaudited consolidated financial and production results for the first quarter ended March 31, 2013. For the quarter, revenue, EBITDA and net loss for the quarter were $13.9 million, $1.9 and $1.8 million respectively as compared to $12.8 million, $1.8 million and $1.2 million in the prior year. Operating cash flow was $1.5 million against $0.5 million a year ago. Capex was $2.5 million against $5.4 million a year ago. Sales for the quarter were 149,453 tons, more than double the first quarter of 2012 originally reported tons of 67,153 and up 27% on a restated basis of 117,192 tons. For the quarter, the company reported production of 149,453 tons against 117,192 tons a year ago. The company believes that it can achieve significant production and sales growth as compared to 2012. The company has sales commitments in the range of 700,000 to 800,000 tons which corresponds to between 85% and 100% of the expected production of its new mine complement. As a result, overall average 2013 pricing is expected to be relatively consistent with 2012. Total 2013 capital expenditures are expected to be in the range of $7 to $9 million.

CanAm Coal Corp. reported audited consolidated financial results for the fourth quarter and year ended December 31, 2012. Fourth quarter revenue, EBITDA and net loss was $14.6 million, $3.2 million and $2.3 million respectively as compared to $8.4 million, $1.7 million and $1.0 million in the prior year. Excluding one- time impairment charges and a correction of an error in the calculation of mineral property amortization, the fourth quarter loss was $0.7 million as compared to $1.0 million in fourth quarter of 2011. Capital expenditures on new equipment, capital repairs and mineral property development totaled $1.6 million, compared to $5.2 million in the previous quarter. The company financed $200,000 of this investment and funded the remainder from cash flow. The company generated free cash flow from operations (EBTIDA less capital expenditures) of $1.5 million. Operating cash flow was $3.1 million. Income from mining operations was $284,975, compared to loss from mining operations of $36,363 for the two months ended Dec. 31, 2011. Full year revenue, EBITDA and net loss for the year were $55.4 million, $10.2 and $6.1 million respectively as compared to $38.9 million, $8.5 million and $1.7 million in the prior year. The significant increase in EBTIDA achieved in the second half of the year can be attributed to increased production and sales levels and lower production costs previously discussed. New equipment, capital repair and mineral property development expenditures totaled $17.4 million, including $14.5 million of equipment additions. Free cash outflow was $7.2 million. Operating cash flow was $7.0 million. Income from mining operations was $1,370,584, compared to $3,446,785 for the eleven months ended Dec. 31, 2011. Consolidated fourth quarter sales volumes were 153,841 tons compared to 87,465 tons sold in the two month period ended December 31, 2011. Both thermal and metallurgical sales volumes exceeded the prior year even taking into account the additional month of results. Fourth Quarter production reached an all-time high of 174,000 as a result of initial production from the first pit at the new Old Union 2 mine and strong performance at Powhatan, Old Union and Bear Creek. Sales were lower (153,841 tons) due to shipment curtailments during the Christmas period. The difference between Fourth Quarter production and sales is reflected as inventory in the year-end accounts. For the full year, consolidated sales volumes were 559,450 tons, compared to 402,766 tons for the eleven months ended Dec. 31, 2011. The company is in an important period of transition as it repositions its mine portfolio from a 40,000 to 60,000 ton per month run rate to an operating platform capable of producing 60,000 to 80,000 tons a month and beyond. As of the date, the company has substantially completed the mine build out of all 3 pits at Old Union 2 and the Knight mine. Full scale commercial production is underway as of April, 2013. Mine development is well underway at the Posey Mill 2 mine and first production is anticipated before the end of second quarter of 2013. Therefore, full scale production at all of the mines is anticipated in second quarter of 2013. The transition to the new mines has taken longer than anticipated. This has partially been due to adverse weather conditions but also unanticipated engineering challenges with pond and road construction, which occurred during February and March. In addition, coal deliveries into two new customers were lower than expected as these customers were burning off coal inventory acquired from previous suppliers and the company only replaced its lost met coal order with a new customer in April. The company had a slower start to the year and anticipates sales for the first quarter to be around 150,000 tons, in line with third and fourth quarter of 2012 but below the sales range the company expects to achieve with its new mine complement. The outlook for 2013 remains positive and the company believes that it can achieve significant production and sales growth as compared to 2012. The mine build out is nearly complete and the company's customers have been scaling up deliveries to originally planned levels in April and this is expected to continue. For 2013, the company has sales commitments in the range of 700,000 to 800,000 tons which corresponds to between 85% and 100% of the expected production of new mine complement. As a result, overall average 2013 pricing is expected to be relatively consistent with 2012. Capital expenditures for 2013 are expected to be significantly lower than in 2012 and will be in the range of $7 to $9 million. The company will provide an update to its 2013 sales guidance after all of its new mines have achieved commercial production.

CanAm Coal Corp. Presents at Calgary Energy & Resource Investment Conference, Apr-05-2013 01:50 PM. Venue: Calgary Telus Convention Centre, Macleod Hall, 120 Ninth Avenue SE, Calgary, Alberta, Canada.