CANONSBURG, PA, Aug. 20, 2019 /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 and six months ended June 30, 2019. Corsa has
filed its unaudited condensed interim consolidated financial
statements for the three and six months ended June 30, 2019
and 2018 and related management's discussion and analysis 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, or FOB, mine site basis, unless otherwise noted.
Second Quarter and First Half Highlights
- Corsa reported net and comprehensive income from continuing
operations of $3.6 million, or
$0.03 per share attributable to
shareholders, for the second quarter 2019, compared to a loss of
$4.9 million, or $(0.05) per share attributable to shareholders,
for the second quarter 2018. Net and comprehensive income from
continuing operations for the six months ended June 30, 2019 was $6.6
million, or $0.05 per share
attributable to shareholders compared to a loss of $2.9 million, or $(0.04) per share attributable to shareholders
for the six months ended June 30,
2018.
- Corsa's adjusted EBITDA(1) was $10.1 million and $19.3
million for the three and six months ended June 30, 2019 compared to $4.3 million and $15.2
million for the three and six months ended June 30, 2018. Corsa's EBITDA(1) was
$10.2 million and $19.8 million for the three and six months ended
June 30, 2019 compared to
$2.3 million and $11.4 million for the three and six months ended
June 30, 2018.
- Cash production cost per ton sold(1) was
$84.55 for the second quarter 2019, a
decrease of $7.65 per ton, or 8%, as
compared to the second quarter 2018. Cash production cost per ton
sold(1) was $83.92 for the
six months ended June 30, 2019, a
decrease of $7.87 per ton, or 9%, as
compared to the six months ended June 30,
2018.
- Operating cash flows provided by continuing operations for the
three and six months ended June 30,
2019 were $8.8 million and
$14.5 million, respectively, compared
to a use of $4.6 million and cash
provided by continuing operations of $3.2
million for the three and six months ended June 30, 2018, respectively.
- Total revenue from continuing operations was $63.0 million for the second quarter 2019
compared to $57.3 million for the
second quarter 2018, an increase of 10%. Total revenue from
continuing operations was $120.3
million for the six months ended June
30, 2019 compared to $137.8
million for the six months ended June
30, 2018.
- Low volatile metallurgical coal sales tons, comprised of
"Company Produced" tons and "Value Added Services" purchased coal
tons, were 414,105 in the second quarter 2019 compared to 282,444
in the second quarter 2018. In the second quarter 2019, Corsa sold
a total of 36,306 "Sales and Trading" tons, which are treated as
pass-through from a profitability perspective, compared to 109,890
tons in the second quarter 2018. See "2019 Year-to-Date Sales
Metrics" for a description of Corsa's three types of metallurgical
coal sales.
- Corsa achieved an average realized price per ton of
metallurgical coal sold(1) of $117.48 for all metallurgical qualities in the
second quarter 2019 compared to $115.52 in the second quarter 2018. This average
realized price is the approximate equivalent of $168 to $174 on an
FOB vessel basis.(2) For the second quarter 2019,
Corsa's sales mix included 31% of sales to domestic customers and
69% of sales to international customers.
- Subsequent to June 30, 2019,
certain wholly-owned subsidiaries of Corsa, as borrowers, entered
into a senior secured revolving credit facility with KeyBank
National Association for up to $25
million and a lease financing agreement with Key Equipment
Finance, as lessor and assignor, and 36th Street Capital
Partners, LLC, as assignee, for the sale and leaseback of various
coal mining equipment for a funding amount of $12 million. These new facilities replace the
$25 million senior secured term
credit facility with Sprott Resource Lending Corp.
|
(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
$35-$40 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.
|
Peter Merritts, Chief Executive
Officer of Corsa, commented, "During the second quarter of 2019,
Corsa reached a milestone as all of our active mining locations are
now operating at their full run-rate capacity. We began
realizing the benefits of this ramp-up in the second quarter, as
production from our mines hit a new five-year high for the Company,
surpassing the previous quarterly production record, set in the
first quarter of this year, by 13%. Operations continued to
perform well in the second quarter as cash production cost per ton
sold improved by 8% from a year ago. We expect to continue to
experience these benefits as the year progresses. The Company
made significant advances on free cash flow generation during the
quarter increasing the Company's cash position by $4.5 million.
The outlook for metallurgical coal pricing is challenged in the
upcoming months, and we are taking steps to minimize the market
decline impact on our business. Although the market has
weakened in the near term, we continue to believe the fundamentals
for metallurgical coal pricing will remain supportive in the coming
quarters, driven by continued global economic growth and limited
investment in new coal production. As a result of this market
pull back, we have adjusted our guidance downward to reflect the
impact of the current price forecasts. We expect to continue
to be profitable in the existing price environment and will
continue to focus on cost control and discipline in managing our
operations."
2019 Year-to-Date Sales Metrics
Corsa's metallurgical coal sales figures are comprised of three
types of sales: (i) selling coal that Corsa produces ("Company
Produced"); (ii) selling coal that Corsa purchases and provides
value added services (storing, washing, blending, loading) to make
the coal saleable ("Valued Added Services"); and (iii) selling coal
that Corsa purchases on a clean or finished basis from suppliers
outside the Northern Appalachia region ("Sales and Trading").
For the six months ended June 30,
2019, Corsa's sales were broken down into the following
categories.
|
Metallurgical Coal
Sales by Category (Tons)
|
|
|
Q1
2019
|
|
Q2
2019
|
|
YTD
2019
|
|
Company
Produced
|
|
280,657
|
|
319,202
|
|
599,859
|
|
Purchased - Value
Added Services
|
|
78,197
|
|
94,903
|
|
173,100
|
|
Purchased - Sales and
Trading
|
|
49,982
|
|
36,306
|
|
86,288
|
|
Total
|
|
408,836
|
|
450,411
|
|
859,247
|
Financial and Operations Summary
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
|
2019
|
|
2018
|
|
(Decrease)
|
|
2019
|
|
2018
|
|
(Decrease)
|
|
Revenues
|
|
$
|
62,974
|
|
$
|
57,331
|
|
$
|
5,643
|
|
$
|
120,308
|
|
$
|
137,779
|
|
$
|
(17,471)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
|
$
|
55,017
|
|
$
|
55,097
|
|
$
|
(80)
|
|
$
|
104,919
|
|
$
|
125,826
|
|
$
|
(20,907)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
$
|
4,155
|
|
$
|
5,100
|
|
$
|
(945)
|
|
$
|
8,710
|
|
$
|
11,557
|
|
$
|
(2,847)
|
|
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
income (loss) for
|
|
$
|
3,603
|
|
$
|
(4,889)
|
|
$
|
8,492
|
|
$
|
6,605
|
|
$
|
(2,932)
|
|
$
|
9,537
|
|
the period from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities from
|
|
$
|
8,754
|
|
$
|
(4,556)
|
|
$
|
13,310
|
|
$
|
14,472
|
|
$
|
3,215
|
|
$
|
11,257
|
|
continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$
|
10,236
|
|
$
|
2,287
|
|
$
|
7,949
|
|
$
|
19,754
|
|
$
|
11,393
|
|
$
|
8,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
10,088
|
|
$
|
4,305
|
|
$
|
5,783
|
|
$
|
19,272
|
|
$
|
15,166
|
|
$
|
4,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
|
450
|
|
|
392
|
|
|
58
|
|
|
859
|
|
|
950
|
|
|
(91)
|
|
(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 six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
(in
thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Mining and processing
costs
|
|
$
|
25,249
|
|
$
|
17,107
|
|
$
|
47,299
|
|
$
|
37,447
|
|
Purchased coal
costs
|
|
12,928
|
|
20,146
|
|
24,946
|
|
48,561
|
|
Royalty
expense
|
|
1,826
|
|
1,041
|
|
3,406
|
|
3,124
|
|
Amortization
expense
|
|
5,667
|
|
6,233
|
|
11,160
|
|
12,422
|
|
Transportation costs
from preparation plant to customer
|
|
8,281
|
|
9,884
|
|
15,482
|
|
22,785
|
|
Idle mine
expense
|
|
323
|
|
131
|
|
795
|
|
240
|
|
Tolling
costs
|
|
802
|
|
696
|
|
1,871
|
|
1,131
|
|
Write-off of advance
royalties and other assets
|
|
—
|
|
—
|
|
—
|
|
5
|
|
Other
costs
|
|
(59)
|
|
(141)
|
|
(40)
|
|
111
|
|
|
$
|
55,017
|
|
$
|
55,097
|
|
$
|
104,919
|
|
$
|
125,826
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2019
|
|
2018
|
|
Variance
|
|
2019
|
|
2018
|
|
Variance
|
|
Realized price per
ton sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
117.48
|
|
$
|
115.52
|
|
$
|
1.96
|
|
$
|
117.00
|
|
$
|
117.25
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
84.55
|
|
$
|
92.20
|
|
$
|
7.65
|
|
$
|
83.92
|
|
$
|
91.79
|
|
$
|
7.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
88.66
|
|
$
|
97.02
|
|
$
|
8.36
|
|
$
|
87.48
|
|
$
|
93.28
|
|
$
|
5.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
|
$
|
28.82
|
|
$
|
18.50
|
|
$
|
10.32
|
|
$
|
29.52
|
|
$
|
23.97
|
|
$
|
5.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
(000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
|
$
|
11,865
|
|
$
|
4,462
|
|
$
|
7,403
|
|
$
|
23,280
|
|
$
|
15,590
|
|
$
|
7,690
|
|
Corporate
|
|
(1,629)
|
|
(2,175)
|
|
546
|
|
(3,526)
|
|
(4,197)
|
|
671
|
|
Total
|
|
$
|
10,236
|
|
$
|
2,287
|
|
$
|
7,949
|
|
$
|
19,754
|
|
$
|
11,393
|
|
$
|
8,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
|
$
|
11,155
|
|
$
|
5,660
|
|
$
|
5,495
|
|
$
|
21,615
|
|
$
|
17,879
|
|
$
|
3,736
|
|
Corporate
|
|
(1,067)
|
|
(1,355)
|
|
288
|
|
(2,343)
|
|
(2,713)
|
|
370
|
|
Total
|
|
$
|
10,088
|
|
$
|
4,305
|
|
$
|
5,783
|
|
$
|
19,272
|
|
$
|
15,166
|
|
$
|
4,106
|
|
|
|
(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.
|
GUIDANCE(a)
Corsa's updated guidance for the year ending December 31, 2019 reflects the impact of coal
market reactions to concerns of a slowing global economy.
This reaction caused index prices to weaken and is the primary
reason that our guidance has been reduced. Additionally, in
response to the market decline, Corsa has reduced general and
administrative expense.
|
(all dollar
amounts in U.S. dollars and
tonnage in short tons)
|
|
Updated
Guidance
Full Year 2019
|
|
Previous
Guidance
Full Year 2019(b)
|
|
Change to
Previous
Guidance
|
|
|
|
|
|
|
|
|
Metallurgical Coal
Sales Tons
|
|
|
|
|
|
|
|
Company
Produced
|
|
1.250 to 1.400
million
|
|
1.250 to 1.400
million
|
|
—
|
|
Purchased - Value
Added Services
|
|
0.300 to 0.350
million
|
|
0.300 to 0.400
million
|
|
0 - (0.050)
million
|
|
Purchased - Sales and
Trading
|
|
0.300 to 0.400
million
|
|
0.325 to 0.425
million
|
|
(0.025)
million
|
|
|
|
|
|
|
|
|
Total Metallurgical
Coal Sales Tons
|
|
1.850 to 2.150
million
|
|
1.875 to 2.225
million
|
|
(0.025) - (0.075)
million
|
|
|
|
|
|
|
|
|
Share of
Metallurgical Coal Sales Tons
|
|
|
|
|
|
|
|
% Domestic Sales at
the mid-point
|
|
27%
|
|
29%
|
|
(2)%
|
|
% Export Sales at the
mid-point
|
|
73%
|
|
71%
|
|
2%
|
|
|
|
|
|
|
|
|
Metallurgical Coal
Sales Tons Commitments(f)
|
|
Committed at the
mid-point
|
|
89%
|
|
79%
|
|
10%
|
|
Committed and Priced
at the mid-
|
|
74%
|
|
50%
|
|
24%
|
|
point
|
|
|
|
|
|
|
|
|
Cash Production
Cost per ton sold (FOB Mine)(c)(d)
|
|
NAPP Division
Metallurgical Coal
|
|
$78 - $82
|
|
$78 - $82
|
|
—
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses(e)
|
|
|
|
|
|
|
|
NAPP
Division
|
|
$7.5 - $8.0
million
|
|
$8.5 - $9.0
million
|
|
($1.0)
million
|
|
Corporate
Division
|
|
$3.9 - $4.4
million
|
|
$5.0 - $5.5
million
|
|
($1.1)
million
|
|
Total Corsa
|
|
$11.4 - $12.4
million
|
|
$13.5 - $14.5
million
|
|
($2.1)
million
|
|
|
|
|
|
|
|
|
Note: Selling
expenses are forecasted to be covered by margins from Sales and
Trading tons sold.
|
|
|
|
|
|
|
|
|
Net and
comprehensive income
|
|
$7 to $10
million
|
|
$13 to $15
million
|
|
($6) - ($5)
million
|
|
Adjusted
EBITDA(c)
|
|
$33 - $37
million
|
|
$42 - $46
million
|
|
($9)
million
|
|
|
|
|
|
|
|
|
Capital
Expenditures per ton sold(f)
|
|
|
|
|
|
Maintenance capital
expenditures
|
|
$5
|
|
$5
|
|
—
|
|
Total capital
expenditures
|
|
$5
|
|
$5
|
|
—
|
|
|
|
(a)
|
Guidance projections
("Guidance") are considered "forward-looking statements" and
"forward looking information" and represent management's
good faith estimates or expectations of future production and sales
results as of the date hereof. Guidance is based upon certain
assumptions, including,
but not limited to, future cash production costs, future sales and
production and the availability of coal from other suppliers that
the Company may
purchase. Such assumptions may prove to be incorrect and
actual results may differ materially from those anticipated.
Consequently, Guidance
cannot be guaranteed. As such, investors are cautioned not to
place undue reliance upon Guidance, forward-looking statements and
forward-looking
information as there can be no assurance that the plans,
assumptions or expectations upon which they are placed will
occur.
|
|
(b)
|
Previous guidance was
presented in the Company's MD&A for the three months ended
March 31, 2019 dated May 8, 2019.
|
|
(c)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
|
(d)
|
Cash production cost
per ton sold excludes purchased coal.
|
|
(e)
|
Exclusive of
stock-based compensation and selling related commissions, bank fees
and finance charges.
|
|
(f)
|
Tons sold excludes
purchased coal used in the Sales and Trading platform.
|
|
2019 Net Income
and Adjusted EBITDA Guidance Assumptions
|
|
|
|
|
Price Case 2H 2019:
$164.83/mt FOB Vessel
(Previous Guidance: $190.00/mt FOB Vessel)
|
|
Net and comprehensive
income $7 - $10 million
Adj. EBITDA $33 - $37 million
|
|
|
|
|
Current TSI FOB Aus.
Spot Price
|
|
$153.90/metric ton
FOB Vessel
|
|
|
|
|
Forward TSI FOB Aus.
Curve ($/mt FOB Vessel)
|
|
2H 2019
(Average)
|
|
$161.42
|
|
|
|
|
Adjusted EBITDA
sensitivity to movement in seaborne price (unpriced volumes
only):
|
|
$10/metric ton FOB
Vessel:
|
|
$3.5 to $4.0
million
|
Coal Pricing Trends and Outlook
Price levels stayed above $200/metric ton ("mt") delivered-to-the-port
basis ("FOBT") for spot deliveries of Australian premium low
volatile metallurgical coal through early June, hitting a high in
mid-May of $210/mt, primarily due to
strong imports into China and
India. Late in the second quarter
the market reacted to concerns of a slowing global economy and
finished at $193 FOBT for Australian
premium low volatile metallurgical coal. Since the end of the
second quarter 2019, spot prices have further weakened to
$154/mt, a decrease of $62/mt since the beginning of 2019, a 29%
decline. The quarterly price average for the second quarter of 2019
was $203/mt FOBT for Australian
premium low volatile metallurgical coal, compared to $207/mt in the first quarter of 2019. The
forward curve for the balance of the year has weakened with current
prices at $161/mt down $22/mt since the beginning of the year. The
forward curve for 2020 declined from $175/mt to $160/mt.
In late May 2019, Turkey reduced its import tariff on imported
coking coal from the U.S. from 13.7% to 5%. The lower import tariff
will allow U.S. coking coal exports to be sold into Turkey more competitively. Recent news has
been focused on bankruptcies of U.S. coking coal producers.
Currently, there are three U.S. producers in bankruptcy and two of
the producers have shut down production, which has limited near
term supply availability. Finally, U.S. domestic buyers have
started their annual buying process by issuing the first round of
tenders for 2020 business.
The World Steel Association reports that global steel production
through May is up 5% year-to-date while the U.S. is up 6.2%,
China is up 10.2% and Asia is up 7.4%. China represents 54.7% of global steel
production. Chinese hot-rolled coil steel prices are up 6% since
the start of the year while Northern European prices are down 10%
and U.S. prices are down 24% to $560/net ton. Trade data through May shows
Chinese coking coal imports are up 30% year-to-date while
India's coking coal imports are up
23% year-to-date. China recently
announced new coking coal import restrictions until further notice.
Preliminary U.S. coking coal export data shows an 8.5% decline for
a total of 24 million tons year-to-date through May which would
imply annual coking coal exports declining 3-4 million tons in
2019.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's unaudited condensed interim consolidated
financial statements for the three and six months ended
June 30, 2019 and 2018 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
Management uses realized price per ton sold, cash production
cost per ton sold, cash cost per ton sold, cash margin per ton
sold, EBITDA and adjusted EBITDA as internal measurements of
financial performance for Corsa's mining and processing
operations. 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. Reference is made to the
management's discussion and analysis for the three and six months
ended June 30, 2019 for a reconciliation and definitions of
non-GAAP financial measures to GAAP measures.
Corsa defines adjusted EBITDA as EBITDA (earnings before
deductions for interest, taxes, depreciation and amortization)
adjusted for change in estimate of reclamation 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.
Qualified Person
All scientific and technical information contained in this news
release has been reviewed and approved by Peter Merritts, Professional Engineer and the
Company's Chief Executive Officer, who is a qualified person within
the meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
Caution
The estimated coal sales, projected market conditions and
potential development 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 sales 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 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
relating to projected sales, coal prices, coal production, mine
development, the capacity and recovery of Corsa's preparation
plants, expected cash production costs, geological conditions,
future capital expenditures and expectations of market demand for
coal, 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", "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, 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 2019 fiscal year will be less
than projected production or sales for this period; risks that the
prices for coal sales will be less than projected; liabilities
inherent in coal mine development and production; 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 preparation plants will not operate at
production capacity during the relevant period, unexpected changes
in coal quality and specification; variations in the coal mine or
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 in 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
labor 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 in the countries in
which 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 initiatives. 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.
SOURCE Corsa Coal Corp.
