FRIEDENS, Penn., Aug. 3, 2022
/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, 2022. Corsa has filed
its unaudited condensed interim consolidated financial statements
for the three and six months ended June 30,
2022 and 2021 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 ("FOB"), mine site basis, unless otherwise noted.
Second Quarter Highlights
- Key financial results and operational statistics are shown
below:
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
(in millions
except per share, per ton and sales tons)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net and comprehensive
(loss) income
|
|
$
(3,0)
|
|
$
2,2
|
|
$
(6,9)
|
|
$
(2,3)
|
|
Diluted (loss) earnings
per share
|
|
$
(0,03)
|
|
$
0,02
|
|
$
(0,07)
|
|
$
(0,02)
|
|
Cash provided by (used
in) operating activities
|
|
$
5,4
|
|
$
(2,8)
|
|
$
6,2
|
|
$
(1,3)
|
|
Total
revenue
|
|
$
42,3
|
|
$
30,4
|
|
$
81,1
|
|
$
55,0
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
5,0
|
|
$
2,7
|
|
$
8,0
|
|
$
2,8
|
|
EBITDA(1)
|
|
$
0,8
|
|
$
7,0
|
|
$
0,5
|
|
$
7,1
|
|
|
|
|
|
|
|
|
|
|
Average realized price
per ton of metallurgical coal sold(1)
|
|
$
164,73
|
|
$ 91,67
|
|
$
160,44
|
|
$ 89,35
|
|
Cash production cost
per ton sold(1)
|
|
$
123,82
|
|
$ 77,23
|
|
$
127,98
|
|
$ 78,12
|
|
|
|
|
|
|
|
|
|
|
Company produced
metallurgical coal sales tons
|
|
204 215
|
|
290 117
|
|
405 540
|
|
541 582
|
|
Purchased metallurgical
coal sales tons
|
|
36 568
|
|
13 578
|
|
65 491
|
|
20 073
|
|
Total metallurgical
coal sales tons
|
|
240 783
|
|
303 695
|
|
471 031
|
|
561 655
|
- Corsa's average realized price for the second quarter 2022 is
the approximate equivalent of between $210 to $215 per
metric ton on an FOB vessel basis(2). For the
second quarter 2022, Corsa's sales mix included 52% of sales to
domestic customers and 48% 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
results of the second quarter of 2022 demonstrated a significant
improvement over the prior quarter with adjusted EBITDA increasing
by 64%, cash margin per metallurgical coal tons sold increasing by
41% and cash provided by operating activities increasing by nearly
600%. Net and comprehensive loss in the second quarter of
2022 was significantly impacted by mark-to-market losses on the
water treatment trust funds of $2.8
million. Additionally, the second quarter of 2022 saw
our best adjusted EBITDA and highest quarterly revenues from
metallurgical coal sales since the first quarter of 2020 and the
highest cash margin per metallurgical coal tons sold since
2017. Although the results of the second quarter reflect a
significant improvement, the mining geology, labor-availability,
productivity and logistical issues experienced in the first quarter
of 2022 continued to negatively affect our results.
Operationally, we completed a section move at the Casselman mine and commenced high wall mining
operations at our Schrock Run Extension surface mine during the
quarter. These actions led to improved operational
performance in June 2022 and we
expect the benefits of these changes to continue through the third
quarter of 2022. We ended the second quarter with higher than
anticipated inventory levels as the timing of our shipments were
delayed into the third quarter due to transportation
constraints."
"We continue to focus on the hiring, training and retention of
our workforce and our labor efficiency is increasing aided by
improved conditions at our underground mines. Our commitment
to returning to historical production levels remains and we
continue to work to secure the additional workforce required at our
operations."
Financial and Operations Summary
|
For the three months
ended
|
|
For the six months
ended
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
2022
|
|
2021
|
|
(Decrease)
|
|
2022
|
|
2021
|
|
(Decrease)
|
|
Revenues
|
$ 42
326
|
|
$ 30
426
|
|
$ 11
900
|
|
$ 81
099
|
|
$ 55
045
|
|
$ 26
054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
$ 38
812
|
|
$ 30
474
|
|
$ 8
338
|
|
$ 75
786
|
|
$ 56
790
|
|
$ 18
996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
$ 2
215
|
|
$ 2
201
|
|
$
14
|
|
$ 4
598
|
|
$ 4
230
|
|
$
368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
(loss) income for the period
|
$ (2
970)
|
|
$ 2
153
|
|
$ (5
123)
|
|
$ (6
947)
|
|
$ (2
280)
|
|
$ (4
667)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used
in) operating activities
|
$ 5
426
|
|
$ (2
756)
|
|
$ 8
182
|
|
$ 6
202
|
|
$ (1
255)
|
|
$ 7
457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
807
|
|
$ 7
011
|
|
$ (6
204)
|
|
$
482
|
|
$ 7
096
|
|
$ (6
614)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$ 4
961
|
|
$ 2
721
|
|
$ 2
240
|
|
$ 7
990
|
|
$ 2
842
|
|
$ 5
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
241
|
|
304
|
|
(63)
|
|
471
|
|
562
|
|
(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)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Mining and processing
costs
|
$
24 130
|
|
$
21 206
|
|
$
49 316
|
|
$
40 057
|
|
Purchased coal
costs
|
6 726
|
|
1 415
|
|
10 884
|
|
2 473
|
|
Royalty
expense
|
1 432
|
|
1 208
|
|
2 955
|
|
2 447
|
|
Amortization
expense
|
3 071
|
|
4 207
|
|
6 150
|
|
8 056
|
|
Transportation costs
from preparation plant to customer
|
1 745
|
|
1 414
|
|
3 687
|
|
2 724
|
|
Idle mine
expense
|
557
|
|
151
|
|
797
|
|
303
|
|
Tolling
costs
|
474
|
|
218
|
|
1 063
|
|
237
|
|
Limestone
costs
|
153
|
|
258
|
|
230
|
|
426
|
|
Other costs
|
524
|
|
397
|
|
704
|
|
67
|
|
Total cost of
sales
|
$
38 812
|
|
$
30 474
|
|
$
75 786
|
|
$
56 790
|
|
For the three months
ended
|
|
For the six months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
Variance
|
|
2022
|
|
2021
|
|
Variance
|
|
Realized price per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$ 164,73
|
|
$
91,67
|
|
$
73,06
|
|
$ 160,44
|
|
$
89,35
|
|
$
71,09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$ 123,82
|
|
$
77,23
|
|
$
(46,59)
|
|
$ 127,98
|
|
$
78,12
|
|
$
(49,86)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$ 133,21
|
|
$
77,04
|
|
$
(56,17)
|
|
$ 133,41
|
|
$
77,98
|
|
$
(55,43)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
31,52
|
|
$
14,63
|
|
$
16,89
|
|
$
27,03
|
|
$
11,37
|
|
$
15,66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
(000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$ 1
549
|
|
$ 8
011
|
|
$ (6
462)
|
|
$ 3
127
|
|
$ 9
101
|
|
$ (5
974)
|
|
Corporate
|
(742)
|
|
(1 000)
|
|
258
|
|
(2 645)
|
|
(2 005)
|
|
(640)
|
|
Total
|
$
807
|
|
$ 7
011
|
|
$ (6
204)
|
|
$
482
|
|
$ 7
096
|
|
$ (6
614)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$ 5
394
|
|
$ 3
467
|
|
$ 1
927
|
|
$ 9
112
|
|
$ 4
319
|
|
$ 4
793
|
|
Corporate
|
(433)
|
|
(746)
|
|
313
|
|
(1 122)
|
|
(1 477)
|
|
355
|
|
Total
|
$ 4
961
|
|
$ 2
721
|
|
$ 2
240
|
|
$ 7
990
|
|
$ 2
842
|
|
$ 5
148
|
|
|
|
(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 second quarter of 2022 at $480.00/metric ton ("mt") delivered-to-the-port
("FOBT") for spot deliveries of Australian premium low volatile
metallurgical coal and closed the quarter at $302.00/mt FOBT. The quarterly average price for
the second quarter of 2022 was $449.75 /mt FOBT for Australian premium low
volatile metallurgical coal, compared to $486.57/ mt FOBT in the first quarter of 2022,
and traded in a range from a high of $530.25/mt FOBT to a low of $302.00/mt FOBT.
The forward curve for the balance of the third quarter of 2022
according to the SGX TSI index is trading at $236.39/mt FOBT with July at $246.33/mt FOBT, August at $230.00/mt FOBT, and September at $240.00/mt FOBT. Forward curve pricing for fourth
quarter of 2022 is at $272.97/mt
FOBT, bringing the balance of the year to $257.16/mt FOBT. The forward curve for 2023 is
indicating pricing at an average of $277.29/mt FOBT. Limited supply-side response,
constrained logistics and inflationary mining cost pressures
continue to support higher metallurgical coal prices in the near
future.
See "Risk Factors" in the Company's annual information form
dated March 1, 2022 for the year
ended December 31, 2021 for an
additional discussion regarding certain factors that could impact
coal pricing trends and outlook, as well as the Company's ongoing
operations.
Third Quarter 2022 Update
The Company's third quarter 2022 sales volumes are expected to
increase as compared to the second quarter of 2022 and
metallurgical coal selling prices are expected to be similar to the
second quarter as we continue to service previously committed fixed
price contract orders. Cash cost of sales are expected to be
lower than the previous quarter continuing their downward trend for
the year but will remain higher than historical levels, and
selling, general and administrative expenses will be similar to the
second quarter of 2022. The main priorities of the Company
continue to be maximizing production, increasing participation in
the metallurgical coal spot market and reducing costs while we
maintain a focus on improving the balance sheet with minimized
downside financial risk. The Company's capital allocation and
deployment strategy will be aligned with these priorities and the
Company's financial position.
Third Quarter 2022 Earnings Release
The Company tentatively expects to announce third quarter 2022
financial results after the close of markets on Wednesday, November 2, 2022.
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, 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 third quarter of 2022,
along with the Company's main priorities and its capital allocation
and deployment strategy in the third quarter of 2022, 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 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
June 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss) from continuing operations
|
$ (1 891)
|
|
$ (1 079)
|
|
$ (2 970)
|
|
$ 3
523
|
|
$ (1 370)
|
|
$ 2
153
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
3 071
|
|
-
|
|
3 071
|
|
4 207
|
|
-
|
|
4 207
|
|
Interest
expense
|
369
|
|
337
|
|
706
|
|
281
|
|
370
|
|
651
|
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
1 549
|
|
(742)
|
|
807
|
|
8 011
|
|
(1 000)
|
|
7 011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee retention
credit (a)
|
-
|
|
-
|
|
-
|
|
(4 409)
|
|
-
|
|
(4 409)
|
|
Stock-based
compensation (b)
|
-
|
|
(5)
|
|
(5)
|
|
-
|
|
42
|
|
42
|
|
Net finance (income)
expense, excluding interest expense (c)
|
3 508
|
|
82
|
|
3 590
|
|
(407)
|
|
73
|
|
(334)
|
|
Loss (gain) on disposal
of assets (d)
|
79
|
|
-
|
|
79
|
|
(62)
|
|
-
|
|
(62)
|
|
Other costs
(e)
|
258
|
|
232
|
|
490
|
|
334
|
|
139
|
|
473
|
|
Adjusted
EBITDA
|
$ 5
394
|
|
$
(433)
|
|
$ 4
961
|
|
$ 3
467
|
|
$
(746)
|
|
$ 2
721
|
|
|
|
(a)
|
A component of other
income which reflects the amounts the Company is expected to
receive related to a refundable tax credit.
|
|
(b)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(c)
|
Components of finance
expense and income excluding interest expense.
|
|
(d)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
|
(e)
|
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 six months ended
June 30, 2022 and 2021
|
For the six months
ended
|
|
For the six months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss) from continuing operations
|
$ (3 649)
|
|
$ (3 298)
|
|
$ (6 947)
|
|
$
505
|
|
$ (2 785)
|
|
$ (2
280)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
6 150
|
|
-
|
|
6 150
|
|
8 056
|
|
-
|
|
8 056
|
|
Interest
expense
|
626
|
|
653
|
|
1 279
|
|
540
|
|
780
|
|
1 320
|
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
3 127
|
|
(2 645)
|
|
482
|
|
9 101
|
|
(2 005)
|
|
7 096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee retention
credit (a)
|
-
|
|
-
|
|
-
|
|
(4 409)
|
|
-
|
|
(4 409)
|
|
Restructuring charges
(b)
|
-
|
|
886
|
|
886
|
|
-
|
|
-
|
|
-
|
|
Stock-based
compensation (c)
|
-
|
|
1
|
|
1
|
|
-
|
|
79
|
|
79
|
|
Net finance (income)
expense, excluding interest expense (d)
|
5 540
|
|
164
|
|
5 704
|
|
(222)
|
|
150
|
|
(72)
|
|
Loss (gain) on disposal
of assets (e)
|
135
|
|
-
|
|
135
|
|
(138)
|
|
-
|
|
(138)
|
|
Other costs
(f)
|
310
|
|
472
|
|
782
|
|
(13)
|
|
299
|
|
286
|
|
Adjusted
EBITDA
|
$ 9
112
|
|
$ (1 122)
|
|
$ 7
990
|
|
$ 4
319
|
|
$ (1 477)
|
|
$ 2
842
|
|
|
|
(a)
|
A component of other
income which reflects the amounts the Company is expected to
receive related to a refundable tax credit.
|
|
(b)
|
Reflects the separation
costs associated with the Company's previous President and Chief
Executive Officer and Chief Operating Officer.
|
|
(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.
|
Realized price per ton sold for the three months ended
June 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$ 42 128
|
|
$
198
|
|
$ 42 326
|
|
$ 29
998
|
|
$
428
|
|
$ 30
426
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(518)
|
|
-
|
|
(518)
|
|
(426)
|
|
-
|
|
(426)
|
|
Transportation costs
from preparation plant to customer
|
(1 731)
|
|
(14)
|
|
(1 745)
|
|
(1 414)
|
|
-
|
|
(1 414)
|
|
Limestone
revenue
|
(179)
|
|
-
|
|
(179)
|
|
(291)
|
|
-
|
|
(291)
|
|
Net coal sales (at
preparation plant)
|
$ 39 700
|
|
$
184
|
|
$ 39 884
|
|
$ 27
867
|
|
$
428
|
|
$ 28
295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
241
|
|
2
|
|
243
|
|
304
|
|
14
|
|
318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$ 164,73
|
|
$
92,00
|
|
$ 164,13
|
|
$
91,67
|
|
$
30,57
|
|
$
88,98
|
Realized price per ton sold for the six months ended
June 30, 2022 and 2021
|
For the six months
ended
|
|
For the six months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$ 80 768
|
|
$
331
|
|
$ 81 099
|
|
$ 53
826
|
|
$ 1
219
|
|
$ 55
045
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(1 237)
|
|
-
|
|
(1 237)
|
|
(456)
|
|
-
|
|
(456)
|
|
Transportation costs
from preparation plant to customer
|
(3 673)
|
|
(14)
|
|
(3 687)
|
|
(2 721)
|
|
(3)
|
|
(2 724)
|
|
Limestone
revenue
|
(291)
|
|
-
|
|
(291)
|
|
(435)
|
|
-
|
|
(435)
|
|
Net coal sales (at
preparation plant)
|
$ 75 567
|
|
$
317
|
|
$ 75 884
|
|
$ 50
214
|
|
$ 1
216
|
|
$ 51
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
471
|
|
3
|
|
474
|
|
562
|
|
34
|
|
596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$ 160,44
|
|
$ 105,67
|
|
$ 160,09
|
|
$
89,35
|
|
$
35,76
|
|
$
86,29
|
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 June 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$ 23 952
|
|
$
178
|
|
$ 24 130
|
|
$ 21
190
|
|
$
16
|
|
$ 21
206
|
|
Purchased coal
costs
|
6 720
|
|
6
|
|
6 726
|
|
1 022
|
|
393
|
|
1 415
|
|
Royalty
expense
|
1 432
|
|
-
|
|
1 432
|
|
1 208
|
|
-
|
|
1 208
|
|
Total cash costs of
tons sold
|
$ 32 104
|
|
$
184
|
|
$ 32 288
|
|
$ 23
420
|
|
$
409
|
|
$ 23
829
|
|
Total tons
sold
|
241
|
|
2
|
|
243
|
|
304
|
|
14
|
|
318
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 133,21
|
|
$
92,00
|
|
$ 132,87
|
|
$
77,04
|
|
$
29,21
|
|
$
74,93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$ 32 104
|
|
$
184
|
|
$ 32 288
|
|
$ 23
420
|
|
$
409
|
|
$ 23
829
|
|
Less: purchased
coal
|
(6 720)
|
|
-
|
|
(6 720)
|
|
(1 022)
|
|
-
|
|
(1 022)
|
|
Cash cost of produced
coal sold
|
$ 25 384
|
|
$
184
|
|
$ 25 568
|
|
$ 22
398
|
|
$
409
|
|
$ 22
807
|
|
Tons sold -
produced
|
205
|
|
2
|
|
207
|
|
290
|
|
14
|
|
304
|
|
Cash production cost
per ton sold (at preparation plant)
|
$ 123,82
|
|
$
92,00
|
|
$ 123,52
|
|
$
77,23
|
|
$
29,21
|
|
$
75,02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$ 6
720
|
|
$
-
|
|
$ 6
720
|
|
$
1 022
|
|
$
-
|
|
$
1 022
|
|
Tons sold - purchased
coal
|
36
|
|
-
|
|
36
|
|
14
|
|
-
|
|
14
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$ 186,67
|
|
$
-
|
|
$ 186,67
|
|
$
73,00
|
|
$
-
|
|
$
73,00
|
Cash cost per ton sold, cash production cost per ton sold,
and cash cost per purchased coal per ton sold for the six months
ended June 30, 2022 and 2021
|
For the six months
ended
|
|
For the six months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$ 49 005
|
|
$
311
|
|
$ 49 316
|
|
$ 39
896
|
|
$
161
|
|
$ 40
057
|
|
Purchased coal
costs
|
10 878
|
|
6
|
|
10 884
|
|
1 479
|
|
994
|
|
2 473
|
|
Royalty
expense
|
2 955
|
|
-
|
|
2 955
|
|
2 447
|
|
-
|
|
2 447
|
|
Total cash costs of
tons sold
|
$ 62 838
|
|
$
317
|
|
$ 63 155
|
|
$ 43
822
|
|
$ 1
155
|
|
$ 44
977
|
|
Total tons
sold
|
471
|
|
3
|
|
474
|
|
562
|
|
34
|
|
596
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 133,41
|
|
$ 105,67
|
|
$ 133,24
|
|
$
77,98
|
|
$
33,97
|
|
$
75,46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$ 62 838
|
|
$
317
|
|
$ 63 155
|
|
$ 43
822
|
|
$ 1
155
|
|
$ 44
977
|
|
Less: purchased
coal
|
(10 878)
|
|
-
|
|
(10 878)
|
|
(1 479)
|
|
-
|
|
(1 479)
|
|
Cash cost of produced
coal sold
|
$ 51 960
|
|
$
317
|
|
$ 52 277
|
|
$ 42
343
|
|
$ 1
155
|
|
$ 43
498
|
|
Tons sold -
produced
|
406
|
|
3
|
|
409
|
|
542
|
|
34
|
|
576
|
|
Cash production cost
per ton sold (at preparation plant)
|
$ 127,98
|
|
$ 105,67
|
|
$ 127,82
|
|
$
78,12
|
|
$
33,97
|
|
$
75,52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$ 10 878
|
|
$
-
|
|
$ 10 878
|
|
$
1 479
|
|
$
-
|
|
$
1 479
|
|
Tons sold - purchased
coal
|
65
|
|
-
|
|
65
|
|
20
|
|
-
|
|
20
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$ 167,35
|
|
$
-
|
|
$ 167,35
|
|
$
73,95
|
|
$
-
|
|
$
73,95
|
Cash margin per ton sold for the three months ended
June 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$ 164,73
|
|
$
92,00
|
|
$ 164,13
|
|
$
91,67
|
|
$
30,57
|
|
$
88,98
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 133,21
|
|
$
92,00
|
|
$ 132,87
|
|
$
77,04
|
|
$
29,21
|
|
$
74,93
|
|
Cash margin per ton
sold
|
$
31,52
|
|
$
-
|
|
$
31,26
|
|
$
14,63
|
|
$
1,36
|
|
$
14,05
|
Cash margin per ton sold for the six months ended
June 30, 2022 and 2021
|
For the six months
ended
|
|
For the six months
ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$ 160,44
|
|
$ 105,67
|
|
$ 160,09
|
|
$
89,35
|
|
$
35,76
|
|
$
86,29
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 133,41
|
|
$ 105,67
|
|
$ 133,24
|
|
$
77,98
|
|
$
33,97
|
|
$
75,46
|
|
Cash margin per ton
sold
|
$
27,03
|
|
$
-
|
|
$
26,85
|
|
$
11,37
|
|
$
1,79
|
|
$
10,83
|
SOURCE Corsa Coal Corp.
