FRIEDENS, Pa., Nov. 2, 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 nine months
ended September 30, 2022. Corsa has filed its unaudited
condensed interim consolidated financial statements for the three
and nine months ended September 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.
Third Quarter Highlights
- Key financial results and operational statistics are shown
below:
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
(in millions
except per share, per ton and sales tons)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net and comprehensive
(loss) income
|
|
$ (4.5)
|
|
$
0.9
|
|
$
(11.4)
|
|
$ (1.3)
|
|
Diluted (loss) earnings
per share
|
|
$
(0.04)
|
|
$ 0.01
|
|
$
(0.11)
|
|
$
(0.01)
|
|
Cash provided by
operating activities
|
|
$
1.8
|
|
$
4.2
|
|
$
8.0
|
|
$
3.0
|
|
Total
revenue
|
|
$ 45.9
|
|
$ 36.4
|
|
$
127.0
|
|
$ 91.4
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
1.3
|
|
$
4.1
|
|
$
9.3
|
|
$
7.0
|
|
EBITDA(1)
|
|
$ (0.7)
|
|
$
6.2
|
|
$ (0.2)
|
|
$ 13.3
|
|
|
|
|
|
|
|
|
|
|
Average realized price
per ton of metallurgical coal sold(1)
|
|
$
158.39
|
|
$
112.75
|
|
$
159.70
|
|
$
97.46
|
|
Cash production cost
per ton sold(1)
|
|
$
136.95
|
|
$
92.24
|
|
$
131.22
|
|
$
83.00
|
|
|
|
|
|
|
|
|
|
|
Company produced
metallurgical coal sales tons
|
|
230,260
|
|
286,678
|
|
635,800
|
|
828,260
|
|
Purchased metallurgical
coal sales tons
|
|
37,786
|
|
11,760
|
|
103,277
|
|
31,833
|
|
Total metallurgical
coal sales tons
|
|
268,046
|
|
298,438
|
|
739,077
|
|
860,093
|
|
|
|
|
|
|
|
|
|
- Corsa's average realized price for the third quarter 2022 is
the approximate equivalent of between $224 to $230 per
metric ton on an FOB vessel basis(2). For the third
quarter 2022, Corsa's sales mix included 45% of sales to domestic
customers and 55% 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, "On October 22, 2022 a fatality occurred at the
Acosta Deep Mine. The Company is working closely with all
regulatory agencies to determine the cause. We continue to
keep the family, friends, and coworkers of Sean Dennehy in our thoughts and prayers and are
committed to honoring his legacy as a proud coal miner and
treasured member of our Corsa family."
"Although the third quarter of 2022 saw our highest quarterly
shipments of the year and highest metallurgical coal revenues since
the first quarter of 2020, the quarter ended disappointingly as the
Company encountered significant operational challenges at our deep
mines. As a result, we made several changes to our deep and
surface mine operations and plans, aimed at improving both our
near-term operations and long-term results. Foremost among
these changes is the temporary reassignment of underground
employees from our Horning Deep Mine to the Casselman Deep Mine and
the Acosta Deep Mine to increase our overall production and
accelerate access to the North Mine reserves."
"The Casselman Deep Mine encountered geological challenges in
each section of the mine, causing costs to increase and production
to suffer as we enhanced roof control practices and endured
multiple unplanned section moves in response to deteriorating roof
conditions in one of our mining sections. We attempted to
minimize the production disruption by increasing the utilization at
an alternative section of the mine, but lower coal heights and
increased travel time minimized the impact. Our access to the
North Mine reserves also required additional roof controls which
slowed advance rates, decreased production, and increased costs.
Currently, we are experiencing increased productivity at
Casselman due to the additional
labor and improved roof conditions."
"The Acosta Deep Mine, which is currently set up as a
three-section operation, also encountered geological issues which
decreased productivity and increased costs. Short mining
panels in one section required a higher-than-normal number of
section moves during the quarter and low coal in another section
resulted in lower production for the primary production sections of
the mine. The third section, which is focused on development of the
mains, encountered adverse roof conditions which required
additional roof controls and slowed advance rates. Increased
staffing levels are now allowing the three mining sections to
operate simultaneously, and improved conditions and coal seam
heights are supporting higher production levels."
"The Horning Deep Mine encountered the most difficult conditions
ever faced at this mine as we advanced toward the southern
reserves. A thinning coal seam and challenging roof
conditions led to increased roof control costs and severely
restricted advance rates for most of the quarter, followed by
increasingly wet mining conditions as we closed out the month of
September. In response, our team evaluated the geology and
mining conditions and altered the path to the southern
reserves. To date, we have experienced improved performance
and expect the conditions to be favorable compared to recent
results."
"We continually analyze, evaluate, and consider the balance
between short-term productivity and life of mine planning when
executing our operating decisions so that we can deliver results
that stand up through the price cycles. The activities of the
third quarter that negatively impacted our results along with our
subsequent actions will provide an opportunity for all three of our
deep mines to have favorable operating plans in upcoming
years. Our Company has and will continue to focus on our team
through hiring, training and retention of our workforce and look
forward to improved operations at our deep and surface mines that
are reflected in our future results."
Financial and Operations Summary
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
2022
|
|
2021
|
|
(Decrease)
|
|
2022
|
|
2021
|
|
(Decrease)
|
|
Revenues
|
$
45,938
|
|
$
36,380
|
|
$ 9,558
|
|
$
127,037
|
|
$
91,425
|
|
$
35,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
$
45,271
|
|
$
35,448
|
|
$ 9,823
|
|
$
121,057
|
|
$
92,238
|
|
$
28,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
$ 2,305
|
|
$ 2,293
|
|
$
12
|
|
$ 6,903
|
|
$ 6,523
|
|
$
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
(loss) income for the period
|
$ (4,480)
|
|
$
933
|
|
$ (5,413)
|
|
$
(11,427)
|
|
$ (1,347)
|
|
$
(10,080)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$ 1,765
|
|
$ 4,231
|
|
$ (2,466)
|
|
$ 7,967
|
|
$ 2,976
|
|
$ 4,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
(653)
|
|
$ 6,214
|
|
$ (6,867)
|
|
$
(171)
|
|
$
13,310
|
|
$
(13,481)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$ 1,265
|
|
$ 4,125
|
|
$ (2,860)
|
|
$ 9,255
|
|
$ 6,967
|
|
$ 2,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
268
|
|
298
|
|
(30)
|
|
739
|
|
860
|
|
(121)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 nine months
ended
|
|
September
30,
|
|
September
30,
|
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Mining and processing
costs
|
$
30,419
|
|
$
24,628
|
|
$
79,735
|
|
$
64,685
|
|
Purchased coal
costs
|
7,047
|
|
1,529
|
|
17,931
|
|
4,002
|
|
Royalty
expense
|
1,927
|
|
1,775
|
|
4,882
|
|
4,222
|
|
Amortization
expense
|
3,048
|
|
4,670
|
|
9,198
|
|
12,726
|
|
Transportation costs
from preparation plant to customer
|
1,627
|
|
1,570
|
|
5,314
|
|
4,294
|
|
Idle mine
expense
|
314
|
|
190
|
|
1,111
|
|
493
|
|
Tolling
costs
|
168
|
|
281
|
|
1,231
|
|
518
|
|
Limestone
costs
|
256
|
|
282
|
|
486
|
|
708
|
|
Other costs
|
465
|
|
523
|
|
1,169
|
|
590
|
|
Total cost of
sales
|
$
45,271
|
|
$
35,448
|
|
$
121,057
|
|
$
92,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
Variance
|
|
2022
|
|
2021
|
|
Variance
|
|
Realized price per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
158.39
|
|
$
112.75
|
|
$ 45.64
|
|
$
159.70
|
|
$
97.46
|
|
$ 62.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
136.95
|
|
$
92.24
|
|
$ (44.71)
|
|
$
131.22
|
|
$
83.00
|
|
$ (48.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
141.86
|
|
$
92.55
|
|
$ (49.31)
|
|
$
136.48
|
|
$
83.03
|
|
$ (53.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$ 16.53
|
|
$
20.20
|
|
$
(3.67)
|
|
$ 23.22
|
|
$
14.43
|
|
$
8.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
(000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
46
|
|
$
7,140
|
|
$ (7,094)
|
|
$ 3,173
|
|
$
16,241
|
|
$
(13,068)
|
|
Corporate
|
(699)
|
|
(926)
|
|
227
|
|
(3,344)
|
|
(2,931)
|
|
(413)
|
|
Total
|
$ (653)
|
|
$
6,214
|
|
$ (6,867)
|
|
$ (171)
|
|
$
13,310
|
|
$
(13,481)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$ 1,779
|
|
$
4,828
|
|
$ (3,049)
|
|
$
10,891
|
|
$
9,147
|
|
$ 1,744
|
|
Corporate
|
(514)
|
|
(703)
|
|
189
|
|
(1,636)
|
|
(2,180)
|
|
544
|
|
Total
|
$ 1,265
|
|
$
4,125
|
|
$ (2,860)
|
|
$ 9,255
|
|
$
6,967
|
|
$ 2,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 third quarter of 2022 at $302.00/metric ton ("mt") delivered-to-the-port
("FOBT") for spot deliveries of Australian premium low volatile
metallurgical coal and closed the quarter at $270.50/mt FOBT. The quarterly average price for
the third quarter of 2022 was $249.17/mt FOBT for Australian premium low
volatile metallurgical coal, compared to $449.75/mt FOBT in the second quarter of 2022,
and traded in a range from a high of $302.00/mt FOBT to a low of $188.00/mt FOBT.
The forward curve for the balance of the fourth quarter of 2022
according to the SGX TSI index is trading at $315.37/mt FOBT with October at $291.33/mt FOBT, November at $313.67/mt FOBT, and December at $321.67/mt FOBT. Forward curve pricing for first
quarter of 2023 is at $327.33/mt
FOBT. The forward curve for 2023 is indicating pricing at an
average of $288.42/mt FOBT. Increased
thermal coal prices that are attractive to cross-over metallurgical
coals, 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.
Fourth Quarter 2022 Update and Calendar Year 2023 Sales
Update
The Company's fourth quarter 2022 sales volumes are expected to
be lower than the third quarter of 2022 but higher than the first
quarter of 2022. Metallurgical coal selling prices are
expected to be lower than the third 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 as they are not expected to include the adverse geological
conditions that we encountered in the third quarter of 2022 but
will remain elevated compared to historical levels. Selling,
general and administrative expenses are expected to be similar to
the average amount from the previous quarters of 2022. The main
priorities of the Company are increasing efficient production,
reducing costs, and increasing our ability to participate in the
metallurgical coal spot market. We are committed to improving
the Company's balance sheet with minimized downside financial risk
but are also focused on organic growth opportunities to complement
our existing operations. The Company's capital allocation and
deployment strategy will be aligned with these priorities and the
Company's financial position.
Corsa committed nearly 740,000 tons at an FOB mine price of
nearly $178/ton for the calendar year
2023. The price per ton is the equivalent of $287/mt FOBT for Australian premium low volatile
metallurgical coal. The volumes and price per ton were
impacted by nearly 123,000 carryover tons which were priced at the
2022 fixed price contract rate.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's unaudited condensed interim consolidated
financial statements for the three and nine months ended
September 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.
Stock Options Granted
Corsa also announces that its Board of Directors has granted
stock options to purchase a total of 4,000,000 common shares of
Corsa to directors, the Company's Interim Chief Financial Officer
and certain employees of Corsa, which represents approximately 3.9%
of the total outstanding common shares. These options were
granted in accordance with Corsa's Third Amended and Restated
Option Plan (the "Option Plan"), are exercisable for five years at
a price of the higher of (a) C$0.27,
being the closing price of the common shares on the TSX Venture
Exchange (the "TSXV") on November 1,
2022, and (b) the closing price of the common shares on the
TSXV on November 4, 2022, being the
date following Corsa's "blackout" period in connection with its
third quarter 2022 financial statements, and are subject to the
terms and conditions of the Option Plan and TSXV approval.
Such options will vest one-third on the first anniversary of the
date of grant, one-third on the second anniversary of the date of
grant and one-third on the third anniversary of the date of
grant.
An Officer of Corsa was granted 750,000 options, Corsa's
directors were each granted 200,000 options and other employees of
Corsa received an aggregate of 2,250,000 options.
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 fourth quarter of 2022,
along with the Company's main priorities and its capital allocation
and deployment strategy in the fourth 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 geological conditions at the Company's
mines, 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
September 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss) from continuing operations
|
$
(3,371)
|
|
$
(1,109)
|
|
$
(4,480)
|
|
$ 2,213
|
|
$
(1,280)
|
|
$
933
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
3,048
|
|
-
|
|
3,048
|
|
4,670
|
|
-
|
|
4,670
|
|
Interest
expense
|
369
|
|
410
|
|
779
|
|
257
|
|
354
|
|
611
|
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
46
|
|
(699)
|
|
(653)
|
|
7,140
|
|
(926)
|
|
6,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee retention
credit (a)
|
-
|
|
-
|
|
-
|
|
(2,360)
|
|
(98)
|
|
(2,458)
|
|
Paycheck Protection
Program grant income (b)
|
-
|
|
-
|
|
-
|
|
(1,126)
|
|
-
|
|
(1,126)
|
|
Stock-based
compensation (c)
|
-
|
|
11
|
|
11
|
|
-
|
|
47
|
|
47
|
|
Net finance (income)
expense, excluding interest expense (d)
|
1,967
|
|
74
|
|
2,041
|
|
946
|
|
124
|
|
1,070
|
|
Loss (gain) on disposal
of assets (e)
|
13
|
|
-
|
|
13
|
|
(94)
|
|
-
|
|
(94)
|
|
Other costs
(f)
|
(247)
|
|
100
|
|
(147)
|
|
322
|
|
150
|
|
472
|
|
Adjusted
EBITDA
|
$
1,779
|
|
$ (514)
|
|
$
1,265
|
|
$ 4,828
|
|
$ (703)
|
|
$ 4,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 amounts
forgiven associated with loans received by the Company.
|
|
(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.
|
EBITDA and Adjusted EBITDA for the nine months ended September 30, 2022 and 2021
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss) from continuing operations
|
$
(7,020)
|
|
$
(4,407)
|
|
$(11,427)
|
|
$ 2,718
|
|
$
(4,065)
|
|
$ (1,347)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
9,198
|
|
-
|
|
9,198
|
|
12,726
|
|
-
|
|
12,726
|
|
Interest
expense
|
995
|
|
1,063
|
|
2,058
|
|
797
|
|
1,134
|
|
1,931
|
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
3,173
|
|
(3,344)
|
|
(171)
|
|
16,241
|
|
(2,931)
|
|
13,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee retention
credit (a)
|
-
|
|
-
|
|
-
|
|
(6,769)
|
|
(98)
|
|
(6,867)
|
|
Paycheck Protection
Program grant income (b)
|
-
|
|
-
|
|
-
|
|
(1,126)
|
|
-
|
|
(1,126)
|
|
Restructuring charges
(c)
|
-
|
|
886
|
|
886
|
|
-
|
|
-
|
|
-
|
|
Stock-based
compensation (d)
|
-
|
|
12
|
|
12
|
|
-
|
|
126
|
|
126
|
|
Net finance (income)
expense, excluding interest expense (e)
|
7,507
|
|
238
|
|
7,745
|
|
724
|
|
274
|
|
998
|
|
Loss (gain) on disposal
of assets (f)
|
148
|
|
-
|
|
148
|
|
(232)
|
|
-
|
|
(232)
|
|
Other costs
(g)
|
63
|
|
572
|
|
635
|
|
309
|
|
449
|
|
758
|
|
Adjusted
EBITDA
|
$
10,891
|
|
$
(1,636)
|
|
$
9,255
|
|
$ 9,147
|
|
$
(2,180)
|
|
$ 6,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 amounts
forgiven associated with loans received by the Company.
|
|
(c) Reflects the separation
costs associated with the Company's previous President and Chief
Executive Officer and Chief Operating Officer.
|
|
(d) Reflects the non-cash
expense related to the vesting of stock options.
|
|
(e) Components of finance
expense and income excluding interest expense.
|
|
(f) Reflects the
amounts included in other income and expense related to the
disposal of assets not utilized in the Company's mining
operations.
|
|
(g) 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 September 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$
44,524
|
|
$ 1,414
|
|
$
45,938
|
|
$ 36,005
|
|
$
375
|
|
$ 36,380
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(244)
|
|
-
|
|
(244)
|
|
(493)
|
|
-
|
|
(493)
|
|
Transportation costs
from preparation plant to customer
|
(1,619)
|
|
(8)
|
|
(1,627)
|
|
(1,570)
|
|
-
|
|
(1,570)
|
|
Limestone
revenue
|
(213)
|
|
-
|
|
(213)
|
|
(343)
|
|
-
|
|
(343)
|
|
Net coal sales (at
preparation plant)
|
$
42,448
|
|
$ 1,406
|
|
$
43,854
|
|
$ 33,599
|
|
$
375
|
|
$ 33,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
268
|
|
14
|
|
282
|
|
298
|
|
10
|
|
308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
158.39
|
|
$
100.43
|
|
$
155.51
|
|
$ 112.75
|
|
$ 37.50
|
|
$ 110.31
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton sold for the nine months ended September 30, 2022 and 2021
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$ 125,292
|
|
$ 1,745
|
|
$ 127,037
|
|
$ 89,831
|
|
$ 1,594
|
|
$ 91,425
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
(1,481)
|
|
-
|
|
(1,481)
|
|
(949)
|
|
-
|
|
(949)
|
|
Transportation costs
from preparation plant to customer
|
(5,292)
|
|
(22)
|
|
(5,314)
|
|
(4,291)
|
|
(3)
|
|
(4,294)
|
|
Limestone
revenue
|
(504)
|
|
-
|
|
(504)
|
|
(778)
|
|
-
|
|
(778)
|
|
Net coal sales (at
preparation plant)
|
$ 118,015
|
|
$ 1,723
|
|
$ 119,738
|
|
$ 83,813
|
|
$ 1,591
|
|
$ 85,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
739
|
|
17
|
|
756
|
|
860
|
|
44
|
|
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
159.70
|
|
$
101.35
|
|
$
158.38
|
|
$
97.46
|
|
$ 36.16
|
|
$
94.47
|
|
|
|
|
|
|
|
|
|
|
|
|
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
September 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2022
|
|
September 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
|
$
29,571
|
|
$
848
|
|
$
30,419
|
|
$ 24,605
|
|
$
23
|
|
$ 24,628
|
|
Purchased coal
costs
|
6,521
|
|
526
|
|
7,047
|
|
1,200
|
|
329
|
|
1,529
|
|
Royalty
expense
|
1,927
|
|
-
|
|
1,927
|
|
1,775
|
|
-
|
|
1,775
|
|
Total cash costs of
tons sold
|
$
38,019
|
|
$ 1,374
|
|
$
39,393
|
|
$ 27,580
|
|
$
352
|
|
$ 27,932
|
|
Total tons
sold
|
268
|
|
14
|
|
282
|
|
298
|
|
10
|
|
308
|
|
Cash cost per ton sold
(at preparation plant)
|
$
141.86
|
|
$ 98.14
|
|
$
139.69
|
|
$
92.55
|
|
$ 35.20
|
|
$
90.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
38,019
|
|
$ 1,374
|
|
$
39,393
|
|
$ 27,580
|
|
$
352
|
|
$ 27,932
|
|
Less: purchased
coal
|
(6,521)
|
|
-
|
|
(6,521)
|
|
(1,200)
|
|
-
|
|
(1,200)
|
|
Cash cost of produced
coal sold
|
$
31,498
|
|
$ 1,374
|
|
$
32,872
|
|
$ 26,380
|
|
$
352
|
|
$ 26,732
|
|
Tons sold -
produced
|
230
|
|
14
|
|
244
|
|
286
|
|
10
|
|
296
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
136.95
|
|
$ 98.14
|
|
$
134.72
|
|
$
92.24
|
|
$ 35.20
|
|
$
90.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$ 6,521
|
|
$
-
|
|
$ 6,521
|
|
$
1,200
|
|
$
-
|
|
$
1,200
|
|
Tons sold - purchased
coal
|
38
|
|
-
|
|
38
|
|
12
|
|
-
|
|
12
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
171.61
|
|
$
-
|
|
$
171.61
|
|
$ 100.00
|
|
$
-
|
|
$ 100.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton sold, cash production cost per ton sold, and cash
cost per purchased coal per ton sold for the nine months ended
September 30, 2022 and 2021
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2022
|
|
September 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
|
$
78,576
|
|
$ 1,159
|
|
$
79,735
|
|
$ 64,501
|
|
$
184
|
|
$ 64,685
|
|
Purchased coal
costs
|
17,399
|
|
532
|
|
17,931
|
|
2,679
|
|
1,323
|
|
4,002
|
|
Royalty
expense
|
4,882
|
|
-
|
|
4,882
|
|
4,222
|
|
-
|
|
4,222
|
|
Total cash costs of
tons sold
|
$ 100,857
|
|
$ 1,691
|
|
$ 102,548
|
|
$ 71,402
|
|
$ 1,507
|
|
$ 72,909
|
|
Total tons
sold
|
739
|
|
17
|
|
756
|
|
860
|
|
44
|
|
904
|
|
Cash cost per ton sold
(at preparation plant)
|
$
136.48
|
|
$ 99.47
|
|
$
135.65
|
|
$
83.03
|
|
$ 34.25
|
|
$
80.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$ 100,857
|
|
$ 1,691
|
|
$ 102,548
|
|
$ 71,402
|
|
$ 1,507
|
|
$ 72,909
|
|
Less: purchased
coal
|
(17,399)
|
|
-
|
|
(17,399)
|
|
(2,679)
|
|
-
|
|
(2,679)
|
|
Cash cost of produced
coal sold
|
$
83,458
|
|
$ 1,691
|
|
$
85,149
|
|
$ 68,723
|
|
$ 1,507
|
|
$ 70,230
|
|
Tons sold -
produced
|
636
|
|
17
|
|
653
|
|
828
|
|
44
|
|
872
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
131.22
|
|
$ 99.47
|
|
$
130.40
|
|
$
83.00
|
|
$ 34.25
|
|
$
80.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
17,399
|
|
$
-
|
|
$
17,399
|
|
$
2,679
|
|
$
-
|
|
$
2,679
|
|
Tons sold - purchased
coal
|
103
|
|
-
|
|
103
|
|
32
|
|
-
|
|
32
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
168.92
|
|
$
-
|
|
$
168.92
|
|
$
83.72
|
|
$
-
|
|
$
83.72
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the three months ended September 30, 2022 and 2021
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$
158.39
|
|
$
100.43
|
|
$
155.51
|
|
$ 112.75
|
|
$ 37.50
|
|
$ 110.31
|
|
Cash cost per ton sold
(at preparation plant)
|
$
141.86
|
|
$ 98.14
|
|
$
139.69
|
|
$
92.55
|
|
$ 35.20
|
|
$
90.69
|
|
Cash margin per ton
sold
|
$ 16.53
|
|
$ 2.29
|
|
$ 15.82
|
|
$
20.20
|
|
$ 2.30
|
|
$
19.62
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the nine months ended September 30, 2022 and 2021
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$
159.70
|
|
$
101.35
|
|
$
158.38
|
|
$
97.46
|
|
$ 36.16
|
|
$
94.47
|
|
Cash cost per ton sold
(at preparation plant)
|
$
136.48
|
|
$ 99.47
|
|
$
135.65
|
|
$
83.03
|
|
$ 34.25
|
|
$
80.65
|
|
Cash margin per ton
sold
|
$ 23.22
|
|
$ 1.88
|
|
$ 22.73
|
|
$
14.43
|
|
$ 1.91
|
|
$
13.82
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Corsa Coal Corp.
