FRIEDENS, Pa., Aug. 8, 2023
/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, 2023. Corsa has filed its unaudited condensed
interim consolidated financial statements for the three and six
months ended June 30, 2023 and 2022 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:
|
|
For the three months ended
|
|
For the six months ended
|
|
|
June 30,
|
|
June 30,
|
|
(in millions except per share, per ton and sales
tons)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net and comprehensive
income (loss)
|
|
$
8.0
|
|
$
(3.0)
|
|
$
9.9
|
|
$
(6.9)
|
|
Diluted earnings (loss)
per share
|
|
$
0.08
|
|
$
(0.03)
|
|
$
0.10
|
|
$
(0.07)
|
|
Cash provided by
operating activities
|
|
$
3.6
|
|
$
5.4
|
|
$
6.0
|
|
$
6.2
|
|
Total
revenue
|
|
$
55.3
|
|
$
42.3
|
|
$
103.3
|
|
$
81.1
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
14.4
|
|
$
5.0
|
|
$
21.5
|
|
$
8.0
|
|
EBITDA(1)
|
|
$
13.1
|
|
$
0.8
|
|
$
19.0
|
|
$
0.5
|
|
|
|
|
|
|
|
|
|
|
Average realized price
per ton of metallurgical coal sold(1)
|
$ 175.61
|
|
$ 164.73
|
|
$ 175.26
|
|
$ 160.44
|
|
Cash production cost
per ton sold(1)
|
|
$ 114.04
|
|
$ 123.82
|
|
$ 121.42
|
|
$ 127.98
|
|
|
|
|
|
|
|
|
|
|
Company produced
metallurgical coal sales tons
|
|
274,413
|
|
204,215
|
|
509,758
|
|
405,540
|
|
Purchased metallurgical
coal sales tons
|
|
20,096
|
|
36,568
|
|
35,016
|
|
65,491
|
|
Total metallurgical
coal sales tons
|
|
294,509
|
|
240,783
|
|
544,774
|
|
471,031
|
|
|
|
|
|
|
|
|
|
- Corsa's average realized price for the second quarter 2023 is
the approximate equivalent of between $288 to $294 per
metric ton on an FOB vessel basis(2). For the
second quarter 2023, Corsa's sales mix included 66% of sales to
domestic customers and 34% 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 are
attached to the coal market indices and will adjust as market
prices rise and fall. Further adjustments include a vessel
freight differential and quality adjustments necessary to evaluate
Corsa's price compared to Australian premium low volatile
metallurgical coal. As a note, most published indices for
metallurgical coal report prices on a delivered-to-the-port basis
denominated in metric tons.
|
Kevin M. Harrigan, President and
Chief Executive Officer of Corsa, commented, "Our second quarter of
2023 continued and accelerated the momentum that we saw in the
previous quarter. Sales tons improved 18% and while sales
price per ton sold remained consistent, our margins increased
considerably as a result of a 12% improvement in cash production
cost per ton sold leading to an improvement in net income of over
four times that of the first quarter and adjusted EBITDA to over
double that of the first quarter. Compared to the second
quarter of 2022, the second quarter of 2023 shows sales tons
improvement of 22%, sales price per ton sold improvement of 7%,
cash production cost per ton sold improvement of 8%, cash margin
per ton sold improvement of 90% and overall significant
improvements in both net income and adjusted EBITDA."
"The results for the second quarter and the year-to-date 2023
reflect not only the prices achieved through our strategy but more
importantly improved operations at all of our mines. Our deep
mines performed well with increases in headcount and miner
experience as well as improved geological conditions at the
Casselman and Horning mines.
Production from the surface operations increased as we resumed
lower -cost, highwall mining operations during the quarter.
We continue to make improvements at each operation with the
expectation of further reducing our cash cost of production and
remain focused on increasing headcount and training to drive our
results."
"During the second quarter, a majority of the cash flows from
operations were used to service working capital items and the
Company is now in a position to improve liquidity in the second
half of 2023."
"Additionally, the Company's directors and officers participated
in a stock option exercise in July which was necessary to fund the
corporate parent company due to loan covenant restrictions."
"We continue to execute our plan of improving operations,
lowering costs and expanding margins which are all necessary to
reduce our debt, service our environmental obligations and grow the
Company."
Financial and Operations Summary
|
For the three months ended
|
|
For the six months ended
|
|
June 30
|
|
June 30,
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in thousands)
|
2023
|
|
2022
|
|
(Decrease)
|
|
2023
|
|
2022
|
|
(Decrease)
|
|
Revenues
|
$
55,309
|
|
$
42,326
|
|
$
12,983
|
|
$ 103,254
|
|
$
81,099
|
|
$
22,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
$
42,843
|
|
$
38,812
|
|
$ 4,031
|
|
$
84,816
|
|
$
75,786
|
|
$ 9,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
$ 2,325
|
|
$ 2,215
|
|
$
110
|
|
$ 4,566
|
|
$ 4,598
|
|
$
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
income (loss)
|
$ 7,982
|
|
$
(2,970)
|
|
$
10,952
|
|
$ 9,910
|
|
$
(6,947)
|
|
$
16,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$ 3,552
|
|
$ 5,426
|
|
$
(1,874)
|
|
$ 5,991
|
|
$ 6,202
|
|
$ (211)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
13,053
|
|
$
807
|
|
$
12,246
|
|
$
19,007
|
|
$
482
|
|
$
18,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$
14,429
|
|
$ 4,961
|
|
$ 9,468
|
|
$
21,521
|
|
$ 7,990
|
|
$
13,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
295
|
|
241
|
|
54
|
|
545
|
|
471
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Mining and processing
costs
|
$
28,901
|
|
$
24,130
|
|
$
57,901
|
|
$
49,316
|
|
Purchased coal
costs
|
4,087
|
|
6,726
|
|
7,923
|
|
10,884
|
|
Royalty
expense
|
2,651
|
|
1,432
|
|
4,936
|
|
2,955
|
|
Amortization
expense
|
3,210
|
|
3,071
|
|
5,918
|
|
6,150
|
|
Transportation costs
from preparation plant to customer
|
1,767
|
|
1,745
|
|
3,825
|
|
3,687
|
|
Idle mine
expense
|
1,314
|
|
557
|
|
2,817
|
|
797
|
|
Tolling
costs
|
-
|
|
474
|
|
-
|
|
1,063
|
|
Limestone
costs
|
247
|
|
153
|
|
479
|
|
230
|
|
Other costs
|
666
|
|
524
|
|
1,017
|
|
704
|
|
Total cost of
sales
|
$
42,843
|
|
$
38,812
|
|
$
84,816
|
|
$
75,786
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the six months ended
|
|
June 30,
|
|
June 30,
|
|
2023
|
|
2022
|
|
Variance
|
|
2023
|
|
2022
|
|
Variance
|
|
Realized price per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
175.61
|
|
$ 164.73
|
|
$ 10.88
|
|
$
175.26
|
|
$ 160.44
|
|
$ 14.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
114.04
|
|
$ 123.82
|
|
$ 9.78
|
|
$
121.42
|
|
$ 127.98
|
|
$ 6.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
115.68
|
|
$ 133.21
|
|
$ 17.53
|
|
$
123.40
|
|
$ 133.41
|
|
$ 10.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
59.93
|
|
$
31.52
|
|
$ 28.41
|
|
$
51.86
|
|
$
27.03
|
|
$ 24.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
(000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
13,801
|
|
$
1,549
|
|
$
12,252
|
|
$
20,470
|
|
$
3,127
|
|
$
17,343
|
|
Corporate
|
(748)
|
|
(742)
|
|
(6)
|
|
(1,463)
|
|
(2,645)
|
|
1,182
|
|
Total
|
$
13,053
|
|
$ 807
|
|
$
12,246
|
|
$
19,007
|
|
$ 482
|
|
$
18,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
14,967
|
|
$
5,394
|
|
$ 9,573
|
|
$
22,596
|
|
$
9,112
|
|
$
13,484
|
|
Corporate
|
(538)
|
|
(433)
|
|
(105)
|
|
(1,075)
|
|
(1,122)
|
|
47
|
|
Total
|
$
14,429
|
|
$
4,961
|
|
$ 9,468
|
|
$
21,521
|
|
$
7,990
|
|
$
13,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2023 at $300.00/metric ton ("mt") delivered-to-the-port
("FOBT") for spot deliveries of Australian premium low volatile
metallurgical coal and closed the quarter at $233.00/mt FOBT. The quarterly average price for
the second quarter 2023 was $242.92/mt FOBT compared to $342.57/mt FOBT in the first quarter 2023, and
traded in a range from a high of $300.00/mt FOBT to a low of $222.00/mt FOBT.
The price for spot deliveries of Australian premium low volatile
metallurgical coal opened the third quarter 2023 at $233.00/ mt FOBT and was trading at $237.00/mt FOBT at the end of July, with a high
price of $237.00/mt FOBT, a low price
of $221.50/mt FOBT and averaged
$232.06/mt FOBT during the month.
Forward curve pricing for the balance of 2023 is trading at an
average of $244.60/mt FOBT with the
fourth quarter at a high of $244.75/mt FOBT and the third quarter at a low of
$244.38/mt FOBT. The forward curve
for 2024 indicates pricing at an average of $252.50/mt FOBT. Third quarter 2023 hot-rolled
steel coil prices increased in China by 3.2%, decreased in Europe by 5.1%, and decreased in the United States by 2.9%. Increased steel
production with limited metallurgical coal supply response as well
as restocking support increasing metallurgical coal prices that are
expected to increase from the low point of the year and remain
significantly above historical levels.
See "Risk Factors" in the Company's annual information form
dated April 13, 2023 for the year
ended December 31, 2022 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 2023 Update
The Company's third quarter 2023 sales volumes are expected to
be higher than the second quarter of 2023 due to increased
production from our deep and surface mines and will be towards the
high end of historical levels. Metallurgical coal selling
prices are expected to be lower than the second quarter of 2023 due
to increased participation in the metallurgical coal spot
market. Cash cost of sales are expected to be similar to the
previous quarter and will remain elevated compared to historical
levels. Selling, general and administrative expenses are
expected to be slightly higher than the second quarter 2023 due to
increased sales volumes. 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 over 1.150 million tons for the calendar year
2023 with 87% of the committed tons at an FOB mine price of nearly
$176/ton. The price per ton is
the equivalent of $286/mt FOBT for
Australian premium low volatile metallurgical coal. The
volumes and price per ton were impacted by nearly 153,000 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 six months ended
June 30, 2023 and 2022 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 improved profitability, adjusted EBITDA and
financial results, the ability to manage the Company going forward,
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 second quarter of 2023, along with the Company's main
priorities and its capital allocation and deployment strategy in
2023, 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
June 30, 2023 and 2022
|
For the three months ended
|
|
For the three months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss)
|
$
9,743
|
|
$
(1,761)
|
|
$
7,982
|
|
$
(1,891)
|
|
$
(1,079)
|
|
$
(2,970)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
3,210
|
|
-
|
|
3,210
|
|
3,071
|
|
-
|
|
3,071
|
|
Interest
expense
|
848
|
|
520
|
|
1,368
|
|
369
|
|
337
|
|
706
|
|
Income tax
expense
|
-
|
|
493
|
|
493
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
13,801
|
|
(748)
|
|
13,053
|
|
1,549
|
|
(742)
|
|
807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation (a)
|
-
|
|
69
|
|
69
|
|
-
|
|
(5)
|
|
(5)
|
|
Net finance (income)
expense, excluding interest expense (b)
|
802
|
|
49
|
|
851
|
|
3,508
|
|
82
|
|
3,590
|
|
Loss (gain) on disposal
of assets (c)
|
-
|
|
-
|
|
-
|
|
79
|
|
-
|
|
79
|
|
Other costs
(d)
|
364
|
|
92
|
|
456
|
|
258
|
|
232
|
|
490
|
|
Adjusted
EBITDA
|
$ 14,967
|
|
$ (538)
|
|
$ 14,429
|
|
$ 5,394
|
|
$ (433)
|
|
$ 4,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(b)
|
Components of finance
expense and income excluding interest expense.
|
|
(c)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
|
(d)
|
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, 2023 and 2022
|
For the six months ended
|
|
For the six months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss)
|
$ 12,887
|
|
$
(2,977)
|
|
$
9,910
|
|
$
(3,649)
|
|
$
(3,298)
|
|
$
(6,947)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
5,918
|
|
-
|
|
5,918
|
|
6,150
|
|
-
|
|
6,150
|
|
Interest
expense
|
1,665
|
|
1,021
|
|
2,686
|
|
626
|
|
653
|
|
1,279
|
|
Income tax
expense
|
-
|
|
493
|
|
493
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
20,470
|
|
(1,463)
|
|
19,007
|
|
3,127
|
|
(2,645)
|
|
482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
(a)
|
-
|
|
-
|
|
-
|
|
-
|
|
886
|
|
886
|
|
Stock-based
compensation (b)
|
-
|
|
131
|
|
131
|
|
-
|
|
1
|
|
1
|
|
Net finance (income)
expense, excluding interest expense (c)
|
1,523
|
|
107
|
|
1,630
|
|
5,540
|
|
164
|
|
5,704
|
|
Loss (gain) on disposal
of assets (d)
|
11
|
|
-
|
|
11
|
|
135
|
|
-
|
|
135
|
|
Other costs
(e)
|
592
|
|
150
|
|
742
|
|
310
|
|
472
|
|
782
|
|
Adjusted
EBITDA
|
$ 22,596
|
|
$
(1,075)
|
|
$ 21,521
|
|
$ 9,112
|
|
$
(1,122)
|
|
$ 7,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Reflects the separation
costs associated with the Company's previous President and Chief
Executive Officer and Chief Operating Officer.
|
|
(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.
|
Realized price per ton sold for the three months ended June 30, 2023 and 2022
|
For the three months ended
|
|
For the three months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$
53,710
|
|
$
1,599
|
|
$
55,309
|
|
$
42,128
|
|
$ 198
|
|
$
42,326
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
-
|
|
-
|
|
-
|
|
(518)
|
|
-
|
|
(518)
|
|
Transportation costs
from preparation plant to customer
|
(1,767)
|
|
-
|
|
(1,767)
|
|
(1,731)
|
|
(14)
|
|
(1,745)
|
|
Limestone
revenue
|
(139)
|
|
-
|
|
(139)
|
|
(179)
|
|
-
|
|
(179)
|
|
Net coal sales (at
preparation plant)
|
$
51,804
|
|
$
1,599
|
|
$
53,403
|
|
$
39,700
|
|
$ 184
|
|
$
39,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
295
|
|
16
|
|
311
|
|
241
|
|
2
|
|
243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
175.61
|
|
$
99.94
|
|
$
171.71
|
|
$
164.73
|
|
$
92.00
|
|
$
164.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton sold for the six months ended June 30, 2023 and 2022
|
For the six months ended
|
|
For the six months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$
99,595
|
|
$
3,659
|
|
$103,254
|
|
$
80,768
|
|
$ 331
|
|
$
81,099
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
-
|
|
-
|
|
-
|
|
(1,237)
|
|
-
|
|
(1,237)
|
|
Transportation costs
from preparation plant to customer
|
(3,825)
|
|
-
|
|
(3,825)
|
|
(3,673)
|
|
(14)
|
|
(3,687)
|
|
Limestone
revenue
|
(255)
|
|
-
|
|
(255)
|
|
(291)
|
|
-
|
|
(291)
|
|
Net coal sales (at
preparation plant)
|
$
95,515
|
|
$
3,659
|
|
$
99,174
|
|
$
75,567
|
|
$ 317
|
|
$
75,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
545
|
|
37
|
|
582
|
|
471
|
|
3
|
|
474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
175.26
|
|
$
98.89
|
|
$
170.40
|
|
$
160.44
|
|
$
105.67
|
|
$
160.09
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2023 and 2022
|
For the three months ended
|
|
For the three months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$
28,709
|
|
$
192
|
|
$
28,901
|
|
$
23,952
|
|
$
178
|
|
$
24,130
|
|
Purchased coal
costs
|
2,765
|
|
1,322
|
|
4,087
|
|
6,720
|
|
6
|
|
6,726
|
|
Royalty
expense
|
2,651
|
|
-
|
|
2,651
|
|
1,432
|
|
-
|
|
1,432
|
|
Total cash costs of
tons sold
|
$
34,125
|
|
$
1,514
|
|
$
35,639
|
|
$
32,104
|
|
$ 184
|
|
$
32,288
|
|
Total tons
sold
|
295
|
|
16
|
|
311
|
|
241
|
|
2
|
|
243
|
|
Cash cost per ton sold
(at preparation plant)
|
$
115.68
|
|
$
94.63
|
|
$
114.59
|
|
$
133.21
|
|
$
92.00
|
|
$
132.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
34,125
|
|
$
1,514
|
|
$
35,639
|
|
$
32,104
|
|
$ 184
|
|
$
32,288
|
|
Less: purchased
coal
|
(2,765)
|
|
-
|
|
(2,765)
|
|
(6,720)
|
|
-
|
|
(6,720)
|
|
Cash cost of produced
coal sold
|
$
31,360
|
|
$
1,514
|
|
$
32,874
|
|
$
25,384
|
|
$ 184
|
|
$
25,568
|
|
Tons sold -
produced
|
275
|
|
16
|
|
291
|
|
205
|
|
2
|
|
207
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
114.04
|
|
$
94.63
|
|
$
112.97
|
|
$
123.82
|
|
$
92.00
|
|
$
123.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
2,765
|
|
$
-
|
|
$
2,765
|
|
$ 6,720
|
|
$
-
|
|
$ 6,720
|
|
Tons sold - purchased
coal
|
20
|
|
-
|
|
20
|
|
36
|
|
-
|
|
36
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
138.25
|
|
$
-
|
|
$
138.25
|
|
$
186.67
|
|
$
-
|
|
$
186.67
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2023 and 2022
|
For the six months ended
|
|
For the six months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$
56,990
|
|
$
911
|
|
$
57,901
|
|
$
49,005
|
|
$
311
|
|
$
49,316
|
|
Purchased coal
costs
|
5,326
|
|
2,597
|
|
7,923
|
|
10,878
|
|
6
|
|
10,884
|
|
Royalty
expense
|
4,936
|
|
-
|
|
4,936
|
|
2,955
|
|
-
|
|
2,955
|
|
Total cash costs of
tons sold
|
$
67,252
|
|
$
3,508
|
|
$
70,760
|
|
$
62,838
|
|
$ 317
|
|
$
63,155
|
|
Total tons
sold
|
545
|
|
37
|
|
582
|
|
471
|
|
3
|
|
474
|
|
Cash cost per ton sold
(at preparation plant)
|
$
123.40
|
|
$
94.81
|
|
$
121.58
|
|
$
133.41
|
|
$
105.67
|
|
$
133.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
67,252
|
|
$
3,508
|
|
$
70,760
|
|
$
62,838
|
|
$ 317
|
|
$
63,155
|
|
Less: purchased
coal
|
(5,326)
|
|
-
|
|
(5,326)
|
|
(10,878)
|
|
-
|
|
(10,878)
|
|
Cash cost of produced
coal sold
|
$
61,926
|
|
$
3,508
|
|
$
65,434
|
|
$
51,960
|
|
$ 317
|
|
$
52,277
|
|
Tons sold -
produced
|
510
|
|
37
|
|
547
|
|
406
|
|
3
|
|
409
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
121.42
|
|
$
94.81
|
|
$
119.62
|
|
$
127.98
|
|
$
105.67
|
|
$
127.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
5,326
|
|
$
-
|
|
$
5,326
|
|
$
10,878
|
|
$
-
|
|
$
10,878
|
|
Tons sold - purchased
coal
|
35
|
|
-
|
|
35
|
|
65
|
|
-
|
|
65
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
152.17
|
|
$
-
|
|
$
152.17
|
|
$
167.35
|
|
$
-
|
|
$
167.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the three months ended June 30, 2023 and 2022
|
For the three months ended
|
|
For the three months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$
175.61
|
|
$
99.94
|
|
$
171.71
|
|
$
164.73
|
|
$
92.00
|
|
$
164.13
|
|
Cash cost per ton sold
(at preparation plant)
|
$
115.68
|
|
$
94.63
|
|
$
114.59
|
|
$
133.21
|
|
$
92.00
|
|
$
132.87
|
|
Cash margin per ton
sold
|
$
59.93
|
|
$
5.31
|
|
$
57.12
|
|
$ 31.52
|
|
$
-
|
|
$ 31.26
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the six months ended June 30, 2023 and 2022
|
For the six months ended
|
|
For the six months ended
|
|
June 30, 2023
|
|
June 30, 2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$
175.26
|
|
$
98.89
|
|
$
170.40
|
|
$
160.44
|
|
$
105.67
|
|
$
160.09
|
|
Cash cost per ton sold
(at preparation plant)
|
$
123.40
|
|
$
94.81
|
|
$
121.58
|
|
$
133.41
|
|
$
105.67
|
|
$
133.24
|
|
Cash margin per ton
sold
|
$
51.86
|
|
$
4.08
|
|
$
48.82
|
|
$ 27.03
|
|
$
-
|
|
$ 26.85
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Corsa Coal Corp.
