TORONTO, June 29, 2015 /CNW/ - Pacific Coal Resources
Ltd. (TSXV: PAK) has filed its unaudited consolidated financial
statements for the three months ended March
31, 2015, together with its management's discussion and
analysis ("MD&A") for the corresponding period. All financial
figures contained herein are expressed in U.S. dollars unless
otherwise noted. These documents will be posted on the Company's
website at www.pacificcoal.ca and under the Company's profile at
www.sedar.com.
Hernan Martinez, Executive
Chairman, commented: "In the first quarter of 2015, the Company was
able to negotiate a favourable operating cost at La Caypa and work
towards maintaining a low G&A. The Company should be able to
improve its cash position going forward as a result of the cash
stream generated by the agreement with Sloane. We aim to begin
underground mining at La Caypa to maximize its coal production and
strengthen our focus on core assets by disposing of the remaining
interest in the Barranquilla port."
Financial and Operating Summary
A summary of the financial and operating results for the first
quarter of 2015 is as follows:
|
First
Quarter
|
(000's except per
share and operating data)
|
2015
|
2014
|
2013
|
Operational
|
|
|
|
Tonnes of coal
Produced (1)
|
221,909
|
274,421
|
223,346
|
Average Stripping
ratio - operations
|
6.76
|
9.09
|
10.28
|
Tonnes of coal
sold
|
246,771
|
371,716
|
220,751
|
Average realized
thermal coal price $/ tonne sold
|
$ 85.45
|
$ 95.67
|
$ 99.10
|
Operating margin per
tonne sold
|
$ 23.24
|
$ 11.51
|
($ 4.06)
|
|
|
|
|
Financial
|
|
|
|
Revenues
|
$ 20,928
|
$ 35,671
|
$ 21,901
|
Adjusted EBITDA
(2)
|
4,579
|
3,087
|
(2,503)
|
Earnings (loss) from
operations
|
1,762
|
1,161
|
(4,887)
|
Net earnings (loss)
attributed to shareholders
|
9,766
|
(113)
|
(3,150)
|
Basic and fully
diluted loss per share
|
0.18
|
(0.00)
|
(0.07)
|
Cash
|
976
|
430
|
4,785
|
Mineral properties
additions - La Caypa
|
11,166
|
4,368
|
2,309
|
Total
assets
|
112,586
|
254,164
|
238,635
|
Total debt
(3)
|
35,140
|
48,477
|
66,161
|
(1) The portion
of the coal production for Norcarbon as defined in the joint
venture agreement with Sloane was 3,718 tonnes, equivalent to 8.25%
of the production in Cerro Largo in the three months ended March
31, 2015.
(2) The Company defines Adjusted EBITDA as earnings from
operations adding back impairment of non-current assets, in
addition to share-based compensation, and Depreciation, depletion
and amortization ("DD&A") Adjusted EBITDA is a
non-International Financial Reporting Standards (IFRS) financial
measure, does not have any standardized meaning prescribed by IFRS
and is therefore unlikely to be comparable to similar measures
presented by other companies. See "'Non-GAAP and additional GAAP
Financial Measures'" in the Company's First Quarter 2015 Management
Discussion and Analysis dated June 29, 2015 for a quantitative
calculation of Adjusted EBITDA.
(3) Total debt includes short-term debt, long term debt,
finance leases and amounts owed to Chipalo Resources by Norcarbon
S.A.S.("Norcarbon") (March 31, 2015 - $9.1 million, March 31, 2014
- $14.7 million).
|
Q1 2015 Highlights
- Coal production: The Company produced 221,909
tonnes of coal in the first quarter of 2015, which represents a
decrease of 19% compared to the first quarter of 2014 (274,421
tonnes). In the first quarter of 2015, the total stripping ratio
for La Caypa mine increased by 141% compared to the fourth quarter
of 2014 (28.21 vs 11.73). These results were due to a change in the
mine development plan as a result of adverse geographical
conditions found in the mine and is expected to be lower in the
second half of 2015.
- Revenues: Coal revenues for the first quarter of
2015 were $20.9 million (first
quarter 2014 - $35.6 million), from
246,771 tonnes (first quarter 2014 - 371,716 tonnes) of coal sold
at an average realized price of $85.45 per tonne.
- Earnings (loss) from operations: In the first
quarter of 2015, the earnings from operations were $1.8 million, compared to $1.9 million and $1.2
million in the fourth quarter of 2014 and the first quarter
of 2014, respectively.
- Adjusted Earnings Before Interests, Taxes, Depreciation
and Amortization ("EBITDA") and operating
margin: Adjusted EBITDA for the first quarter of 2015
was a gain of $4.6 million against
$3.1 million for first quarter of
2014. See 'Non-GAAP and Additional GAAP Financial Measures' for a
definition and reconciliation of Adjusted EBITDA and operating
margin per tonne sold in the first quarter MD&A filed on
www.sedar.com.
- Operation of Cerro Largo mine: The Company
continued with the development of the multi-year joint operation
agreement ("Sloane JOA") for thermal coal production at the Cerro
Largo mine signed October 1, 2014
with Sloane Mining Services Sucursal Colombia ("Sloane"), whereby
Sloane took over operation of the Cerro Largo mine. The final
conditions required for the agreement to take effect are expected
to be fulfilled by the third quarter of 2015, resulting in the
payment of $6.5 million advance by
Sloane to the Company pursuant to the Sloane JOA.
- General and administrative ("G&A") expenses:
The Company recorded $1.2 million in
G&A expenses, excluding DD&A and impairment of non-current
assets, in the first three months of 2015, which was slightly
higher than forecasted due to tax penalties that were required to
be paid in the quarter, compared to $1.2
million in the same period of 2014.
Outlook
In the first quarter of 2015, production at the La Caypa mine
was 176,840 tonnes and production at the Cerro Largo mine was
45,069 tonnes, of which 3,718 belong to the Company as part of the
Sloane JOA. Regarding La Caypa, the Company maintains its forecast
of open pit production of 1.1 million tonnes for 2015 with a
stripping ratio throughout the year of 13.36:1. The Company
continues negotiating a potential long term sales contract with its
main customer whose current contract expires in July 2015. The new contract is expected to be for
the purchase of 3.4 million tonnes of open pit production
(including production from the second half of 2015, 2016, 2017 and
2018). Since spot prices are currently lower than the price in the
existing contract, there can be no certainty that the Company will
be able to negotiate a new contract at the same price as the
existing contract.
During 2015, management continues to prioritize its efforts to
lower operating costs. The Company continues to explore
opportunities with third parties with respect to underground mining
at La Caypa with the goal of finalizing a contract in the third
quarter of 2015. Currently, two companies have expressed interest
in providing their services to the Company in this regard.
Management has been working to complete certain conditions in
order to effect the Sloane JOA completely, hence reducing the
amount owed to Chipalo Resources, formerly owed to Masering
S.A.S.
In terms of G&A expenses, total G&A expenses were
$1.2 million in the first quarter of
2015. The Company anticipates G&A expenses in 2015 will be
approximately $4.2 million
($1.0 million quarterly), which would
be an 18% of reduction as compared to 2014.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining
company engaged in the acquisition, exploration and production of
coal and coal-related assets from properties located in
Colombia. The Company's common
shares are listed on the TSX Venture Exchange and trade under the
symbol "PAK".
Forward Looking Information:
This news release contains "forward-looking information",
which may include, but is not limited to, statements with respect
to the future financial or operating performance of the Company and
its projects. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or believes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Pacific Coal to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Forward-looking statements
contained herein are made as of the date of this press release and
Pacific Coal disclaim, other than as required by law, any
obligation to update any forward-looking statements whether as a
result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or
otherwise. 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. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements.
Neither 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 news release.
SOURCE Pacific Coal Resources Ltd.