The Canada-listed, US-focused metallurgical coal producer reported a net loss of $US4.7 million for the three months ended May 31, 2013 and $9.1 million for the six months to May 31.
However, both losses were substantially less than the hit the company incurred last year, with president and chief executive officer Don Charter citing Casselman’s ramp-up and a decrease in operating expenses for the improvement.
“The second quarter was a great quarter for the company operations,” Charter said.
“With the Casselman mine operating for virtually the entire quarter at full production with the current two-unit configuration, we were able to achieve further cost reductions with a cash cost of $38 per run of mine ton of coal produced at the Casselman mine during the quarter.”
Casselman is the company’s largest operating mine, producing 116,000 tons of the company’s 123,000t of raw metallurgical coal during the quarter and 165,000t of the 183,000t produced over the last six months.
Casselman only produced 36,000t during the second quarter last year, with the dramatic increase due to the addition of a second continuous miner in October 2012.
The company’s two operational surface mines, Ankeny and Hemminger, produced 7000t of raw metallurgical coal.
“In addition, the commencement of the Hemminger high wall operation and opening of the Ankeny surface mine, together with entering the final stage of permitting of the Acosta underground project, the company is well positioned for continued expansion,” Charter said.
The company sold 83,000t of clean metallurgical coal during the quarter, bringing its sales for the six months ended May 31 to 119,000t.
The coal was sold at an average realized price of $105 per ton, down from a price of $152/t last quarter, due to the global reduction in demand for metallurgical coal, Corsa said.
Corsa maintains its 2013 sales guidance at 300,000-320,000t, acknowledging that met coal markets continue to be volatile.
The company also produced a small quantity of thermal coal ancillary to its met coal production at its surface mines.
During the quarter 16,000t of thermal coal was sold at an average price of $28/t.
Corsa announced revenue from coal sales of $9.2 million for the quarter and $14.8 million for the six months.
Operating expenses decreased from $19.5 million during the second quarter last year to $10.5 million in Q2 2013.
Corsa also provided an update on its transaction with Kopper Glo, which was given conditional approval from the TSX Venture Exchange last week.
The fully completed transaction, expected to occur this week, will result in Corsa raising $40 million and acquiring Tennessee-based coal producer Kopper Glo.
Corsa’s operations are conducted through wholly owned subsidiaries Wilson Creek Energy and Maryland Energy Resources, which are based in Somerset, Pennsylvania.
As well as Casselman, Corsa has two other major underground projects, the Acosta Deep project – which is expected to be permitted in the third quarter of 2013 – and the Keyser project.
As well as the Ankeny and Hemminger surface mines, the company also has the permitted Hastings mine and two additional surface projects that are expected to be permitted in the third quarter of 2013.
The mines and properties are located in Pennsylvania and Maryland.
Wilson Creek also owns a coal preparation plant in Pennsylvania.
