The Calgary-based miner attributed a best-ever 167,400 tons of coal output during the third quarter and $3.3 million in adjusted earnings to the acquisition last July of an additional 30% interest in Birmingham Coal & Coke.

Coal sales at the BCC mines reached 125,000t on the quarter, the highest level since Q1 of 2008.

Improved operational execution at the Powhatan, Old Union and Bear Creek mines (all in Alabama) lifted Q3 thermal sales 76% year-over-year to 142,000t and metallurgical sales 17% year-over-year to 15,000t.

Revenue for the quarter was $14.7 million compared to $9.7 million in Q3 last year though the company posted a net loss of $1 million.

Improved performance was attributed not only to the addition of BCC production assets but to investment in new equipment, repair of existing equipment and improved operating efficiency.

Q3 cost of product sold was $47 per ton, compared to $41 per ton in the previous year.

CanAm president Jos De Smedt was appointed the company’s new chief executive following the announcement and said the financial results signified a “breakthrough quarter” for CanAm.

“The hard work of our team paid off and the operational improvements achieved at our mines in the quarter, coupled with improved mining conditions, resulted in higher production levels and a significantly lower cost structure,” De Smedt said.

“We also received our Old Union 2 permit in August and our Knight mine permit subsequent to quarter end.”

CanAm projects Q4 2012 sales to be in the range of 155,000t to 175,000t with all production going to existing contracts.

The company also predicted that capital expenditures would be “substantially lower” in Q4 leading to increased momentum going into 2013.