During the quarter ended March 31, the company's revenue totalled $C39.9 million, based on 420,000 tonnes sold at an average of $95 per tonne.

Sales for the year were up 65% from last year to 1.65 million tonnes, but a weaker US dollar and lower US contract prices resulted in a reduced sales price on average for the year from $101/t to $89/t.

The company's net loss in the final quarter was $1.2 million and $15.5 million for the fiscal year.

Grand Cache president Robert Stan said the results were positive versus last year in that the company was able to reduce its operating costs.

“During the quarter we were able to ship more coal than anticipated and take advantage of some higher price opportunities,” he said.

“Unfortunately, the strengthening of the Canadian dollar negated a large portion of the accomplishments we achieved and was a major contributor to our loss."

However, he said the company expects "substantially better" bottom line results in the coming year.

“Significant coal price increases will enable us to invest in capital projects designed to improve productivities and efficiencies in existing mining operations as well as develop mining areas for the future," Stan said.

Looking ahead into its new fiscal year, Grand Cache said its contract negotiations for coal had been completed.

Barring any shipping or rail issues, it is projecting sales volumes of 1.8–2Mt with an average sales price of $US245–255/t. That includes prior year carryover shipments, contract sales negotiated on a calendar year basis and new fiscal year PCI and hard coking coal contract sales.

“The expected average coal price is comprised of a range of prices from $81 per tonne for carryover shipments to $300 per tonne for contracts settled in the new coal year," officials noted, adding that for about 70% of its projected fiscal 2009 sales volume contracts, Grand Cache has negotiated an average price of approximately $290/t.