For the year ended March 31, WCC recorded sales of $C438.6 million and earnings of $40.8 million. In the fourth quarter, sales were $136.6 million – 15% higher than the third quarter – and earnings were $11.2 million.
Despite a rising Canadian dollar and less demand from steelmakers, Western officials said all of its operations were cash flow positive with cash from operations of $82.9 million.
The company also had significant balance sheet strength with cash of $136 million at year-end versus long-term debt and capital leases of $48 million.
Looking at its Canadian operations, sales volumes were up 94% over the third quarter. Officials cited 260,000t of coal that was intended to be shipped in the third quarter for the result.
Production volumes in the region were also higher than the prior period, and reflected a 29% improvement on stronger and improving coal markets.
"The fundamentals of our business are strong and getting stronger,” WCC president Keith Calder said.
“Costs are in-line and will continue to improve as we recapitalize the mines with larger and more efficient equipment.”
He expects coal prices to rise in the upcoming quarter as markets continue a “robust” trend.
“Emerging from the global recession, as a company, we are well positioned to take advantage of the strengthening coal markets,” Calder said.
“We have a stronger financial position, a clearly articulated value-accretive growth strategy, and a high-quality asset base producing and selling high-value products."
