Full-year results benefited from higher coal prices combined with the reversal of a provision for future income taxes and the gain on the completion of the Elkview transaction.
“Several major accomplishments were achieved in 2005. In addition to benefiting from historically high coal prices, Elk Valley Coal completed capacity additions at two of its mines, achieved 10-year sales agreements with two major customers, and secured a five-year contract for rail rates and volumes for the Elk Valley mines,” company president Jim Popowich said.
Revenues were $C540 million, a 66% increase over 2004 on the strength of higher coal sales prices, partially offset by a higher Canadian dollar and lower sales volumes.
Coal sales volumes decreased 5% from 2004 levels due to rail capacity constraints and delays in the arrival of new equipment in the early part of the year, as well as customer delay of contract shipments in the latter half of 2005.
