Corsa Coal reverts Q2 2018 net loss to net income in Q2 2019

Wednesday, 21 August 2019 23:28:54 (GMT+3)   |   San Diego
       

Metallurgical coal producer Corsa Coal Corp. reported financial results for the three months ended June 30, 2019. Corsa reported net and comprehensive income from continuing operations of $3.6 million for the second quarter 2019, compared to a loss of $4.9 million for the second quarter 2018.

Cash production cost per ton sold was $84.55 for the second quarter 2019, a decrease of $7.65 per ton, or 8 percent, as compared to the second quarter 2018. Total revenue from continuing operations was $63.0 million for the second quarter 2019 compared to $57.3 million for the second quarter 2018, an increase of 10 percent.

Low volatile metallurgical coal sales tons, comprised of "Company Produced" tons and "Value Added Services" purchased coal tons, were 414,105 in the second quarter 2019 compared to 282,444 in the second quarter 2018. In the second quarter 2019, Corsa sold a total of 36,306 "Sales and Trading" tons, which are treated as pass-through from a profitability perspective, compared to 109,890 tons in the second quarter 2018.

Corsa achieved an average realized price per ton of metallurgical coal sold of $117.48 for all metallurgical qualities in the second quarter 2019 compared to $115.52 in the second quarter 2018. This average realized price is the approximate equivalent of $168 to $174 on an FOB vessel basis. For the second quarter 2019, Corsa's sales mix included 31 percent of sales to domestic customers and 69 percent of sales to international customers.

Peter Merritts, Chief Executive Officer of Corsa, commented, "The outlook for metallurgical coal pricing is challenged in the upcoming months, and we are taking steps to minimize the market decline impact on our business.  Although the market has weakened in the near term, we continue to believe the fundamentals for metallurgical coal pricing will remain supportive in the coming quarters, driven by continued global economic growth and limited investment in new coal production.  As a result of this market pull back, we have adjusted our guidance downward to reflect the impact of the current price forecasts.  We expect to continue to be profitable in the existing price environment and will continue to focus on cost control and discipline in managing our operations."


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