On November 10, Vancouver, Canada-based metallurgical coal producer Western Coal Corp. issued its financial results for the three months ended September 30, 2010.
According to the financial results, the net profit of the company was $40.8 million in the third quarter of 2010, compared with a net profit of $2.2 million in the third quarter of 2009. Sales revenues in the third quarter of 2010 saw a massive increase, rising from $107.6 million in the third quarter of the previous year to $220.4 million.
Coal production in the third quarter was 1.5 million mt, up 90 percent from 0.8 million mt a year ago. Shipments in the quarter in question were 45 percent higher than a year ago, at the level of 1.3 million mt, as market demand for both metallurgical and steam coal continue to strengthen, the company said.
In the longer term, the market fundamentals - strong demand and shortage of supply for high quality metallurgical coal - are expected to prevail, which should provide continued opportunity for Western as it expands production to increasingly diversify its international markets. China, India and South America remain the driving forces for this increase in demand.