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Cline Mining Q1 Financial Results; Reports Much Smaller Loss, But Sees Signs of Uptick in Coal Prices

Cline Mining Corporation (CMK.TO) today reported a loss of $20,767 and comprehensive loss of $7,532,263 (basic and diluted loss of $0.00 per share) for first quarter 2012 compares with a loss of $1,039,094 and comprehensive loss of $5,412,602 (basic and diluted loss of $0.01 per share) for first quarter 2011. Cash used in operating activities of $1,629,352 for first quarter 2012 compares with $949,077 for first quarter 2011.

Mineral properties under development costs of $30,943,637 for first quarter 2012 brings the total for mineral properties under development to $203,346,412. The expenditures were substantially all incurred at New Elk mine.

As at November 30, 2011 the Company had cash of $43.8 million, total assets of $258 million and shareholders' equity of $239 million.

While market demand for metallurgical coal is currently weak and coal prices are significantly lower than during 2011, CMK is "cautiously optimistic" that the coal markets will improve during the final quarter of 2012. As coal markets improve, the New Elk Mine is in position with ample productive capacity to quickly mobilize and expand to its design production rate of 3.0 million tons of clean saleable coal per annum.

Cline Mining is currently trading at 75 cents, just 5 cents higher than the year low. More than 453,000 shares have changed hands.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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