Grande Cache Coal Corp Announces Q1 Results
Grande Cache Coal Corp (GCE.TO) today announced its financial and operating results for the three months ended June 30, 2011. Looking ahead, GCE said it anticipates that coal sales volumes for fiscal 2012 will be on the low end of its projected range of 2.2 to 2.4 million tonnes. "The No. 8 surface pit continues to be in the early stages of production and coal volumes are being impacted by tight mining conditions and a higher strip ratio than that which is expected over the life of the pit," it said.
Results highlights include:
- Grande Cache Coal earned income of $7.2 million, or $0.07 per basic and diluted share during the first quarter of fiscal 2012, compared to income of $4.2 million, or $0.04 per basic and diluted share, in the same period last fiscal year. Profit from operations was $10.4 million versus $8.4 million in the first quarter last fiscal year.
- Coal sales volumes during the three months ended June 30, 2011 were 0.39 million tonnes, versus 0.45 in the same period last year. Mechanical issues at the port in the latter part of June and shipping delays resulted in two vessel loadings (approximately 70,000 tonnes) being delayed until the first week of July. Metallurgical coal accounted for approximately 84% of the total sales volume with the remainder being thermal coal.
- Revenue generated during the first quarter of fiscal 2012 was $79.7 million, compared to $69.0 million in the comparable period of fiscal 2011. The average sales price of metallurgical coal during the quarter was $220 per tonne (US$227 per tonne), up from $158 per tonne (US$154 per tonne) in the first three months of last year. The increase in price reflects higher US dollar contract price settlements during the current quarter offset somewhat by a lower exchange rate due to a weaker US dollar in relation to the Canadian dollar. The current quarter also includes and a portion of carryover tonnage from fiscal 2011, which was contracted at lower prices, as well as shipments under annual price contracts.
- First quarter cost of sales, excluding depreciation, was $59.7 million, or $152 per tonne, compared to $56.7 million, or $113 per tonne in the same period last year. Unit cost of sales during the quarter were influenced by early stage mining conditions in the No. 8 pit together with a higher strip ratio and lower plant yield than that which is expected for the life of the pit. There were also higher costs incurred for internal labour, contractor services, supplies and consumables.
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