CanAm Coal Corp. (TSX VENTURE: COE) (OTCQX: COECF), a Canada-based company with coal mining operations in Alabama, said Jan. 23 that at a Jan. 20 shareholders meeting, the five members of the board of directors elected at the meeting were Jonathan Legg, Timothy Bergen, John Bergen, Robert Power and Timothy Nakaska.
The company also said has changed its fiscal year end from Jan. 31 to Dec. 31 and therefore the current fiscal year ending Dec. 31, 2011, will only have eleven months.
CanAm is a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. CanAm’s main activities and assets include its four operating coal mines in Alabama and the undeveloped Buick lignite coal reserve in Elbert County, Colo.
In an investor presentation given to shareholders at the Jan. 20 meeting, the company said it has had three years of exponential growth in production, revenue and EBITDA. Over that period, coal production has grown from about 5,000 tons to an estimated 250,000 tons. CanAm has a targeted annual production of 3 million tons. CanAm in 2011 acquired half of Alabama coal producer Birmingham Coal & Coke and much of its production expansion would come from exercising an option to purchase an additional 30% ownership within the next two years and the remaining 20% within five years.
The company said a key advantage is that the U.S. Environmental Protection Agency’s new Cross-State Air Pollution and Boiler MACT rules are designed to lower emissions from coal-fired power plants and will drive premium pricing for low-sulfur, low-mercury coals like those produced by CanAm.
The company reported an average metallurgical coal sales price of $140/ton, with $135/ton projected in 2012 and the possibility of $150-$160/ton in 2012. Various thermal coals out of different mines have a range of sales price averages of $70 to $89/ton in 2011, with projected prices ranging as high as $108/ton in 2012. Contracted 2012 sales are at better pricing than 2011, while unpriced volumes provide leverage to anticipated premium pricing for high quality coals and a strong thermal export market, the company noted.