CanAm Coal (TSX VENTURE: COE) (OTCQX: COECF) said July 16 that its consolidated second quarter 2013 coal sales were 167,500 tons, the best results in the company’s history.
Sales at the company’s Alabama mines were up 12% over the first quarter and 28% over the prior year. For the six-month period ended June 30, sales were 317,000 tons as compared to 248,000 tons or an increase of 28% on a year to date basis.
Comparative 2012 financial information has been restated to reflect full (100%) consolidation accounting of Birmingham Coal & Coke commencing with the purchase of the initial 50% ownership stake in that Alabama producer in May 2011.
During the second quarter, the company made significant progress to its goal of full production at its three new mines: Old Union 2, Knight and Posey Mill 2. The company achieved a full quarter of production from all three pits at the Old Union 2 strip job and by the end of the quarter, Knight mine’s production was at commercial levels. In June, CanAm took up first coal from its Posey Mill 2 mine and it is expected that full production levels will be achieved in the third quarter from this mine. The company’s Powhatan mine had a solid quarter, achieving planned production levels.
The prior year’s result reflects sales from the company’s old mines, which had lower productive capacity compared to the new mines. This explains the large sales increase.
June sales were a record 61,000 tons, which the company believes is an indicator of future results. Once commercial production levels are reached at Posey Mill 2, the company is optimistic that sales can start to exceed June levels.
CanAm President and CEO Jos De Smedt said: “Despite the fact we were still in a transition phase for most of the second quarter, CanAm was still able to achieve the best production and sales results in its history. Now that our transition has been completed, we can expect to achieve full scale commercial production for the foreseeable future. Add to this the fact we are fully contracted gives us optimism as we start the second half of the year.”