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VANCOUVER (miningweekly.com) – Improvements in the metallurgical coal market have pushed US-focused coal producer Corsa Coal to a second-quarter profit, and marked the company’s fifth consecutive quarter of growth of 20%, or greater, in metallurgical coal sales volumes.
Canonsburg, Pennsylvania-based Corsa reported positive net and comprehensive income of $4.6-million, or $0.03 a share - an increase of 157% from the second quarter of 2016 when a loss of $8-million, or $0.10 a share, was reported.
Revenues reached $66.2-million, an increase of 255% compared with that of the second quarter of 2016.
Corsa produces coal from six mines, has one development mine, operates three preparation plants and employs about 400 people. The coal operations are conducted through the Northern Appalachia Division (NAPP) and the Central Appalachia Division (CAPP).
NAPP is based in Somerset, Pennsylvania, and is mainly focused on metallurgical coal production in the states of Pennsylvania and Maryland, while CAPP operates the company's thermal, industrial and metallurgical coal operations in Tennessee.
Corsa, which has a TSX-V listing, achieved an average realised price of $121.77/t of metallurgical coal sold at its NAPP division in the second quarter, an increase of 101% over the same period a year earlier.
Metallurgical coal sales volumes jumped 35% over the first quarter and 178% year-on-year to 370 000 t.
Meanwhile, the Acosta mine, in Pennsylvania, successfully started production in early June, and Corsa advised that early indications are positive from a geologic, equipment and hiring standpoint. Output from the Acosta mine will increase during the second half of this year, as more shifts are added and a second mining unit is added.
Corsa has increased its metallurgical coal sales guidance for the NAPP division by between 300 000 t and 400 000 t to between 1.52-million and 1.72-million tons for the full year, while the CAPP division is expected to produce about 65 000 t less coal at between 65 057 t and 100 057 t.
The full-year thermal coal sales forecast also fell by about 20 000 t to between 860 000 t and 925 000 t.