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Corsa Coal Announces Financial Results for Second Quarter 2022


August 4, 2022 - Corsa Coal Corp. (TSXV: CSO) (OTCQX: CRSXF) ("Corsa" or the "Company"), a premium quality metallurgical coal producer, today reported financial results for the three and six months ended June 30, 2022. Corsa has filed its unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2022 and 2021 and related management's discussion and analysis under its profile on

Unless otherwise noted, all dollar amounts in this news release are expressed in United States dollars and all ton amounts are short tons (2,000 pounds per ton). Pricing and cost per ton information is expressed on a free-on-board ("FOB"), mine site basis, unless otherwise noted.

Second Quarter Highlights

Kevin M. Harrigan, Interim President and Chief Executive Officer of Corsa, commented, "The results of the second quarter of 2022 demonstrated a significant improvement over the prior quarter with adjusted EBITDA increasing by 64%, cash margin per metallurgical coal tons sold increasing by 41% and cash provided by operating activities increasing by nearly 600%. Net and comprehensive loss in the second quarter of 2022 was significantly impacted by mark-to-market losses on the water treatment trust funds of $2.8 million. Additionally, the second quarter of 2022 saw our best adjusted EBITDA and highest quarterly revenues from metallurgical coal sales since the first quarter of 2020 and the highest cash margin per metallurgical coal tons sold since 2017. Although the results of the second quarter reflect a significant improvement, the mining geology, labor-availability, productivity and logistical issues experienced in the first quarter of 2022 continued to negatively affect our results. Operationally, we completed a section move at the Casselman mine and commenced high wall mining operations at our Schrock Run Extension surface mine during the quarter. These actions led to improved operational performance in June 2022 and we expect the benefits of these changes to continue through the third quarter of 2022. We ended the second quarter with higher than anticipated inventory levels as the timing of our shipments were delayed into the third quarter due to transportation constraints."


"We continue to focus on the hiring, training and retention of our workforce and our labor efficiency is increasing aided by improved conditions at our underground mines. Our commitment to returning to historical production levels remains and we continue to work to secure the additional workforce required at our operations."

Coal Pricing Trends and Outlook

Price levels opened the second quarter of 2022 at $480.00/metric ton ("mt") delivered-to-the-port ("FOBT") for spot deliveries of Australian premium low volatile metallurgical coal and closed the quarter at $302.00/mt FOBT. The quarterly average price for the second quarter of 2022 was $449.75 /mt FOBT for Australian premium low volatile metallurgical coal, compared to $486.57/ mt FOBT in the first quarter of 2022, and traded in a range from a high of $530.25/mt FOBT to a low of $302.00/mt FOBT.

The forward curve for the balance of the third quarter of 2022 according to the SGX TSI index is trading at $236.39/mt FOBT with July at $246.33/mt FOBT, August at $230.00/mt FOBT, and September at $240.00/mt FOBT. Forward curve pricing for fourth quarter of 2022 is at $272.97/mt FOBT, bringing the balance of the year to $257.16/mt FOBT. The forward curve for 2023 is indicating pricing at an average of $277.29/mt FOBT. Limited supply-side response, constrained logistics and inflationary mining cost pressures continue to support higher metallurgical coal prices in the near future.

See "Risk Factors" in the Company's annual information form dated March 1, 2022 for the year ended December 31, 2021 for an additional discussion regarding certain factors that could impact coal pricing trends and outlook, as well as the Company's ongoing operations.

Third Quarter 2022 Update

The Company's third quarter 2022 sales volumes are expected to increase as compared to the second quarter of 2022 and metallurgical coal selling prices are expected to be similar to the second quarter as we continue to service previously committed fixed price contract orders. Cash cost of sales are expected to be lower than the previous quarter continuing their downward trend for the year but will remain higher than historical levels, and selling, general and administrative expenses will be similar to the second quarter of 2022. The main priorities of the Company continue to be maximizing production, increasing participation in the metallurgical coal spot market and reducing costs while we maintain a focus on improving the balance sheet with minimized downside financial risk. The Company's capital allocation and deployment strategy will be aligned with these priorities and the Company's financial position.

Third Quarter 2022 Earnings Release

The Company tentatively expects to announce third quarter 2022 financial results after the close of markets on Wednesday, November 2, 2022.

To see the full second quarter results with financial figures included, click here