Jun. 15, 2011 (Marketwire Canada) --
CALGARY, ALBERTA -- CanAm Coal Corp. (TSX VENTURE:COE) ("CanAm" or the "Company") is pleased to report coal sales for the first quarter ending April 30, 2011. Coal sales at the Powhatan mine tripled over the comparable period in the prior fiscal year and were 30,655 tons in the quarter as compared to 9,950 tons in Q1 of fiscal 2011 or an increase of 20,705 tons. Coal sales were up 16,022 tons from the previous quarter or more than doubled. Sales in the first quarter consisted of 63% metallurgical coal and 37% thermal or steam coal.
| Three Month Period |
| Ended April 30, |
| | |
| 2011 | 2010 |
| | |
| Metallurgical coal | 19,198 | 8,339 |
| Thermal coal | 11,457 | 1,611 |
| | |
| Total | 30,655 | 9,950 |
Sales for the quarter were characterized by:
- Record production of 11,641 tons in the month of March 2011.
- Higher thermal coal recovery rates from the Mary Lee coal seam resulting in a 63/37% metallurgical/thermal coal mix.
- Sales prices realized for both metallurgical and thermal coal increased as compared to Q1 of fiscal 2011. The average coal price realized for metallurgical coal increased to US$134 per ton in Q1 as compared to US$114 per ton in Q1 of the prior fiscal year or an increase of 17%.
"We are extremely pleased with the performance of our Powhatan mine as we successfully transitioned mine operations from our previous contractor to our team. Our team has worked hard over the last couple of months to take over and optimize operations, to achieve higher equipment utilization and to re-position the mine for increased efficiencies," said Tim Bergen, CEO of CanAm. "This hard work has paid of for the Company and resulted in record quarterly production."
As previously announced, the Company acquired a 50% ownership stake in 3 operating mines and a coal brokerage business. Production and sales of these mines will only be included starting in the second quarter of this fiscal year as the acquisition was only effective May 1, 2011. Average annual coal sales of these operations in 2010 were approximately 530,000 tons.
The Company will release its full first quarter financial results at the end of July 2011.