Corsa Coal: improving trend in the met coal market
https://finance.yahoo.com/news/corsa-exceeds-q2-sales-guidance-203000217.html
TORONTO, June 14, 2012 /PRNewswire/ - Corsa Coal Corp. (CSO.V) ("Corsa" or the "Company") is pleased to announce that during the second quarter of 2012 the Company sold 72,000 clean tons of metallurgical coal at an average realized price of US$152 per clean ton FOB its preparation plant, exceeding its published guidance of 65,000 to 70,000 tons. As well the Company sold 38,000 tons of thermal coal during the quarter at an average price of $32 a ton. For the six months ended May 31, 2012, the Company has sold 137,000 clean tons of metallurgical coal at an average realized price of $155 per ton and 59,000 tons of thermal coal at an average realized price of $35 a ton. The realized prices reflect the sale of some carry over tons from the previous year's sale contract.
Outlook improving
The Company is optimistic for the future as both volumes and pricing have begun to indicate an improving trend. Industry reports indicate (in metric tonnes) that US Low Vol met coal spot pricing FOB (Eastern seaport) was in the range of $165 in March, $185 in April and $182 for May while Australian Prime spot pricing was in the range of $211, $211 and $216 for the same months. Reports are showing that June pricing for Australian prime is in the $225 range up from the previous quarterly pricing in the $210 range. The Company's high quality low vol hard met coal has resulted in more positive current marketing activity than in the last three quarters. The US coal industry continues to be challenged particularly with respect to US thermal coal demand which has continued to fall and with respect to lower quality high vol met coals.
Based on purchase orders, scheduled and expected trains and sales agreements in hand the Company expects to ship approximately 140,000 clean tons of metallurgical coal in the third quarter ending August 31, 2012, doubling its Q2 sales. Meeting this guidance would result in the Company shipping approximately 275,000 clean tons of metallurgical coal in the nine months ended August 31, 2012. The order book for the fourth quarter continues to build and management is optimistic that the sales trend is positive.