CanAm Coal Corp.

CanAm Coal Corp.

July 16, 2013 09:01 ET

CanAm Reports Record Q2 Coal Sales

CALGARY, ALBERTA--(Marketwired - July 16, 2013) - CanAm Coal Corp. (TSX VENTURE:COE) (OTCQX:COECF) ("CanAm" or the "Company") is pleased to report coa l sales for the quarter ended June 30, 2013. Consolidated Q2 2013 coal sales were 167,500 tons, the best results in the Company's history. Sales were up 12% over the first quarter and 28% over the prior year. For the six month period ended June 30, 2013, sales were 317,000 tons as compared to 248,000 tons or an increase of 28% on a year to date basis.

Tons Sold Three month period Three month period
ended (Unaudited) ended (Unaudited,
Fiscal 2013 Fiscal 2012
March 31 149,453 117,192
June 30 167,426 130,517
YTD 316,879 247,709

Comparative 2012 financial information has been restated to reflect full (100%) consolidation accounting of BCC commencing with the purchase of the initial 50% ownership stake in May 2011.

During Q2 2013, the Company made significant progress to its goal of full production at its 3 new mines: Old Union 2, Knight and Posey Mill 2. The Company achieved a full quarter of production from all 3 pits at Old Union 2 and by the end of the quarter, Knight mine's production was at commercial levels. In June, the Company 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 Company's new mine complement. This explains the large sales increase.

Discreet 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 the Posey Mill 2 mine, the Company is optimistic that sales can start to exceed June levels.

Company President and CEO, Jos De Smedt commented: "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".

The Company is expected to release its second quarter full financial results in August 2013.

About CanAm Coal Corp.

CanAm is a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources. CanAm's main activities and assets include its operating coal mines in Alabama and the Buick Coal Project which holds significant coal resources, 188 million indicated and 103 million inferred resources, in Colorado, USA (see the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007). Other coal and related opportunities continue to be evaluated on an ongoing basis.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information and Statements

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Contact Information

  • CanAm Corporate Office:
    Jos De Smedt
    President & CEO
    403.262.3797 or Toll Free: 1.877.262.5888