CanAm Coal Corp.

CanAm Coal Corp.

September 08, 2011 08:30 ET

CanAm Reports Second Quarter Coal Sales of 81,000 Tons

CALGARY, ALBERTA--(Marketwire - Sept. 8, 2011) - CanAm Coal Corp. (TSX VENTURE:COE) ("CanAm" or the "Company") is pleased to report coal sales for the second quarter ending July 31, 2011. Coal sales of 81,453 tons were achieved in the second quarter of fiscal 2012 as compared to 12,314 tons in Q2 of fiscal 2011 or an increase of 69,139 tons. Coal sales were up 50,798 tons from the previous quarter of fiscal 2012. The second quarter marks the first quarter that includes coal sales from Birmingham Coal & Coke ("BCC"), an Alabama based coal mining operation in which the Company acquired a 50% ownership stake on May 1, 2011. For the six month period ended July 31, 2011, coal sales were 112,108 tons as compared to 22,264 tons in fiscal 2011 or a fivefold increase.

Three Month Period Six Month Period
Ended July 31, Ended July 31,
2011 2010 2011 2010
Metallurgical coal 10,830 10,027 30,028 18,366
Thermal coal 70,623 2,287 82,080 3,898
Total 81,453 12,314 112,108 22,264

Sales for the quarter were characterized by:

  • First time contribution of 59,069 tons of coal sales from the Company's 50% ownership in BCC's three operating mines, Bear Creek, Old Union and Gooden Creek, and coal sales of 3,206 tons from BCC's brokerage business. All of BCC's mines produce high quality thermal coal.
  • Coal sales of 19,179 tons from the Powhatan mine which is up 6,865 tons from the comparable period in the previous year and down 11,476 tons from the previous quarter. Lower production as compared to the previous quarter is mainly the result of operations moving onto the next mining increment with resulting infrastructure work requirements, some reclamation work and repositioning of the high wall to achieve higher operating efficiencies.
  • Higher thermal coal recovery rates from the Mary Lee coal seam at the Powhatan mine resulting in a 56/46% metallurgical/thermal coal mix for the second quarter. The ratio of metallurgical/thermal coal for the six month period ended July 31, 2011 at the Powhatan mine was 60/40%.

"The second quarter is another major milestone for the Company as we are, for the first time, reporting our share of production from the Bear Creek, Old Union and Gooden Creek mines. As expected, the BCC team continues to do an excellent job in operating these properties and they continue to implement and evaluate opportunities to organically grow or expand this production," said Tim Bergen, CEO of CanAm.

The Company will release its full second quarter financial results at the end of September 2011.

About CanAm Coal Corp.

CanAm is a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. CanAm's main activities and assets include its four operating coal mines in Alabama, the exclusive rights to a proprietary Coal to Liquids technology which converts coal into liquid fuels (such as oil, jet fuel) at an economical cost with zero airborne emissions 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.

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.

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.

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