COECF-CanAm Coal Corp. (TSX VENTURE:COE)(OTCQX:COECF) ("CanAm" or the "Company") is pleased to provide an update on production and sales contracts for the fiscal year ended December 31, 2012.
The Company is estimating coal sales of between 450,000 to 550,000 tons for the 2012 fiscal year with a metallurgical/thermal coal mix of 20/80% respectively. This represents a 200,000 to 300,000 ton increase over 2011 estimated sales or the Company is forecasting to nearly double production in 2012. Up to 85% of this estimated 2012 production has been contracted for with a variety of customers including the Alabama Coal Cooperative and various industrial users. Sales contracts are for a minimum term of 3 years and some thermal coal production has been contracted for through 2017.
Pricing obtained by the Company for its high quality metallurgical and thermal coals has been extremely favorable and all prices are at higher levels than in 2011. On average, the estimated realized sales price for 2012 will be $100/ton with average price increases as follows:
-- Metallurgical coal: up 11%
-- Thermal coal - power customer: up 4%
-- Thermal coal - industrial customers: up 17%
"We are extremely pleased with our recently completed sales contracts as they provide us with both downside protection and earnings visibility for 2012 and beyond," said Tim Bergen, CEO of CanAm. "In addition, most of our contracts include cost inflation clauses which provide for additional protection in the event our major production cost components were to escalate in the next couple of years."
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 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.
For Further Information:
Forward-Looking Information and Statements
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "could", "should", "can", "anticipate", "estimate", "expect", "believe", "will", "may", "project", "budget", "plan", "sustain", "continues", "strategy", "forecast", "potential", "projects", "grow", "take advantage", "well positioned" or similar words suggesting future outcomes. In particular, this press release contains forward-looking statements relating to future production at the RAC Mining LLC ("RAC") and Birmingham Coal & Coke ("BCC") mines. This forward looking information is based on management's estimates considering typical strip mining operations, equipment requirements and availability and typical permitting timelines.
In addition, forward-looking statements regarding the Company are based on certain key expectations and assumptions of the Company concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of services, the ability to obtain financing on acceptable terms, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Company consider these assumptions to be reasonable based on information currently available to them, these assumptions may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward-looking statements will not be achieved. Undue reliance should not be placed on forward-looking statements, as a number of important factors could cause the actual results to differ materially from the Company's beliefs, plans, objectives and expectations, including, among other things: general economic and market factors, including business competition, changes in government regulations or in tax laws; the early stage development of the Company and its projects; general political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. These factors should not be considered exhaustive. Many of these risk factors are beyond the Company's control and each contributes to the possibility that the forward-looking statements will not occur or that actual results, performance or achievements may differ materially from those expressed or implied by such statements. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these risks, uncertainties and factors are interdependent and management's future course of action depends upon the Company's assessment of all information available at that time.
Forward-looking statements in respect of the future production of the RAC and BCC mines may be considered a financial outlook. These forward-looking statements were approved by management of the Company on January 12, 2012. The purpose of this information is to provide an operational update on the company's activities and strategies and this information may not be appropriate for other purposes.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date of this press release and the Company does not undertake and is not obligated to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by 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.
Contacts:
CanAm Corporate Office
Tim Bergen
CEO
403.262.3797 or Toll Free: 1.877.262.5888
tbergen@canamcoal.com
Brisco Capital Partners
Scott Koyich
Partner
403.262.9888
scott@briscocapital.com
More COECF MessagesLatest Canam Coal Corp (QX), COECF MessagesCanAm Coal Corp. (TSX VENTURE:COE)(OTCQX:COECF) ("CanAm" or the
buddhabelly2 • Sat Jun 2, 2012 3:34 AM76199075
COECF is trading above its 10 week simple
buddhabelly2 • Wed May 23, 2012 9:26 PM75916688
COECF is trading above its 10 week simple
buddhabelly2 • Sun May 6, 2012 11:45 AM75257848
CanAm Coal Corp. (TSX VENTURE: COE) (OTCQX: COECF)
buddhabelly2 • Sun May 6, 2012 11:42 AM75257793
COECF closed above its 10 week moving average.
buddhabelly2 • Sat Apr 21, 2012 2:16 AM74671577
CanAm Coal Announces Completion of $153,000 Private Placement
buddhabelly2 • Fri Mar 23, 2012 5:02 PM73636952
COECF is trading above its 10 week moving
buddhabelly2 • Wed Mar 21, 2012 12:05 PM73521358
CanAm Coal is pleased to announce that it
buddhabelly2 • Wed Mar 14, 2012 12:14 AM73241302
CanAm Coal Corp. (TSX VENTURE: COE)(OTCQX: COECF) ("CanAm"
buddhabelly2 • Fri Mar 2, 2012 12:26 AM72779951
CanAm Coal Corp. (TSX VENTURE:COE) (OTCQX:COECF) ("CanAm" or
buddhabelly2 • Thu Jan 26, 2012 1:15 AM71331974
CanAm Coal Corp. (TSX VENTURE: COE) (OTCQX: COECF)
buddhabelly2 • Wed Jan 4, 2012 4:50 PM70523084
COECF closed below the trigger point for the
buddhabelly2 • Thu Dec 29, 2011 5:24 PM70374172
COECF's MACD is currently indicating a weak bullish
buddhabelly2 • Wed Dec 21, 2011 12:04 AM70147192
The Volume Rate of Change is currently spiking.
buddhabelly2 • Thu Dec 8, 2011 12:17 AM69717690
Wednesday, COECF closed below the trigger point for
buddhabelly2 • Thu Dec 8, 2011 12:16 AM69717671
COECF's MACD is currently indicating a weak bullish signal.
buddhabelly2 • Thu Dec 8, 2011 12:16 AM69717659
CanAm Reports Coal Sales of 94,000 Tons for
buddhabelly2 • Thu Dec 8, 2011 12:15 AM69717640
COECF is within its Bollinger Bands. This is
buddhabelly2 • Tue Dec 6, 2011 12:01 AM69630754
COECF- Investor section, under construction for a long
buddhabelly2 • Sat Dec 3, 2011 1:55 PM69568294
COECF- Simple Moving Average (SMA)
buddhabelly2 • Sat Dec 3, 2011 1:39 PM69568064Bookmark With :
NYSE, NASDAQ, AMEX, OTCBB, and PinkSheets stock quotes are delayed by at least 20 minutes.
© 2012 InvestorsHub.Com, Inc.
About
About Us
Terms of Service
Privacy Policy
Advertising Info
Investor Relations
Data Accreditations
Help
FAQ
Site Map
Q&A Forum
Contact Us
Educational
Educational Channel
Stock Market 101
Educational Videos
Investor Help Forum
More
New Stuff Blog
iHub on Facebook
iHub on Twitter
iHub iPhone/iPad App
iHub Android App
StockWiki
Auditorium
AdvertisementAdvertisement
