CanAm Announces Record Q3 Financial Results and Triples Q3 EBITDA
Highlights for the quarter include:
-- Coal sales at the Powhatan mine of 33,332 tons, an all-time high;
-- Coal sales at the BCC mines of 124,568 tons, the highest since Q1 of
2008;
-- EBITDA of $3.3 million, up 90% over last year and triple Q2;
-- Cash flow from operations of $2.9 million, up 244% over last year and
five-times Q2;
-- Acquired an additional 30% interest in BCC for $11.5 million, financed
by debentures;
-- Raised $13.1 million through a 4 year, unsecured debenture through a
private placement;
-- Obtained the Old Union 2 mine permit covering 1,108 minable acres with
an estimated 1.3 million tons of recoverable coal per the NI 43-101
report dated May 2011. Production commenced in Q4;
-- Acquired 133 acres of surface mining rights, on top of the 574 acres
acquired in the period April to June 2012;
-- Added Steve Somerville, former President of BMO Capital, to the Board of
Directors.
Commenting on the quarter, Company President Jos De Smedt noted "This was a breakthrough quarter for CanAm Coal. Not only did we close an additional 30% acquisition of BCC, we made significant progress in improving operating efficiency at our mines resulting in record production, EBITDA and operating cash flow. The hard work of our team paid off and the operational improvements achieved at our mines in the quarter, coupled with improved mining conditions, resulted in higher production levels and a significantly lower cost structure. We also received our Old Union 2 permit in August and our Knight Mine permit subsequent to quarter end. While there is more work ahead, we are pleased with our performance and look forward to further improvement in the fourth quarter and into 2013".
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