Canam Coal Corp (fka COECF)

[buddhabelly2]

CanAm Q4 Coal Sales 95% ahead of Prior Year
Calgary, AB – February 11, 2013 – CanAm Coal Corp. (TSXV: COE), (OTCQX: COECF)
(“CanAm” or the “Company”) is pleased to report coal production and sales for the year ended
December 31, 2012. Consolidated Q4 2012 coal sales were 154,000 tons, a 95% increase over
Q4 in the prior year. For the year ended December 31, 2012, consolidated coal sales were
455,000 tons, a 73% increase over the prior year. Q4 coal production was a record 174,000 tons,
including 24,100 tons of metallurgical coal.
Three Month Period Year
Ended Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011* 2012 2011
Metallurgical coal 21,168 14,925 68,182 56,950
Thermal coal 132,590 63,848 387,205 206,446
Total 153,758 78,773 455,387 263,396
Note: CanAm holds 80% ownership in Birmingham Coal & Coke (BCC) following its acquisition of an additional 30% interest, effective July 1, 2012.
As at that date, CanAm began consolidating the financial results of BCC in accordance with generally accepted accounting principles and, accordingly
the above information is presented on a consolidated basis and includes 100% of BCC’s sales and production volumes.
* Restated to reflect a comparable October to December 2011 quarter. Last year’s reported quarter only comprised two months (November & December
2011).
The significant increase in both sales and production is attributable to a combination of a) an
increase in the Company’s ownership in BCC, which was effective July 1, 2012, b) improved
production performance at our existing mines c) production from our new Old Union 2 mine,
which commenced operations at its first pit in late October, and d) improved strip ratios. Q4
production exceeded sales by approximately 20,000 tons. This was mainly attributable to reduced
sales in the latter part of December as a number of our customers reduced hours or closed
operations during the Christmas period, which impacted December sales. These customers
accelerated their shipment schedules in January 2013 to make up for the shortfall. Sales of
metallurgical coal were up 42% from the prior year and were 37% higher than in Q3 of 2012.
During Q4, the Company experienced strong production performance at its Powhatan, Bear Creek
and Old Union mines. Management and operational changes instituted in the first half of the year
were a key factor explaining this improvement, particularly at Powhatan. As disclosed in our Q3
MD&A, the Company took the decision in Q4 to temporarily suspend operations at the Gooden
Creek mine and to move forward the start dates of its second and third pits at the Old Union 2
mine from mid-2013 to Q1 2013. The Company is pleased to report that both pits entered
production in late January. Mining at Old Union 1 is substantially complete and production will
cease by the end of February 2013.
1201 - 5th Street SW
Calgary, AB
T2R 0Y6
As previously reported, the Company received final permitting from the Alabama Surface Mining
Commission for its Knight and Posey Mill 2 mines. The Knight mine, which replaces the Bear
Creek mine (expected to be mined out in the first half of 2013) commenced production in late
January 2013. Mine development is underway at the Posey Mill 2 mine with first production
planned before the end of Q1 2013. Looking forward into 2013, the Company is expecting
continued growth in production and sales as it brings on full production from its newly permitted
mines.
Company President and CEO, Jos De Smedt commented: “CanAm achieved significant
production and sales growth in Q3 and Q4 and full 2012 was another record year for the
Company. Since 2010, which was the first year of production for CanAm, we have seen our sales
increase almost ten-fold, from 48,000 tons in 2010 to 256,000 tons in 2011 to a record 455,000
tons in 2012. With our new mines fully permitted and initial mine development nearing
completion, further significant growth is expected in 2013. In addition, the Company’s $11
million investment in new equipment in 2012 positions CanAm to efficiently optimize production
and sales from these new mines. With these building blocks in place, we look forward to strong
growth in 2013.”
The Company is expected to release its audited full year financial results in April 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 and resource-related
technologies. 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.
For Further Information:
CanAm Corporate Office:
Jos De Smedt, President & CEO
Tel: [phone]
Toll Free: 1.877.262.5888
Email: [e-mail]
1201 - 5th Street SW
Calgary, AB
T2R 0Y6
Brisco Capital Partners:
Scott Koyich, Partner
Tel: [phone]
Email: [e-mail]
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 www.sedar.com. The Company does not
undertake to update any forward-looking information except in accordance with applicable securities laws