June 30, 2011, TORONTO, (Coal Geology)- Pacific Coal Resources Ltd. (TSXV: PAK) announces the release of its unaudited interim consolidated financial results for the first quarter and three months endedMarch 31, 2011, together with its Management’s Discussion and Analysis. These documents will be available on the Company’s website at www.pacificcoal.ca and at www.sedar.com.
Luis Carvajales, the Company’s Chief Executive Officer, commented, “We are pleased with the first quarter results and we look forward to the impact that production from Cerro Largo will have on earnings in the second quarter and for the remainder of the year. We are well on course to meet our 2011 year-end production target of 1.8 million tonnes.”
For the first quarter ended March 31, 2011, the Company reported revenues of $36.9 million, which were entirely due to the production and sales at the Company’s La Caypa mine and trading of Cerro Largo pre-purchased tonnes. During the first quarter of 2011, the Company sold 380,868 tons of coal at a weighted average price of US$97.30 per tonne. The Company produced 361,722 tonnes of coal in the first quarter of 2011 with a weighted average cash cost per tonne of approximately US$50.70.
|First Quarter 2011|
|Sales price per tonne (US$)||97.30|
|Cash costs per tonne (US$)||50.70|
|(in US$ millions)|
|Net income (loss)||(38.7)|
|Capital Expenditures as at June 29, 2011|
Capital expenditures for 2011 were forecast to total $154.2 million, including $5.2 million for exploration,$15.0 million for development, $105 million for acquisitions, $14.0 million on infrastructure, and $15.0 million on equipment. The balance of the capital budget for the remainder of 2011 totals $48.2 million.
For the remainder of 2011, Pacific Coal is on track to sell 1.5 million tonnes from La Caypa and La Divisa (“Cerro Largo”) combined at a weighted average sales price of US$100. Weighted average cash production costs are expected to be approximately $57 per tonne for the balance of 2011, due to an increase in royalty price for production at La Caypa in the third quarter. The current annualized rate of production at Cerro Largo is 600,000 tonnes.
Revised mine plans implemented at both La Caypa and Cerro Largo will continue to improve efficiency, productivity and cash costs, while maximizing quality specifications that will provide additional market opportunities when available.
Pacific Coal continues to enhance shareholder value through the exploration and development of its producing La Caypa and Cerro Largo mines. With the addition of the Cerro Largo operations in the second quarter of 2011, and the ongoing exploration program at La Tigra with the objective to commence production in the third quarter of 2012, the Company expects to produce 2.6 million to 2.9 million tonnes in 2012.
Pacific Coal believes with its strong asset base and relationships within the mining industry in Colombia, it is well-positioned to benefit from the resurgence of interest in the coal sector in Colombia.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining company focused on coal, coking coal, asphalt and asphaltite exploration, development and production from prospective producing, development-stage and exploration-stage properties in Colombia. The Company has acquired or entered into agreements to acquire various interests in several operating coal mines and projects, representing a substantive coal and asphaltite exploration and production area throughout Colombia. Pacific Coal is committed to implementing its exploration and development strategy with a comprehensive environment, safety and community program, meeting international standards of best practice.
Forward Looking Information:
This news release contains “forward-looking information”, which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pacific Coal to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Pacific Coal disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither 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 news release.
For further information:
SOURCE Pacific Coal Resources Ltd.
Web Site: http://www.pacificcoal.ca