|By PR Newswire||
|November 30, 2012 12:19 AM EST||
TORONTO, Nov. 29, 2012 /PRNewswire/ - Pacific Coal Resources Ltd. (TSXV: PAK) has filed today its unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2012, together with its management's discussion and analysis ("MD&A") for the corresponding period. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted. These documents will be posted on the Company's website at www.pacificcoal.ca and under the Company's profile at www.sedar.com.
Hernan Martinez, Executive Chairman, commented: '"The second half of 2012 has thus far seen the Company re-focus on its core competencies by selling our BACF investment and signing an MOU for the sale of our Barranquilla port interest. The sale of the BACF investment, which closed in October, provided us with $5 million in cash, which will be used in operating and selling activities at our producing coal and coke sites. Coal operations continued through the third quarter of 2012, with 341,248 tonnes of thermal coal produced at our La Caypa and Cerro Largo sites. We expect production improvements and cost reductions at La Caypa as we replace the current operator in the fourth quarter. The Company's cost cutting program resulted in a 20% reduction in G&A expenses in the third quarter compared to the second quarter of 2012, with an expected quarterly run rate as of the fourth quarter of 2012 that is approximately 30% below the average in 2011. Management believes the decisions made and actions taken during the quarter and through the remainder of 2012 are positioning the Company towards significantly improved operations and liquidity."
Financial and Operating Summary
A summary of the financial and operating results for the three and nine months ended September 30, 2012 and 2011 is as follows:
|Third Quarter||Nine Months Ended September 30|
|(000's except per share and operating data)||2012||2011||2012||2011|
|Tonnes of coal produced||341,248||400,909||993,325||1,070,209|
|Average stripping ratio - operations||11.38||7.61||10.60||7.38|
|Tonnes of coal sold(1)||366,678||460,189||965,948||1,217,389|
|Average realized price per tonne sold||$ 92.53||$ 101.01||$ 97.67||$ 97.65|
|Operating margin per tonne sold(2)||(5.76)||4.12||(13.95)||10.18|
|Revenues||$ 35,033||$ 46,485||$ 98,654||$ 118,877|
|Net (loss) earnings attributed to shareholders(4)||(15,201)||(1,126)||(85,827)||(46,380)|
|Basic and fully diluted (loss) earnings per share||(0.05)||0.00||(0.27)||(0.16)|
|Total debt (5)||39,701||32,012||39,701||32,012|
|(1)||Includes coal purchased from third parties for sale.|
|(2)||See additional financial measures in MD&A.|
|(3)||"Gross margin" represents total revenues, net of operating costs, transportation and port services costs, selling costs, depreciation, depletion and amortization, and impairment charges related to inventory.|
|(4)||2012 includes a non-cash impairment writedown of $45.5 million; including $8.0 million in the third quarter triggered by the planned sale of the Barranquilla port concession and $35.6 million relating to impairment of the Cerro Largo property in the second quarter.|
Includes bank indebtedness, long-term debt (including current portion),
and obligations under finance leases (including current portion).
Third Quarter Highlights
- The Company produced 341,248 tonnes of coal during the third quarter of 2012, representing a 2% increase over the 335,008 tonnes produced in the second quarter of 2012. The Company's stripping ratio for the third quarter was 11.38:1.
- Production at La Caypa was 251,525 tonnes representing a decrease of approximately 6% from the second quarter of 2012 and 72% of its planned production. Production was significantly impacted by issues with the mine operator and destabilization of the mine footwall in August 2012. Production at the Cerro Largo mine was 89,723 tonnes, representing an increase of approximately 33% from the second quarter of 2012.
- Total revenues for the third quarter of 2012 were $35.0 million, consistent with $35.2 million in the second quarter of 2012, on the strength of coal sales of 366,678 tonnes, at an average realized price of $92.53 per tonne.
- During the third quarter of 2012, cost saving initiatives contributed to a 20% decrease in G&A expenses to $3.6 million as compared to $4.4 million in the second quarter of 2012, in addition to the 12% and 9% decreases already realized in the first and second quarters of 2012 respectively. G&A in the third quarter included $0.6 million of one-time severance costs associated with staff reductions and $0.4 million of asphaltite research costs. The Company anticipates a quarterly G&A run rate of approximately $2.75 million in the fourth quarter of 2012.
- In October 2012 the Company sold its Blue Advanced Colloidal Fuels ("BACF") investment for cash proceeds of $5.0 million and in November 2012 signed an MOU in respect of its interest in Sociedad Portuaria Terminal de las Flores S.A. ("SPTF"), which holds the Barranquilla port concession. The cash generated by these transactions will be used in the Company's operating and selling activities at its producing coal and coke sites. Sale of the BACF investment contributed to the $3.0 million cash balance at November 29, 2012.
- The Company continues to work with SRK Consulting (UK) Ltd, to finalize the Company's 43-101 updated technical reports. The Cerro Largo report is expected to be released in the fourth quarter of 2012. The La Caypa report is expected in the second quarter of 2013.
- The net loss of $15.2 million ($0.05 per share) in the third quarter of 2012 includes a $8.0 million ($0.02 per share) non-cash impairment writedown of SPTF triggered by its planned sale.
Q3 2012 - La Caypa
Production of Coal
(1) "BCM" is Bank Cubic Metres
During the third quarter of 2012, the Company produced 251,525 tonnes at La Caypa, down approximately 6% from the second quarter and 72% of planned production. Production at La Caypa during the quarter was negatively impacted by the mine operator's general lack of equipment for loading, hauling, and support at the mine and was compounded by destabilization of the mine footwall in the month of August. Issues with the mine operator resulted in a breach of their contractual obligations, which led the Company to begin the process of replacing them during the fourth quarter of 2012.
Operational stripping ratio at La Caypa, up slightly to 7.82 in the third quarter of 2012 reflected the impact of the mine sidewall development during the quarter. Total stripping ratios at La Caypa include costs incurred in moving waste volumes from the south pit.
Q3 2012 - Cerro Largo
Production of Coal
(1) "BCM" is Bank Cubic Metres
The Company's production at Cerro Largo of 89,723 tonnes in the third quarter of 2012 was an increase of approximately 33% from second quarter of 2012. Consistent with the second quarter, the Company continued addressing mud concentration concerns at the bottom of the open pit, although efforts to correct the issue were noted during the quarter with the increase in production and improvement of the stripping ratio to 21.38:1 from 25.53:1 in the second quarter of 2012.
Q3 2012 - Jam
|Q3 2012||Q3 2011|
The Company's Jam operation commenced production in the fourth quarter of 2011. In the third quarter of 2012, given current coke market trends the Company decided to maintain production at minimum levels. The Company's Jam activity has focused on repairs to coking infrastructure, with anticipated significant production in the first quarter of 2013.
Revised production guidance
As a result of reduced production in the third quarter of 2012 and the expected change in operator, the Company's 2012 production target at La Caypa has been revised to 970,000 tonnes. At Cerro Largo, in light of the third quarter results and the ongoing work required to clear the mud concentration in the pit, the Company has revised its 2012 production target for Cerro Largo to 400,000 tonnes.
The Company plans to provide a corporate update and an update on its strategic plan in a subsequent press release to be issued next week.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining company engaged in the acquisition, exploration and production of coal and coal-related assets from properties located in Colombia. The Company's common shares and warrants are listed on the TSX Venture Exchange and trade under the symbol "PAK" and "PAK.WT" respectively.
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.
SOURCE Pacific Coal Resources Ltd.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Jul. 28, 2015 02:00 PM EDT Reads: 1,144
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
Jul. 28, 2015 01:00 PM EDT Reads: 1,936
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to tran...
Jul. 28, 2015 01:00 PM EDT Reads: 305
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
Jul. 28, 2015 01:00 PM EDT Reads: 1,033
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Jul. 28, 2015 12:00 PM EDT
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 28, 2015 11:45 AM EDT Reads: 382
SYS-CON Events announced today that Agema Systems will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Agema Systems is the leading provider of critical white-box rack solutions to data centers through the major integrators and value added distribution channels.
Jul. 28, 2015 11:25 AM EDT
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 28, 2015 11:15 AM EDT Reads: 159
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 28, 2015 11:15 AM EDT Reads: 313
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share w...
Jul. 28, 2015 11:00 AM EDT Reads: 2,023
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 28, 2015 09:45 AM EDT Reads: 266
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 28, 2015 09:30 AM EDT Reads: 336
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 28, 2015 09:15 AM EDT Reads: 1,080
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 28, 2015 09:00 AM EDT Reads: 189
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 28, 2015 08:30 AM EDT Reads: 304