Signature Sponsor
Corsa Coal Announces Financial Results for Third Quarter 2023



November 1, 2023 - Corsa Coal Corp. (TSXV: CSO; OTCQX: CRSXF) (“Corsa” or the “Company”), a premium quality metallurgical coal producer, today reported financial results for the three and nine months ended September 30, 2023.  Corsa has filed its unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2023 and 2022 and related management’s discussion and analysis under its profile on

Unless otherwise noted, all dollar amounts in this news release are expressed in United States dollars and all ton amounts are short tons (2,000 pounds per ton).  Pricing and cost per ton information is expressed on a free-on-board (“FOB”), mine site basis, unless otherwise noted.

Third Quarter Highlights

Kevin M. Harrigan, President and Chief Executive Officer of Corsa, commented, “The third quarter of 2023 included our highest metallurgical coal shipment volume since the second quarter of 2020 and was a 13% increase over the same quarter of 2022. Operationally, our surface mines performed well in the quarter delivering improved production volumes and decreased costs, but the impact was muted in our overall results due to numerous challenges faced at our underground mines.  The underground mines suffered from adverse geological conditions, that began in early August, and also a number of breakdowns which reduced equipment availability thus resulting in lower than expected coal production and increased mining costs during the quarter.  Our average sales price reflected increased exposure to index prices and the impact of the lower price environment experienced in the first half of the third quarter.  As a result of a 12% increase in cash production cost per ton sold and lower realized prices, cash margins in the period were lower than anticipated.”

“Net income for the third quarter 2023 was primarily due to our previously announced settlement with the Pennsylvania Department of Transportation (“PennDOT”) for damages resulting from certain historical takings of leased land by PennDOT in 2010 and 2011.  The settlement has significantly enhanced the Company’s liquidity and the settlement proceeds, which were received in October 2023, were partially utilized to prepay the amounts due in 2023 and 2024 under the Company’s Main Street credit facility.  With this prepayment, the Company has one further principal payment due in December 2025 under this facility.”

“As we move through the fourth quarter, we are experiencing more favorable mining conditions at each of our underground mines.  We continue to focus on improving coal production and lowering costs in the fourth quarter and into 2024.  Our enhanced liquidity position allows for increased flexibility and optionality in our sales strategy as we balance our book between domestic and international customers with various pricing mechanisms.”

Financial and Operations SummaryCoal Pricing Trends and Outlook

Price levels opened the third quarter 2023 at $233.00/metric ton (“mt”) delivered-to-the-port (“FOBT”) for spot deliveries of Australian premium low volatile metallurgical coal and closed the quarter at $333.00/mt FOBT. The quarterly average price for the third quarter 2023 was $263.07/mt FOBT compared to $242.92/mt FOBT in the second quarter 2023 and traded in a range from a high of $333.00/mt FOBT to a low of $221.50/mt FOBT.

The price for spot deliveries of Australian premium low volatile metallurgical coal opened the fourth quarter 2023 at $333.00/mt FOBT and was trading at $343.50/mt FOBT in the second half of October, with a high price of $367.00/mt FOBT, a low price of $333.00/mt FOBT and averaged $355.11/mt FOBT during the month. Forward curve pricing for the balance of 2023 is trading at an average of $328.67/mt FOBT. Through the first three weeks of October, fourth quarter 2023 hot-rolled steel coil prices increased in the United States by 8.6% and decreased in Europe and China by 3.2% and 2.0%, respectively. Increased steel production with limited metallurgical coal supply response, as well as restocking, support increasing metallurgical coal prices that remain above historical levels.

See “Risk Factors” in the Company’s annual information form for the year ended December 31, 2022 for an additional discussion regarding certain factors that could impact coal pricing trends and outlook, as well as the Company’s ongoing operations.

Fourth Quarter 2023 Update and Calendar Year 2024 Sales Update

The Company’s fourth quarter 2023 sales volumes are expected to be lower than the third quarter of 2023 due to decreased production from our deep mines in the previous quarter and decreased availability of purchased coals. Metallurgical coal selling prices are expected to be higher than the third quarter of 2023 due to improved spot market pricing. Cash cost of sales are expected to be higher than the previous quarter due to higher cost inventories to start the quarter and seasonal impacts due to increased vacation and holidays in the fourth quarter although mining conditions are expected to be improved. Selling, general and administrative expenses are expected to be slightly higher than the third quarter 2023. The main priorities of the Company are increasing efficient production, reducing costs, and increasing our ability to participate in the metallurgical coal spot market. We are committed to improving the Company’s balance sheet with minimized downside financial risk but are also focused on organic growth opportunities to complement our existing operations. The Company’s capital allocation and deployment strategy will be aligned with these priorities and the Company’s financial position.

For calendar year 2024, Corsa has to date committed sales of nearly 700,000 tons at an FOB mine price of nearly $145/ton. The price per ton is the equivalent of $257/mt FOBT for Australian premium low volatile metallurgical coal.

To see the full results with financial figures included, click here