FRIEDENS, Pa., March 12, 2024 /CNW/ - Corsa Coal Corp.
(TSXV: CSO) (OTCQX: CRSXF) ("Corsa" or the "Company"), a premium
quality metallurgical coal producer, today reported financial
results for the three months and year ended December 31,
2023. Corsa has filed its audited consolidated financial
statements for the years ended December 31, 2023 and 2022,
related management's discussion and analysis and its annual
information form under its profile on www.sedarplus.ca.
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.
Fourth Quarter and Full Year 2023 Highlights
- Key financial results and operational statistics are shown
below:
|
|
For the three months
ended
|
|
For the years
ended
|
|
|
December
31,
|
|
December
31,
|
|
(in millions
except per share, per ton and sales tons)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net and comprehensive
(loss) income
|
|
$
(5.8)
|
|
$
(16.3)
|
|
$
23.6
|
|
$
(27.7)
|
|
Diluted (loss) earnings
per share
|
|
$
(0.06)
|
|
$
(0.16)
|
|
$
0.22
|
|
$
(0.27)
|
|
Cash provided by (used
in) operating activities
|
|
$
17.6
|
|
$
(0.2)
|
|
$
29.3
|
|
$
7.8
|
|
Total
revenue
|
|
$
42.8
|
|
$
38.9
|
|
$
197.1
|
|
$
165.9
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
0.5
|
|
$
(2.2)
|
|
$
28.1
|
|
$
7.1
|
|
EBITDA(1)
|
|
$
(2.9)
|
|
$
(12.8)
|
|
$
42.4
|
|
$
(12.9)
|
|
|
|
|
|
|
|
|
|
|
Average realized price
per ton of metallurgical coal sold(1)
|
$ 169.94
|
|
$ 152.48
|
|
$ 170.32
|
|
$ 158.03
|
|
Cash production cost
per ton sold(1)
|
|
$ 149.75
|
|
$ 143.51
|
|
$ 129.19
|
|
$ 134.07
|
|
|
|
|
|
|
|
|
|
|
Company produced
metallurgical coal sales tons
|
|
211,359
|
|
192,442
|
|
990,314
|
|
828,242
|
|
Purchased metallurgical
coal sales tons
|
|
23,513
|
|
28,445
|
|
91,265
|
|
131,722
|
|
Total metallurgical
coal sales tons
|
|
234,872
|
|
220,887
|
|
1,081,579
|
|
959,964
|
|
|
|
|
|
|
|
|
|
- Corsa's average realized price for the fourth quarter 2023 is
the approximate equivalent of between $288 to $300 per
metric ton on an FOB vessel basis(2). For the
fourth quarter 2023, Corsa's sales mix included 62% of sales to
domestic customers and 38% of sales to international
customers.
|
(1)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
|
(2)
|
Similar to most U.S.
metallurgical coal producers, Corsa reports sales and costs per ton
on an FOB mine site basis and denominated in short tons. Many
international metallurgical coal producers report prices and costs
on a delivered-to-the-port basis (or "FOB vessel basis"), thereby
including freight costs between the mine and the port.
Additionally, Corsa reports sales and costs per short ton, which is
approximately 10% lower than a metric ton. For the purposes
of this figure, we have used an illustrative freight rate of
$45-$55 per short ton. Historically, freight rates are
attached to the coal market indices and will adjust as market
prices rise and fall. Further adjustments include a vessel
freight differential and quality adjustments necessary to evaluate
Corsa's price compared to Australian premium low volatile
metallurgical coal. As a note, most published indices for
metallurgical coal report prices on a delivered-to-the-port basis
denominated in metric tons.
|
Kevin M. Harrigan, President and
Chief Executive Officer of Corsa, commented, "Corsa's 2023 full
year net income of $23.6 million was
the highest since 2017 and our 2023 adjusted EBITDA of $28.1 million was the highest since 2019.
Although we were disappointed by our coal production and cash
production costs in the fourth quarter of 2023, our full year cash
production costs per ton sold decreased from 2022 levels and we are
committed to further reductions in 2024."
"The fourth quarter of 2023 proved to be another challenging
quarter operationally at two of the Company's underground
mines. As a result of adverse geological conditions at the
Horning mine, an unplanned section move was made in order to
relocate mining activities to an area of the mine where conditions
are more conducive to higher coal production. The section
move led to short-term production inefficiencies and also changed
the access point to the eastern part of the reserves. The
Acosta mine's main development
section encountered low coal heights. Out of seam rock had to
be mined in order to create adequate height for access which
required additional time and negatively impacted the production of
coal while slowing the advance of the section. Equipment
availability declined due to the wear and tear that mining of the
rock had on the machinery. The above noted factors led to an
increase in both production and maintenance costs. Based on
current mining plans, the Company recognizes that short-term
inefficiencies related to geologic conditions and development
activities are expected to occur for a short period of time in
2024, as mining conditions have improved in early March. Our
operational and engineering teams are focused on advancing beyond
these challenges as safely and quickly as possible to areas where
we expect conditions will result in improved operational
performance and lower costs."
"The Company's surface mining operations achieved their expected
results in the fourth quarter and overburden removal is on pace for
the return of the highwall mining machine in the first quarter of
2024. The combination of traditional surface and highwall
mining should increase our production and lower costs. I am
pleased that we are now in a mining sequence at the surface
operations that should achieve more repeatable results."
"The Company's focus is on productivity improvements and cost
control in order to manage metallurgical coal margins in the face
of lower expected realized pricing in the 2024 period, as the
average price for committed and priced tons to date for 2024 are
approximately 13% lower than 2023 realized prices. We
continue our efforts to attract, train and retain miners for our
underground operations knowing that our productivity and
profitability are tied to having fully staffed and experienced
teams throughout our operations."
Financial and Operations Summary
|
For the three months
ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
2023
|
|
2022
|
|
(Decrease)
|
|
2023
|
|
2022
|
|
(Decrease)
|
|
Revenues
|
$
42,824
|
|
$
38,854
|
|
$ 3,970
|
|
$ 197,136
|
|
$ 165,891
|
|
$
31,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
$
32,574
|
|
$
51,442
|
|
$
(18,868)
|
|
$ 164,971
|
|
$ 172,499
|
|
$
(7,528)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
$ 3,273
|
|
$ 3,301
|
|
$
(28)
|
|
$
10,157
|
|
$
10,204
|
|
$
(47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
(loss) income
|
$
(5,797)
|
|
$
(16,302)
|
|
$
10,505
|
|
$
23,553
|
|
$
(27,729)
|
|
$
51,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used
in) operating activities
|
$
17,574
|
|
$ (174)
|
|
$
17,748
|
|
$
29,301
|
|
$ 7,793
|
|
$
21,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
(2,945)
|
|
$
(12,752)
|
|
$ 9,807
|
|
$
42,439
|
|
$
(12,923)
|
|
$
55,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$
486
|
|
$
(2,185)
|
|
$ 2,671
|
|
$
28,098
|
|
$ 7,070
|
|
$
21,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
235
|
|
221
|
|
14
|
|
1,082
|
|
960
|
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
|
(2)
|
Cost of sales consists
of the following:
|
|
For the three months
ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Mining and processing
costs
|
$
30,186
|
|
$
26,650
|
|
$
119,937
|
|
$
106,385
|
|
Purchased coal
costs
|
3,981
|
|
6,639
|
|
16,781
|
|
24,570
|
|
Royalty
expense
|
2,012
|
|
1,741
|
|
9,525
|
|
6,623
|
|
Amortization
expense
|
3,131
|
|
2,635
|
|
13,265
|
|
11,833
|
|
Transportation costs
from preparation plant to customer
|
1,942
|
|
1,982
|
|
7,581
|
|
7,296
|
|
Idle mine
expense
|
1,116
|
|
316
|
|
5,209
|
|
1,427
|
|
Tolling
costs
|
-
|
|
272
|
|
-
|
|
1,503
|
|
Limestone
costs
|
121
|
|
134
|
|
822
|
|
620
|
|
Change in estimate of
reclamation and water treatment provision
|
(11,500)
|
|
10,837
|
|
(11,500)
|
|
10,837
|
|
Write-off of advance
royalties and other assets
|
1,315
|
|
-
|
|
1,315
|
|
-
|
|
Other costs
|
270
|
|
236
|
|
2,036
|
|
1,405
|
|
Total cost of
sales
|
$
32,574
|
|
$
51,442
|
|
$
164,971
|
|
$
172,499
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the years
ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
Variance
|
|
2023
|
|
2022
|
|
Variance
|
|
Realized price per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
169.94
|
|
$ 152.48
|
|
$ 17.46
|
|
$
170.32
|
|
$ 158.03
|
|
$ 12.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
149.75
|
|
$ 143.51
|
|
$ (6.24)
|
|
$
129.19
|
|
$ 134.07
|
|
$ 4.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
150.50
|
|
$ 144.98
|
|
$ (5.52)
|
|
$
130.92
|
|
$ 138.44
|
|
$ 7.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
19.44
|
|
$ 7.50
|
|
$ 11.94
|
|
$
39.40
|
|
$
19.59
|
|
$ 19.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
(000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
(2,206)
|
|
$(11,849)
|
|
$ 9,643
|
|
$
45,270
|
|
$
(8,676)
|
|
$
53,946
|
|
Corporate
|
(739)
|
|
(903)
|
|
164
|
|
(2,831)
|
|
(4,247)
|
|
1,416
|
|
Total
|
$
(2,945)
|
|
$(12,752)
|
|
$ 9,807
|
|
$
42,439
|
|
$(12,923)
|
|
$
55,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP
|
$
1,139
|
|
$
(1,487)
|
|
$ 2,626
|
|
$
30,329
|
|
$
9,404
|
|
$
20,925
|
|
Corporate
|
(653)
|
|
(698)
|
|
45
|
|
(2,231)
|
|
(2,334)
|
|
103
|
|
Total
|
$ 486
|
|
$
(2,185)
|
|
$ 2,671
|
|
$
28,098
|
|
$
7,070
|
|
$
21,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
|
(2)
|
Cash production cost
per ton sold excludes purchased coal. This is a non-GAAP financial
measure. See "Non-GAAP Financial Measures" below.
|
|
(3)
|
Cash cost per ton sold
includes purchased coal. This is a non-GAAP financial
measure. See "Non-GAAP Financial Measures" below.
|
Coal Pricing Trends and Outlook
Price levels opened the fourth quarter 2023 at $333.00/metric ton ("mt") delivered-to-the-port
("FOBT") for spot deliveries of Australian premium low volatile
metallurgical coal and closed the quarter at $342.50/mt FOBT. The quarterly average price for
the fourth quarter 2023 was $333.26/mt FOBT compared to $263.07/mt FOBT in the third quarter 2023 and
traded in a range from a high of $367.00/mt FOBT to a low of $297.50/mt FOBT.
The price for spot deliveries of Australian premium low volatile
metallurgical coal opened the first quarter 2024 at $323.75/mt FOBT and was trading at $313.75/mt FOBT in late February, with a high
price of $338.10/mt FOBT, a low price
of $312.00/mt FOBT and averaged
$324.43/mt FOBT since the beginning
of the year. Forward curve pricing for the balance of 2024 is
trading at an average of $295.82/mt
FOBT, with the first quarter of 2024 at a high of $313.00/mt FOBT and the fourth quarter of 2024 at
a low of $290.00/mt FOBT. Through
late February, first quarter 2024, hot-rolled steel coil prices
decreased in the United States by
21.8% and China by 1.7% and
increased in Europe 3.6%. The
forward curve for 2025 indicates full year pricing at $286.00/mt FOBT. Average metallurgical coal
prices remain above historical levels supported by a limited
supply-side response, supply chain logistics constraints, and
continued worldwide growth in steel production and demand for
finished steel products.
See "Risk Factors" in the Company's annual information form for
the year ended December 31, 2023 for
an additional discussion regarding certain factors that could
impact coal pricing trends and outlook, as well as the Company's
ongoing operations.
First Quarter 2024 Update
The Company's first quarter 2024 sales volumes are expected to
be higher than the fourth quarter of 2023, but lower than
historical averages. Compared to the fourth quarter of 2023,
the first quarter of 2024 is forecasted to have higher production
from our deep mines, lower production from our surface mines and
decreased purchases of third-party coals. Metallurgical coal
selling prices are expected to be lower than the fourth quarter of
2023 due to contractual price decreases on domestic orders
partially offset by higher realizations on export sales. Cash
cost of sales is expected to be lower than in the previous quarter
due to increased operating rates and improved mining conditions at
our deep mines and decreased purchased coal costs. Selling,
general and administrative expenses are expected to be lower than
the fourth quarter of 2023 and comparable to the average of the
first three quarters of 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
over 940,000 tons. Committed and priced sales are over
775,000 tons at an FOB mine price of nearly $148/ton. The price per ton is the equivalent of
$264/mt FOBT for Australian premium
low volatile metallurgical coal.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's audited consolidated financial statements for
the years ended December 31, 2023 and 2022 and related
management's discussion and analysis, filed under Corsa's profile
on www.sedarplus.ca, for details of the financial performance of
Corsa and the matters referred to in this news release.
Non-GAAP Financial Measures
Corsa uses certain non-GAAP financial measures to measure its
performance internally and to assist in business decision-making as
well as providing key performance information to senior
management. These measures are not recognized under
International Financial Reporting Standards ("GAAP"). Corsa
believes that, in addition to the conventional measures prepared in
accordance with GAAP, certain investors and other stakeholders also
use these non-GAAP financial measures to evaluate Corsa's operating
and financial performance; however, these non-GAAP financial
measures do not have any standardized meaning and therefore may not
be comparable to similar measures presented by other issuers.
Accordingly, these non-GAAP financial measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP.
Management uses the following non-GAAP financial measures:
- EBITDA - earnings before deductions for interest, taxes,
depreciation and amortization;
- Adjusted EBITDA - EBITDA adjusted for change in estimate
of reclamation and water treatment provision for non-operating
properties, impairment and write-off of mineral properties and
advance royalties, gain (loss) on sale of assets and other costs,
stock-based compensation, non-cash finance expenses and other
non-cash adjustments. Adjusted EBITDA is used as a supplemental
financial measure by management and by external users of our
financial statements to assess our performance as compared to the
performance of other companies in the coal industry, without regard
to financing methods, historical cost basis or capital structure;
the ability of our assets to generate sufficient cash flow; and our
ability to incur and service debt and fund capital
expenditures;
- Realized price per ton sold - revenue from coal sales
less transportation costs from the mine site to the loading
terminal divided by tons of coal sold. Management evaluates our
operations based on the volume of coal we can safely produce or
purchase and sell in compliance with regulatory standards, and the
prices we receive for our coal. Our sales volume and sales prices
are largely dependent upon the terms of our contracts, for which
prices generally are set based on an index. We evaluate the price
we receive for our coal on an average realized price on an FOB mine
site per short ton basis;
- Cash production cost per ton sold - cash production
costs of sales excluding purchased coal costs, all included within
cost of sales, divided by tons of produced coal sold. Cash
production cost is based on cost of sales and includes items such
as manpower, royalties, fuel, and other similar production related
items, pursuant to IFRS, but relate directly to the costs incurred
to produce coal and sell it on an FOB mine site basis. Cash
production cost per ton sold is used as a supplemental financial
measure by management and by external users to assess our operating
performance as compared to the operating performance of other
companies in the coal industry. Purchased coal is excluded as the
purchased coal costs are based on market prices of coal purchased
and not the cost to produce the coal;
- Cash cost purchased coal per ton sold - purchased coal
costs divided by tons of purchased coal sold. Management uses this
measure to assess coal purchases against the market price at which
this coal will be sold;
- Cash cost per ton sold - cash production costs of sales,
included within cost of sales, divided by total tons sold.
Management uses cash cost per ton sold to assess our overall
financial performance on a per ton basis to include the Company's
production and purchased coal cost in total; and
- Cash margin per ton sold - calculated difference between
realized price per ton sold and cash cost per ton sold. Cash margin
per ton sold is used by management and external users to assess the
operating performance as compared to the operating performance of
other coal companies in the coal industry.
For a reconciliation of non-GAAP financial measures to GAAP
measures, see the tabular presentation at the end of this news
release.
Qualified Person
All scientific and technical information contained in this news
release has been reviewed and approved by David E. Yingling, Professional Engineer and the
Company's mining engineer, who is a qualified person within the
meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
Caution
Potential developments and market conditions discussed in this
news release are considered to be forward looking
information. Readers are cautioned that actual results may
vary from this forward-looking information. See
"Forward-Looking Statements" below.
Information about Corsa
Corsa is a coal mining company focused on the production and
sales of metallurgical coal, an essential ingredient in the
production of steel. Our core business is producing and selling
metallurgical coal to domestic and international steel and coke
producers in the Atlantic and Pacific basin markets.
Forward-Looking Statements
Certain information set forth in this press release contains
"forward-looking statements" and "forward-looking information"
(collectively, "forward-looking statements") under applicable
securities laws. Except for statements of historical fact, certain
information contained herein including, but not limited to,
statements relating to improved profitability, adjusted EBITDA and
financial results, the ability to manage the Company going forward,
the expected price volatility of the metallurgical coal market, the
future demand for steel and its production, and the availability of
its supply, changes to sales margins and expected profitability,
the expected sales volumes and cash costs of sales of the Company
in the fourth quarter of 2023 constitute forward-looking statements
which include management's assessment of future plans and
operations and are based on current internal expectations,
assumptions and beliefs, which may prove to be incorrect. Some of
the forward-looking statements may be identified by words such as
"will", "estimates", "expects" "anticipates", "believes",
"projects", "plans", "capacity", "hope", "forecast", "anticipate",
"could" and similar expressions. These statements are not
guarantees of future performance and undue reliance should not be
placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties. These risks and
uncertainties include, but are not limited to: changes in market
conditions, governmental or regulatory developments, the operating
status and capabilities of our customers and competitors; risks
that Corsa's preparation plants will not operate at production
capacity during the relevant period; various events which could
disrupt operations and/or the transportation of coal products,
including the geological conditions at the Company's mines, global
conflicts, including the conflict in Ukraine, labor stoppages, the outbreak of
disease and severe weather conditions; and management's ability to
anticipate and manage the foregoing factors and risks. 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. The reader is
cautioned not to place undue reliance on forward-looking
statements. Corsa does not undertake to update any of the
forward-looking statements contained in this press release unless
required by law. The statements as to Corsa's capacity to produce
coal are no assurance that it will achieve these levels of
production or that it will be able to achieve these sales
levels.
The TSX Venture Exchange has in no way passed on the
merits of this news release. 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.
Non-GAAP Financial Measures Reconciliation
EBITDA and Adjusted EBITDA for the three months ended
December 31, 2023 and 2022
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
(loss) income
|
$
(5,984)
|
|
$ 187
|
|
$
(5,797)
|
|
$
(14,928)
|
|
$
(1,374)
|
|
$
(16,302)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
3,131
|
|
-
|
|
3,131
|
|
2,635
|
|
-
|
|
2,635
|
|
Interest
expense
|
647
|
|
422
|
|
1,069
|
|
444
|
|
471
|
|
915
|
|
Income tax
expense
|
-
|
|
(1,348)
|
|
(1,348)
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
(2,206)
|
|
(739)
|
|
(2,945)
|
|
(11,849)
|
|
(903)
|
|
(12,752)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in estimate of
reclamation and water treatment provision (a)
|
(11,500)
|
|
-
|
|
(11,500)
|
|
10,837
|
|
-
|
|
10,837
|
|
Write-off of mineral
interest and advance royalties (b)
|
15,272
|
|
-
|
|
15,272
|
|
-
|
|
-
|
|
-
|
|
U.S. Department of
Justice disgorgement (c)
|
-
|
|
-
|
|
-
|
|
1,200
|
|
-
|
|
1,200
|
|
Stock-based
compensation (d)
|
-
|
|
48
|
|
48
|
|
-
|
|
44
|
|
44
|
|
Net finance (income)
expense, excluding interest expense (e)
|
(759)
|
|
35
|
|
(724)
|
|
(1,720)
|
|
47
|
|
(1,673)
|
|
Loss on disposal of
assets (f)
|
4
|
|
-
|
|
4
|
|
38
|
|
-
|
|
38
|
|
Other costs
(g)
|
328
|
|
3
|
|
331
|
|
7
|
|
114
|
|
121
|
|
Adjusted
EBITDA
|
$
1,139
|
|
$ (653)
|
|
$ 486
|
|
$
(1,487)
|
|
$ (698)
|
|
$
(2,185)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
A component of cost of
sales and results from changes in the estimated undiscounted cash
flows and risk-free discount rate used in calculating the present
value of the reclamation and water treatment provision for
properties where mining has ceased.
|
|
(b)
|
On December 31, 2023,
the lease of mineral rights at the A-Seam mine expired and was not
extended. The mineral interest and advance royalty
carrying values were thus written off to reflect the expiry and
non-renewal of the lease.
|
|
(c)
|
The Company entered
into a declination agreement in which the U.S. Department of
Justice declined to prosecute the Company and the Company agreed to
pay the disgorgement amount.
|
|
(d)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(e)
|
Components of finance
expense and income excluding interest expense.
|
|
(f)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
|
(g)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
EBITDA and Adjusted EBITDA for the years ended December 31, 2023 and 2022
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss)
|
$ 28,862
|
|
$
(5,309)
|
|
$ 23,553
|
|
$
(21,948)
|
|
$
(5,781)
|
|
$
(27,729)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
13,265
|
|
-
|
|
13,265
|
|
11,833
|
|
-
|
|
11,833
|
|
Interest
expense
|
3,143
|
|
1,984
|
|
5,127
|
|
1,439
|
|
1,534
|
|
2,973
|
|
Income tax
expense
|
-
|
|
494
|
|
494
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
45,270
|
|
(2,831)
|
|
42,439
|
|
(8,676)
|
|
(4,247)
|
|
(12,923)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
PennDOT Settlement
(a)
|
(23,333)
|
|
-
|
|
(23,333)
|
|
-
|
|
-
|
|
-
|
|
Change in estimate of
reclamation and water treatment provision (b)
|
(11,500)
|
|
-
|
|
(11,500)
|
|
10,837
|
|
-
|
|
10,837
|
|
Write-off of mineral
interest and advance royalties (c)
|
15,272
|
|
-
|
|
15,272
|
|
-
|
|
-
|
|
-
|
|
U.S. Department of
Justice disgorgement (d)
|
-
|
|
-
|
|
-
|
|
1,200
|
|
-
|
|
1,200
|
|
Restructuring charges
(e)
|
-
|
|
-
|
|
-
|
|
-
|
|
886
|
|
886
|
|
Stock-based
compensation (f)
|
-
|
|
239
|
|
239
|
|
-
|
|
56
|
|
56
|
|
Net finance (income)
expense, excluding interest expense (g)
|
3,021
|
|
180
|
|
3,201
|
|
5,787
|
|
285
|
|
6,072
|
|
(Gain) loss on disposal
of assets (h)
|
(176)
|
|
-
|
|
(176)
|
|
186
|
|
-
|
|
186
|
|
Other costs
(i)
|
1,775
|
|
181
|
|
1,956
|
|
70
|
|
686
|
|
756
|
|
Adjusted
EBITDA
|
$ 30,329
|
|
$
(2,231)
|
|
$ 28,098
|
|
$ 9,404
|
|
$
(2,334)
|
|
$ 7,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Reflects the amount
included in other income and expense related to the legal
settlement with the Pennsylvania Department of Transportation
("PennDOT") in respect of a settlement of all claims by PBS Coals,
Inc., a wholly-owned, indirect subsidiary of the Company ("PBS"),
for damages resulting from certain historical takings of leased
land by PennDOT in 2010 and 2011 in respect of which PBS had filed
five historical petitions for the determination of damages (the
"PennDOT Settlement").
|
|
(b)
|
A component of cost of
sales and results from changes in the estimated undiscounted cash
flows and risk-free discount rate used in calculating the present
value of the reclamation and water treatment provision for
properties where mining has ceased.
|
|
(c)
|
On December 31, 2023,
the lease of mineral rights at the A-Seam mine expired and was not
extended. The mineral interest and advance royalty
carrying values were thus written off to reflect the expiry and
non-renewal of the lease.
|
|
(d)
|
The Company entered
into a declination agreement in which the U.S. Department of
Justice declined to prosecute the Company and the Company agreed to
pay the disgorgement amount in the 2022 period.
|
|
(e)
|
Reflects the separation
costs associated with the Company's previous President and Chief
Executive Officer and Chief Operating Officer.
|
|
(f)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(g)
|
Components of finance
expense and income excluding interest expense.
|
|
(h)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
|
(i)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
Realized price per ton sold for the three months ended
December 31, 2023 and 2022
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$
41,993
|
|
$ 831
|
|
$
42,824
|
|
$
35,993
|
|
$
2,861
|
|
$
38,854
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
-
|
|
-
|
|
-
|
|
(183)
|
|
-
|
|
(183)
|
|
Transportation costs
from preparation plant to customer
|
(1,915)
|
|
(27)
|
|
(1,942)
|
|
(1,982)
|
|
-
|
|
(1,982)
|
|
Limestone
revenue
|
(142)
|
|
-
|
|
(142)
|
|
(130)
|
|
-
|
|
(130)
|
|
Net coal sales (at
preparation plant)
|
$
39,936
|
|
$ 804
|
|
$
40,740
|
|
$
33,698
|
|
$
2,861
|
|
$
36,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
235
|
|
11
|
|
246
|
|
221
|
|
27
|
|
248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
169.94
|
|
$
73.09
|
|
$
165.61
|
|
$
152.48
|
|
$
105.96
|
|
$
147.42
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton sold for the years ended December 31, 2023 and 2022
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$192,368
|
|
$
4,768
|
|
$197,136
|
|
$
161,285
|
|
$
4,606
|
|
$
165,891
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
-
|
|
-
|
|
-
|
|
(1,664)
|
|
-
|
|
(1,664)
|
|
Transportation costs
from preparation plant to customer
|
(7,554)
|
|
(27)
|
|
(7,581)
|
|
(7,274)
|
|
(22)
|
|
(7,296)
|
|
Limestone
revenue
|
(530)
|
|
-
|
|
(530)
|
|
(634)
|
|
-
|
|
(634)
|
|
Net coal sales (at
preparation plant)
|
$184,284
|
|
$
4,741
|
|
$189,025
|
|
$
151,713
|
|
$
4,584
|
|
$
156,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
1,082
|
|
51
|
|
1,133
|
|
960
|
|
44
|
|
1,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$
170.32
|
|
$
92.96
|
|
$
166.84
|
|
$
158.03
|
|
$
104.18
|
|
$
155.67
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton sold, cash production cost per ton sold,
and cash cost per purchased coal per ton sold for the three months
ended December 31, 2023 and
2022
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$
29,734
|
|
$ 452
|
|
$
30,186
|
|
$
25,837
|
|
$ 813
|
|
$
26,650
|
|
Purchased coal
costs
|
3,622
|
|
359
|
|
3,981
|
|
4,487
|
|
2,152
|
|
6,639
|
|
Royalty
expense
|
2,012
|
|
-
|
|
2,012
|
|
1,717
|
|
24
|
|
1,741
|
|
Total cash costs of
tons sold
|
$
35,368
|
|
$ 811
|
|
$
36,179
|
|
$
32,041
|
|
$
2,989
|
|
$
35,030
|
|
Total tons
sold
|
235
|
|
11
|
|
246
|
|
221
|
|
27
|
|
248
|
|
Cash cost per ton sold
(at preparation plant)
|
$
150.50
|
|
$
73.73
|
|
$
147.07
|
|
$
144.98
|
|
$
110.70
|
|
$
141.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
35,368
|
|
$ 811
|
|
$
36,179
|
|
$
32,041
|
|
$
2,989
|
|
$
35,030
|
|
Less: purchased
coal
|
(3,622)
|
|
-
|
|
(3,622)
|
|
(4,487)
|
|
-
|
|
(4,487)
|
|
Cash cost of produced
coal sold
|
$
31,746
|
|
$ 811
|
|
$
32,557
|
|
$
27,554
|
|
$
2,989
|
|
$
30,543
|
|
Tons sold -
produced
|
212
|
|
11
|
|
223
|
|
192
|
|
27
|
|
219
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
149.75
|
|
$
73.73
|
|
$
146.00
|
|
$
143.51
|
|
$
110.70
|
|
$
139.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
3,622
|
|
$
-
|
|
$
3,622
|
|
$ 4,487
|
|
$
-
|
|
$ 4,487
|
|
Tons sold - purchased
coal
|
23
|
|
-
|
|
23
|
|
29
|
|
-
|
|
29
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
157.48
|
|
$
-
|
|
$
157.48
|
|
$
154.72
|
|
$
-
|
|
$
154.72
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton sold, cash production cost per ton sold,
and cash cost per purchased coal per ton sold for the years ended
December 31, 2023 and 2022
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$118,503
|
|
$
1,434
|
|
$119,937
|
|
$
104,413
|
|
$
1,972
|
|
$
106,385
|
|
Purchased coal
costs
|
13,627
|
|
3,154
|
|
16,781
|
|
21,886
|
|
2,684
|
|
24,570
|
|
Royalty
expense
|
9,525
|
|
-
|
|
9,525
|
|
6,599
|
|
24
|
|
6,623
|
|
Total cash costs of
tons sold
|
$141,655
|
|
$
4,588
|
|
$146,243
|
|
$
132,898
|
|
$
4,680
|
|
$
137,578
|
|
Total tons
sold
|
1,082
|
|
51
|
|
1,133
|
|
960
|
|
44
|
|
1,004
|
|
Cash cost per ton sold
(at preparation plant)
|
$
130.92
|
|
$
89.96
|
|
$
129.08
|
|
$
138.44
|
|
$
106.36
|
|
$
137.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$141,655
|
|
$
4,588
|
|
$146,243
|
|
$
132,898
|
|
$
4,680
|
|
$
137,578
|
|
Less: purchased
coal
|
(13,627)
|
|
-
|
|
(13,627)
|
|
(21,886)
|
|
-
|
|
(21,886)
|
|
Cash cost of produced
coal sold
|
$128,028
|
|
$
4,588
|
|
$132,616
|
|
$
111,012
|
|
$
4,680
|
|
$
115,692
|
|
Tons sold -
produced
|
991
|
|
51
|
|
1,042
|
|
828
|
|
44
|
|
872
|
|
Cash production cost
per ton sold (at preparation plant)
|
$
129.19
|
|
$
89.96
|
|
$
127.27
|
|
$
134.07
|
|
$
106.36
|
|
$
132.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
13,627
|
|
$
-
|
|
$
13,627
|
|
$
21,886
|
|
$
-
|
|
$
21,886
|
|
Tons sold - purchased
coal
|
91
|
|
-
|
|
91
|
|
132
|
|
-
|
|
132
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$
149.75
|
|
$
-
|
|
$
149.75
|
|
$
165.80
|
|
$
-
|
|
$
165.80
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the three months ended
December 31, 2023 and 2022
|
For the three months
ended
|
|
For the three months
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$
169.94
|
|
$
73.09
|
|
$
165.61
|
|
$
152.48
|
|
$
105.96
|
|
$
147.42
|
|
Cash cost per ton sold
(at preparation plant)
|
$
150.50
|
|
$
73.73
|
|
$
147.07
|
|
$
144.98
|
|
$
110.70
|
|
$
141.25
|
|
Cash margin per ton
sold
|
$
19.44
|
|
$
(0.64)
|
|
$
18.54
|
|
$ 7.50
|
|
$
(4.74)
|
|
$ 6.17
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton sold for the years ended December 31, 2023 and 2022
|
For the year
ended
|
|
For the year
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$
170.32
|
|
$
92.96
|
|
$
166.84
|
|
$
158.03
|
|
$
104.18
|
|
$
155.67
|
|
Cash cost per ton sold
(at preparation plant)
|
$
130.92
|
|
$
89.96
|
|
$
129.08
|
|
$
138.44
|
|
$
106.36
|
|
$
137.03
|
|
Cash margin per ton
sold
|
$
39.40
|
|
$ 3.00
|
|
$
37.76
|
|
$ 19.59
|
|
$
(2.18)
|
|
$ 18.64
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Corsa Coal Corp.