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Coal mining in the Grande Cache area
Message: Reports Net Income of $36.8 Million in Third Quarter Fiscal 2009
| February 4, 2009 |
| Grande Cache Coal Corporation Reports Net Income of $36.8 Million in Third Quarter Fiscal 2009 |
| CALGARY, ALBERTA--(Marketwire - Feb. 4, 2009) - Grande Cache Coal Corporation (TSX:GCE)("Grande Cache Coal" or the "Corporation") today announced its financial and operating results for the three and nine months ended December 31, 2008. - Grande Cache Coal's third quarter net income was $36.8 million, in comparison to a net loss of $3.4 million in the same period last year. Net income for the first nine months of the fiscal year was $87.2 million. Net income per basic share was $0.38 in the quarter and $1.00 for the fiscal year to date. - Income from operations during the quarter was $51.7 million and included a foreign exchange gain of $10.4 million which was a result of the significant weakening of the Canadian dollar against the U.S. dollar. Income from operations for the fiscal year to date was $93.1 million versus a loss of $13.2 million in the same period last year. - Revenue in the third quarter was $91.9 million on sales of 0.36 million tonnes. The average sales price achieved during the quarter was $254 (U.S.$213) per tonne, in contrast to $85 (U.S.$87) per tonne in the same period last year. The increase in the U.S. sales price is due to higher contract price settlements for the current coal year, offset somewhat by calendar year contracts and carryover tonnage from the prior coal year. The Canadian sales price was much stronger during the quarter due to a weaker Canadian dollar. - Third quarter cost of sales was $46.3 million, or $128 per tonne, up from $37.7 million, or $85 per tonne in the comparable period. The increase in costs is a result of lower sales volumes as well as higher mining costs, lower mine productivities, a lower plant yield and higher rail costs. - The Corporation's cash position increased $65.6 million during the quarter bringing the cash balance at December 31, 2008, to $87.7 million. "Although the third quarter results contributed significantly to our cash position due to the high coal prices, we remain focused on preparing the Corporation for the future" said Robert Stan, President and Chief Executive Officer. "The current worldwide economic climate has brought uncertainty into the coal markets that will have an impact on pricing and sales volumes as contracts are negotiated for the coal year beginning April 1, 2009. We continue to take the necessary steps aimed at cost reduction and productivity improvement and we will manage our future production levels to meet demand." Fiscal 2009 Guidance Update: - As previously announced, the Corporation revised its fiscal 2009 sales volume forecast to a range of 1.1 to 1.3 million tonnes due to a decline in global steel production brought on by the worldwide economic slowdown. Despite the lower sales volume, the Corporation continues to anticipate that the average sales price for fiscal 2009 will be in the range of U.S.$210 to U.S.$220 per tonne, however it is expected that the price will be on the lower end of the range. - The Corporation projects that the average cost of sales for fiscal 2009 will be in the range of $120 to $125 per tonne, up from the previous guidance range of $108 to $113 per tonne. The increase is a result of lower sales volumes as well as higher than expected mining costs during the third quarter. Grande Cache Coal is an Alberta based metallurgical coal mining company whose experienced team of coal professionals are managing a mine that produces metallurgical coal for the steel industry and holds coal leases covering over 22,000 hectares in the Smoky River Coalfield located in west-central Alberta. Grande Cache Coal's common shares are listed on the Toronto Stock Exchange under the trading symbol "GCE". |
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