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CanAm Coal Corp. (TSXV:COE) announced it is considering a diversification strategy and alternative opportunities in order to generate additional shareholder value.
CanAm Coal Corp. (TSXV:COE) announced it is considering a diversification strategy and alternative opportunities in order to generate additional shareholder value.
As quoted in the publication:
For 2015 and beyond, the Company believes that it can continue to deliver modest growth and organically grow to about 1 million ton of coal production while delivering healthy EBITDA margins. However, given the current depressed coal markets, the challenging junior mining financing environment and the poor public market perception of the coal industry, the Company believes that its strategic goal of achieving annual coal production of 2 to 3 million tons in the foreseeable future will be very difficult to accomplish. Therefore, following a strategic review, the Board of Directors has mandated management to explore for other growth initiatives within the mining industry in order to enhance and improve shareholder value creation.
CanAm chairman, Jon Legg, said:
The decision to evaluate options and alternatives follows a comprehensive review of the Company’s strategy and business direction by our Board of Directors. In order to position ourselves for the future and enable us to create shareholder value, it is imperative that we continue down this road of diversification but, at the same time, nothing about this review alters the Company’s commitment and continued investment in our coal franchise.
Click here to read the CanAm Coal Corp. (TSXV:COE) press release