Corsa Coal Announces Financial Results for Third Quarter 2016

Corsa Coal (TSXV:CSO) has reported its financial results for the three and nine months ended September 30, 2016.
As quoted in the press release:

Third Quarter 2016 Highlights

• Spot prices for metallurgical coal have risen by approximately 250% on a year-to-date basis.  Corsa plans to increase production and sell significantly more tons of metallurgical coal over the coming quarters. Corsa commenced development work at the Acosta Deep Mine in Somerset County, Pennsylvania, which is forecasted to produce 375,000 tons per year of low volatile metallurgical coal once fully operational.  Coal production at the mine is anticipated to begin  in the second quarter of 2017 and ramp up over the course of the year.
• In October 2016, Corsa raised Cdn $23 million by way of a private placement of 230,000,000 common shares of Corsa (138,880,000 of which were closed on a brokered basis and 91,120,000 of which were closed on a non-brokered basis) to fund mine development, general corporate and working capital purposes.
• NAPP variable cost reduction efforts have been successful with the cash production cost per ton sold(1) for metallurgical coal decreasing 10.2% [from $66.90 to $60.07] in the three months ended September 30, 2016 compared to the prior year comparable quarter.
• CAPP variable cost reduction efforts have been successful with the cash production cost per ton sold(1) for thermal coal decreasing 6.7%  [from $53.74  to $50.16] in the three months ended September 30, 2016 compared to the prior year comparable quarter.
• Corsa’s operations continue to achieve industry leading safety performance, with violation per inspection day rates that are 50% lower than the national average.
• In September 2016, Corsa was notified that it was awarded $3,000,000 in funding under the Pennsylvania Redevelopment Assistance Capital Program (the “RCAP”) to develop an underground coal mine in Somerset County subject to certain conditions, including but not limited to: (i) completing the Redevelopment Assistance application; (ii) confirmation that at least 50% of the required non-state funds necessary to complete the project are secured at the time of application; (iii) execution of a grant agreement; and (iv) commencement of construction within six months of the grant agreement.  Once all the aforementioned conditions have been met, the grant will be released on a periodic basis and Corsa will be reimbursed for certain expenditures which Corsa will offset against the capitalized development costs.

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