Forbes & Manhattan Coal Sees Revenue Decline to $68.5 Million for Fiscal 2013

Forbes & Manhattan Coal Corp. (TSX:FMC) released its financial results for its 2013 fiscal year, which ended on February 28, commenting that its revenue was $68.5 million, down from 104.5 million in 2012, and its gross profit was $0.9 million, a decline from the 2012 total of $17.4 million.

As quoted in the press release:

The decline in coal revenues during the twelve months ended February 28, 2013 to $68.5 million were attributable to a decline in the coal price index in Q1 and Q2 2013 and to labour disruptions in Q3 2013. The average selling price per coal tonne decreased in the twelve month fiscal period from $96.59 per tonne in the 2012 financial year compared to $81.87 per tonne for the 2013 financial year due to a softening export coal price. Operating expenses for the twelve months ended February 28, 2013 were $58.58 million ($70.02 per tonne) compared to $71.06 million ($65.69 per tonne).

Stephan Theron, president and CEO of the company, commented:

A softening export coal market combined with lower production due to the labour disruption in Q3, 2013 were the main factors impacting our profitability for Fiscal 2013. We were able to reduce our operating expenses which provided some relief and cost containment will remain a priority for the Company. We are pleased to report that production losses as a result of the labour disruption were offset by a record production month in February 2013 with a total of 151,000 tonnes of coal produced, a significant achievement over the 117,000 tonne monthly average of the last 12 months. Run of mine production at Magdalena grew 29% year over year in the fourth quarter. We remain focused on our plans to expand production at both properties and to keep operational costs down.

Click here to read the full Forbes & Manhattan Coal Corp. (TSX:FMC) press release.