“As metallurgical coal prices have surged over the past six months, we have positioned the company to significantly increase metallurgical coals sales volumes,” said George Dethlefsen, CEO of Corsa. “This increase will come from the development at Acosta, increased work hours at our Casselman and Quecreek mines, and increased purchased coal activities. Additionally, we are evaluating other permitted mines within our portfolio as we look to increase capacity utilization at our preparation plants.”
For 2017, Dethlefsen is forecasting Corsa’s metallurgical coal sales to increase by 100% over 2016 levels, using the midpoints of 2016 and 2017 as guidance. The company expects to produce between 1,325,000 tons and 1,475,000 tons of met coal and 625,000 to 725,000 of steam coal in 2017. For the first quarter of 2017, Corsa’s metallurgical sales — 275,000 tons-350,000 tons — are 90% committed at an average realized metallurgical coal sales price of $166/ton, representing an increase of 66% over levels in the fourth quarter of 2016.
“With the low levels of capacity utilization at our coal preparation infrastructure, a portfolio of low mining cost permitted and permit-in-process mines, and an emerging sales and trading platform, the building blocks are in place for strong growth in the years ahead,” Dethlefsen said.