CanAm Coal Corp. Reports Unaudited Consolidated Financial and Production Results for the First Quarter Ended March 31, 2014; Provides Earnings Guidance for the Year of 2014
For the quarter, the company reported production of 167,955 tons against 149,453 tons a year ago. Average production cost per ton was $60 per ton compared to $56 per ton for the same period a year ago.
Notwithstanding the challenges experienced in first quarter of 2104, the company still expects coal sales growth of approximately 10%. With 95% of 2014 production under contract, the company is well positioned to sell this increased production. With an increase in sales and the company's continued focus on operating efficiency, it is expected that EBITDA from Operations will grow in 2014. The company believes that its existing equipment fleet is sufficient for the foreseeable future to support the existing mine plan and has therefore positioned the company well on a capital expenditures perspective. On this basis, no significant new equipment purchases are planned for 2014. The company expects to consistently generate free cash flow for the balance of 2014.