Click here to close now.


Microsoft Cloud Authors: Jayaram Krishnaswamy, Elizabeth White, Andreas Grabner, Jim Kaskade, Pat Romanski

News Feed Item

Pacific Coal Resources Ltd. announces third quarter 2012 financial results

TORONTO, Nov. 29, 2012 /PRNewswire/ - Pacific Coal Resources Ltd. (TSXV: PAK) has filed today its unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2012, together with its management's discussion and analysis ("MD&A") for the corresponding period. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted. These documents will be posted on the Company's website at and under the Company's profile at

Hernan Martinez, Executive Chairman, commented: '"The second half of 2012 has thus far seen the Company re-focus on its core competencies by selling our BACF investment and signing an MOU for the sale of our Barranquilla port interest. The sale of the BACF investment, which closed in October, provided us with $5 million in cash, which will be used in operating and selling activities at our producing coal and coke sites.  Coal operations continued through the third quarter of 2012, with 341,248 tonnes of thermal coal produced at our La Caypa and Cerro Largo sites.  We expect production improvements and cost reductions at La Caypa as we replace the current operator in the fourth quarter.  The Company's cost cutting program resulted in a 20% reduction in G&A expenses in the third quarter compared to the second quarter of 2012, with an expected quarterly run rate as of the fourth quarter of 2012 that is approximately 30% below the average in 2011. Management believes the decisions made and actions taken during the quarter and through the remainder of 2012 are positioning the Company towards significantly improved operations and liquidity."

Financial and Operating Summary

A summary of the financial and operating results for the three and nine months ended September 30, 2012 and 2011 is as follows:

  Third Quarter Nine Months Ended September 30
(000's except per share and operating data) 2012 2011 2012 2011
Tonnes of coal produced 341,248 400,909 993,325 1,070,209
Average stripping ratio - operations 11.38 7.61 10.60 7.38
Tonnes of coal sold(1) 366,678 460,189 965,948 1,217,389
Average realized price per tonne sold $             92.53 $            101.01 $            97.67 $           97.65
Operating margin per tonne sold(2)              (5.76) 4.12           (13.95) 10.18
Revenues $           35,033 $            46,485 $         98,654 $       118,877
Gross margin(3) (4,120) (937) (20,447) 6,371
Net (loss) earnings attributed to shareholders(4)            (15,201) (1,126)        (85,827) (46,380)
Basic and fully diluted (loss) earnings per share (0.05) 0.00 (0.27) (0.16)
Total cash                 135 14,267              135 14,267
Total assets          318,462 392,112 318,462 392,112
Total debt (5) 39,701 32,012 39,701 32,012
(1)  Includes coal purchased from third parties for sale.
(2)  See additional financial measures in MD&A.
(3)  "Gross margin" represents total revenues, net of operating costs, transportation and port services costs, selling costs, depreciation, depletion and amortization, and impairment charges related to inventory.
(4)  2012 includes a non-cash impairment writedown of $45.5 million; including $8.0 million in the third quarter triggered by the planned sale of the Barranquilla port concession and $35.6 million relating to impairment of the Cerro Largo property in the second quarter.
(5)  Includes bank indebtedness, long-term debt (including current portion), and obligations under finance leases (including current portion).

Third Quarter Highlights

  • The Company produced 341,248 tonnes of coal during the third quarter of 2012, representing a 2% increase over the 335,008 tonnes produced in the second quarter of 2012. The Company's stripping ratio for the third quarter was 11.38:1.
  • Production at La Caypa was 251,525 tonnes representing a decrease of approximately 6% from the second quarter of 2012 and 72% of its planned production.  Production was significantly impacted by issues with the mine operator and destabilization of the mine footwall in August 2012. Production at the Cerro Largo mine was 89,723 tonnes, representing an increase of approximately 33% from the second quarter of 2012.
  • Total revenues for the third quarter of 2012 were $35.0 million, consistent with $35.2 million in the second quarter of 2012, on the strength of coal sales of 366,678 tonnes, at an average realized price of $92.53 per tonne.
  • During the third quarter of 2012, cost saving initiatives contributed to a 20% decrease in G&A expenses to $3.6 million as compared to $4.4 million in the second quarter of 2012, in addition to the 12% and 9% decreases already realized in the first and second quarters of 2012 respectively.  G&A in the third quarter included $0.6 million of one-time severance costs associated with staff reductions and $0.4 million of asphaltite research costs. The Company anticipates a quarterly G&A run rate of approximately $2.75 million in the fourth quarter of 2012.
  • In October 2012 the Company sold its Blue Advanced Colloidal Fuels ("BACF") investment for cash proceeds of $5.0 million and in November 2012 signed an MOU in respect of its interest in Sociedad Portuaria Terminal de las Flores S.A. ("SPTF"), which holds the Barranquilla port concession.  The cash generated by these transactions will be used in the Company's operating and selling activities at its producing coal and coke sites.  Sale of the BACF investment contributed to the $3.0 million cash balance at November 29, 2012.
  • The Company continues to work with SRK Consulting (UK) Ltd, to finalize the Company's 43-101 updated technical reports. The Cerro Largo report is expected to be released in the fourth quarter of 2012. The La Caypa report is expected in the second quarter of 2013.
  • The net loss of $15.2 million ($0.05 per share) in the third quarter of 2012 includes a $8.0 million ($0.02 per share) non-cash impairment writedown of SPTF triggered by its planned sale.

Q3 2012 - La Caypa

  Production of Coal
(metric tonnes)
(bcm (1))
Strip Ratio
Actual Pit 251,525 1,966,372 7.82:1
South Pit - 392,674 -
Total 251,525 2,359,046 9.38:1

(1)     "BCM" is Bank Cubic Metres

During the third quarter of 2012, the Company produced 251,525 tonnes at La Caypa, down approximately 6% from the second quarter and 72% of planned production.  Production at La Caypa during the quarter was negatively impacted by the mine operator's general lack of equipment for loading, hauling, and support at the mine and was compounded by destabilization of the mine footwall in the month of August. Issues with the mine operator resulted in a breach of their contractual obligations, which led the Company to begin the process of replacing them during the fourth quarter of 2012.

Operational stripping ratio at La Caypa, up slightly to 7.82 in the third quarter of 2012 reflected the impact of the mine sidewall development during the quarter. Total stripping ratios at La Caypa include costs incurred in moving waste volumes from the south pit.

Q3 2012 - Cerro Largo

  Production of Coal
(metric tonnes)
(bcm (1))
Strip Ratio
Total 89,723 1,918,289 21.38:1

(1) "BCM" is Bank Cubic Metres

The Company's production at Cerro Largo of 89,723 tonnes in the third quarter of 2012 was an increase of approximately 33% from second quarter of 2012.  Consistent with the second quarter, the Company continued addressing mud concentration concerns at the bottom of the open pit, although efforts to correct the issue were noted during the quarter with the increase in production and improvement of the stripping ratio to 21.38:1 from 25.53:1 in the second quarter of 2012.

Q3 2012 - Jam

  Q3 2012 Q3 2011
Tonnes produced 476 -

The Company's Jam operation commenced production in the fourth quarter of 2011. In the third quarter of 2012, given current coke market trends the Company decided to maintain production at minimum levels. The Company's Jam activity has focused on repairs to coking infrastructure, with anticipated significant production in the first quarter of 2013.

Revised production guidance

As a result of reduced production in the third quarter of 2012 and the expected change in operator, the Company's 2012 production target at La Caypa has been revised to 970,000 tonnes.  At Cerro Largo, in light of the third quarter results and the ongoing work required to clear the mud concentration in the pit, the Company has revised its 2012 production target for Cerro Largo to 400,000 tonnes.

Corporate update

The Company plans to provide a corporate update and an update on its strategic plan in a subsequent press release to be issued next week.

About Pacific Coal Resources Ltd.

Pacific Coal Resources Ltd. is a Canadian-based mining company engaged in the acquisition, exploration and production of coal and coal-related assets from properties located in Colombia. The Company's common shares and warrants are listed on the TSX Venture Exchange and trade under the symbol "PAK" and "PAK.WT" respectively.

Forward Looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pacific Coal to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Pacific Coal disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.



SOURCE Pacific Coal Resources Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT influence Big Data: Device, Connectivity, Context, and Intelligence. He will dive deep to the matrix...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Building actually breathes - immediately flagging overheating in a closet or over cooling in unoccupied ho...
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect and correlate data from control systems, sensors, mobile devices and IT systems for a variety of Ind...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innovation is automation. The most painful pain point for any business is the mismatch between supplies a...
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
As enterprises capture more and more data of all types – structured, semi-structured, and unstructured – data discovery requirements for business intelligence (BI), Big Data, and predictive analytics initiatives grow more complex. A company’s ability to become data-driven and compete on analytics depends on the speed with which it can provision their analytics applications with all relevant information. The task of finding data has traditionally resided with IT, but now organizations increasingly turn towards data source discovery tools to find the right data, in context, for business users, d...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 150 developers, designers, quality assurance engineers, project manage...
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless Thingies, will discuss and demonstrate how devices and humans can be integrated from a simple clust...
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, will discuss the impact of technology on identity. Should we federate, or not? How should identity be secured? Who owns the identity? How is identity ...