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The company predicts coal sales of 450,000-550,000t for the 2012 fiscal year, representing a 200,000-300,000t increase over 2011 estimated sales.
Up to 85% of the estimated 2012 production has been contracted with a variety of customers, including Alabama Coal Cooperative and various industrial users.
The duration of the sales contract will be for a minimum of three years, however some thermal coal sales contracts will last until 2017.
CanAm said the pricing obtained for its coal was at higher levels than in 2011, with the estimated sales price predicted to be $100/t.
CanAm chief executive officer Tim Bergen said he was pleased with the sales contracts which provided “downside protection and earnings visibility for 2012 and beyond.”
“In addition, most of our contracts include cost inflation clauses which provide for additional protection in the event our major production cost components were to escalate in the next couple of years,” Bergen said.
CanAm operates four coal operations in Alabama – Bear Creek, Old Union, Gooden Creek and Powhatan – as well as the Buick coal project in Colorado, which holds an estimated 188 million indicated and 103 million inferred tons of resources.
