Corsa increases sales guidance after busy month

CORSA Coal has announced another increase in sales guidance for fiscal year 2013.
Corsa increases sales guidance after busy month Corsa increases sales guidance after busy month Corsa increases sales guidance after busy month Corsa increases sales guidance after busy month Corsa increases sales guidance after busy month

Courtesy Corsa Coal.

Staff Reporter

The Toronto based company has increased its sales guidance to 300,000-320,000 tons for FY2013 from a previously estimated 170,000-266,000t announced last month.

The company also forecasts the sale of approximately 45,000-60,000t in the first quarter of FY2014.

“We have had very positive sales momentum since the beginning of the fiscal year,” Corsa president and chief executive officer Don Charter said.

“This is the result of the hard work of our team and is reflective of the quality of our product.”

Corsa also announced that it would resume trading on the Toronto Stock Exchange on Thursday following a trading halt in connection with an acquisition announced on March 21.

Corsa signed a financing and acquisition agreement with Quintana Kopper Glo Investment last month whereby Corsa would raise $US40 million in funding as well as acquiring Quintana subsidiary Kopper Glo, a Tennessee-based coal producer.

Quintana gained a controlling stake of 56% in Corsa and a redeemable 25% interest in Corsa subsidiary Wilson Creek.

In a statement at the time the company said the proceeds from the first tranche would be used for working capital, with the second to repay the $25 million debt owed to Sprott Lending.

Last week Corsa announced it would send its coal to Korea in a long-term sales deal with Hyundai Steel.

The deal follows successful test shipments of about 40,000t.

While officials did not release financial details of the transaction or its expiry, Hyundai Steel will be taking low-volatile coal from Corsa’s Wilson Creek complex.

In addition to Wilson Creek, Corsa also controls Pennsylvania-based Maryland Energy Resources.

Corsa owns three surface mines and an underground operation.

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