In 2011, company chairman Jon Nix said production from its existing properties will range from 2.8 to 3 million tons. Contracted sales estimates are 1.348Mt, or 48-54% of forecasted production, at an average sales price of $US98.16 per ton.

With the continued improvement of market conditions, Xinergy expects 2012 to be “a banner year”, Nix said. Increased production is anticipated to total 3.5 to 4Mt just on its existing project.

Xinergy currently has 146,000t contracted for 2012 at $115.10/t.

Nix noted the company is in the final due diligence stages on a still-unnamed metallurgical deal announced last month. Closing on that transaction is anticipated in early 2011, at which time the company will announce details including quality, sales, production forecasts, capex and acquisition costs.

Xinergy signed a letter of intent with an unnamed buyer for the southern West Virginia reserve in November.

The property, which the company considers to contain a “significant” reserve of high-quality, mod-vol coal, consists of about 15,000 acres, with the majority classified as mineable using surface methods.

Xinergy did not speculate on reserve size at the time, but did confirm that it is in negotiations with the privately-held seller for a purchase price of $US5 million with an overriding royalty.

Of that, $3.5 million is subject to the receipt of the required West Virginia Article 3 permit for the property.

Total consideration includes all mineral, surface and mining rights as well as technical information and associated permits already in place.

An exploration program to determine reserve estimates compliant to National Instrument 43-101 standards will commence immediately.

Xinergy’s current active coal properties are located in eastern Kentucky and Alabama.