Effective October 31, WCC set forward sales contracts for $US188 million at a rate of $C1.2424 for every one US dollar, as well as $US150 million at $C1.2188 per US dollar.
The contracts, which it entered into last week, will mature monthly through April of next year, and WCC noted most sales are in US funds while expenses are Canadian.
WCC said it currently has about 65% of its expected forward coal sales fixed in order to protect its earnings.
“Prior to entering into these contracts, the company's exposure to the US dollar on the balance of this year's sales is such that for every $.01 change in the Canadian dollar in relation to the US dollar, income from operations changes by $C5.1 million,” it said.
The producer operates three metallurgical coal complexes – Wolverine, Brule and Willow Creek – in the northeast of British Columbia.
WCC also holds interests in various coal properties in northern and southern British Columbia and a 50% interest in the exploration and development of the Belcourt and Saxon properties in the same province.