|
Xinergy Ltd a Central Appalachian coal producer, today announcedfinancial and operating results for the three months ended March 312012 together with its Management's Discussion and Analysis for thecorresponding period. The Company reported net income of USD 1.7 million or USD 0.03 perdiluted share in the quarter ended March 31 2012 as compared to anet loss of USD 10.3 million or USD 0.18 per diluted share lastyear. EBITDA for the first quarter 2012 was USD 14.6 millioncompared to USD 4.6 million in the same quarter last year.Excluding one-time gains and expenses related to a partial contractbuyout and separate contract settlement related to two thermal coalcustomers, first quarter adjusted EBITDA was million as compared toUSD 4.7 million a year ago. In the first quarter of 2012, the Company reported coal revenues ofUSD 29.9 million on 425,697 tons sold compared to USD 43.1 millionon 553,485 tons sold the same quarter a year ago. Total cash costswere USD 25.5 million or USD 66.99 per ton compared to USD 28.5million or USD 61.18 per ton a year ago. Mr Jon E Nix Xinergy Chairman and CEO said "Weak market conditionsreflecting reduced domestic utility demand, mild weather, recordinventory levels, low natural gas prices and an increasinglyonerous regulatory environment have converged to create anextremely challenging period for the coal industry. Following ourdecisive actions several months ago to cut our workforce by athird, match production with sales, limit capital expenditures andcontrol costs, we have strengthened our liquidity and positionedthe Company to take advantage of a market recovery. We believe themarkets for both thermal and metallurgical coal sales will bechallenging in the near term but continue to focus on growing themetallurgical side of our business. During Q1 2012, we successfullyadded met reserves in both West Virginia and Virginia. At ourmid-vol South Fork operation in West Virginia, we added over 21,000acres bringing our controlled position to 35,800 acres. We shippedour first production out of South Fork in April and have severalpermit applications that are continuing through the regulatoryprocess which will soon allow us to significantly increaseproduction. At True Energy, we received our much anticipated permitamendment which adds significant reserves to our existing permit.We will utilize the equipment we relocated from our thermal minesto significantly increase production as the high-vol marketrebounds. Our active acquisition program has pushed our proven andprobable reserves over 114 million tons with roughly a quarter ofthose reserves metallurgical." Mr Michael R Castle Xinergy's Chief Financial Officer added that"The Company continues to maintain a solid cash position of USD69.5 million at March 31 2012. We believe that cash on hand andcash generated from our operations will be sufficient to fundongoing working capital requirements, meet our debt servicerequirements and fund development and capital expenditures. TheCompany continues to make operational and financial decisions thatstrengthen our liquidity position including a partial contractbuyout and contract settlement with two customers that realized USD18.9 million in cash to the company and released an additional USD12.0 million in restricted cash. We have re-deployed miningequipment to our metallurgical mines, delayed the construction ofthe Brier Creek preparation plant and have reduced anticipatedcapital expenditures by USD 40.0 to $60.0 million. The Companycontinues to implement cost reductions at all operations as well asaggressively managing selling, general and administrative costs. Wecontinue to work with customers regarding current and future salesas well as continue to assess markets for thermal and metallurgicalcoal. With initial sales of met coal from the South Fork minebeginning in April and the permit addition at True Energy that willallow us to increase production we expect to be better positionedto update production and sales guidance in the next few weeks." Source - Xinergy Ltd. The e-commerce company in China offers quality products such as Rope Suspended Platform Manufacturer , China Hydraulic Dock Leveler, and more. For more , please visit Rope Suspended Platform today!
Related Articles -
Rope Suspended Platform Manufacturer, China Hydraulic Dock Leveler,
|
