Pacific Coal Resources reported its unaudited consolidated financial statements for the first quarter ended March 31, 2015.
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The company produced 221,909 tonnes of coal in the first quarter of 2015, which represents a decrease of 19% compared to the first quarter of 2014 (274,421 tonnes). In the first quarter of 2015, the total stripping ratio for La Caypa mine increased by 141% compared to the fourth quarter of 2014 (28.21 vs 11.73).
These results were due to a change in the mine development plan as a result of adverse geographical conditions found in the mine and is expected to be lower in the second half of 2015.
Coal revenues for the first quarter of 2015 were $20.9 million (first quarter 2014 - $35.6 million), from 246,771 tonnes (first quarter 2014 - 371,716 tonnes) of coal sold at an average realized price of $85.45 per tonne.
In the first quarter of 2015, the earnings from operations were $1.8 million, compared to $1.9 million and $1.2 million in the fourth quarter of 2014 and the first quarter of 2014, respectively.
Adjusted EBITDA for the first quarter of 2015 was a gain of $4.6 million against $3.1 million for first quarter of 2014.
The company continued with the development of the multi-year joint operation agreement Sloane JOA for thermal coal production at the Cerro Largo mine signed October 1, 2014 with Sloane Mining Services Sucursal Colombia, whereby Sloane took over operation of the Cerro Largo mine.
The final conditions required for the agreement to take effect are expected to be fulfilled by the third quarter of 2015, resulting in the payment of $6.5 million advance by Sloane to the company pursuant to the Sloane JOA.
The company recorded $1.2 million in G&A expenses, excluding DD&A and impairment of non-current assets, in the first three months of 2015, which was slightly higher than forecasted due to tax penalties that were required to be paid in the quarter, compared to $1.2 million in the same period of 2014. ■