Wednesday, February 10, 2010

Lower Coal Prices Hit Grande Cache Profits

Profits at Canadian coal miner Grand Cache Coal Corp were hit by lower coal prices in the third quarter ended 31 December 2009.

Average prices for the Alberta-based miner of metallurgical coal were C$134 per tonne, against C$254 per tonne in the same period last year although the cost sales fell to C$106 a tonne against C$128 a tonne last year.

Revenues were down 32 per cent to C$62.4 million while profits for the quarter fell 88 percent to C$4.3 million compared with C$36.8 million a year ago. The year-to-date profit figure was $18.7 million, compared to $87.2 million last year.

The company expect to sell between 1.6 million and 1.8 million tonnes of metallurgical coal in 2010.

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