Photo by: Bloomberg
TORONTO (miningweekly.com) – The Toronto-listed stock of Colombia-focused miner Pacific Coal Resources on Tuesday shed one-third off its value after reporting negative second-quarter results, as coal output from its flagship La Caypa mine was impacted by adverse geological conditions.
For the three months ended June 30, the Toronto-based miner's net profit swung to $12.77-million, or $0.26 a share, compared with a profit of $2.05-million, or $0.04 a share, a year earlier.
Revenues declined 40% to $22.29-million, as sales sagged 35% to 229.3-million tonnes of coal.
The average realised coal price also declined 10% year-on-year to 95.39/t.
Output was down 30% at 279.6-million tonnes of coal, as La Caypa missed its output forecast, owing to adverse geological conditions at the section produced from in the quarter.
The second-quarter output from the company’s Cerro Largo mine represented a 12% increase year-on-year, despite only representing 64% of planned output for the quarter, owing to ongoing negotiations with a new third-party operator.