During Q2 2013, the company made significant progress to its goal of full production at its three new mines: Old Union 2, Knight and Posey Mill 2. The company achieved a full quarter of production from all three pits at Old Union 2 and by the end of the quarter, Knight mine’s production was at commercial levels. In June, the company took up first coal from its Posey Mill 2 mine and it’s expected that full production levels will be achieved in the third quarter. The company’s Powhatan mine had a solid quarter, achieving planned production levels. The prior year’s result reflects sales from the company’s old mines, which had lower productive capacity compared to the company’s new mine complement. This explains the large sales increase.
Discreet June sales were a record 61,000 mt, which the company believes is an indicator of future results. Once commercial production levels are reached at the Posey Mill 2 mine, the company is optimistic that sales can start to exceed June levels.
“Despite the fact we were still in a transition phase for most of the second quarter, CanAm was still able to achieve the best production and sales results in its history,” said Jos De Smedt, president and CEO, CanAm. “Now that our transition has been completed, we can expect to achieve full scale commercial production for the foreseeable future. Add to this the fact that we are fully contracted, it gives us optimism as we start the second half of the year.”
The company is expected to release its second quarter full financial results in August.
