CanAm reports coal revenue of $8.7 million for Q3, an increase of 17% over Q2

Source: CanAm Coal Corp.

CanAm Coal Corp. (TSX VENTURE: COE) (OTCQX: COECF.PK) ("CanAm" or the "Company") has filed its unaudited condensed interim consolidated financial statements and related management's discussion and analysis for the three and nine month period ended October 31, 2011. Copies of these documents may be obtained via the SEDAR website.

With the primary focus of the Company on growing coal production and resources, the main activities of the CanAm team in the third quarter were devoted to successfully completing and integrating the 50% acquisition of Birmingham Coal & Coke ("BCC"), permitting of various tracts of land and identification of additional expansion opportunities. With 4 mines in operation; Bear Creek, Old Union, Gooden Creek and Powhatan, average coal sales are now in excess of 30,000 tons per month and the Company, once again, delivered record production, revenue, income and EBITDA (Earnings Before Interest Taxes Depreciation Amortization). A summary of key metrics for fiscal 2012 are as follows:

Period Production (in tons) Revenues (in $) EBITDA (in $)
Q3 2012 94,261 8,729,604 1,744,787
Q2 2012 81,453 7,474,506 1,339,144
Q1 2012 30,655 3,233,121 867,870

"We continued to build our production levels in the third quarter and have seen coal sales grow from 30,655 tons in Q1 to 81,453 tons in Q2 and 94,261 tons in Q3. Year-to-date we have now surpassed coal sales of 200,000 tons as compared to 33,000 tons last year", said Tim Bergen, CEO of CanAm. "All of our key metrics continued their upward momentum and we delivered $8.7 million of revenue, $1.7 million of EBITDA and generated $1.5 million of cash flow from operations, before changes in non-cash working capital, during the quarter. Our cash position continues to be healthy with cash on hand of $5.0 million, including $1.8 million of restricted cash associated with reclamation deposits, at October 31, 2011".

Highlights and events for the third quarter include:

-- Achieved coal sales of 94,261 tons in Q3 or an increase of 82,853 tons from last year's third quarter and an increase of 12,808 tons from the previous quarter.

-- Achieved coal sales of 206,369 tons for the nine months of fiscal 2012 or a six-fold increase from last year;

-- Generated revenue of $8.7 million in Q3 as compared to $1.2 million in Q3 of last year; Topped $19 million in revenue for nine months of fiscal 2012 as compared to $3.8 million last year;

-- Generated EBITDA of $1.7 million for Q3 as compared to $(0.1) million last year and $4 million for nine months of fiscal 2012 as compared to $0.2 million last year;

-- Delivered average EBITDA of $19/ton for the quarter and for the nine months of fiscal 2012; Generated cash from operations of $0.9 million in Q3 as compared to a use of cash from operations of $0.3 million last year;

-- Converted approximately $0.75 million of the 12% convertible debenture debt into common shares and raised additional funds as a result of the exercise of warrants and options for proceeds of approximately $200,000. 

Highlights and events subsequent to the quarter ended October 31, 2011 include:
-- Ordered additional new mining equipment; 2 excavators, 1 dozer and 3 trucks, in order to pursue organic growth opportunities for 2012 at both the BCC mines and the Powhatan mine; 

-- Completed the transfer of ASMC permit 3868 on the Powhatan mine; 

-- Hired a major independent engineering firm to pursue alternative development opportunities for the Buick Coal Property in Colorado; 

-- Changed the Company's year-end from January 31 to December 31 and therefore this fiscal year will be comprised of only 11 months ending December 31, 2011. As such our fourth quarter will be comprised of 2 months.

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