LOUISVILLE, KY, Aug. 14 /PRNewswire-FirstCall/ - Phoenix Coal Inc. (TSX: PHC - News), a leading producer and consolidator of thermal coal reserves in the Illinois Basin, announced today its financial results for the three and six month periods ended June 30, 2008. Unless otherwise noted, all reserves and resources are expressed in imperial tons, and all financial information is expressed in U.S. dollars.Highlights for the second quarter of 2008: - Completed a reverse takeover ("RTO") by Phoenix Coal Corporation ("Phoenix") of Marimba Capital Corp. ("MCC") concurrently raising $97,784,678, net of issuance costs; - Coal sales increased 24.1% to 646,000 tons from 521,000 tons the previous year; - Revenue increased 29.3% to $21,326,102 from $16,494,604 with an average revenue per ton of coal sold of $33.00; - Secured the permit for the Company's underground mining project, the Pratt Mine, and started planning for mine construction and equipment purchases. The Pratt mine represents a reserve of coal that is currently uncommitted, and is expected to realize the benefits from higher prevailing market prices for thermal coal when the mine comes into production; and - Subsequent to the quarter end, the Company acquired C&R Coal Inc. and Renfro Equipment Inc.
"With the necessary permitting in place, we are ready to begin construction on the Pratt Mine, which has the potential to significantly increase our production capacity in the years ahead," said David A. Wiley, Phoenix President and CEO. "Through our solid capital base and robust infrastructure, our company is well positioned to increase our reserves through additional acquisitions, add production capacity on our existing properties, and drive increased efficiencies in our current operations."
Financial Review:
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