Published: March 12, 2018 |

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Corsa Coal Corp announced that it is selling its thermal and industrial coal division, Central Appalachia, to a buyer group led by CAPP’s current management team. Mr. George Dethlefsen Company’s Chief Executive Officer said that “The sale of our CAPP division will allow us to dedicate all of our corporate resources to the metallurgical coal market where we believe we can achieve the highest rates of return on investment.” Mr. Dethlefsen said that “Corsa’s focus going forward is to aggressively increase its metallurgical coal production, maximize value added services activity, and continue to grow our metallurgical sales and trading platform.”

CAPP division’s current operations include one underground mine, the Cooper Ridge Deep Mine, and two surface operations, the Valley Creek and Buffalo Creek mines. The consideration to be received by the Company in connection with the Transaction consists of the assumption by the buyer group of certain debt, leases and future costs, including end of mine closure costs, estimated in the aggregate by the Company at approximately USD 8.0 million. For the year ended December 31, 2017, the CAPP division (i) generated revenues of USD 46.4 million and had USD 20.2 million of negative EBITDA, inclusive of a USD 20.0 million asset impairment; and (ii) sold 539,000 tons of thermal coal and 135,000 tons of high vol metallurgical coal.

As a result of the Transaction, the Company is postponing the release of its fourth quarter and full year 2017 financial results, and the related conference call previously scheduled for 10:00 a.m. on March 8, 2018, until the week of March 12, 2018. A new time and date for this conference call will be announced shortly.

Source: Steel Guru

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