Kevin M. Harrigan, Interim President and Chief Executive Officer of Corsa, commented, "The Company is continuing to manage through the challenging geology and labor-related matters that impacted fourth quarter 2021 and first quarter 2022 operations and has taken all steps reasonably available to it to improve productivity and attract and retain qualified employees. We expect our second quarter sales tons to increase over the first quarter and sales realization to be similar to the first quarter, as we continue to fulfill previously committed fixed priced orders. Due to lower production levels in the first half of the year and existing contract volumes, the Company does not expect to benefit from higher priced spot sales in the second quarter."
"From an operational standpoint, we expect to increase our sales tonnages in the second quarter back to historical levels and expect our cash cost of sales to be lower than the first quarter. However, cash cost of sales will not be back to historical levels as the impact of inflation, skilled labor shortages and challenging geological conditions continue to elevate costs. Additionally, we expect our selling, general and administrative costs to be similar to the first quarter of 2022."
"We made several operational adjustments beginning in the first quarter that are on-going and expect to see improved coal production in the coming quarters. We commenced development of the access to the
The Company tentatively expects to announce second quarter 2022 financial results after the market closes on
The Company's will hold its annual and special meeting of shareholders at
At the Meeting, shareholders will vote to elect the directors of the Company and to appoint the auditors. Additionally, the Company has made minor amendments to its second amended and restated option plan (the "Option Plan") to align it with the recently updated polices of the
Potential developments and market conditions discussed in this news release are considered to be forward looking information. Readers are cautioned that actual results may vary from this forward-looking information. See "Forward-Looking Statements" below.
Corsa is a coal mining company focused on the production and sales of metallurgical coal, an essential ingredient in the production of steel. Our core business is producing and selling metallurgical coal to domestic and international steel and coke producers in the
Certain information set forth in this press release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") under applicable securities laws. Except for statements of historical fact, certain information contained herein including, but not limited to, statements relating to the expected price volatility of the metallurgical coal market, the future demand for steel and its production, and the availability of its supply, changes to sales margins and expected profitability constitutes forward-looking statements which include management's assessment of future plans and operations and are based on current internal expectations, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "will", "estimates", "expects" "anticipates", "believes", "projects", "plans", "capacity", "hope", "forecast", "anticipate", "could" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties. These risks and uncertainties include, but are not limited to: changes in market conditions, governmental or regulatory developments as a result of the COVID-19 pandemic or otherwise, the operating status and capabilities of our customers and competitors; various events which could disrupt operations and/or the transportation of coal products, including the conflict in
The
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