Pacific Coal Resources Ltd., a junior coal producer which operates in Colombia and trades on the TSX Venture Exchange, reported a big first quarter loss as the company spent to develop its business.
Pacific Coal reported Thursday it lost $38.7 million for the three months ended March 31. It did not provide any year-ago comparisons as it was developing its operations.
Revenues in the quarter totalled $36.9 million, which were due mainly to production and sales at the company’s La Caypa mine.
La Caypa and Cerro Largo are Pacific Coal’s main Colombian operations.
“We are pleased with the first quarter results and we look forward to the impact that production from Cerro Largo will have on earnings in the second quarter and for the remainder of the year,” said Luis Carvajales, the company’s CEO.
“We are well on course to meet our 2011 year-end production target of 1.8 million tonnes.”
In the first quarter, the company said it sold 380,868 tonnes of coal at an average price of $97.30 per tonne.
Capital spending for 2011 is forecast at $154.2 million, which includes $5.2 million for exploration, $15 million for development, $105 million for acquisitions, $14 million on infrastructure, and $15 million on equipment.