Pine Valley Mining Corporation: Coal Revenue Increased In Third Quarter Results.VANCOUVER, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- Conference Call/Webcast on Thursday, February 24 Pine Valley Pine Valley may refer to:
TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:PVM (Parallel Virtual Machine) Software that enables multiple Unix and Windows NT/2000 computers to function as one large, parallel machine. It is used to solve scientific, industrial and medical problems around the world. For information, visit www.epm.ornl.gov/pvm. )(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :PVMCF) is pleased to release results for the third quarter, during which it recognized increased revenue as it increased coal production from the Willow Creek Willow Creek may refer to: In Christianity:
EST abbr. electroshock therapy . The call can be accessed by calling the operator at 416-695-5299 or toll free 1-877-888-4210 prior to the scheduled start time. A playback version of the call will be available for two weeks up to March 10, 2005 at 416-695-5275 or North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. toll free 1-888-509-0081. The live webcast of the call will be available at Pine Valley's web site www.pinevalleycoal.com The Company realized revenues of $9.189 million for the three month period ended December 31, 2004, as a result of the Company's commercial coal shipments totalling approximately 146,000 tonnes of pulverized pul·ver·ize v. pul·ver·ized, pul·ver·iz·ing, pul·ver·iz·es v.tr. 1. To pound, crush, or grind to a powder or dust. 2. To demolish. v.intr. coal injection ("PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). ") metallurgical coal product. Minimal revenues were realized during the prior comparable period. The Company realized $1.191 million in net income from mining operations during the period. In addition, significant items impacting the Company's net income during the quarter included a foreign exchange gain of $1.302 million as a result of forward exchange contracts entered into by the Company. Significant expenses during the quarter included $0.227 million interest and financing charges, $0.178 million professional fees and salaries and stock-based expense of $0.26 million, of which stock-based compensation expense was $0.154 million. As a result of the foregoing, the Company realized consolidated net income of $1.664 million for the third quarter. The Company's activities during the fiscal third quarter were directed primarily towards coal production from the Willow Creek Coal Mine in northeastern British Columbia and the construction of coal handling facilities designed to allow an increase in the production rate. The Company has completed commissioning the majority of the equipment constructed and installed to increase the monthly capacity of the Willow Creek Coal Mine to 110,000 tonnes of coal. The Company concluded sales negotiations for the sale of 529,000 tonnes of its PCI product for the period September 2004 to March 31, 2005 with customers who represent a number of the premier steel producers in Asia and Europe. The weighted average price for the PCI coal to be sold under these contracts is US$54.97 per tonne. Approximately 120,000 tonnes of the contracted tonnage will be carried over for deliveries in the year beginning April 1, 2005. Negotiations are currently in progress for PCI coal to be sold under new contracts in the contract year which will begin April 1, 2005. The Company's phased plan to further increase capacity continues to progress as outlined below:
Stage of Development Production rate Operational Date
(tonnes annualized)
---------------------------------------------------------------------
Initial operations 540,000 July 2004
Installation of coal
handling equipment 1,320,000 February 2005
Wash plant and related
equipment installed 2,200,000 Autumn 2005
In order to meet the anticipated cost increases and accelerated expenditures, the Company entered into a transaction during the quarter with The Rockside Foundation ("Rockside"), whereby the Company completed a transaction to borrow from Rockside the aggregate principal sum of US$8,850,000. Interest is paid at the rate of 10% per annum Per annum Yearly. payable monthly. The Company has issued or will issue common shares that are equivalent to 10% of the initial principal amount (US$3,750,000) of the loan advanced by Rockside in November, and that number of the Company's shares that is equivalent to 1% per five week period of the US$5,100,000 principal amount of the loan advanced at the end of December to a maximum of 10% until the loan is repaid. The Company has issued 104,736 Common shares for the loan of the initial US$3,750,000 principal amount and is committed to issue an additional 10,102 shares for the second principal amount drawn. The Company's financial statements and management discussion and analysis describing the fiscal third quarter results in detail accompany this news release or may be accessed through the Company web site www.pinevalleycoal.com or at www.sedar.com. This news release contains certain "forward looking statements", as defined in the United States Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, that involve a number of risks and uncertainties including but not limited to economic, competitive, governmental and geological factors effecting the Company's operations, markets, products and prices and other risk factors. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company's dependence on the steel industry, volatility in coal prices, accidents and other risks associated with mining operations, the Company's need for and availability of additional financing, the restrictions imposed under the Company's existing debt arrangements and its debt service requirements and the other risk factors discussed in greater detail in the Company's various filings with the Securities and Exchange Commission and Canadian securities regulators, including the Company's Form 20-F dated September 30, 2004. PINE VALLEY MINING CORPORATION "Graham Mackenzie" Graham Mackenzie President and Chief Executive Officer The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Pine Valley Mining Corporation (TSX VENTURE:PVM) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :PVMCF) |
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