GCE - Grande Cache Coal Corporation

I don't think I've ever seen GCE on here. On SH there calling for $2 tomorrow. It's at $1.40 today. Its high is around $11 . I'm going to have to do some DD.

[redablazin]

I noticed that Haywood bought alot of shares in Grand Cache Coal. Is Haywood seeing coal as a next big play?

I had posted the above note in Cash Minerals on Aug.1. I guess with all the buying by Haywood on the 1st; I should have bought too. I was kind of wondering if the buying was related between the 2 stocks since Haywood was buying up shares in CHX.

[operator]

Someone talked about coal this morning on ROBTV. I was busy but I think he said oil price was high and people would use coal. Coal outlook should be good.

[knowsnothing]

hired a new vice president marketing and transportation...some activity on this stock recently...something is baking

[marketjunky]

the problem with coal is that it is still a very valauble entity, but it can be cyclical in nature due to when customers order. use of coal has declined as some of this past years balance sheets might indicate, but large customers such as china buy in big spurts then may not buy again for a while. this i beleive explains a good deal of the strength we saw in 2005,and the weakness in 2006. 2007 may be a good year for the balance sheets once again. i am noticing alot of consolidation and GCE offers an interesting speculation. so does WTN, where i see alot of institutional and outside investment.

[knowsnothing]

GCE HAS ONLY 16 MILLION IN DEBT. WTN HAS MORE THAN 150 MILLION...coal prices will go down again later this year. contractors are really expensive and gce will go with their own fleet. wtn wont do that for another 3 years.
gce has a production for more than $120 million/yr and it is going through a rough time because of not enough orders which might change since the coal prices are going down= more orders.

[4pples]

GCE is a great stock to trade here in this tuff market, .. some nice swings here

[_Frank_]

yeah i got back in today.

[mouserman]

I picked up some GCE on friday - and as usual it headed down after my buys- but really downside here looks minimal. GCE has hedged in a huge % of their production to March 09 at the highest prices.Grande Cache Coal earns $47.06-million in Q2 2009


2008-11-05 10:13 ET - News Release

Mr. Robert Stan reports

GRANDE CACHE COAL CORPORATION REPORTS NET INCOME OF $47.1 MILLION IN SECOND QUARTER FISCAL 2009

Grande Cache Coal Corp. has provided its financial and operating results for the three and six months ended Sept. 30, 2008.

The corporation earned a record net income of $47.1-million during the second quarter, in comparison with a net loss of $8.8-million in the same period last year. Included in this quarter's net income was a $10.2-million future income tax benefit that was recognized based on the projection of future taxable earnings. Net income per share was 52 cents in the second quarter and 61 cents for the fiscal year to date.

Income from operations was $37.4-million in the current quarter and $41.3-million in the first six months of the fiscal year.

Second quarter clean coal production improved 58 per cent over the first quarter to 430,000 tonnes, primarily as a result of improvements in the surface mine. As a result, the clean coal production cost dropped to $70 per tonne, down from $100 per tonne in the previous quarter.

Second quarter sales volumes were 340,000 tonnes, compared with 360,000 tonnes in the same period last year. A delayed vessel caused 70,000 tonnes to slip from the second quarter into the third quarter.

Second quarter revenue was $76.6-million, a 149-per-cent increase over last year's second quarter revenue of $30.8-million. The average sales price achieved during the quarter was $223 per tonne, in contrast to $85 per tonne in the comparable period. The improvement reflects higher contract price settlements for the current coal year offset somewhat by calendar-year contracts and carry-over tonnage from the prior coal year.

Cost of sales for the second quarter was $35.9-million, or $104 per tonne, down from $135 per tonne in the first quarter of the year.

The corporation's cash position increased $13.8-million during the quarter bringing the cash balance at Sept. 30, 2008, to $22.1-million.

[mouserman]

Fiscal 2009 guidance update

Coal production was less than expected during the second quarter due to the underground mine being in an extended period of development, which temporarily reduces the volume of coal released. The underground mine continues to be in development which is expected to last until mid-November. As a result, the corporation is revising its fiscal 2009 coal sales volume guidance to a projected range of 1.5 million to 1.65 million tonnes, down from the previous guidance range of 1.8 million to two million tonnes. The revised coal sales projection is contingent upon depillaring commencing in the underground mine as expected, sufficient rail service and timely shipping schedules.

As a result of the revised sales volume guidance, the corporation anticipates the average sales price for fiscal 2009 will be in the range of $210 (U.S.) to $220 (U.S.) per tonne, down from the previous guidance range of $245 (U.S.) to $255 (U.S.) per tonne. The decrease is a result of having a higher proportion of lower priced coal, which consists of carry-over tonnage from the prior year and contracts settled on a calendar-year basis, and a lower proportion of current coal year contracts, which will be carried into fiscal 2010.

The corporation projects that the average cost of sales for fiscal 2009 will be in the range of $108 to $113 per tonne, up from the previous guidance range of $85 to $88 per tonne. The increase is a result of lower sales volume, lower productivities, a lower plant yield, higher mining input costs, especially for diesel fuel and contract labour, and higher distribution costs.

Robert Stan, president and chief executive officer, commented: "After a brief period of depillaring, the underground mine went back into a development stage of production due to the detection of additional coal. Although this temporarily reduces our coal production in the current year, it has a positive long-term impact as more coal is available for recovery from the underground mine. We saw improvements in the surface mine and raw coal production increased significantly over the previous quarter. We will continue to take necessary steps to improve production in the current year, while making decisions that maximize overall coal recovery."

Mr. Stan continued: "The revision to our fiscal 2009 sales volume means that we will have carry-over tonnage into fiscal 2010. Although this will decrease the average U.S. sales price for fiscal 2009, the recent weakening of the Canadian dollar against the U.S. dollar should help mitigate the impact on our net income this year."

Financing activities

During the second quarter, Brookfield Bridge Lending Fund Inc. converted the remaining $9.85-million balance on the three-year floating rate senior secured convertible debenture into common shares at a conversion price of $1.825 per share. The conversion resulted in the issuance of 5.4 million common shares and eliminated the corporation's remaining debt.

The corporation has an unused $20-million revolving debt facility with Brookfield which matures on April 1, 2009. The corporation is in discussions with several financial institutions regarding a replacement for the revolving debt facility.