The completion of this restructuring provides surety of price to much of the anticipated expanded capacity of La Francia, at a significantly higher price than the company is realising on its current sales and results in an overall restructuring of the company’s forward sales contracts at a higher combined average FOB price.

“This [new agreement] is a further important step in the Coalcorp’s implementation of its recently announced strategic plan,” Luis Urdaneta, CEO, Coalcorp. “By taking advantage of the strong thermal coal demand in the market, we have increased our cash margins significantly with a higher blended coal price between our existing sales commitments and this new agreement. Furthermore, it enables management to focus on execution of the strategic plan to achieve the expanded production levels at the La Francia mine and reduce operating costs with the start up of the Fenoco rail access later this year.”