News

Western Canadian receives proposals, quarter trading poor

18 June 2008 09:54:00

Western Canadian Coal said it has received a number of non-binding proposals and revealed that reduction in production and increased costs affected fourth quarter trading.

The group said that its review of strategic alternatives has resulted in a "number of non-binding proposals for all or part of the company." It has invited a select group of interested parties to proceed to the next round of the review and conduct further diligence.

"The company cautions shareholders that there is no assurance that the Strategic Review will result in any specific strategic or financial transaction," it added.

Western Canadian also said today that difficult winter weather conditions and continued labour shortage resulted in it reducing production volumes and incur higher costs in the fourth quarter ending March 31.

Sales for the fourth quarter of 2008 were $75.3m (Canadian) versus $44.7m in the same period last year. Net losses were $37.8m versus $3.2m loss last time.

For the year as a whole, sales were up 88% to $252.5m, while coal volumes sold for the year were 3,043,000 tonnes or 116% higher. Net losses were $105.9m compared with $12.9m loss in 2007.

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