August 12, 2010 / 1:02 PM / 7 years ago

UPDATE 1-Grande Cache Coal Q1 profit falls on weaker volumes

* Q1 EPS C$0.04 vs C$0.05 year ago

* Revenue falls 8 pct

* Coal sales volumes fall 12 pct

Aug 12 (Reuters) - Canada’s Grande Cache Coal Corp GCE.TO reported a 22 percent fall in quarterly profits, hurt mainly by weaker coal sales volumes on account of its shipment timings.

The metallurgical coal miner said it expects to meet the lower end of its sales volumes outlook of 2.0-2.2 million tons for the fiscal year as production will be dependent upon expansion at its mines.

For the first quarter, the company earned C$4.0 million, or 4 Canadian cents a share, compared with C$5.1 million, or 5 Canadian cents a share, a year ago.

Revenue for the company, which holds coal leases in the Smoky River Coalfield in west central Alberta, fell 8 percent to C$69.0 million. The company reported coal sales volumes of 0.45 million tons for the first quarter. Analysts on average expected earnings of 11 Canadian cents a share, on a revenue of C$69.8 million, according to Thomson Reuters I/B/E/S. Cost of sales for Grande Cache, which competes with Western Coal Corp WTN.TO WTN.L, was nearly flat at C$112 per ton during the quarter.

Shares of the Calgary, Alberta-based company, which have fallen 39 percent in four months since mid-April, closed at C$5.31 Wednesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Gopakumar Warrier)

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