January 11, 2011 / 1:38 PM / 7 years ago

UPDATE 2-Coal miner Grande Cache cuts 2011 sales volume forecast

* Cuts FY11 sales to 1.5-1.6 mln tons from 1.7-1.9 mln tons

* Sees 2011 prodn costs up at C$125-C$130 mln

* Q3 sales down 38 percent

* Shares down 4 pct

Jan 11 (Reuters) - Grande Cache Coal Corp GCE.TO cut its 2011 sales forecast for the second time in four months and reported a 38 percent fall in quarterly sales, hurt by lower production at one of its mines in Alberta.

The Canadian coal miner, which holds four coal leases in the Smoky River Coalfield, said the timing of shipments in the fourth quarter could be impacted by possible delays at Westshore terminals, the country’s largest coal export facility on the Pacific coast in Vancouver.

Last October, Grande Cache and Teck Resources Ltd TCKb.TO, another major coal miner, had cut full-year sales volume forecast due to congestion at Westshore. [ID:nSGE69C0HQ]

Calgary, Alberta-based Grande Cache also sees production costs to rise above its previous forecast, on higher mining costs at its No. 8 pit.

October-December sales were 0.29 million tons, compared with 0.47 million tons a year earlier, the company said.

Grande Cache forecast sales volumes in fiscal 2012 at 2.4-2.6 million tons as it expects the strong demand for metallurgical coal in Canada to stay.

The company’s shares were down about 4 percent at C$10.93 in opening trade Tuesday on the Toronto Stock Exchange. They have risen nearly 70 percent in the last one year. (Reporting by Aftab Ahmed in Bangalore; Editing by Roshni Menon, Unnikrishnan Nair) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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