Alabama Coal Mines

CanAm Coal Reports Profit for Q1

CALGARY, ALBERTA--(Marketwire - Aug. 2, 2011) - CanAm Coal Corp. (TSX VENTURE:COE) (OTCQX:COECF) ("CanAm" or the "Company") has filed its unaudited condensed interim consolidated financial statements and related management's discussion and analysis for the three month period ended April 30, 2011. Copies of these documents may be obtained via the SEDAR website.

With the primary focus of the Company on growing coal production and resources, the main activities of the CanAm team in the first quarter were devoted to transitioning and optimizing the Powhatan mine operations and on successfully completing the Birmingham Coal & Coke ("BCC") acquisition. The Company was successful on both accounts and delivered record production and profit in the first quarter of fiscal 2012 and on May 9 , shortly after quarter end, completed the acquisition of 50% of the BCC group of companies.

"We made significant progress on all fronts in this quarter", said Tim Bergen, CEO of CanAm. "Compared to prior year's first quarter, we tripled coal production and coal revenue and increased income from mining operations five-fold. We also generated approximately $0.8 million of cash flow from operations and delivered $0.2 million of net income in the first quarter. At the same time, we completed the BCC acquisition which adds a 50% interest in 3 operating mines and a coal brokerage business".

Highlights and events for the first quarter include:

Mined 30,655 tons of coal in the first quarter as compared to 9,950 tons in Q1 of fiscal 2011 or an increase of 20,705 tons. Coal sales were up 16,022 tons from the previous quarter (Q4 2011) or more than doubled; Generated revenue, income and EBITDA from mining operations of $3,233,121 (2011 - $1,124,738), $892,824 (2011 – $177,986) and $1,180,461 (2011 - $206,952), respectively; Generated cash from operations of $788,175 as compared to a use of cash for operations of $115,903 in the comparable prior period; Improved the overall financial position of the Company and cash and cash equivalents and working capital at April 30, 2011 amounted to $2.4 million and $0.9 million as compared to $1.5 million and $5,497 at January 31, 2011; Converted approximately $0.5 million of the 12% convertible debenture debt into common shares and raised additional funds as a result of the exercise of warrants for proceeds of approximately $65,000.

Left In Alabama:: Alabama Surface Mining Commission: Coal Slurry ...

You know how Big, Bad Government can't do anything right? That's especially true when our state agencies are called upon to protect us from corporate polluters. Coal activists have been warning us for years about contamination on the Black Warrior -- and now that there's been a slurry spill, our state Surface Mining Commission is trying to tell us there's nothing to see here :

The Alabama Surface Mining Commission has released data from samples taken along the North River following an accidental release of coal slurry into the stream July 15. Shortly after the accidental spill a spokesman for Walter Energy told CBS42 the material that was released is non-hazardous and is primarily water with approximately one quarter of the volume being fine rock particles.

[...]

Although the July 19 data shows above allowable levels for Total Suspended Solids, Turbidity, Arsenic, and Lead, ACSM director Randall Johnson points out that the tests both upstream and downstream of the spill also show high arsenic levels. Johnson says more testing is being done and results will be made public when available.

Gee, maybe the elevated arsenic levels downstream of the spill are the result of leaching contaminants? But you have to love the phrasing ASMC uses here. Saying that coal slurry is "mostly water" is exactly like comparing the Deepwater Horizon oil spill to chocolate sauce. It's a deflection intended to mask incredible toxicity.

A torrent of recent studies prove what activists have been saying for years: in all its forms, coal kills . Coal is ancient dead stuff compressed by time and geology, and when it comes out of the ground it spreads death wherever it goes. Water contamination from mountaintop removal coal mining has been linked to birth defects in Appalachia . Massey Energy (now Alpha Natural Resources) is being sued for contaminating the water supply by injecting coal slurry into closed mines . Interestingly, their defense is that a subsidiary acted without their knowledge -- NOT that slurry isn't poisonous.

ASMC would like you to think that coal slurry is not dangerous. My response is that I will believe them when they let their own families take a nice, big drink out of that river. More as this develops...