Western Canadian Coal Corp. (TSX: WTN) was unable to sustain the positive balance it enjoyed at the beginning of its last fiscal year as its $2.3 million net income in 2007's first quarter turned to a $3.1 million loss in the company's current first quarter.
However, quarterly revenue increased to $54.2 million on 629,000 tonnes of coal sold from $30 million on 320,000 tonnes of coal sold during the same period last year.
The start of coal sales from Western Canadian's Perry Creek mine was one of the main reasons for the revenue increase. But, according to the company, that increase was offset by a stronger Canadian dollar and lower coal prices.
The proceeds of Western's $45.1 million private placement were used as working capital and to repay $19.6 million of the Wolverine project's debt.
Production ramp-up from the Perry Creek mine was slower than anticipated and cash flows generated to date were lower than expected.
Western Canadian's share price range during the past week: between $1.95 and $2.15; 52-week high: $3.23; 52-week low: $1.75.