Expert AnalysisThe Energy Report interview with Colin Healey...

Expert Analysis
The Energy Report interview with Colin Healey (2/14/13) "Coalspur Mines Ltd. is developing the Vista Coal project in Hinton, Alberta, which is an export thermal coal project. The company is looking to ramp up production to close to 12 million tons per year of export-quality thermal coal. Initial production should come on-line in late 2015 to early 2016, in our model. Coalspur is currently in the process of finalizing financing arrangements for Vista Coal. The capex to initial production is expected to be in the $500–527M range. The company signed a commitment letter with EIG Global Energy Partners for a $300M senior secured debt facility. Now, Coalspur is working on an offtake agreement to provide the additional funding required to get Vista Coal into initial production. The company may still have to go to the market for equity, but that should be tempered by the $300M debt facility.
The quality of its coal is seaborne market quality, with high calorific values, making it economic for export. Cash operating costs in our forecast are in the range of $56 per ton. Total cash costs are in the high $60s. With our long-term projection of coal prices in the $100–104 range and Coalspur's total production costs, including sustaining capex, in the $76 range, the potential is definitely there for good margins and a long life of mine." More >
Meredith Bandy, BMO Capital Markets (2/11/13) "Coalspur Mines Ltd.'s Vista project is expected to begin production in 2015, ramping up to full production of 12 Mtpa export thermal coal by 2018. . .the company is expected to generate positive operating cash flow beginning in FY/17. . .we are reiterating our Outperform rating and increasing target price. . .the valuation appears attractive for a development project in a relatively politically secure jurisdiction, with existing infrastructure to port."