Top Base Metal Penny Stock Pick – Corsa Coal Corp.

This base metal penny stock was formed via the acquisition of the Wilson Creek coal properties and associated assets in Pennsylvania. With construction of a new wash plant completed in 2011, this coal penny stock is targeting a ramp up in production over the next two years to its 2.0 MMt per year capacity. This base metal penny stock expects to add further resources in the region and looks to repeat its development strategy. Along with its full year F2011 filings last week, this penny stock provided an updated outlook for F2012 sales, production and costs. The base metal penny stock indicated that weaker coal demand seen in late Q4 has continued into Q1, resulting in a lowering of its potential sales forecast to approximately 605–705kt from 800–900kt previously. Specifically, in Q1/F12 this penny stock expects to sell only 65kt of 90kt previously estimated. As such, going forward this penny stock will look to match production and thirdparty purchases to actual demand and sales orders. As with most coking coal producers, the penny stock’s sale volumes were materially below production capacity in late 2011 due to the uncertainty in the global market. That said, the penny stock’s operations are progressing according to plan and in F2012, production expansion will support over 1MMt ROM met coal available for processing through the plant, compared to 365kt processed in F2011. As such, we believe that despite challenges seen to date, significant upside remains when sales pick up consistently and permits are issued on schedule.