Pacific Coal Resources Ltd provided an operational update on its fourth quarter and full year 2011 production at its La Caypa, Cerro Largo, and CI Jam mines.

Mr Luis Carvajales CEO of Pacific Coal said that "The Company produced 356,542 tonnes of thermal coal this quarter from its La Caypa and Cerro Largo mines, while reducing stripping ratios at both properties. For the full 2011 year, our combined production at both mines was 1,537,624 tonnes of thermal coal, just slightly below our expectations of 1.6 million to 1.7 million tonnes. We are particularly proud of reaching these production levels, as we achieved a new historical annual record production at La Caypa by completing 101% of our target production and over 96% of our expected combined total despite weather-related delays. Going forward, we expect stabilized growth in our production. We have a strong portfolio of cash generating assets in Colombia, with exposure to thermal coal, coke and the commercialization of asphaltite. In terms of margin expansion we are working towards reducing costs on a per tonne basis. As royalty payments from La Caypa increased last quarter based on international coal prices, these increased costs significantly. It is important to clarify that these costs are prepaid a quarter in advance, and they are expected to decrease in coming quarters based on recent trends in international coal prices. Increasing efficiencies and improving costs wherever possible are still initiatives that are key areas of focus for the Company, and in conjunction with a fully committed trucking fleet in place, these costs are expected to decline as well this quarter and throughout 2012."

(Sourced from community.nasdaq.com)