Alpha Natural Resources expects to sell 6.8-7.8 million tons of met coal in 2018

Wednesday, 17 January 2018 23:36:17 (GMT+3)   |   San Diego
       

Alpha Natural Resources today announced that it is issuing sales guidance for 2018 of 13.0 – 14.6 million tons, comprised of approximately 6.8 – 7.8 million tons of metallurgical coal and 6.2 – 6.8 million tons of thermal coal. Alpha's anticipated 2018 metallurgical coal sales consist of various grades of metallurgical coal, with the majority of these sales from Alpha's Low Volatile, Medium Volatile, and High Volatile A products.

According to a press release, more than half of Alpha's metallurgical sales in 2018 will be sold under Alpha's multi-year arrangement to a counterparty for ultimate sale to third parties in the international market. Pricing through this arrangement is primarily set by various Atlantic seaborne-based price indices, depending on the grade and quality of the coal.  The majority of Alpha's thermal sales are to long-standing domestic utility customers with the remaining thermal production to be sold domestically or into the export market via spot sales.

Alpha CEO David Stetson stated, "We are already taking advantage of the strong international markets for our coal through additions of incremental production with minimal new capital investments. If this market remains strong and stable, we can further flex and increase our metallurgical production beyond the guidance provided above by approximately one million tons on an annualized basis without incurring significant capex cost. We also have the ability to decrease production without having to absorb material fixed cost if this market changes."

Alpha also announced that it expects sales in the 4th Quarter of 2017 to be 1.9 million tons of metallurgical coal and 1.7 million tons of thermal coal, and full year 2017 sales of 7.9 million tons of metallurgical coal, including 1.0 million brokered tons, and 7.0 million tons of thermal coal.


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