Virginia-based coal producer Alpha Natural Resources lowers full-year shipment guidance by about 2% to range of 102.5 million tons to 109.5 million tons on lower metallurgical exports to Asia, lower production at certain mines
September 21, 2011
– Alpha Natural Resources, Inc. (NYSE: ANR), a leading U.S. coal producer, today updated its full year 2011 shipment guidance to a range of 102.5 million tons to 109.5 million tons compared to the previous range of 104 million tons to 112 million tons. The decrease is primarily attributable to four factors: reduced metallurgical export shipments to Asia due to unexpectedly curtailed customer activity levels; a force majeure notice from an export metallurgical customer; lower than expected production from the Emerald longwall mine; and lower than expected production volumes from certain legacy Massey mines in Central Appalachia.
Alpha now anticipates 2011 Eastern metallurgical coal shipments should range from 18.5 million tons to 20.5 million tons, compared to the previous range of 19.0 million tons to 21.0 million tons. Shipments of Eastern thermal coal are now expected to range from 36.0 million tons to 39.0 million tons, compared to the previous range of 37.0 million tons to 41.0 million tons. Shipment guidance for Alpha's Western operations in the Powder River Basin remains unchanged. The majority of the reduction in Alpha's Eastern metallurgical coal shipment guidance range and approximately half of the reduction in Alpha's Eastern thermal coal shipment range are related to shipment levels achieved in July and August of 2011, with the remainder spread throughout the balance of the year.
Primarily as a result of reduced production and shipment forecasts, Alpha now expects that its adjusted Eastern cost of coal sales per ton for 2011 should range from $73 to $76 excluding the influence of merger-related expenses, with higher adjusted cost of coal sales during the third quarter in the range of $77 to $79 per ton, declining as volumes lift in the fourth quarter. Guidance for the Western cost of coal sales per ton for 2011 remains unchanged. Alpha is currently reviewing its 2012 estimates and global market conditions. In conjunction with Alpha's annual budgeting process, the Company plans to refine its 2012 outlook, as appropriate, when the company reports its third quarter 2011 financial results.
About Alpha Natural Resources
Alpha Natural Resources is one of America's premier coal suppliers with coal production capacity of greater than 120 million tons a year. Alpha is the nation's leading supplier and exporter of metallurgical coal used in the steel-making process and is a major supplier of thermal coal to electric utilities and manufacturing industries across the country. The Company, through its affiliates, employs approximately 14,000 people and operates more than 150 mines and 40 coal preparation facilities in Appalachia and the Powder River Basin. More information about Alpha can be found on the Company's Web site at www.alphanr.com.