ST.
LOUIS, Oct. 2, 2023 /PRNewswire/ -- Arch
Resources, Inc. (NYSE: ARCH) today announced that it now expects
coking coal sales volumes for the third quarter of 2023 to remain
generally in line with those reported in the second quarter of
2023, due primarily to ongoing challenges mining in the first
longwall district at its Leer South mine. In keeping with this
revision to sales volume expectations, Arch is revising its full
year 2023 guidance for coking coal sales volumes to 8.6 to 8.9
million tons and its average metallurgical cash cost guidance to
$88 to $91 per ton.
"While we remain enthusiastic about Leer South's long-term
outlook, the conditions in the first longwall district – which, as
previously discussed, represented the most capital-efficient access
point for the Lower Kittanning reserve base – continue to constrain
advance rates," said Paul A. Lang,
Arch's chief executive officer and president. "In light of these
conditions, we are moderating our volume and cost expectations for
the balance of the year, even as we continue to benefit from a
strengthening coking coal price environment." Despite
underperforming relative to initial expectations, Leer South has
now generated approximately $470
million in segment-level adjusted EBITDA since its startup,
versus an initial capital investment of approximately $400 million.
In addition, Arch preliminarily expects adjusted EBITDA for the
third quarter of 2023 to be approximately 10 percent lower than the
total reported for the second quarter of 2023. Arch expects
discretionary cash flow – defined as cash flow from operating
activities less capital expenditures – for the third quarter of
2023 to be more than half the total of $150.7 million achieved in the second quarter of
2023, which included a working capital reduction of $62.5 million. These amounts are estimates,
actual third quarter 2023 financial results will be released on
October 26.
Arch to Announce its Third Quarter Financial Results on
October 26
Arch will discuss its third quarter 2023 financial results in an
investor conference call on Thursday,
October 26 at 10:00 a.m. Eastern
Time. Interested participants may access the conference call
by dialing 877-870-4263 approximately five to 10 minutes prior to
the start time. For participants calling from an overseas location,
please dial +1 412-317-0790. No passcode is needed. The call will
also be webcast and will be accessible via the "investor" section
of the Arch website at http://investor.archrsc.com. Following the
live event, a replay and an audio download will be available on the
site. Arch's third quarter 2023 earnings release will be
distributed via PR Newswire before the market opens on October 26 and will be posted to the company's
website at that time.
Arch Resources is a premier producer of high-quality
metallurgical products for the global steel industry. The company
operates large, modern and highly efficient mines that consistently
set the industry standard for both mine safety and environmental
stewardship. Arch Resources from time to time utilizes its website
– www.archrsc.com – as a channel of distribution for material
company information. To learn more about us and our premium
metallurgical products, go to www.archrsc.com.
Forward-Looking Statements: This press release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended - that is, statements
related to future, not past, events. In this context,
forward-looking statements often address our expected future
business and financial performance, and future plans, and often
contain words such as "should," "could," "appears," "estimates,"
"projects," "targets," "expects," "anticipates," "intends," "may,"
"plans," "predicts," "believes," "seeks," "strives," "will" or
variations of such words or similar words. Actual results or
outcomes may vary significantly, and adversely, from those
anticipated due to many factors, including: loss of availability,
reliability and cost-effectiveness of transportation facilities and
fluctuations in transportation costs; inflationary pressures and
availability and price of mining and other industrial supplies;
changes in coal prices, which may be caused by numerous factors
beyond our control, including changes in the domestic and foreign
supply of and demand for coal and the domestic and foreign demand
for steel and electricity; volatile economic and market conditions;
operating risks beyond our control, including risks related to
mining conditions, mining, processing and plant equipment failures
or maintenance problems, weather and natural disasters, the
unavailability of raw materials, equipment or other critical
supplies, mining accidents, and other inherent risks of coal mining
that are beyond our control; the effects of foreign and domestic
trade policies, actions or disputes on the level of trade among the
countries and regions in which we operate, the competitiveness of
our exports, or our ability to export; competition, both within our
industry and with producers of competing energy sources, including
the effects from any current or future legislation or regulations
designed to support, promote or mandate renewable energy sources;
alternative steel production technologies that may reduce demand
for our coal; our ability to secure new coal supply arrangements or
to renew existing coal supply arrangements; the loss of, or
significant reduction in, purchases by our largest customers;
disruptions in the supply of coal from third parties; risks related
to our international growth; our relationships with, and other
conditions affecting our customers and our ability to collect
payments from our customers; the availability and cost of surety
bonds; including potential collateral requirements; we may not have
adequate insurance coverage for some business risks; additional
demands for credit support by third parties and decisions by banks,
surety bond providers, or other counterparties to reduce or
eliminate their exposure to the coal industry; inaccuracies in our
estimates of our coal reserves; defects in title or the loss of a
leasehold interest; losses as a result of certain marketing and
asset optimization strategies; cyber-attacks or other security
breaches that disrupt our operations, or that result in the
unauthorized release of proprietary, confidential or personally
identifiable information; our ability to acquire or develop coal
reserves in an economically feasible manner; our ability to pay
dividends or repurchase shares of our common stock according to our
announced intent or at all; the loss of key personnel or the
failure to attract additional qualified personnel and the
availability of skilled employees and other workforce factors;
existing and future legislation and regulations affecting both our
coal mining operations and our customers' coal usage, governmental
policies and taxes, including those aimed at reducing emissions of
elements such as mercury, sulfur dioxides, nitrogen oxides,
particulate matter or greenhouse gases; increased pressure from
political and regulatory authorities, along with environmental and
climate change activist groups, and lending and investment policies
adopted by financial institutions and insurance companies to
address concerns about the environmental impacts of coal
combustion; increased attention to environmental, social or
governance matters ("ESG"); our ability to obtain and renew various
permits necessary for our mining operations; risks related to
regulatory agencies ordering certain of our mines to be temporarily
or permanently closed under certain circumstances; risks related to
extensive environmental regulations that impose significant costs
on our mining operations and could result in litigation or material
liabilities; the accuracy of our estimates of reclamation and other
mine closure obligations; the existence of hazardous substances or
other environmental contamination on property owned or used by us;
and risks related to tax legislation. All forward-looking
statements in this press release, as well as all other written and
oral forward-looking statements attributable to us or persons
acting on our behalf, are expressly qualified in their entirety by
the cautionary statements contained in this section and elsewhere
in this press release. These factors are not necessarily all of the
important factors that could cause actual results or outcomes to
vary significantly, and adversely, from those anticipated at the
time such statements were first made. These risks and
uncertainties, as well as other risks of which we are not aware or
which we currently do not believe to be material, may cause our
actual future results and outcomes to be materially, and adversely,
different than those expressed in our forward-looking statements.
For these reasons, readers should not place undue reliance on any
such forward-looking statements. These forward-looking
statements speak only as of the date on which such statements were
made, and we do not undertake, and expressly disclaim, any duty to
update our forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by the federal securities laws. For a description of some of the
risks and uncertainties that may affect our future results, you
should see the risk factors described from time to time in the
reports we file with the Securities and Exchange
Commission.
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SOURCE Arch Resources, Inc.