Arch Resources Moderates Volume, Cost Expectations For Balance Of 2023 - Quick Facts

(RTTNews) - Arch Resources, Inc. (ARCH) said it now expects coking coal sales volumes for the third quarter to remain generally in line with those reported in the second quarter of 2023. The company revised 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.

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. Also, the company projects discretionary cash flow for the third quarter 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.

"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 Lang, Arch's CEO.