Alpha Metallurgical Resources (NYSE:AMR) provided operational guidance for 2023 on Monday, including an increase in full-year total shipments to 16.7M-18.4M tons, with 15M-16M metallurgical tons expected to account for most of the total.
“Even against a more ambitious guidance range than in 2022,” Alpha (AMR) said it already has contracted 62% of metallurgical tons at the midpoint for the coming calendar year, comprised of 30% committed and priced at an average of $193/ton and another 32% that is committed but not yet priced.
In terms of expected cost of coal sales, Alpha (AMR) guides for a range of $106-$112/ton in the Met Coal segment and $87-$93/ton for all others, reflecting expectations of continued inflationary pressure through 2023, particularly in labor and supplies.
The company expects capital spending of $250M-$280M for the full year, which includes some carryover from 2022, sustaining maintenance capital, and several planned projects to invest in mine development.
“We are encouraged by the continued demand in coal markets, and with supply expected to remain tight across the globe for some time to come, we believe Alpha is well positioned to ship more coal in 2023,” President Andy Eidson said.
Alpha Metallurgical Resources (AMR) has “delivered on its goal of getting its balance sheet into a strong net cash position, [and] now it’s all about returning capital to shareholders,” Michael Wiggins de Oliveira writes in an analysis posted recently on Seeking Alpha.
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