https://newsletter.mw.creamermedia.com
Coal|Environment|Mining|Resources
Coal|Environment|Mining|Resources
coal|environment|mining|resources

Arch says Leer South to underperform expectations

2nd October 2023

By: Creamer Media Reporter

     

Font size: - +

Coking coal miner Arch Resources has moderated its volume and cost expectations, owing to ongoing challenges mining the first longwall district at its Leer South mine, in West Virginia.

The miner lowered its 2023 guidance to between 8.6-million and 8.9-million tons and its average metallurgical cash cost guidance to between $88/t and $91/t.

"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 CEO Paul Lang.

However, the South Leer mine continues to benefit from a strengthening coking coal price environment. Despite underperforming relative to initial expectations, Leer South has generated about $470-million in segment-level adjusted earnings before taxes, interest, depreciation and amortisation (Ebitda) since its startup, compared with an initial capital investment of $400-million.

Arch also says it expects its adjusted Ebitda for the third quarter to be about 10% lower than the total reported in the second quarter. The firm will announce its September quarter results on October 26.

The company in September 2021 started production at the four-million-tonne-a-year premium-quality, high-vol A metallurgical coal mine.

Edited by Creamer Media Reporter

Comments

 

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Minerals Council South Africa CEO Mzila Mthenjane
Minerals Council optimistic about ongoing MPRDA review
13th December 2024 By: Marleny Arnoldi

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:1.651 1.758s - 162pq - 2rq
Subscribe Now