Alpha Metallurgical Resources, Inc Provides operating Guidance for the Full Year of 2021 and 2022
November 05, 2021 at 07:35 am EDT
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Alpha Metallurgical Resources, Inc. provided operating guidance for the full year of 2021 and 2022. For the year of 2021, the company is increasing its 2021 cost of coal sales guidance in light of increased labor costs, inflationary pressure for certain supplies, such as steel used in roof support and diesel fuel, as well as higher royalties and taxes due to higher sales prices. Met segment cost of coal sales are now expected to be between $73.00 per ton and $77.00 per ton. Cost of coal sales for the All Other category is expected to remain in the existing range of $45.00 per ton and $49.00 per ton. Additionally, with depreciation, depletion and amortization trending lower for the year, the company are adjusting DD&A guidance down to a range of $100 million to $110 million from the prior range of $125 million to $145 million.
For the year 2022, the company is issuing 2022 operating guidance with coal shipments expected to be in the range of 15.4 million tons to 17.0 million tons. Met segment volume is expected to be between 14.8 million to 16.2 million tons. Within the Met segment, pure metallurgical coal shipments for the year are expected to be between 14.0 million to 15.0 million tons, and incidental thermal shipments in this segment are expected to be between 0.8 million to 1.2 million tons. Guidance range of 0.6 million tons to 0.8 million tons for the All Other category represents production expectations from last remaining thermal operation, the Slabcamp mine, which is on track to close in the summer of 2022. For 2022, Alpha has committed and priced approximately 28% of its metallurgical coal within the Met segment at an average price of $195.43 per ton and 88% of thermal coal in the Met segment at an average expected price of $51.56 per ton. In the All Other category the company is 89% committed and priced at an average price of $56.49 per ton.
Alpha Metallurgical Resources, Inc. is a mining company with operations across Virginia and West Virginia. The Company supplies metallurgical products to the steel industry. Its portfolio of mining operations consists of about 15 underground mines, seven surface mines and nine coal preparation plants. It extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities. It conducts mining operations only in the United States with mines in Central Appalachia. The Company operates in one segment: Met, which consists of five active mines and two preparation plants in Virginia, 17 active mines and six preparation plants in West Virginia, as well as expenses associated with certain idled/closed mines. The Met segment operations consist of met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch. It ships met coal to domestic and international steel and coke producers.
ALPHA METALLURGICAL RESOURCES, INC. 
