Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

ARCH RESOURCES, INC.

(ARCH)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

ARCH RESOURCES : Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q)

07/27/2021 | 04:43pm EST

Unless the context otherwise requires, all references in this report to "Arch", "we", "us", or "our" are to Arch Resources, Inc. and its subsidiaries.

Cautionary Notice Regarding Forward-Looking Statements


This report contains "forward-looking statements" - 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 often
contain words such as "should," "appears," "expects," "anticipates," "intends,"
"plans," "believes," "seeks," or "will." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain. For us,
particular uncertainties arise from the COVID-19 pandemic, including its adverse
effects on businesses, economies, and financial markets worldwide; from the
impact of COVID-19 on efficiency, costs and production; from changes in the
demand for our coal by the steel production and electricity generation
industries; from our ability to access the capital markets on acceptable terms
and conditions; from policy, legislation and regulations relating to the Clean
Air Act, greenhouse gas emissions, incentives for alternative energy sources,
and other environmental initiatives; from competition within our industry and
with producers of competing energy sources; from our ability to successfully
acquire or develop coal reserves, including the development of our Leer South
mine; from operational, geological, permit, labor, transportation, and
weather-related factors; from the effects of foreign and domestic trade
policies, actions or disputes; from fluctuations in the amount of cash we
generate from operations, which could impact, among other things, our ability to
service our outstanding indebtedness and fund capital expenditures; from our
ability to successfully integrate the operations that we acquire; from our
ability to generate significant revenue to make payments required by, and to
comply with restrictions related to, our indebtedness, including our ability to
repurchase our convertible notes; from additional demands for credit support by
third parties; from the loss of, or significant reduction in, purchases by our
largest customers; from the development of future technology to replace coal
with hydrogen in the steelmaking process; and from numerous other matters of
national, regional and global scale, including those of a political, economic,
business, competitive or regulatory nature. These uncertainties may cause our
actual future results to be materially different than those expressed in our
forward-looking statements. We do not undertake to update our forward-looking
statements, whether as a result of new information, future events or otherwise,
except as may be required by law. For a description of some of the risks and
uncertainties that may affect our future results, you should see the "Risk
Factors" in Item 1A of our Annual Report on Form 10-K for the year ended
December 31, 2020 and subsequent Form 10-Q filings.

COVID-19

In the first quarter of 2020, COVID-19 emerged as a global level pandemic. The
continuing responses to the COVID-19 outbreak include actions that have a
significant impact on domestic and global economies, including travel
restrictions, gathering bans, stay at home orders, and many other restrictive
measures. All of our operations have been classified as essential in the states
in which we operate. We instituted many policies and procedures, in alignment
with CDC guidelines along with state and local mandates, to protect our
employees during the COVID-19 outbreak. These policies and procedures included,
but were not limited to, staggering shift times to limit the number of people in
common areas at one time, limiting meetings and meeting sizes, continual
cleaning and disinfecting of high touch and high traffic areas, including door
handles, bath rooms, bath houses, access elevators, mining equipment, and other
areas, limiting contractor access to our properties, limiting business travel,
and instituting work from home for administrative employees. During the second
quarter of 2021, as infection rates declined and vaccination rates increased
among our workforce, we modified our COVID-19 response procedures in alignment
with CDC guidelines along with state and local mandates. These modifications
include, increasing allowed meeting sizes, business travel, and contractor
access to our properties. We plan to continually evaluate these policies and
procedures, in accordance with CDC, state, and local guidelines, and make any
necessary adjustments to respond to the particular circumstances in the areas in
which we operate.

                                       30

  Table of Contents
We recognize that the COVID-19 outbreak and responses thereto also continue to
impact both our customers and suppliers. To date, we have not had any
significant issues with critical suppliers, and we continue to communicate with
them and closely monitor their developments to ensure we have access to the
goods and services required to maintain our operations and continue our Leer
South development. Our customers have reacted, and continue to react, in various
ways and to varying degrees to changes in demand for their products. Our current
view of our customer demand situation is discussed in greater detail in the
"Overview" section below.

Overview


Our results for the second quarter of 2021 benefited from continued improvement
in metallurgical and thermal coal markets. During the second quarter of 2021,
global economic growth continued to accelerate as increased availability of
vaccines for COVID-19 has allowed the relaxation of restrictions in some
jurisdictions around the world, particularly domestically. While some countries,
like India, increased restrictions to combat localized increases in COVID-19
infection rates during the second quarter of 2021, these events did not have a
negative impact on our business.

Throughout the second quarter of 2021, domestic steel prices remained at
historically high levels and international steel prices remained at levels that
allow steel producers to generate healthy margins. However, the return of
overall industrial production to pre-COVID-19 levels remains a lengthy process
and, as we saw in the fourth quarter of 2020, is subject to setbacks should
COVID-19, or its variants, become resurgent. Despite increased coking coal
prices, North American coking coal supply remains somewhat constrained compared
to pre-COVID-19 levels. Much previously curtailed production has returned, and
some new supplies have been added to the market. However, some of the high cost
coking coal mine idlings announced during 2020 remain in place, and new supply
disruptions also constrain supply. The duration of specific supply disruptions
is unknown, but even with the recent strengthening of coking coal prices, we
believe that under investment in the sector in recent years will constrain any
supply response. Longer term, we believe continued limited global capital
investment in new coking coal production capacity, economic pressure on higher
cost production sources, normal reserve depletion, and accelerating economic
growth will provide support to coking coal markets as demand continues to return
to the steel production supply chain.

During the fourth quarter of 2020, a major political dispute that manifested
itself as a trade dispute escalated between China, a major importer of coking
coal, and Australia, the world's largest exporter of coking coal. Specifically,
China has effectively banned the import of coking coal, among other export
products, from Australia. Historical trade patterns remain disrupted, and
pricing volatility continues as new trade patterns emerge in the international
coking coal markets. Indices for United States (US) East Coast coking coal
continued to increase during the second quarter of 2021, as strong demand,
including from China, had a positive impact on these markets. Australian Premium
Low Volatile ("PLV") coking coal prices began the quarter well below US East
Coast prices, but have recently increased significantly as demand outside of
China has increased. Uncertainty and volatility in pricing and pricing
relationships are likely until the larger political dispute between China and
Australia is settled. While most of our committed but unpriced coking coal
volume is linked to the United States East Coast indices, we do have some volume
of committed but unpriced coking coal linked to the PLV or other Asia/Pacific
indices for 2021.

Domestic thermal coal consumption increased in the second quarter of 2021,
compared to the second quarter of 2020, due to increased natural gas prices and
economic recovery. Long term, thermal coal demand remains pressured by
continuing increases in subsidized renewable generation sources, particularly
wind and solar, and planned retirements of coal fueled generating facilities.
However, increased natural gas prices led to increases in the percentage of coal
fired generation to total generation in the second quarter of 2021 compared to
the second quarter of 2020. We believe coal generator stockpiles likely declined
during the current quarter, but expect they have remained above historical
averages based on days of burn. During the second quarter of 2021, international
thermal coal market pricing increased to decadal highs that economically support
exports from our thermal operations. We have layered in additional thermal
export commitments for the current year. While we are currently seeing
improvement in thermal coal demand due to accelerating economic growth and
elevated natural gas pricing, longer term we expect domestic and global thermal
markets to remain challenged.

On September 29, 2020, the U.S. District Court ruled against our proposal with
Peabody to form a joint venture that would have combined our Powder River Basin
and Colorado mining operations with Peabody's, and we subsequently announced the
termination of our joint venture efforts. We continue to pursue other strategic
alternatives for our thermal

                                       31

  Table of Contents

assets, including, among other things, potential divestiture. We are
concurrently shrinking our operational footprint at our thermal operations. In
particular, during the first half of 2021, we have completed approximately $25.8
million of Asset Retirement Obligation (ARO) work at these operations, compared
to approximately $2.0 million in the first half of 2020. We are also planning to
establish self-funding mechanisms for these long-term reclamation liabilities at
those operations. Operationally, we will maintain our focus on aligning our
thermal production rates with the secular decline in domestic thermal coal
demand, while adjusting our thermal operating plans to minimize future cash
requirements and maintain flexibility to react to short-term market fluctuations
as we have done in the current quarter. We continue to streamline our entire
organizational structure to reflect our long-term strategic direction as a
leading producer of metallurgical products for the steelmaking industry.

Results of Operations

Three Months Ended June 30, 2021 and 2020

Revenues. Our revenues include sales to customers of coal produced at our operations and coal purchased from third parties. Transportation costs are included in cost of coal sales and amounts billed by us to our customers for transportation are included in revenues.

Coal Sales. The following table summarizes information about our coal sales during the three months ended June 30, 2021 and 2020:


                        Three Months Ended June 30,
                2021         2020        (Decrease) / Increase

                               (In thousands)
Coal sales    $ 450,389    $ 319,521    $               130,868
Tons sold        17,214       13,258                      3,956




On a consolidated basis, coal sales in the second quarter of 2021 were
approximately $130.9 million, or 41.0%, more than in the second quarter of 2020,
while tons sold increased approximately 4.0 million tons, or 29.8%. Coal sales
from Metallurgical operations increased approximately $80.5 million due to
increased pricing and volume. Thermal coal sales increased approximately $56.4
million, primarily due to increased volume. In the prior year quarter, our Viper
operation, which was sold in December 2020, provided approximately $7.2 million
in coal sales and 0.2 million tons sold. See the discussion in "Operational
Performance" for further information about segment results.



                                       32

  Table of Contents

Costs, expenses and other. The following table summarizes costs, expenses and
other components of operating income during the three months ended June 30,
2021
and 2020:


                                                         Three Months Ended June 30,
                                                                                 Increase
                                                                                (Decrease)
                                                                                  in Net
                                                      2021          2020          Income

                                                                (In thousands)
Cost of sales (exclusive of items shown
separately below)                                  $  355,329    $  316,348     $  (38,981)
Depreciation, depletion and amortization               27,884        30,167

2,283

Accretion on asset retirement obligations               5,437         4,986

(451)

Change in fair value of coal derivatives and
coal trading activities, net                            8,762         (129)

(8,891)

Selling, general and administrative expenses           24,119        19,738

(4,381)

Costs related to proposed joint venture with
Peabody Energy                                              -         7,851

7,851

Asset impairment and restructuring                          -         7,437

7,437

Gain on property insurance recovery related to
Mountain Laurel longwall                                    -      (14,518)        (14,518)
Gain on divestitures                                        -       (1,369)         (1,369)
Other operating income, net                           (4,347)       (5,704)         (1,357)
Total costs, expenses and other                    $  417,184    $  364,807
   $   (52,377)




Cost of sales. Our cost of sales for the second quarter of 2021 increased
approximately $39.0 million, or 12.3%, versus the second quarter of 2020. In the
prior year quarter, our Viper operation, which was sold in December 2020,
accounted for approximately $11.6 million in cost of sales. The increase in cost
of sales at ongoing operations consists of increased transportation costs of
approximately $21.9 million, increased operating taxes and royalties of
approximately $16.1 million, increased compensation costs of approximately $11.3
million, a small decrease in coal inventory valuation versus an increase in the
prior year quarter impacting cost of sales approximately $10.7 million, and
increased repairs and supplies costs of approximately $8.4 million. These cost
increases were partially offset by an increase in credit for ARO reclamation
work completed primarily at our Thermal operations of approximately $13.1
million and a decrease in purchased coal cost of approximately $7.0 million. See
discussion in "Operational Performance" for further information about segment
results.



Depreciation, depletion, and amortization. The decrease in depreciation,
depletion, and amortization in the second quarter of 2021 versus the second
quarter of 2020 is primarily due to the reduced depreciation expense relating to
the asset impairment we recorded in the third quarter of 2020 in our Thermal
segment of approximately $2.6 million.



Accretion on asset retirement obligations. The increase in accretion expense in
the second quarter of 2021 versus the second quarter of 2020 is primarily
related to the changes in the planned timing of reclamation work to be completed
at our Thermal operations, specifically at the Coal Creek mine.

Change in fair value of coal derivatives and coal trading activities, net. The
cost in the second quarter of 2021 and the benefit in the second quarter of 2020
are primarily related to mark-to-market gains/losses on coal derivatives into
which we had entered to hedge our price risk for planned international thermal
coal shipments.

Selling, general and administrative expenses. Selling, general and
administrative expenses in the second quarter of 2021 increased versus the
second quarter of 2020 due to increased compensation costs of approximately $4.4
million, primarily related to higher incentive compensation accruals recorded in
the second quarter of 2021.

Costs related to proposed joint venture with Peabody Energy. We incurred expenses of $7.9 million in the second quarter of 2020 associated with the regulatory approval process related to the proposed joint venture with Peabody that was terminated jointly by the parties following the Federal Trade Commission's successful lawsuit to block the joint venture.

Asset impairment and restructuring. We recorded $7.4 million of employee severance expense related to a voluntary separation plan that was accepted by 201 employees from our Thermal operations during the second quarter of 2020.


                                       33

  Table of Contents

Gain on property insurance recovery related to Mountain Laurel longwall. We
recorded a $14.5 million gain related to a property insurance recovery on the
longwall shields at our Mountain Laurel operation during the second quarter of
2020.

Gain on divestitures. We recorded a $1.4 million gain on the sale of our idle Dal-Tex and Briar Branch properties during the second quarter of 2020.

Other operating income, net. The decrease in other operating income, net in the
second quarter of 2021 versus the second quarter of 2020 consists primarily of
the net unfavorable impact of certain coal derivative settlements of
approximately $3.4 million, partially offset by increased income from equity
investments of approximately $1.6 million.



Nonoperating expenses. The following table summarizes our nonoperating expenses during the three months ended June 30, 2021 and 2020:


                                                            Three Months Ended June 30,
                                                                                  Increase (Decrease)
                                                   2021             2020             in Net Income

                                                                   (In thousands)
Non-service related pension and
postretirement benefit costs                   $      (539)     $     (1,102)    $                 563



Non-service related pension and postretirement benefit costs. The reduction in
non-service related pension and postretirement benefit costs in the second
quarter of 2021 versus the second quarter of 2020 is primarily due to the
increased pension settlement recorded in the second quarter of 2021, partially
offset by the postretirement benefit gain amortization in the second quarter of
2020.

Provision for income taxes. The following table summarizes our provision for income taxes during the three months ended June 30, 2021 and 2020:


                                         Three Months Ended June 30,
                                                            Increase (Decrease)
                                 2021           2020           in Net Income

                                                (In thousands)
Provision for income taxes    $    2,006     $    1,206    $              
(800)




See Note 13, "Income Taxes" to the Condensed Consolidated Financial Statements
for a reconciliation of the federal income tax provision at the statutory rate
to the actual provision for income taxes.



Six Months Ended June 30, 2021 and 2020

Revenues. Our revenues include sales to customers of coal produced at our operations and coal purchased from third parties. Transportation costs are included in cost of coal sales and amounts billed by us to our customers for transportation are included in revenues.

Coal Sales. The following table summarizes information about our coal sales during the six months ended June 30, 2021 and 2020:


                         Six Months Ended June 30,
                2021         2020       (Decrease) / Increase

                               (In thousands)
Coal sales    $ 807,932    $ 724,753    $               83,179
Tons sold        31,257       30,239                     1,018




On a consolidated basis, coal sales in the first half of 2021 were approximately
$83.2 million, or 11.5%, more than in the first half of 2020, while tons sold
increased approximately 1.0 million, tons or 3.4%. Coal sales from Metallurgical
operations increased approximately $76.6 million due to increased pricing and
volume. Thermal coal sales increased approximately $23.7 million due to
increased pricing and volume. In the prior year period, our Viper operation,
which

                                       34

  Table of Contents

was sold in December 2020, provided approximately $17.1 million in coal sales
and 0.4 million tons sold. See the discussion in "Operational Performance" for
further information about segment results.

Costs, expenses and other. The following table summarizes costs, expenses and
other components of operating income during the six months ended June 30, 2021
and 2020:


                                                         Six Months Ended June 30,
                                                                                Increase
                                                                               (Decrease)
                                                                                 in Net
                                                     2021          2020          Income

                                                               (In thousands)
Cost of sales (exclusive of items shown
separately below)                                 $  665,235    $  691,347     $    26,112
Depreciation, depletion and amortization              53,681        61,475 

7,794

Accretion on asset retirement obligations             10,874         9,992 

(882)

Change in fair value of coal derivatives and
coal trading activities, net                           9,290           614 

(8,676)

Selling, general and administrative expenses 45,599 42,483

(3,116)

Costs related to proposed joint venture with
Peabody Energy                                             -        11,515 

11,515

Asset impairment and restructuring                         -        13,265 

13,265

Gain on property insurance recovery related to
Mountain Laurel longwall                                   -      (23,518)        (23,518)
Gain on divestitures                                       -       (1,369)         (1,369)
Other operating income, net                          (9,615)      (11,874)         (2,259)
Total costs, expenses and other                   $  775,064    $  793,930 
  $     18,866




Cost of sales. Our cost of sales for the first half of 2021 decreased
approximately $26.1 million, or 3.8%, versus the first half of 2020. In the
prior year period, our Viper operation, which was sold in December 2020,
accounted for approximately $22.1 million in cost of sales. The decrease in cost
of sales at ongoing operations consists of an increase in credit for ARO
reclamation work completed primarily at our Thermal operations of approximately
$22.3 million, a decrease in purchased coal cost of approximately $13.9 million,
and reduced repairs and supplies costs of approximately $13.3 million. These
cost decreases were partially offset by increased transportation costs of
approximately $25.3 million, increased operating taxes and royalties of
approximately $10.6 million, and increased compensation costs of approximately
$5.1 million. See discussion in "Operational Performance" for further
information about segment results.

Depreciation, depletion, and amortization. The decrease in depreciation,
depletion, and amortization in the first half of 2021 versus the first half of
2020 is primarily due to the reduced depreciation expense relating to the asset
impairment we recorded in the third quarter of 2020 in our Thermal segment of
approximately $5.5 million and reduced depletion expense from lower depletion
rates in our Metallurgical segment of approximately $1.3 million.

Accretion on asset retirement obligations. The increase in accretion expense in
the first half of 2021 versus the first half of 2020 is primarily related to the
changes in the planned timing of reclamation work to be completed at our Thermal
operations, specifically at the Coal Creek mine.

Change in fair value of coal derivatives and coal trading activities, net. The
cost in both the first half of 2021 and 2020 is primarily related to
mark-to-market gains/losses on coal derivatives into which we had entered to
hedge our price risk for planned international thermal coal shipments.

Selling, general and administrative expenses. Selling, general and
administrative expenses in the first half of 2021 increased versus the first
half of 2020 due to increased compensation costs of approximately $3.5 million,
primarily related to higher incentive compensation accruals recorded in the
first half of 2021.



Costs related to proposed joint venture with Peabody Energy. During the first
half of 2020 we incurred expenses of $11.5 million associated with the
regulatory approval process related to the proposed joint venture with Peabody
that was terminated jointly by the parties following the Federal Trade
Commission's successful lawsuit to block the joint venture.

                                       35

Table of Contents

Asset impairment and restructuring. During the first half of 2020 we recorded $13.3 million of employee severance expense related to voluntary separation plans that were accepted by 53 employees of the corporate staff and 201 employees of our Thermal operations.


Gain on property insurance recovery related to Mountain Laurel longwall. During
the first half of 2020, we recorded a $23.5 million benefit from insurance
proceeds related to the loss of certain longwall shields at our Mountain Laurel
operation.

Gain on divestitures. During the first half of 2020, we recorded a $1.4 million gain on the sale of our idle Dal-Tex and Briar Branch properties.

Other operating income, net. The decrease in other operating income, net in the
first half of 2021 versus the first half of 2020 consists primarily of the net
unfavorable impact of certain coal derivative settlements of approximately $4.9
million, partially offset by increased income from equity investments of
approximately $2.2 million.

Nonoperating expenses. The following table summarizes our nonoperating expenses during the six months ended June 30, 2021 and 2020:


                                                         Six Months Ended June 30,
                                                                                  Increase
                                                                                 (Decrease)
                                                   2021            2020        in Net Income

                                                               (In thousands)
Non-service related pension and
postretirement benefit costs                   $    (2,066)    $    (2,198)    $          132
Reorganization items, net                                 -              26              (26)
Total nonoperating expenses                    $    (2,066)    $    (2,172)    $          106



Non-service related pension and postretirement benefit costs. The reduction in
non-service related pension and postretirement benefit costs in the first half
of 2021 versus the first half of 2020 is primarily due to the increased pension
settlement recorded in the first half of 2021, partially offset by the
postretirement benefit gain amortization in the first half of 2020.

Provision for (benefit from) income taxes. The following table summarizes our
provision for (benefit from) income taxes during the six months ended June
30,
2021 and 2020:


                                                        Six Months Ended June 30,
                                                                                 Increase
                                                                                (Decrease)
                                                 2021             2020         in Net Income

                                                              (In thousands)

Provision for (benefit from) income taxes $ 2,383 $ (585)

  $       (2,968)



See Note 13, "Income Taxes" to the Condensed Consolidated Financial Statements for a reconciliation of the federal income tax provision (benefit) at the statutory rate to the actual provision for (benefit from) income taxes.



                                       36

  Table of Contents

Operational Performance

Three and Six Months Ended June 30, 2021 and 2020

On December 31, 2020, we sold our Viper operation. As a result, we revised our
reportable segments beginning in the first quarter of 2021 to better reflect the
manner in which the chief operating decision maker (CODM) views our businesses
going forward for purposes of reviewing performance, allocating resources and
assessing future prospects and strategic execution. Prior to the first quarter
of 2021, we had three reportable segments: MET, Powder River Basin (PRB), and
Other Thermal. After the divestment of Viper, we have three remaining active
thermal mines: West Elk, Black Thunder, and Coal Creek. With two distinct lines
of business, metallurgical and thermal, the movement to two segments better
aligns with how we make decisions and allocate resources. No changes were made
to the MET Segment and the three remaining thermal mines have been combined as
the "Thermal Segment". The prior periods have been restated to reflect the
change in reportable segments.

Our mining operations are evaluated based on Adjusted EBITDA, per-ton cash
operating costs (defined as including all mining costs except depreciation,
depletion, amortization, accretion on asset retirements obligations, and
pass-through transportation expenses, divided by segment tons sold), and on
other non-financial measures, such as safety and environmental performance.
Adjusted EBITDA is defined as net income (loss) attributable to us before the
effect of net interest expense, income taxes, depreciation, depletion and
amortization, the accretion on asset retirement obligations and nonoperating
expenses. Adjusted EBITDA may also be adjusted for items that may not reflect
the trend of future results by excluding transactions that are not indicative of
our core operating performance. Adjusted EBITDA is not a measure of financial
performance in accordance with generally accepted accounting principles, and
items excluded from Adjusted EBITDA are significant in understanding and
assessing our financial condition. Therefore, Adjusted EBITDA should not be
considered in isolation, nor as an alternative to net income (loss), income
(loss) from operations, cash flows from operations or as a measure of our
profitability, liquidity or performance under generally accepted accounting
principles. Furthermore, analogous measures are used by industry analysts and
investors to evaluate our operating performance. Investors should be aware that
our presentation of Adjusted EBITDA may not be comparable to similarly titled
measures used by other companies.

The following table shows results by operating segment for the three and six months ended June 30, 2021 and June 30, 2020.



                            Three Months Ended June 30,               Six 

Months Ended June 30,

                           2021          2020       Variance       2021          2020       Variance
Metallurgical
Tons sold (in
thousands)                   2,007         1,475          532        3,727         3,254          473
Coal sales per ton
sold                    $    89.71    $    76.17    $   13.54    $   86.97    $    79.55    $    7.42
Cash cost per ton
sold                    $    59.37    $    61.95    $    2.58    $   59.49    $    60.02    $    0.53
Cash margin per ton
sold                    $    30.34    $    14.22    $   16.12    $   27.48    $    19.53    $    7.95
Adjusted EBITDA (in
thousands)              $   61,246    $   20,910    $  40,336    $ 102,843    $   63,630    $  39,213
Thermal
Tons sold (in
thousands)                  15,204        11,603        3,601       27,496        26,518          978
Coal sales per ton
sold                    $    13.50    $    13.87    $  (0.37)    $   13.35    $    13.61    $  (0.26)
Cash cost per ton
sold                    $    10.88    $    14.86    $    3.98    $   11.46    $    14.18    $    2.72
Cash margin per ton
sold                    $     2.62    $   (0.99)    $    3.61    $    1.89    $   (0.57)    $    2.46
Adjusted EBITDA (in
thousands)              $   41,772    $ (10,114)    $  51,886    $  54,853 
  $ (12,016)    $  66,869




This table reflects numbers reported under a basis that differs from U.S. GAAP.
See "Reconciliation of Non-GAAP measures" below for explanation and
reconciliation of these amounts to the nearest GAAP measures. Other companies
may calculate these per ton amounts differently, and our calculation may not be
comparable to other similarly titled measures.

                                       37

Table of Contents

Metallurgical - Adjusted EBITDA for the three and six months ended June 30, 2021
increased from the three and six months ended June 30, 2020 due to increased
sales volume and prices, and decreased cash cost of sales per ton. The
improvement in the current year periods over the prior year periods is largely
due to the difference in trajectory of the COVID-19 pandemic during the
respective periods in time. During the first half of 2021, increasing vaccine
availability and decreasing infection rates led to accelerating economic growth,
improving prompt coking coal index prices, and increasing steel demand and
pricing. In contrast, during the first half of 2020, coking coal prices fell as
large scale industrial shutdowns were initiated in response to the emergence of
COVID-19.

As of the end of the second quarter of 2021, our Leer South longwall development
project remains on schedule, with initial longwall production anticipated in
August of 2021. All primary longwall equipment has been delivered to the mine
site, and we are currently in the planned thirty day shutdown required for the
final tie in of the new longwall operation to the surface coal preparation and
loading facilities. The addition of this second longwall operation to our
Metallurgical Segment is expected to significantly increase our volumes and
strengthen our low average segment cost structure.

Our Metallurgical segment sold 1.8 million tons of coking coal and 0.2 million
tons of associated thermal coal in the three months ended June 30, 2021,
compared to 1.3 million tons of coking coal and 0.2 million tons of associated
thermal coal in the three months ended June 30, 2020. In the six months ended
June 30, 2021, we sold 3.3 million tons of coking coal and 0.4 million tons of
associated thermal coal compared to 2.8 million tons of coking coal and 0.4
million tons of associated thermal coal in the six months ended June 30, 2020.
Longwall operations accounted for approximately 64% and 61% of our shipment
volume in the three and six months ended June 30, 2021, respectively, compared
to approximately 56% and 61% of our shipment volume in the three and six months
ended June 30, 2020, respectively.

Thermal - Adjusted EBITDA for the three and six months ended June 30, 2021
increased versus the three and six months ended June 30, 2020, due to increased
sales volume and decreased cash cost per ton sold, partially offset by decreased
coal sales per ton sold. The improvement in the current year periods over the
prior year periods is largely due to increased domestic utility coal burn,
resulting from higher natural gas pricing and improved economic growth. The
reduction in both coal sales per ton sold and cash cost per ton sold is driven
by the increased percentage of volume from our lower cost and lower priced Black
Thunder operation. Our cash cost per ton sold also benefited from our
operational flexibility to take advantage of increasing demand, despite the
substantial progress we have made on our efforts to align production levels with
the secular decline in domestic thermal coal demand. Also, contributing to the
decreases in cost and price is the inclusion of approximately 0.4 million tons
sold from our former Viper operation in the six months ended June 30, 2020.
During the first half of 2021, we completed approximately $25.8 million of ARO
work at our current Thermal operations, compared to $2.0 million during the
first half of 2020.



                                       38

  Table of Contents

Reconciliation of Non-GAAP measures

Segment coal sales per ton sold


Non-GAAP Segment coal sales per ton sold is calculated as segment coal sales
revenues divided by segment tons sold. Segment coal sales revenues are adjusted
for transportation costs, and may be adjusted for other items that, due to
generally accepted accounting principles, are classified in "other income" on
the statement of operations, but relate to price protection on the sale of coal.
Segment coal sales per ton sold is not a measure of financial performance in
accordance with generally accepted accounting principles. We believe segment
coal sales per ton sold provides useful information to investors as it better
reflects our revenue for the quality of coal sold and our operating results by
including all income from coal sales. The adjustments made to arrive at these
measures are significant in understanding and assessing our financial condition.
Therefore, segment coal sales revenues should not be considered in isolation,
nor as an alternative to coal sales revenues under generally accepted accounting
principles.




                                                                            Idle and
Three Months Ended June 30, 2021            Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Revenues in the Condensed
Consolidated Statements of Operations      $       219,448    $ 230,759    $      182    $      450,389
Less: Adjustments to reconcile to
Non-GAAP Segment coal sales revenue
Coal risk management derivative
settlements classified in "other
income"                                                  -          651             -               651
Coal sales revenues from idled or
otherwise disposed operations not
included in segments                                     -            -           181               181
Transportation costs                                39,348       24,899             1            64,248
Non-GAAP Segment coal sales revenues       $       180,100    $ 205,209    $        -    $      385,309
Tons sold                                            2,007       15,204
Coal sales per ton sold                    $         89.71    $   13.50





                                                                            Idle and
Three Months Ended June 30, 2020            Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Revenues in the Condensed
Consolidated Statements of Operations      $       138,951    $ 174,393    $    6,177    $      319,521
Less: Adjustments to reconcile to
Non-GAAP Segment coal sales revenue
Coal risk management derivative
settlements classified in "other
income"                                              (259)      (2,486)             -           (2,745)
Coal sales revenues from idled or
otherwise disposed operations not
included in segments                                     -            -         6,143             6,143
Transportation costs                                26,848       15,950            34            42,832
Non-GAAP Segment coal sales revenues       $       112,362    $ 160,929    $        -    $      273,291
Tons sold                                            1,475       11,603
Coal sales per ton sold                    $         76.17    $   13.87






















                                       39

  Table of Contents


                                                                            Idle and
Six Months Ended June 30, 2021              Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Revenues in the Condensed
Consolidated Statements of Operations      $       398,231    $ 408,297    $    1,404    $      807,932
Less: Adjustments to reconcile to
Non-GAAP Segment coal sales revenue
Coal risk management derivative
settlements classified in "other
income"                                              (690)        1,203                             513
Coal sales revenues from idled or
otherwise disposed operations not
included in segments                                                            1,397             1,397
Transportation costs                                74,837       40,065             7           114,909
Non-GAAP Segment coal sales revenues       $       324,084    $ 367,029    $        -    $      691,113
Tons sold                                            3,727       27,496
Coal sales per ton sold                    $         86.97    $   13.35







                                                                            Idle and
Six Months Ended June 30, 2020              Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Revenues in the Condensed
Consolidated Statements of Operations      $       321,605    $ 384,589    $   18,559    $      724,753
Less: Adjustments to reconcile to
Non-GAAP Segment coal sales revenue
Coal risk management derivative
settlements classified in "other
income"                                              (520)      (3,814)             -           (4,334)
Coal sales revenues from idled or
otherwise disposed operations not
included in segments                                     -            -        18,492            18,492
Transportation costs                                63,236       27,423            67            90,726
Non-GAAP Segment coal sales revenues       $       258,889    $ 360,980    $        -    $      619,869
Tons sold                                            3,254       26,518
Coal sales per ton sold                    $         79.55    $   13.61






                                       40

  Table of Contents


Segment cash cost per ton sold

Non-GAAP Segment cash cost per ton sold is calculated as segment cash cost of
coal sales divided by segment tons sold. Segment cash cost of coal sales is
adjusted for transportation costs, and may be adjusted for other items that, due
to generally accepted accounting principles, are classified in "other income" on
the statement of operations, but relate directly to the costs incurred to
produce coal. Segment cash cost per ton sold is not a measure of financial
performance in accordance with generally accepted accounting principles. We
believe segment cash cost per ton sold better reflects our controllable costs
and our operating results by including all costs incurred to produce coal. The
adjustments made to arrive at these measures are significant in understanding
and assessing our financial condition. Therefore, segment cash cost of coal
sales should not be considered in isolation, nor as an alternative to cost of
sales under generally accepted accounting principles.


                                                                            Idle and
Three Months Ended June 30, 2021            Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Cost of sales in the Condensed
Consolidated Statements of Operations      $       158,539    $ 190,245    $    6,545    $      355,329
Less: Adjustments to reconcile to
Non-GAAP Segment cash cost of coal
sales
Transportation costs                                39,348       24,899             1            64,248
Cost of coal sales from idled or
otherwise disposed operations not
included in segments                                     -            -         4,354             4,354
Other (operating overhead, certain
actuarial, etc.)                                         -            -         2,190             2,190
Non-GAAP Segment cash cost of coal
sales                                      $       119,191    $ 165,346    $        -    $      284,537
Tons sold                                            2,007       15,204
Cash Cost Per Ton Sold                     $         59.37    $   10.88





                                                                            Idle and
Three Months Ended June 30, 2020            Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Cost of sales in the Condensed
Consolidated Statements of Operations      $       118,238    $ 187,408    $   10,702    $      316,348
Less: Adjustments to reconcile to
Non-GAAP Segment cash cost of coal
sales
Diesel fuel risk management derivative
settlements classified in "other
income"                                                  -      (1,011)             -           (1,011)
Transportation costs                                26,848       15,950            34            42,832
Cost of coal sales from idled or
otherwise disposed operations not
included in segments                                     -            -         9,068             9,068
Other (operating overhead, certain
actuarial, etc.)                                         -            -         1,600             1,600
Non-GAAP Segment cash cost of coal
sales                                      $        91,390    $ 172,469    $        -    $      263,859
Tons sold                                            1,475       11,603
Cash Cost Per Ton Sold                     $         61.95    $   14.86
























                                       41

  Table of Contents


                                                                            Idle and
Six Months Ended June 30, 2021              Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Cost of sales in the Condensed
Consolidated Statements of Operations      $       296,541    $ 355,185    $   13,509    $      665,235
Less: Adjustments to reconcile to
Non-GAAP Segment cash cost of coal
sales
Transportation costs                                74,837       40,065             7           114,909
Cost of coal sales from idled or
otherwise disposed operations not
included in segments                                     -            -         9,572             9,572
Other (operating overhead, certain
actuarial, etc.)                                         -            -         3,930             3,930
Non-GAAP Segment cash cost of coal
sales                                      $       221,704    $ 315,120 $           -    $      536,824
Tons sold                                            3,727       27,496
Cash Cost Per Ton Sold                     $         59.49    $   11.46





                                                                            Idle and
Six Months Ended June 30, 2020              Metallurgical      Thermal       Other        Consolidated
(In thousands)
GAAP Cost of sales in the Condensed
Consolidated Statements of Operations      $       258,570    $ 401,793    $   30,984    $      691,347
Less: Adjustments to reconcile to
Non-GAAP Segment cash cost of coal
sales
Diesel fuel risk management derivative
settlements classified in "other
income"                                                  -      (1,698)             -           (1,698)
Transportation costs                                63,237       27,423            67            90,727
Cost of coal sales from idled or
otherwise disposed operations not
included in segments                                     -            -        26,954            26,954
Other (operating overhead, certain
actuarial, etc.)                                         -            -         3,963             3,963
Non-GAAP Segment cash cost of coal
sales                                      $       195,333    $ 376,068    $        -    $      571,401
Tons sold                                            3,254       26,518
Cash Cost Per Ton Sold                     $         60.02    $   14.18






                                       42

  Table of Contents


Reconciliation of Segment Adjusted EBITDA to Net Income (Loss)

The discussion in "Results of Operations" above includes references to our
Adjusted EBITDA for each of our reportable segments. Adjusted EBITDA is defined
as net income (loss) attributable to us before the effect of net interest
expense, income taxes, depreciation, depletion and amortization, the accretion
on asset retirement obligations and nonoperating expenses. Adjusted EBITDA may
also be adjusted for items that may not reflect the trend of future results by
excluding transactions that are not indicative of our core operating
performance. We use Adjusted EBITDA to measure the operating performance of our
segments and allocate resources to our segments. Adjusted EBITDA is not a
measure of financial performance in accordance with generally accepted
accounting principles, and items excluded from Adjusted EBITDA are significant
in understanding and assessing our financial condition. Therefore, Adjusted
EBITDA should not be considered in isolation, nor as an alternative to net
income (loss), income (loss) from operations, cash flows from operations or as a
measure of our profitability, liquidity or performance under generally accepted
accounting principles. Investors should be aware that our presentation of
Adjusted EBITDA may not be comparable to similarly titled measures used by other
companies. The table below shows how we calculate Adjusted EBITDA.



                                            Three Months Ended June 30,           Six Months Ended June 30,
                                              2021               2020              2021               2020

                                                                     (In thousands)
Net income (loss)                        $       27,866     $      (49,324)    $      21,824     $     (74,623)
Provision for (benefit from) income
taxes                                             2,006               1,206            2,383              (585)
Interest expense, net                             2,794               1,730            6,595              3,859
Depreciation, depletion and
amortization                                     27,884              30,167           53,681             61,475
Accretion on asset retirement
obligations                                       5,437               4,986           10,874              9,992
Costs related to proposed joint
venture with Peabody Energy                           -               7,851                -             11,515
Asset impairment and restructuring                    -               7,437                -             13,265
Gain on property insurance recovery
related to Mountain Laurel longwall                   -            (14,518)                -           (23,518)
Gain on divestitures                                  -             (1,369)                -            (1,369)
Non-service related pension and
postretirement benefit costs                        539               1,102            2,066              2,198
Reorganization items, net                             -                   -                -               (26)
Adjusted EBITDA                                  66,526            (10,732)           97,423              2,183
EBITDA from idled or otherwise
disposed operations                               3,997               2,696            7,563              7,795
Selling, general and administrative
expenses                                         24,119              19,738           45,599             42,483
Other                                             8,376               (906)            7,112              (847)
Segment Adjusted EBITDA from coal
operations                               $      103,018     $        10,796    $     157,697     $       51,614




Other includes primarily income from our equity investments, certain changes in
fair value of heating oil and diesel fuel derivatives we use to manage our
exposure to diesel fuel pricing, certain changes in the fair value of coal
derivatives and coal trading activities, EBITDA provided by our land company,
and certain miscellaneous revenue.





                                       43

  Table of Contents

Liquidity and Capital Resources

Our primary sources of liquidity are proceeds from coal sales to customers and
certain financing arrangements. Excluding significant investing activity, we
intend to satisfy our working capital requirements and fund capital expenditures
and debt-service obligations with cash generated from operations and cash on
hand. As we continue to evaluate the impacts of COVID-19 and the responses
thereto on our business, we remain focused on prudently managing costs,
including capital expenditures, maintaining a strong balance sheet, and ensuring
adequate liquidity.

Given the volatile nature of coal markets, and the significant challenges and
uncertainty surrounding COVID-19, we believe it is increasingly important to
take a prudent approach to managing our balance sheet and liquidity, as
demonstrated by the suspension of our dividend and share repurchases. Due to the
current economic uncertainties related to COVID-19 and the related disruption in
the financial markets, we may be limited in accessing capital markets or
obtaining additional bank financing or the cost of accessing this financing
could become more expensive. We believe our current liquidity level is
sufficient to fund our business and complete our Leer South development. In the
future, we will continue to evaluate our capital allocation initiatives in light
of the current state of, and our outlook for coal markets; the amount of our
planned production that has been committed and priced; the capital needs of the
business; other strategic opportunities; and developments in the COVID-19
outbreak and the responses thereto.

On March 7, 2017, we entered into a senior secured term loan credit agreement in
an aggregate principal amount of $300 million (the "Term Loan Debt Facility")
with Credit Suisse AG, Cayman Islands Branch, as administrative agent and
collateral agent and the other financial institutions from time to time party
thereto. The Term Loan Debt Facility was issued at 99.50% of the face amount and
will mature on March 7, 2024. The term loans provided under the Term Loan Debt
Facility (the "Term Loans") are subject to quarterly principal amortization
payments in an amount equal to $750,000. Proceeds from the Term Loan Debt
Facility were used to repay all outstanding obligations under our previously
existing term loan credit agreement, dated as of October 5, 2016. The interest
rate on the Term Loan is, at our option, either (i) the London interbank offered
rate ("LIBOR") plus an applicable margin of 2.75%, subject to a 1.00% LIBOR
floor, or (ii) a base rate plus an applicable margin of 1.75%. For further
information regarding the Term Loan Debt Facility, see Note 12, "Debt and
Financing Arrangements" to the Condensed Consolidated Financial Statements.

We have entered into a series of interest rate swaps to fix a portion of the
LIBOR interest payments due under the Term Loans. As interest payments are made
on the Term Loans, amounts in accumulated other comprehensive income will be
reclassified into earnings through interest expense to reflect a net interest on
the Term Loans equal to the effective yield of the fixed rate of the swap plus
2.75%, which is the spread on the Term Loans as amended. For further information
regarding the interest rate swaps, see Note 12, "Debt and Financing
Arrangements" to the Condensed Consolidated Financial Statements.

On September 30, 2020, we extended and amended our existing trade accounts
receivable securitization facility provided to Arch Receivable Company, LLC, a
special-purpose entity that is a wholly owned subsidiary of Arch Resources
("Arch Receivable") (the "Securitization Facility"), which supports the issuance
of letters of credit and requests for cash advances. The amendment to the
Securitization Facility reduced the facility size from $160 million to $110
million and extended the maturity date to September 29, 2023. For further
information regarding the Securitization Facility see Note 12, "Debt and
Financing Arrangements" to the Condensed Consolidated Financial Statements.

On September 30, 2020, we amended the senior secured inventory-based revolving
credit facility in an aggregate principal amount of $50 million (the "Inventory
Facility") with Regions Bank ("Regions") as administrative agent and collateral
agent, as lender and swingline lender (in such capacities, the "Lender") and as
letter of credit issuer. Availability under the Inventory Facility is subject to
a borrowing base consisting of (i) 85% of the net orderly liquidation value of
eligible coal inventory, plus (ii) the lesser of (x) 85% of the net orderly
liquidation value of eligible parts and supplies inventory and (y) 35% of the
amount determined pursuant to clause (i), plus (iii) 100% of our Eligible Cash
(defined in the Inventory Facility), subject to reduction for reserves imposed
by Regions. The amendment of the Inventory Facility extended the maturity date
to September 29, 2023, eliminated the provision that accelerated maturity of the
facility upon falling below a specified level of liquidity, and reduced the
minimum liquidity requirement from $175 million to $100 million. Additionally,
the amendment includes provisions that reduce the advance rates for coal
inventory and parts and supplies, depending on liquidity. During the second
quarter of 2021, we entered into an amendment to temporarily suspend certain of
the Liquidity requirements within the existing facility through the filing
of

                                       44

  Table of Contents

the September 2021 borrowing base. For further information regarding the Inventory Facility, see Note 12, "Debt and Financing Arrangements" to the Condensed Consolidated Financial Statements.


On July 2, 2020, the West Virginia Economic Development Authority (the "Issuer")
issued $53.1 million aggregate principal amount of Solid Waste Disposal Facility
Revenue Bonds (Arch Resources Project), Series 2020 (the "Tax Exempt Bonds")
pursuant to an Indenture of Trust dated as of June 1, 2020 (the "Indenture of
Trust") between the Issuer and Citibank, N.A., as trustee (the "Trustee"). As a
follow-on to our $53.1 million offering, on March 4, 2021, the Issuer issued an
additional $45.0 million in Series 2021 Tax Exempt Bonds. The proceeds of the
Tax Exempt Bonds are loaned to us as we make qualifying expenditures pursuant to
a Loan Agreement dated as of June 1, 2020, as supplemented by a First Amendment
to the Loan Agreement dated March 1, 2021 (collectively, the "Loan Agreement"),
each between the Issuer and us. The Tax Exempt Bonds are payable solely from
payments to be made by us under the Loan Agreement as evidenced by a Note from
us to the Trustee. The proceeds of the Tax Exempt Bonds were used to finance
certain costs of the acquisition, construction, reconstruction, and equipping of
solid waste disposal facilities at our Leer South development, and for
capitalized interest and certain costs related to issuance of the Tax Exempt
Bonds. As of June 30, 2021, we have received $91.0 million of the total Tax
Exempt Bonds proceeds. The remaining $7.1 million is held in trust and is
recorded on our balance sheet as restricted cash. The remainder of the funds
will be released as qualified expenditures are made. For further information
regarding the Tax Exempt Bonds, see Note 12, "Debt and Financing Arrangements"
to the Condensed Consolidated Financial Statements.

In November, 2020, we issued $155.3 million in aggregate principal amount
of 5.25% convertible senior notes due 2025 ("Convertible Notes" or "Convertible
Debt"). The net proceeds from the issuance of the Convertible Notes, after
deducting offering related costs of $5.1 million and cost of a capped call
transaction of $17.5 million, were approximately $132.7 million. The Convertible
Notes bear interest at the annual rate of 5.25%, payable semiannually in arrears
on May 15 and November 15 of each year, and will mature on November 15, 2025,
unless earlier converted, redeemed or repurchased by us.



During the second quarter of 2021, the common stock price condition of the
Convertible Notes was satisfied, as the closing stock price exceeded 130% of the
conversion price of approximately $37.325 for at least 20 trading days of the
last 30 trading days prior to quarter end. As a result, the Convertible Notes
are convertible at the election of the noteholders during the third quarter, and
due to our stated intent to settle the principal value in cash, the liability
portion of $114.5 million of the Convertible Notes was reflected in current
maturities of debt on our Condensed Consolidated Balance Sheet at June 30, 2021.
As of the date of this Quarterly Report on Form 10-Q, we have not received any
conversion requests for the Convertible Notes and do not anticipate receiving
any conversion requests in the near term as the market value of the Convertible
Notes exceeds the conversion value of the Convertible Notes. As of June 30,
2021, the if-converted value of the Convertible Notes exceeded the principal
amount by $81.8 million. For further information regarding the Convertible Notes
and the capped call transactions, see Note 12, "Debt and Financing Arrangements"
to the Condensed Consolidated Financial Statements.



On April 27, 2017, our Board of Directors authorized a capital return program
consisting of a share repurchase program and a quarterly cash dividend. The
share repurchase plan has a total authorization of $1.05 billion of which we
have used $827.4 million. During the three months ended June 30, 2021, we did
not repurchase any shares of our stock. On April 23, 2020 we announced the
suspension of our quarterly dividend due to the significant economic uncertainty
surrounding the COVID-19 virus and the steps being taken to control the virus.
During the three months ended June 30, 2021, we did not pay any dividends on
shares of our stock. The timing and amount of any future dividends or of any
future share purchases and the ultimate number of shares to be purchased will
depend on a number of factors, including business and market conditions, our
future financial performance, and other capital priorities. Any shares acquired
would be in the open market or through private transactions in accordance with
Securities and Exchange Commission requirements.



                                       45

  Table of Contents

On June 30, 2021 we had total liquidity of approximately $242 million, including
$187 million in unrestricted cash and equivalents, and short-term investments in
debt securities, with the remainder provided by availability under our credit
facilities, and funds withdrawable from brokerage accounts. The table below
summarizes our availability under our credit facilities as of June 30, 2021:


                                                                   Letters of
                                                    Borrowing        Credit                                     Contractual
                                    Face Amount        Base       Outstanding     Availability                   Expiration
                                                                         (Dollars in thousands)
Securitization Facility            $     110,000    $   95,300    $     58,323   $            36,977                        September 29, 2023
Inventory Facility                        50,000        50,000          31,950                18,050                        September 29, 2023
Total                              $     160,000    $  145,300    $     90,273   $            55,027



The above standby letters of credit outstanding have primarily been issued to
satisfy certain insurance-related collateral requirements. The amount of
collateral required by counterparties is based on their assessment of our
ability to satisfy our obligations and may change at the time of policy renewal
or based on a change in their assessment. Future increases in the amount of
collateral required by counterparties would reduce our available liquidity.

The following is a summary of cash provided by or used in each of the indicated types of activities during the six months ended June 30, 2021 and 2020:



                                 Six Months Ended June 30,
                                    2021             2020
(In thousands)
Cash provided by (used in):
Operating activities           $       26,109     $    25,922
Investing activities                 (80,771)        (58,292)
Financing activities                   21,837          29,372




Cash Flow
Cash provided by operating activities increased slightly in the six months ended
June 30, 2021 versus the six months ended June 30, 2020 mainly due to the
improvement in results from operations discussed in the "Overview" and
"Operational Performance" sections above, partially offset by a greater increase
in working capital requirements of approximately $61 million in the current year
period, primarily in receivables; receipt of an approximately $38 million income
tax refund in the prior year period; and an increase in reclamation work
completed of approximately $22 million in the current year period.

Cash used in investing activities increased in the six months ended June 30,
2021 versus the six months ended June 30, 2020 primarily due to the
approximately $24 million in property insurance proceeds received on our
Mountain Laurel longwall claim in the six months ended June 30, 2020. Capital
spending in the six months ended June 30, 2021 includes approximately $110
million related to our Leer South mine development and approximately $14 million
in capitalized interest.

Cash provided by financing activities decreased in the six months ended June 30,
2021 compared to the six months ended June 30, 2020 primarily due to proceeds of
approximately $54 million from our Equipment Financing in the first half of 2020
and approximately $5 million more in net payments on other debt in the first
half of 2021, partially offset by approximately $45 million in proceeds from our
follow on issuance of Tax Exempt Bonds in the first half of 2021 and a dividend
payment of approximately $8 million in the first half of 2020. For further
information regarding the Equipment Financing arrangement and Tax Exempt Bonds,
see Note 12, "Debt and Financing Arrangements" to the Condensed Consolidated
Financial Statements.





                                       46

  Table of Contents

© Edgar Online, source Glimpses

All news about ARCH RESOURCES, INC.
11/15Coal shares lose ground after Glasgow climate deal
RE
11/08B. Riley Lifts Arch Resources' PT to $142 from $132, Increases Near-Term Price Deck for..
MT
10/27B. Riley Lifts Arch Resources' PT to $132 from $120 on Higher Expected Coal Price Reali..
MT
10/26ARCH RESOURCES, INC. Management's Discussion and Analysis of Financial Condition and R..
AQ
10/26Arch Resources Swings to Profit in Q3, Revenue Rises
MT
10/26Announces resumption of quarterly cash dividend - Form 8-K
PU
10/26Arch Resources Reports Third Quarter 2021 Results
PU
10/26ARCH RESOURCES : Q3 Earnings Snapshot
AQ
10/26Earnings Flash (ARCH) ARCH RESOURCES Posts Q3 Revenue $594.4M, vs. Street Est of $509.9..
MT
10/26Arch Resources, Inc. Declares Quarterly Cash Dividend, Payable on December 15, 2021
CI
More news
Analyst Recommendations on ARCH RESOURCES, INC.
More recommendations
Financials (USD)
Sales 2021 2 191 M - -
Net income 2021 388 M - -
Net Debt 2021 34,0 M - -
P/E ratio 2021 3,56x
Yield 2021 0,39%
Capitalization 1 219 M 1 219 M -
EV / Sales 2021 0,57x
EV / Sales 2022 0,20x
Nbr of Employees 3 203
Free-Float 59,0%
Chart ARCH RESOURCES, INC.
Duration : Period :
Arch Resources, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ARCH RESOURCES, INC.
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 5
Last Close Price 79,60 $
Average target price 121,40 $
Spread / Average Target 52,5%
EPS Revisions
Managers and Directors
Paul A. Lang President, Chief Executive Officer & Director
Matthew C. Giljum Chief Financial Officer & Senior Vice President
John W. Eaves Executive Chairman
John T. Drexler Chief Operating Officer & Senior Vice President
John A. Ziegler Chief Administrative Officer & Senior VP