Warrior Met Coal Inc., a leading US-based producer and exporter of high quality metallurgical coal for the global steel industry, has announced results for the first quarter ended 31 March 2017 (1Q17).
“We are pleased with our strong performance in this first quarter reporting as a newly listed company,” commented Walt Scheller, CEO of Warrior Met Coal. “Over the past year, we have established Warrior as the premier and only ‘pure-play’ met coal producer in the US Warrior’s unique value proposition is based on two principal factors: the strength of our met coal assets, and our competitive positioning as a formidable operator in the era of ‘new coal.’”.
Mine No. 4 and Mine No. 7 were both operational during the first quarter of 2017, with one longwall at Mine No. 4 and two longwalls at Mine No. 7. Both mines continued to ramp up production toward the Company’s historical annual production level of approximately 8 million short t. Warrior produced 1.6 million short t of met coal in the first quarter 2017 which was 33% better than expected, and included the move of one longwall operation.
“There is significant growth potential embedded in Warrior’s existing operations,” added Scheller. “We have improved our productivity and advance rates as our workforce continued to skill up, and we will commit our catch-up capital spending to realise nameplate production capacity in our two mines of about 8 million short tons per year.”
Total revenues were US$254 million for 1Q17, including US$241.1 million in mining revenues, which consisted of met coal sales of 1.1 million short t at an average selling price of US$213.89/short t. During this period, the company reported net income of US$108.3 million, or US$2.06 per share. Adjusted Net Income for the first quarter 2017 was US$117.2 million, or US$2.22 per share and Adjusted EBITDA for the quarter was US$135.5 million.
Cost of sales for 1Q17 were US$106.1 million, or 41.8% of total revenues and includes mining costs, transportation and royalty costs.
The company expects to continue to ramp up production at its mines in 2017 from the levels achieved in 2016.
Read the article online at: https://www.worldcoal.com/coal/19052017/warrior-met-coal-reports-first-quarter-results-for-2017/