tag:blogger.com,1999:blog-1527840491496268397.post5359985569218032674..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Warrior Met Coal, Inc. ($HCC)Unknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1527840491496268397.post-68811059202745055062023-08-02T18:16:55.789-07:002023-08-02T18:16:55.789-07:00More than a year after the relaunch of the Blue Cr...<i>More than a year after the relaunch of the Blue Creek mine development in May 2022, Warrior has initiated important and highly beneficial project scope changes that will require incremental capital expenditures over the life of the project while lowering operating costs, increasing flexibility to manage risks, and make better use of multi-channel transportation methods. Most of these scope changes are transportation and logistics-related, with additional amounts related to inflation for these changes only. <b>They are expected to increase total capital expenditures for the Blue Creek mine by approximately $120 - $130 million over the remainder of the project development period.</b><br /><br />While the Company originally planned on a single channel to transport coal from the Blue Creek mine via an overland belt to a third-party owned and operated barge loadout facility, it now plans to build a belt conveyor system to a railroad loadout to transport the majority of the coal which is expected to de-risk a single channel to market, lower operating cost and move volumes faster to the port. Warrior will also build and operate a barge loadout itself rather than utilizing a third-party provider. The Company believes that the potential economic benefits associated with this scope change should provide Warrior with an inherently robust and cost competitive outbound logistics model that will provide additional flexibility to manage alternative transportation methods. The inclusion of the benefits and incremental capital expenditures relating to these specific scope changes did not have a material impact to the project economic metrics of net present value ("NPV") and internal rate of return.<br /><br /><b>In addition, the Company has experienced inflationary cost increases ranging from 25 to 35 percent in both operating expenses and capital expenditures for its existing mining operations since late 2021. The Company is also experiencing inflationary pressures at Blue Creek, especially in relation to labor, construction materials and certain equipment, that is expected to continue during the remainder of the project development period.</b></i> CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-34909252335686953532023-08-02T18:14:45.553-07:002023-08-02T18:14:45.553-07:00Warrior reported net income for the second quarter...<i>Warrior reported net income for the second quarter of 2023 of $82.1 million, or $1.58 per diluted share, a decrease from net income of $297.0 million, or $5.74 per diluted share, in the record setting second quarter of 2022. Adjusted net income per share for the second quarter of 2023 was $1.63 per diluted share, compared to adjusted net income per share of $5.87 per diluted share in the second quarter of 2022. The Company reported Adjusted EBITDA of $130.0 million in the second quarter of 2023, compared to Adjusted EBITDA of $431.2 million in the second quarter of 2022. Warrior’s quarterly sales volumes rose 15% to 1.8 million short tons and the Company ramped up production to 1.9 million short tons, the largest level of activity since the first quarter of 2021 and a strong marker of its business momentum. <b>While Warrior experienced strong volumes, the quarter was impacted by softening steelmaking coal prices as Warrior's average net realized price decreased from an unprecedented $403.95 per short ton in the record second quarter of 2022 to $208.56 per short ton.</b></i>CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-30200647590528790422023-06-18T19:21:09.304-07:002023-06-18T19:21:09.304-07:00Warrior Met Coal, Inc. today announced revised gui...<i>Warrior Met Coal, Inc. today announced revised guidance for the fiscal year 2023 in light of the end of the labor strike and resulting incremental production volume as eligible employees return to work. Warrior is the leading dedicated U.S.-based producer and exporter of high quality metallurgical ("met") coal for the global steel industry.<br /><br />As previously disclosed, on February 16, 2023, the labor union representing certain of the Company’s hourly employees announced that they were ending the labor strike that started in April 2021 and made an unconditional offer to return to work. The Company began the return-to-work process with the eligible employees who wished to return while continuing to engage in good faith efforts with the labor union to reach an agreement on a new contract. The return-to-work process has been ongoing since February and is now substantially complete.<br /><br />Approximately 250 eligible union-represented employees returned to work following the end of the strike, and therefore the Company adjusted work schedules to maximize the amount of incremental production and revised the budget and outlook for the full year. The incremental production and sales volume is approximately 500,000 short tons, primarily occurring in the second half of 2023. As a result of the incremental volumes, the Company has revised its overall outlook and financial targets for 2023.</i><br />https://finance.yahoo.com/news/warrior-updates-2023-outlook-130000767.htmlCPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-66172550487246478892023-05-27T13:53:49.898-07:002023-05-27T13:53:49.898-07:00From The Coal Trader:
Things are just beginning to...From The Coal Trader:<br /><i>Things are just beginning to hum along for Warrior and I expect the market to finally come to grips with the fact <b>this world class met miner is severely under-valued based on the long term potential of their best in class assets</b>. I’ve always said that Warrior has the best assets and the worst labor pool, but the labor situation is quickly reversing course as the UMWA is on the way out. This will result in much better morale and long run operational performance as everyone in the coal industry knows that union mines are a huge hindrance to operational efficiency.</i><br />https://thecoaltrader.substack.com/p/q1-2023-earnings-review?<br />CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.com