James River locks in higher pricing

JAMES River Coal has secured higher priced contracts next year for its Central Appalachian coal, enabling the Virginia-based producer to release its 2008 profit guidance.
James River locks in higher pricing James River locks in higher pricing James River locks in higher pricing James River locks in higher pricing James River locks in higher pricing

Courtesy James River Coal.

Angie Tomlinson

The company expects adjusted earnings before interest, taxes, depreciation and amortization of $US52-60 million, with capital expenditures of $48-52 million.

James River said it had reached agreements in October and November to ship Central Appalachian coal in 2008 at an average price of $54.76, significantly above its third-quarter agreements of $47.14.

Priced sales of its Central Appalachia operations as of November 21 were $49.32 per ton, while its Midwest operations were $30.32 per ton.

"We have reached agreements to sell a portion of our open tonnage at prices much higher than we saw just a few months ago.

"Most importantly, we continue to have a significant amount of our expected 2008 CAPP shipments available to price and sell into the strengthening world markets," James River chief Peter Socha said, adding 22% of Central Appalachian coal shipments remain open to new pricing.

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