logo
Plus   Neg
Share
Email

Arch Coal Hikes Dividend; Initiates FY Sales Volume Guidance

Arch Coal Inc.(ARCH) said that its board approved an increase in the company's quarterly dividend to $0.40 per share from $0.35 per share. The next quarterly cash dividend payment of $0.40 per common share is scheduled to be paid on March 15, 2018 to stockholders of record at the close of business on March 5, 2018.

The company initiated full year sales volume guidance for 2018. Based on current expectations, Arch expects total sales of between 92 million and 99 million tons, a level in line with the company's 2017 sales volumes. Included in this range are projected sales of between 6.4 million and 7.0 million tons of metallurgical coal.

On the metallurgical side, Arch has committed select volumes at strong pricing with its North American customer base. Arch also has a large percentage of its 2018 coking coal either committed and subject to market pricing or still available, which will allow it to capitalize on strong seaborne coking coal market dynamics. At the expected midpoint of its volume guidance level, Arch is nearly 65 percent committed on coking coal sales for the full year, with approximately 60 percent of that committed volume exposed to market-based pricing.

Arch expects that approximately 80 percent of its metallurgical production will be sold to international steelmakers.

Arch expects to sell between 86 million and 92 million tons of thermal coal in 2018. At the midpoint of guidance, Arch's thermal sales are approximately 82 percent committed for full year 2018.

Arch currently anticipates that cash cost per ton sold in the Metallurgical and Powder River Basin segments will be similar to 2017 levels. The Other Thermal segment's cash cost per ton sold is expected to be higher, adjusted for anticipated production mix between the mines in the segment.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Electronics retailer Best Buy Co. Inc. (BBY), Wednesday said it has agreed to buy GreatCall Inc. for $800 million in cash. GreatCall is a provider of connected health and personal emergency response services to the aging population, with more than 900,000 paying subscribers. It offers easy-to-use... Rio Tinto PLC (RIO) is reportedly seeking to divest its Canadian iron-ore business for a possible consideration worth $6 billion. According to Sky News, the Anglo-Australian mining giant has begun courting potential bidders for its $6 billion Canadian iron-ore? operations as it seeks to take advantage... Brewer Constellation Brands Inc. will invest C$5 billion, or $4 billion, in Canadian cannabis company Canopy Growth Corp. as part of an expansion of the two companies' strategic partnership, the companies said Wednesday. Canopy Growth is Canada's largest medical marijuana producer. Shares of Canopy Growth are gaining more than 27 percent in the regular trading.
Follow RTT