Contura Energy updated its guidance for 2020 this week, prior to the release of its audited financial results for full-year and fourth quarter 2019, which will be on March 13.
“As we continue to chart a new course for Contura, one that includes broad operational improvements, cost containment at administrative and overhead levels, and a lean, nimble organizational structure that facilitates quicker decisions, I felt it important to share an interim update on the company,” Chairman and CEO David Stetson said.
The company adjusted its 2020 guidance for central Appalachian (CAPP) coal downward about 700,000 tons for both metallurgical and thermal coal sales. Met shipments will range from 12 million tons to 12.6 million tons, from the previously announced guidance of 12.7 million tons to 13.3 million tons. The range for CAPP thermal shipments was reduced to 2.7 million tons to 3.3 million tons, from a previously announced range of 3.4 million tons to 4 million tons. NAPP shipment guidance remains as previously disclosed at a range of 6 million tons to 6.8 million tons.
For 2020, Contura has committed and priced approximately 42% of its CAPP production. Met tons are expected to average $101.31/ton, while CAPP thermal coal sales are expected to average $55.54/ton. Nearly all NAPP tons (99%) will be sold at an average price of $43.34/ton.
The previously announced guidance for cost of coal sales remains unchanged for 2020, with CAPP met expected to be in a range of $76/ton to $81/ton, CAPP thermal expected to be in the range of $56/ton to $60/ton and NAPP in the range of $34/ton to $38/ton.