Warrior Met Coal announced revised guidance for the fiscal year 2023 considering the end of a labor strike and a resulting increase in production volume as eligible employees return to work. The company mines high-grade metallurgical coal from longwall operations near Tuscaloosa, Alabama.
Approximately 250 eligible, union-represented employees returned to work following the end of the strike, and the company said it readjusted work schedules to maximize the amount of incremental production and revised the budget and outlook for the full year. It is now forecasting additional production and sales volume of approximately 500,000 tons for the second half of 2023.
“We are pleased to welcome back the returning employees and look forward to the incremental impact on our sales and production volumes this year,” said Walt Scheller, CEO for Warrior Met. “The upside to an increased workforce is material, but we are still short of our historical staffing levels. Moving forward, we believe that Warrior remains well positioned to capitalize on its low-cost position and strong production volumes to drive enhanced stockholder value, including through investment in the world-class Blue Creek reserves.”
For 2023, the company now expects to sell 7.1-7.7 million tons and produce 6.8 – 7.4 million tons. This includes two longwall moves planned for Q3 2023. Warrior Met has also revised its guidance for capital expenditures to $95 million – $105 million for sustaining capital spending and $325 million -$345 million of discretionary capital spending, which includes the development of the Blue Creek reserves ($250 million), final payment on two sets of longwall shields and the completion of the 4 North bunker.