“Warrior’s results in this quarter continue to reflect the strong demand for our premium met coal and our industry leading margins,” said Walt Scheller, CEO of Warrior. “Strong sales volume coupled with high-price realization and an exceptionally low-cost structure enabled us to achieve strong free cash flow conversion.”
The company produced 1.6 million tons of met coal in the third quarter of 2017, nearly three times the amount produced in the prior-year period. “We are undertaking the moves necessary to increase our production levels in a responsible manner, and that work will continue in the months ahead as we move closer to achieving the nameplate production capacity in our two mines,” Scheller added.
Total revenues were $312 million for the third quarter of 2017, including $303 million in mining revenues, which consisted of met coal sales of 2.1 million tons at an average selling price of $144/ton. Sales volume increased 279% over the third quarter of 2016 and increased 8% over the second quarter of 2017. Warrior capitalized on the strong pricing environment in the quarter by selling down higher than normal inventory levels built from strong production performance in the first half of the year.