Warrior Met Coal produced 1.2 million tons of met coal in the second quarter of 2021 compared to 2.1 million tons in the second quarter of 2020. Sales volume in the second quarter of 2021 was 1.8 million tons compared to 1.5 million tons in the second quarter of 2020. Inventory levels declined to 503,000 tons at the end of June, from the 1.2 million tons at the end of March 31.
Total revenues were $227.4 million for the second quarter of 2021, which included met coal sales of 1.8 million tons at an average net selling price of $123.36/ton, net of demurrage and other charges. This compares to total revenues of $163.7 million in the second quarter of 2020. The year-over-year increase in revenues is primarily attributed to an increase in met coal sales volumes combined with improved met coal pricing.
“With met coal prices improving during the quarter, we were able to take advantage of the groundwork we previously established to increase our selling and reduce our inventories,” CEO Walt Scheller said. “Importantly, we were able to capitalize on China’s ban on Australian coal imports through increased sales to Chinese customers at higher prices compared to the Australian FOB prices.”
Scheller said the company continues to negotiate with the United Mine Workers Association (UMWA) who have been on strike since April 1.