Alpha Natural Resources, Inc.(fka ANRZQ)

[MattySR]

You need to learn how to understand cash flow + income statements. They did not lose 65 million cash. They lost 65 million primarily due to depreciation. It is a paper loss. You can see this on the income statement. They lost 10-15 million in total cash on the income statement due to very low margins in the coal market atm. Coal revenues are lower the cost of coal sales. Then of course S+G+A expense of 7 million. and other small expenses. ANR received a 10 mil tax benefit it seems. So real cash loss on the income statement is closer to 5 million only.

Cost of coal sale works by accounting for all of the cash spent on getting coal ready for sale that month. Even if some coal did not sell, they will have it ready for next month etc. Also cost of coal sales is taken into account for accounts receivables. They might have lost 10-15 in cash this month on the income statement, but that could be offset in the next month etc etc.

Also, just read the cash flows statement if you want to see actual cash losses / gains. actual 77 million cash loss this month, due to primarily a 70 million purchase of investments. What bankrupt company is buying investments? I would not be surprised if that 70 million was used to purchase crystal perfect securities like treasury bonds or A++ Corporate bonds just to have some cash flows with there tremendous cash amount.

I would love to know where that 70 mil went..

This is a company using bankruptcy soley as a tactic of weathering the storm of the downturn. There are such things as strategic ch.11 bankruptcies, when all other options would fail stakeholders.

Page 15. If nothing changes, that cash would be all gone in 12 months.

Wrong in so many aspects LOL.

All in all, they lost 77 million in cash, with 70 million going into an investment. ANR can sell out of its investment, stop getting interest, and receive its 70 million back, if they really need to.