Massey Energy Co. is QMNM's neighbor in the East KY hills. This is why I'm hanging on.
RICHMOND, VA.- - - Coal producer, Massey Energy Co. says strong global coal demand and high prices will produce a record year for the company.
Massey Chief Executive Don Blankenship told analysts yesterday, “Global demand for coal remains very strong and prices have remained at very high levels."
He added, "With continuing progress in our expansion efforts and prices in excess of our original plans, Massey is on track for another record year."
"As planned, our expansion work has intensified in the third quarter," Blankenship continued. "We are expanding or adding new mines at our Green Valley, Mammoth, Stirrat, Martin County, Edwight, Knox Creek, Progress and Nicholas Energy resource groups. As we said in our conference call with shareholders on August 1, these activities will likely make the third quarter the most challenging of the year. In addition, third quarter results will include a pre-tax charge of approximately $15 million associated with the tender offer of the Company's 6.625% senior notes in conjunction with our recent financing transactions. We expect fourth quarter results to be stronger, however, driven by increased coal shipments as well as more favorable timing of metallurgical coal shipments and new higher priced contracts phasing in, which will result in a higher overall average price per ton."
For the third quarter of 2008, Massey stated that it expects produced tons sold to be in the range of 10.3 to 10.7 million at an average price of $64.00 to $66.00 per ton.
Massey further stated that it still expects full-year 2008 results, excluding the litigation charge recorded in the second quarter, to be within the ranges of full-year guidance provided previously but with produced tons sold and average price per ton trending toward the lower end of the respective ranges.
Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the fourth largest coal company in the United States based on produced coal revenue and is included in the S&P 500 index. (Combined news reports)
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