Overall, about what was expected. Still tons of liquidity, no issues regarding survival, slightly improved debt situation, improving thermal market, truly great outlook for 2015 given the state of coal and nat gas going into late Summer. This will again be a $40 stock in coming years, relax and forget about it until then.
Setting up for fun....
- trading volume very low today, shorts will eventually be in big trouble, maybe this year, maybe next
- macro trends for thermal coal and nat gas strongly positive for coal producers
- company will exit this trough so lean and mean that profits will ramp north exponentially
You need to be CPA to shift through these numbers. However, we are at the depths of a coal down cycle and cash burn was not much. Once you get rid of depreciation, amortization etc and factor in capex - ACI lost about $45 million.
It will be long time before ACI has any liquidity issues. As PRB, met and CAPP coal all tick upwards it will not be long before ACI is cash flow positive.
Not really ... :
1. Lower met coal volumes for 2014 ...
2. Thermal coal pricing was several cents lower than what was expected
3. PRB costs higher ... need to listen to conf call. I was afraid that previous cost reductions were "borrowed" from the future costs ... I hope not.
But prediction of 110 mill tons at the end of summer - priceless! Their previous prediction about USA thermal inventory were spot on, so now I start believing in those predictions.