buy every bond in sight? the way i figure it, ACI locked in pretty decent pricing for the first and second quarters of 2016 a year ago. according to the 3/31/15 10Q they locked in 43mn tons of PRB coal at $14.39, 2mn appalachia thermal coal at $57.97, appal meta coal at $82.69, and bit thermal coal at 34.61. they locked in really good prices in decent size for that matter.
Upon looking at the gross margin expansion at ACI last quarter (the highest gross margins in years for that matter) the obvious question becomes can these margins continue (as well as the positive free cash flows in the quarter)
Looking at ACI's cash costs side of the equation, cash costs have trended down quite markedly over the course of 2015. This should bode well for ACI crazy as it sounds as its revenues will benefit from higher pricing and its costs continue to trend down along with diesel/nat gas costs.
The debt exchange would have been a wonderful move had senior bondholders not blocked it. Nonetheless, ACI should be sitting pretty for the next 100-200 days and should be in a decent position to capitalize on its debt being mispriced.
Given that ANR was able to buy back a ton of debt when it was in no position to do so, it seems ACI could generate tremendous value in performing a similar move over the current and next few quarters.