Why Coal Mining Company Arch Resources' Shares Are Diving Today?
Portfolio Pulse from Lekha Gupta
Arch Resources Inc (NYSE:ARCH) shares dropped by around 13% after the company provided weak Q3 guidance and revised its FY23 outlook. The company expects Q3 coking coal sales volumes to remain at par with Q2 due to ongoing challenges at its Leer South Mine. The FY23 outlook for coking coal sales volumes was revised to 8.6-8.9 million tons and the average metallurgical cash cost guidance was increased to $88-$91 per ton. The company also expects Q3 adjusted EBITDA to be roughly 10% lower than Q2.
October 02, 2023 | 2:54 pm
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Arch Resources' shares dropped due to weak Q3 guidance and revised FY23 outlook. The company expects Q3 coking coal sales volumes to remain at par with Q2 due to challenges at its Leer South Mine.
The company's weak Q3 guidance and revised FY23 outlook have negatively impacted investor sentiment, leading to a drop in the company's share price. The ongoing challenges at the Leer South Mine, which have affected the company's sales volumes, are a significant factor in this negative impact.
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