In a brutal market for coal producers, Alpha Natural Resources (NYSE:ANR) management has done a commendable job of cutting costs and enhancing liquidity. Unfortunately, the $170 to $180 per tonne in met coal pricing that the company needs for positive free cash flow seems a long way off. Companies like Anglo American (OTCPK:AAUKY) have in the past struck lucky when key producing areas have been hit by significant disruptions and the significant short interest here is a bit like a coiled spring for any good news. That said, a 10x multiple to 2016 EBITDA discounted back doesn't offer huge upside and this is only a stock for those who can handle above-average risks and a long wait.
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