Seeking Alpha

Arch Coal +2%, sells Hazard thermal mining complex to Blackhawk for $26M

  • Arch Coal (ACI) +2% premarket on news it is selling the Hazard thermal coal mining complex and related infrastructure, as well as ~38M tons of thermal coal reserves in eastern Kentucky, to Blackhawk Mining for $26.3M.
  • As part of the sale, ACI also is selling $15.6M of reclamation liabilities to Blackhawk, and expects to be released from $43.8M of reclamation surety bonding.
  • ACI says it has the potential to receive total future royalty payments of up to $35M during the next five years resulting from its retention of select coal reserves at Hazard.
Comments (3)
  • Yorick
    , contributor
    Comments (570) | Send Message
     
    Selling off assets, shutting mines, layoffs, debt restructuring...this is all that can be done to forestall bankruptcy while the hope would be some much lower equilibrium point is met 2 years from now once NG plant conversions slow or stop.
    5 Mar 2014, 09:08 AM Reply Like
  • will will
    , contributor
    Comments (26) | Send Message
     
    Blackhawk is a small LLC formed in 2010 that operates out of favor mines. This purchase increases their reserves by more that a third. Arch continues squeezing their balance sheet. I like this move. It is good for both companies.
    5 Mar 2014, 09:27 AM Reply Like
  • bobzimmy
    , contributor
    Comments (23) | Send Message
     
    Company will benefit if the Republicans gains the Senate.
    5 Mar 2014, 06:10 PM Reply Like
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