Got Coal? Alpha Metallurgical Resources Just Got Another Tailwind

(13min)

Summary

  • Alpha Metallurgical Resources has outperformed the S&P 500, bolstered by a fire at Anglo-American's Grosvenor mine that reduced global coking coal supply.
  • The fire underscores coal's supply risks amid high demand, potentially tightening the market further. AMR's strong reserves and export focus position it well.
  • Despite current price headwinds, AMR remains profitable and strategically invests in buybacks, making it an attractive, albeit volatile, investment opportunity.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT® on Alpha. Learn More »

100 dollars protruding from coal, the concept of mining and coal extraction in the USA, rising prices in the world, environmental impact, industry and economy of the country

Andrzej Rostek

Introduction

It's time to talk about coal.

In this case, we'll discuss Alpha Metallurgical Resources (NYSE:AMR), a company I called "A compelling investment opportunity for those comfortable with volatility" in my most recent article, published

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This article was written by

Leo Nelissen profile picture
37.5K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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