Warrior Met Coal: Another Soft Quarter, But The Long-Term Potential Remains Appealing

Bang For The Buck
Investing Group Leader
(8min)

Summary

  • Warrior Met Coal's strong margins and strategic location contribute to its resilience, with only a 12% stock price decline this year compared to peers' 30-40% drop.
  • Q1 2025 results showed a weak performance, with $39M adjusted EBITDA and negative $68M free cash flow due to soft coking coal prices.
  • Despite weak market conditions, Warrior's liquidity is robust with $617M available, ensuring coverage for Blue Creek's remaining capex and potential losses.
  • The Blue Creek project is close to completion with minimal risk of significant cost overruns, positioning Warrior well for future growth despite current market softness.
  • Looking for a helping hand in the market? Members of Off The Beaten Path get exclusive ideas and guidance to navigate any climate. Learn More »

Miners cutting coal at coal seem in deep mine

Monty Rakusen

Overview

Warrior Met Coal (NYSE:HCC) is a U.S. metallurgical coal mining company with a focus on the export market. The company has two operating mines and the Blue Creek development project, all located in Alabama. The good management team, consistent operations, quality

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This article was written by

Bang For The Buck
5.01K Followers

Bang for the Buck has a Bsc and Msc in Financial Economics, manages a small investment company, and runs the investing group Off The Beaten Path. He primarily invests in turnaround stories and is currently focused on natural resource industries due to monetary and fiscal policies together with underinvestments and very attractive valuations.

The investing group focuses on companies with quality characteristics that are trading at depressed valuations, which allows investors to participate in the upside of natural resource investing, without experiencing the more extreme drawdowns, that are otherwise so prevalent in natural resource investing. Learn more

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HCC either through stock ownership, options, or other derivatives. 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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