Coal stocks are still the 2009 story - MEE Speaks up!

Massey Energy Still Sees Challenging 3Q, Expects 4Q Rebound

Massey Energy Co. (MEE) Chief Executive Don Blankenship said its mine expansion efforts will likely make the third quarter the most challenging of the year, while also noting fourth-quarter results should be stronger, driven by increased coal shipments and higher priced contracts.
During the third quarter, the company plans to expand and add new mines at numerous locations. Results will also include a pretax charge of about $15 million associated with the tender offer of Massey's 6.625% senior notes.
Massey expects third-quarter produced coal tons sold to be between 10.3 million to 10.7 million at an average price of $64 to $66 a ton.
The fourth quarter will see increased coal shipments, more favorable timing of metallurgical coal shipments and new higher priced contracts phasing in, which will result in a higher overall average price per ton, Blankenship said.
"Global demand for coal remains very strong and prices have remained at very high levels," he said. "With continuing progress in our expansion efforts and prices in excess of our original plans, Massey is on track for another record year."
Massey also affirmed its full-year forecast for coal shipments between 41.5 million and 43 million tons with a price per ton between $65 to $66, but Massey said these figures are expected to trend to the lower end of these forecasts.
Excluding a litigation charge recorded in the second quarter, average cash cost per ton for the year is expected to be between $47 and $50.