Shipments for the first quarter of 2016 were 13.0 million tons, down from 19.7Mt for the same period in 2015 and cost per ton was $11.15 in the first quarter of 2016, increasing from $10.02 in the first quarter of 2015.
Cloud Peak CEO Colin Marshall said: “Unfortunately, just when we did not need it, we have experienced one of the mildest winters on record. PRB coal shipments were down around 34% as our utility customers had full stockpiles, burned low price natural gas, and slowed shipments well below their contracted rates.
“Our sites did a very good job of controlling costs during the quarter, which is difficult to do in such a high-fixed cost business. While the second quarter is also expected to be slow, we do expect shipments to pick up significantly in the second half of the year as summer cooling demand increases coal burn.”
Cash margin in the first quarter was $1.50 per ton compared to $3.03 per ton in the first quarter of 2015.
In the first quarter of 2016, the company received approval from the Wyoming Department of Environmental Quality to continue to self-bond for $90 million of reclamation obligations within the state for the Antelope Mine and in the second quarter of 2016, the self-bonding renewal for $100 million was approved for the Cordero Rojo Mine.
