“Global demand for coal remains very strong and prices have remained at very high levels,” Massey CEO Don Blankenship said.
“With continuing progress in our expansion efforts and prices in excess of our original plans, Massey is on track for another record year.”
He said expansion work had intensified in the third quarter with the expansion or addition of new mines at the company’s Green Valley, Mammoth, Stirrat, Martin County, Edwight, Knox Creek, Progress and Nicholas Energy resource groups.
He said these activities would likely make the third quarter the most challenging of the year.
These challenges will include a pre-tax charge of about $US15 million associated with the tender offer of the company's 6.625% senior notes.
“We expect fourth-quarter results to be stronger, however, driven by increased coal shipments as well as more favourable 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.
Massey expects third-quarter sales of 10.3–10.7 million tons at an average price of $64–66 per ton.
Massey further stated that it still expected full-year 2008 results, excluding the litigation charge recorded in the second quarter, to be within the range of full-year guidance provided previously but with produced tons sold and the average price per ton trending towards the lower end of the respective ranges.
