CNX Coal Resources expects sales volumes to increase in 2017 due to strengthening coal markets both in the US and abroad, it said Tuesday.
The Canonsburg, Pennsylvania-based company said in an investor presentation that it expects coal sales of 6.25 million to 6.75 million st in 2017, up from 5.9 to 6.1 million st in 2016. For 2018, the company also expects sales volumes of 6.25 million to 6.75 million st.
The company said it expects to gain from the recent pricing recovery due to a combination of unsold coal, unpriced/collared coal, and the fact that roughly 15%-20% of the company's sales are linked to power prices.
In addition, the company said for the coming year it expects a 5%-10% improvement in average revenue per ton and flat to low-single-digit increases in cost of coal sold compared with 2016.
In the third quarter, the company reported an average sales price per ton sold of $44.30/st, and operating cash cost per ton sold of $29.29/st.
CNX Coal owns 25% of the Bailey, Harvey and Enlow Fork mines in western Pennsylvania, with the remainder held by Consol Energy, which spun off CNX Coal in July 2015.