Illinois Basin steam coal producer Armstrong Energy on Thursday posted record revenue of $110.9 million in the first quarter of 2014, a 9.5% year-on-year jump, as sales rose 124,000 st to 2.4 million st.
The St. Louis-based company, whose Armstrong Coal subsidiary operates seven surface and underground mines in western Kentucky, now expects to produce and sell between 9.8 million st and 9.9 million st in 2014. So far, it has committed sales of 9.8 million st this year.
Armstrong produced and sold about 9.3 million st in 2013, up from 8.5 million st in 2012.
CEO Hord Armstrong told analysts during a conference call that demand for Illinois Basin coal is improving. "Stockpiles at utilities have declined from 2013 levels," he said. "Current natural gas prices in the mid-$4/MMBtu range allow most IB coal to be competitive."
Continuing cutbacks in Central Appalachia are also "fueling some of the demand for IB coal," he said.
Illinois Basin coal prices, however, are not rising because that demand is being met with increased production, the executive added.
