In a brutal market for coal producers, Alpha Natural Resources (NYSE:ANR)
management has done a commendable job of cutting costs and enhancing
liquidity. Unfortunately, the $170 to $180 per tonne in met coal pricing
that the company needs for positive free cash flow seems a long way
off. Companies like Anglo American (OTCPK:AAUKY)
have in the past struck lucky when key producing areas have been hit by
significant disruptions and the significant short interest here is a
bit like a coiled spring for any good news. That said, a 10x multiple to
2016 EBITDA discounted back doesn't offer huge upside and this is only a
stock for those who can handle above-average risks and a long wait.
Read more here:
Alpha Natural Resources Can Most Likely Survive, But Can It Thrive?
No comments:
Post a Comment