Arch Resources hits two-month high on strong shareholder payout plans

Arch Resources

27/10/2022 19:37

** Shares of coal producer Arch Resources Inc  ARCH.N  jump
as much as 14.8% to $152.74 - the highest level in about two
months
    ** Set for best day since April if gains hold
    ** ARCH declares Q4 cash dividend of $10.75/shr, or $206.4
mln - about half of its Q3 discretionary cash flow
    ** Adds it will spend the other half for "the most
value-creating uses", including share buybacks
    ** Brokerage Jefferies ("buy", PT: $200) says ARCH's Q3
earnings miss is more than offset by very strong cash flow as
well as better-than-expected capital returns
    ** "We expect coal prices to remain relatively high in the
near/medium term, and further large capital returns from Arch
should be coming" - Jefferies
    ** ARCH had gained 46% YTD through last close
 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))