U.S. coal miners: Jefferies says better days are ahead, hikes PTs

Ramaco Resources

13/01/2021 23:53

** Jefferies ups PT for U.S. coal miners Arch Resources
 ARCH.N , Peabody Energy  BTU.N , Ramaco  METC.O , and Warrior
Met Coal  HCC.N  citing an improving outlook
    ** Brokerage says although it expects U.S. thermal coal
demand to decline further, seaborne met coal markets have begun
to improve for U.S. suppliers
     ** Raises PT on ARCH to $50 from $42, BTU to $3.75 from
$1.85, METC to $3.30 from $3.25, HCC to $24 from $21
    ** However, makes light downward revisions to Q4 estimates
to reflect lower realized prices, volumes and higher costs for
U.S. coal miners in its coverage
    ** Says there is still further downside risk to earnings in
U.S. thermal coal
    ** Of the U.S. pure-play coal miners, Warrior and Arch
should be best-positioned given their high-quality met coal
production and exposure to the seaborne market - Jefferies
    ** Expects free cash flow for the miners with exposure to
the seaborne met coal market to increase from the 2020 trough

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com;
twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))