Alpha Metallurgical Resources Stock

Alpha Metallurgical Resources, Inc. operates as mining company with operations in Virginia and West Virginia.

With customers across the globe, high-quality reserves and significant port capacity, the company supplies metallurgical coal products to the steel industry. The company's portfolio of mining operations consists of 15 underground mines, seven surface mines and nine coal preparation plants. The company owns a 65.0% interest in Dominion Terminal Associates (DTA), a coal export terminal in Newport News, Virginia. DTA provides it with the ability to fulfill a broad range of customer coal quality requirements through coal blending, while also providing storage capacity and transportation flexibility.

The company predominantly produce metallurgical (met) coal, which is shipped to domestic and international steel and coke producers. Although its strategic focus is on the production of met coal, the company also produces thermal coal as byproduct and it is primarily sold to large utilities and industrial customers both in the United States and across the world.

Through its operations across the CAPP coal basin in Virginia and West Virginia, the company is able to source coal from multiple mines to meet the needs of a long-standing global customer base. The company continuously evaluating opportunities to strategically cultivate current relationships to drive new business in its target growth markets.

Other Business Developments

During 2023, development was completed and production began at the company's Rolling Thunder and Checkmate Powellton mines within its Power Mountain and Elk Run mining complexes, respectively, which produce High-Vol. B quality met coal from the Powellton coal seam.

In August 2023, the company completed its transition to a pure-play metallurgical producer with the closure of Slabcamp, which was its last remaining thermal mine.

Mining Operations and Properties

Aracoma - Aracoma is a mining complex located in Logan, Mingo, and Boone counties, West Virginia. The complex has three active underground mines which produce primarily High-Vol. B quality met coal from the Upper Chilton, Upper Cedar Grove, and No. 2 Gas coal seams. Mine lives range from 5 to 16 years. Coal is processed at the Bandmill Preparation Plant and loaded onto CSX rail for delivery to customers.

Kepler - Kepler is a mining complex located in Wyoming, McDowell, and Raleigh counties, West Virginia. The complex has one active underground mine (with an estimated life of 15 years) which produces primarily Low-Vol. quality met coal from the Pocahontas No. 3 coal seam. Coal is processed at the Kepler Preparation Plant and either loaded onto NS rail or trucked to the Feats Loadout and loaded onto the CSX rail for delivery to customers.

Kingston - Kingston is a mining complex located in Fayette and Raleigh counties, West Virginia. The complex has one active underground mine, which produces primarily Mid-Vol. quality met coal from the Douglas coal seam. The complex also has three active surface mines which produced High-Vol. A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 11 years. Coal from the underground mine is processed at the Kingston Preparation Plant and trucked to the Pax Loadout to be loaded onto CSX rail for delivery to customers. Coal from the surface mines may be processed through the Kingston Preparation Plant, trucked to and processed through the Mammoth Plant, or trucked directly to the Pax Loadout or Marmet Dock for delivery to customers.

Marfork - Marfork is a mining complex located in Raleigh, Boone, Kanawha, and Fayette counties, West Virginia. The complex has three active underground mines which produce High-Vol. A quality met coal from the Eagle coal seam and one active underground mine that produces mid-vol quality met coal from the Glen Alum Tunnel seam. The complex also has two active surface mines which produce High-Vol. A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 17 years. Coal from the underground mines is processed at the Marfork Preparation Plant and loaded onto the CSX rail for delivery to customers. Coal from the surface mines may be processed through the Marfork Preparation Plant or trucked directly to the Pax Loadout or the Marmet Dock for delivery to customers.

McClure/Toms Creek - McClure/Toms Creek is a mining complex located in Dickenson, Buchanan, Russell, and Wise counties, Virginia. The complex has three active underground mines which produce High-Vol. A and Mid-Vol. quality met coal from the Upper Banner, Lower Banner, and Jawbone coal seams. The complex also has two active surface mines which produce primarily High-Vol. A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 27 years. Coal is processed at either the McClure Preparation Plant or the Toms Creek Preparation Plant and loaded on the CSX or NS rail, respectively for delivery to customers.

Power Mountain - Power Mountain is a mining complex located in Nicholas County, West Virginia. The complex has one active underground mine (with an estimated life of 3 years) which produces High-Vol. B quality met coal from the Eagle coal seam. Coal is processed at the Power Mountain Preparation Plant and loaded onto NS rail for delivery to customers. In addition, during 2023 development was completed and production began at a second underground mine (with an estimated life of 15 years) which produces High-Vol. B quality met coal from the Powellton coal seam. Coal from the mine is trucked to and processed through the Mammoth Preparation Plant. Following the expected development of a haul road in 2024, coal is expected to be trucked to and processed through the Power Mountain Preparation Plant.

Elk Run - Elk Run is a mining complex located in Boone County, West Virginia. During 2023, development was completed and production began at an underground mine (with an estimated life of 22 years) which produces High-Vol. B quality met coal from the Powellton coal seam. Coal from the mine is processed at the Chess Processing Plant and loaded onto CSX rail for delivery to customers.

Equipment

The company's plant and equipment, including underground and surface equipment, are of varying age, in good operational condition, and are regularly maintained and serviced by a dedicated maintenance workforce and third-party suppliers, including scheduled preventive maintenance.

Marketing, Sales and Customer Contracts

The company markets coal produced at its operations and purchase and resell coal mined by others. The company has coal supply commitments with a wide range of steel and coke manufacturers, industrial customers, and electric utilities. The company's marketing efforts are centered on meeting customer needs and requirements. By offering coal of various grades, the company is able to provide the specific qualities relevant to its customers and to serve a global customer base. Through this global platform, the company's coals are shipped to customers on five continents. The company's broad customer and product base allows it to adjust to changing market conditions.

Thermal coal accounted for approximately 5% of the company's coal revenues for each of the yeas ended December 31, 2023. During the years ended December 31, 2023, approximately 21% of the company's thermal coal sales volume were delivered pursuant to long-term contracts.

Distribution and Transportation

For its export sales, the company negotiates transportation agreements with various providers, including railroads, trucks, barge lines, and terminal facilities to transport shipments to the relevant loading port. The company coordinates with customers, mining facilities and transportation providers to establish shipping schedules that meet each customer's needs. The company's captive coal is loaded from its preparation plants, loadout facilities, and in certain cases directly from its mines. The coal the company purchases is loaded in some cases directly from mines and preparation plants operated by third parties or from an export terminal. Virtually all of the company's coal is transported from the mine to its preparation plants by truck or belt conveyor systems. It is transported from preparation plants and loading facilities to the customer by means of railroads, trucks, barge lines, and lake-going and ocean-going vessels from terminal facilities. The company depends upon rail, barge, trucking and other systems to deliver coal to markets. The company's export sales are primarily shipped to DTA and Pier 6 (Lambert's Point) shipping ports in the Hampton Roads area of Virginia.

Environmental and Other Regulatory Matters

States where the company has active mining operations have achieved primacy and issue permits in lieu of Office of Surface Mining Reclamation and Enforcement (OSM).

Federal and state laws require the company to obtain surety bonds or other approved forms of security to cover the costs of certain long-term obligations, including mine closure or reclamation costs under SMCRA, federal and state workers' compensation costs, coal leases and other miscellaneous obligations.

The company is required to comply with numerous other federal, state and local environmental laws and regulations in addition to those previously discussed. These additional laws include, for example, the Safe Drinking Water Act, the Toxic Substances Control Act, and transportation laws adopted to ensure the appropriate transportation of its coal both nationally and internationally.

Many of the company's operations use equipment with radioactive sources primarily for coal density measurement. Use of this equipment must be approved by the U.S. Nuclear Regulatory Authority or the state agency that has been delegated this authority.

History

The company was incorporated in 2016. It was formerly known as Contura Energy, Inc. and changed its name to Alpha Metallurgical Resources, Inc. in 2021.