James River Coal and Patriot Coal Surge on Strong Foreign Demand
02 July 2012 - 10:20PM
Marketwired
It has been a tough year for coal stocks as plummeting natural gas
prices have seen demand for coal in the U.S. drop dramatically. Yet
coal stocks have been on the upswing recently on strong foreign
demand as Peabody Energy CEO Gregory Boyce last week stated that
demand from China has seen strong growth in recent months. Five
Star Equities examines the outlook for companies in the Coal
Industry and provides equity research on James River Coal Company
(NASDAQ: JRCC) and Patriot Coal Corporation (NYSE: PCX).
Access to the full company reports can be found at:
www.FiveStarEquities.com/JRCC www.FiveStarEquities.com/PCX
"We project they will reach a record 285 million tons in 2012 as
the country increasingly looks to the seaborne coal markets," said
Boyce at a recent conference. "We expect global metallurgical coal
use to increase 25 percent by 2016, translating to an additional
250 million tons of demand growth, with the bulk of increases led
by China and India."
The demand for coal has also been rising in India as their
production levels have failed to meet the country's growing demand.
The Centre for Monitoring Indian Economy predicts that India's coal
imports will rise 28 percent this fiscal.
Five Star Equities releases regular market updates on the Coal
Industry so investors can stay ahead of the crowd and make the best
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James River Coal's operations are located in the Central
Appalachian coal basin, which contains some of the highest quality
reserves in the region. In 2011, the company generated revenues of
$1.2 billion. Approximately 56 percent of their 2011 revenues were
generated from coal sales to electric utility companies and the
remainder came from coal sales to industrial and other
companies.
Patriot Coal Corporation is a leading producer and marketer of
coal in the eastern United States, with 13 active mining complexes
in Appalachia and the Illinois Basin. The company ships to domestic
and international electric utilities, industrial users and
metallurgical coal customers, and controls approximately 1.9
billion tons of proven and probable coal reserves.
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