Alpha Metallurgical Resources, Inc. (NYSE: AMR) is a significant U.S. supplier of metallurgical coal, primarily serving the steel industry. The company’s mining operations are situated across Virginia and West Virginia, where it plays an essential role in metallurgical products supply chains.

Alpha reported a net loss of $33.9 million for the first quarter of 2025, a decline from a net loss of $2.1 million in the previous quarter. Adjusted EBITDA fell to $5.7 million, decreasing from $53.2 million in the fourth quarter of 2024. Revenue from coal operations amounted to $529.7 million, down from $615.4 million in the prior quarter. This decline can be partially attributed to severe weather conditions that negatively impacted operations in January and February.

The total tons of coal sold in the first quarter were 3.8 million, down from 4.1 million tons in the fourth quarter. Average coal sales realization decreased to $118.61 per ton compared to $127.84 per ton previously. Consequently, the company has revised its metallurgical coal shipment guidance for 2025 to a range of 13.8 million to 14.8 million tons, a reduction from the earlier estimate of 14.5 million to 15.5 million tons.

Additionally, Alpha has adjusted its capital expenditure guidance down to a range of $130 million to $150 million for 2025 from the previous range of $152 million to $182 million. The company’s cost of coal sales per ton in the metallurgical segment increased to $110.34 in Q1 from $108.82 in Q4. The reduction in overall shipments and the increase in costs stems from multiple operational challenges, including weather disruptions and geological difficulties in certain mining sections.

As of March 31, 2025, Alpha’s cash and cash equivalents totaled $448 million, a decrease from $481.6 million at the end of the previous quarter. The company reported total long-term debt of $5 million, with no borrowings under its asset-based lending facility at that time. Alpha’s total liquidity stands at $485.8 million though this is less than the $519.4 million reported at the end of December.

In terms of operational adjustments, Alpha has acted to safeguard its liquidity by reducing production at higher-cost operations. The company is focused on financial stability and navigating the ongoing challenges presented by the current market conditions. It successfully increased its asset-based revolving credit facility from $155 million to $225 million, with an extension of the maturity date to May 2029.

Looking forward within the year, Alpha expects its thermal coal shipments to range between 0.8 million and 1.2 million tons, down from a prior estimate of 1.0 million to 1.4 million tons. The overall total shipment guidance for the year has been revised down to a range between 14.6 million and 16 million tons. 50% of metallurgical coal tonnage has been committed and priced at an average realization of $133.04 per ton as of May 1, 2025.

The decline in realized prices has been consistent with broader trends in the metallurgical coal market, pressured by weak steel demand and economic uncertainty exacerbated by trade policy shifts. The company’s prudent approach during this challenging landscape reflects its commitment to navigating through periods of volatility while maintaining a focus on operational efficiency and capital management.