ARLP - Peabody Arch score big gains as EU confirms Russian coal embargo

Coal company stocks surged Thursday as the European Union agreed to ban coal imports from Russia after reports of atrocities in Ukraine prompted a fifth round of sanctions. The ban may benefit U.S. miners that likely will be called upon to raise exports to Europe, including Peabody Energy (NYSE:BTU) +8% and Arch Resources (NYSE:ARCH) +6.2%, but most of their production has been sold through long-term contracts, and labor shortages and transportation bottlenecks will make it difficult to increase output. Also rising on Thursday: Ramaco Resources (METC) +7.6%, Alpha Metallurgical Resources (AMR) +6.9%, CONSOL Energy (CEIX) +4.4%, Warrior Met Coal (METC) +4%, National Resource Partners (NRP) +2.2%, Alliance Resource Partners (ARLP) +0.4%. European Commission President Ursula von der Leyen said earlier this week the action on coal would amount to €4B/year (~$4.4B), with companies allowed four months to wind down contracts before being banned from entering new ones. Seeking Alpha contributor Steven Cress includes Alpha Metallurgical

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Peabody, Arch score big gains as EU confirms Russian coal embargo