- Supply constraints have sent the price for Arch's primary product, coking coal, skyrocketing.
- While 2022 is still months away, Arch is already locking in committed sales at prices more than +150% higher year over year.
- Arch's 2022 free cash flow could conservatively be forecasted to approach $1.3B, nearly covering the company's entire current market cap of $1.6B.
- Management's history of eschewing M&A while favoring share buybacks opens the door to significant returns for shareholders.
- My price target of $175 per share implies 100% in upside from current levels.
For further details see:
Arch Resources: Stars Aligned For Triple-Digit Returns Into 2022