- Met coal price expectations for 2021 have improved, suggesting that Warrior may be able to realize $120 per short ton then.
- This would help it start development of Blue Creek, while also generating a modest amount of positive cash flow.
- Blue Creek would be able to increase Warrior's production by 50+% at a cash cost lower than its current production.
- Blue Creek is not expected to enter production until 2026 and Warrior needs to avoid taking on significant debt to get it into production.
- At a realized price of $120 per short ton, Warrior would be able to fund the majority of Blue Creek's development costs from cash flow.
For further details see:
Warrior Met Coal: Blue Creek Project Could Add Longer-Term Value