- Warrior mainly sells its coal based on Premium Low Vol FOB Australia prices, which have been hampered by deteriorating relations between China and Australia.
- Warrior is also dealing with dwindling inventory due to the mining strike, which would force it to focus on fulfilling its contracts over spot sales.
- Thus Warrior is likely to have some cash burn in 2021, although its overall financial position remains healthy.
- A new labor contract could potentially push its cost of sales up a bit.
- Warrior is roughly fairly valued for a long-term realized price of $120 per short ton.
For further details see:
Warrior Met Coal: Facing Near-Term Pricing And Labor Challenges