Coal Stocks On The Rise As Demand For Steel Soars In 2024

Coal Stocks On The Rise As Demand For Steel Soars In 2024

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Although there has been a global push towards cleaner energy sources, coal still remains a vital part of our energy mix. In fact, a recent report by the International Energy Agency found that global coal demand hit an all-time high in 2022 amid the energy crisis, far outpacing the previous record set in 2013. According to the U.S. Department of Energy, coal accounted for about 20% of the country's electricity production as of October of last year, highlighting the commodity's significance in maintaining grid stability.

Despite the fact that the coal industry has grappled with major headwinds like a string of coal companies going bankrupt, the broader coal industry had an impressive year in 2023, with coal stocks collectively gaining about 40% in the year, further reaffirming the resilience of the commodity. That was thanks to a renewed focus on metallurgical coal, which experts agree will continue to experience robust demand going forward, driven by an increase in the demand for steel. For investors looking for a way to play this demand, here are some coal stocks that could offer exposure to the sector.

Benjamin Hill Mining Corp. (OTCQB: BNNHF) (CSE:BNN), which is currently focused on its Alotta Exploration Project and Aion Mining Corp.'s Coal Project, has been making significant inroads in its exploration activities.

Hosted in the Canadian Yukon, the Alotta project, which is BNN's flagship project, initiated a diamond drilling program in November last year. Leveraging intricate IP data showing anomalous copper and gold in soil, in addition to compelling geophysical anomalies, the drill program strategically targeted the central area of a substantial chargeability anomaly spanning over 2 kilometers at the project.

The company selected Archer Cathro and Associates as the consulting firm to provide logistical, permitting, and drilling services based on the fact that it has been one of the most prolific explorers in the Yukon for the past five decades and has been responsible for discovering and advancing a wide variety of deposits.

The findings of the program didn't disappoint, as the results revealed a large, multiphase porphyry system at the south-central portion of the induced polarization chargeability. According to the core samples, the project showed mineralization rich in pyrrhotite, pyrite, chalcopyrite, and molybdenite, which reaffirmed Alotta's significant resource potential.

Following the success of the diamond drill program at Alotta, Benjamin Hill Mining Corp. (OTCQB:BNNHF) (CSE:BNN) made the strategic decision to double down on its coal investments. The company announced that it had signed a non-binding letter of intent with Aion Mining Corp. for the acquisition of a 20% interest in Aion and its fully permitted coal project located in Santander, Colombia. This move not only reaffirms the company's commitment to strategically expanding its coal resource footprint but also diversifies its portfolio of coal projects.

Earlier this month, BNN provided a corporate update regarding the project, which revealed a number of interesting facts. Both historical and recent drilling programs revealed that the FLG-111 concession has eight known seams of metallurgical and thermal coal. CEO Cole McClay noted: "Our strategic investment in Aion Mining Corp. presents a great opportunity to enter the coal industry with a project that is primed to advance quickly with all required permits, exciting exploration discoveries, and a highly skilled multi-national technical and operations team."

With permits already granted to Aion for the extraction of up to 180,000 tons of coal per year, the project is set to advance rapidly. Right now, the focus is on quickly developing the infrastructure following the acquisition of an additional 24-hectares of land to provide surface access rights and, at the same time, the mobilization of large equipment for advanced site preparation and surface works.

Thanks to taking the stake in Aion, Benjamin Hill Mining Corp. (OTCQB:BNNHF) (CSE:BNN) is positioning itself to become one of the key players in the resurging global coal market, a move that could ultimately unlock significant shareholder value in the future.

Alpha Metallurgical Resources, Inc. (NYSE: AMR) needs no introduction to most energy investors based on the fact that it is one of the largest coal stocks globally. The Tennessee-based miner, whose operations are mainly concentrated in Tennessee, boasts high-quality reserves and specializes in supplying metallurgical products to the steel industry. Its portfolio also includes highly productive and cost-competitive coal mines across the Central Appalachian coal basin.

The company is America's largest producer of coking coal, producing about 20% of total 2022 production. In FY2022, Alpha Metallurgical produced 16.1 million tons of coal and had over 300 million tons of reserves. Roughly 70% of the company's coal output is exported, which ties in well with the fact that it owns 65% of the DTA (Dominion Terminal Associates) export terminal, which is capable of loading up to 6,500 tons per year.

AMR recently reported its third-quarter earnings, which had a number of interesting highlights. Although the company reported an adjusted EBITDA of $154 million, down from $258 million in the second quarter, it achieved a significant milestone by closing its last remaining thermal mine, Slabcamp, making it a pure-play metallurgical producer. The company also continued its share buyback program in a bid to further increase shareholder value. Since January 2022, AMR has bought back 28% of its stock, making it one of the most aggressive buyback programs on the market across all sectors and industries. Going forward, the company has increased its share repurchase program authorization by $300 million to a total of $1.5 billion, allowing for approximately $560 million in additional repurchases.

Looking ahead to 2024, the company provided guidance, anticipating shipping between 15.5 and 16.5 million tons of metallurgical coal.

Alabama-based Warrior Met Coal, Inc. (NYSE: HCC) is a metallurgical coal producer with a strong focus on export sales. It has two active mines that have the capacity to produce 8 million short tons of metallurgical coal per year. Warrior also has the Blue Creek development project, which produces coal with low sulfur and strong coking properties similar to its premium hard-coking coal produced in Australia. While the company is already a highly profitable coal producer, the Blue Creek mine will be a major catalyst for the company once it is fully developed.

Warrior recently reported third quarter earnings, revealing it had sold approximately 2.3 million short tons of metallurgical coal, a significant year-over-year increase on the backdrop of better rail and terminal availability. This brought in about $417 million in revenue for the quarter, which translated to a pre-tax income of $102 million and a net profit in excess of $85 million for an EPS of $1.64 per share.

The company's balance sheet remained robust as it generated $456 million in cash flow, closing the quarter with roughly $687 million in cash. That means that the anticipated $350 million capex to be spent on Blue Creek this year should be fully covered by the company's cash. Warrior Met Coal will have deployed almost $500 million on the development of Blue Creek by the end of the year, which should put it on track for initial production by then.

The company revised its capex guidance upwards to $820–830 million to include the development of Blue Creek's longwall section in order to boost the production rate to 9.6 million short tons per year, which should be reached by the end of 2026.

Colonial Coal International Corp. (TSX-V: CAD) is a pure-play metallurgical coal developer with a 100% interest in two resource-stage coal properties in the Peace River Coalfield of northeastern British Columbia, Canada: namely, the Huguenot and Flatbed properties. The Huguenot property boasts 189 million metric tons of combined measured and indicated resources, plus 194 million metric tons of inferred resources of hard coking coal, while about 298 million metric tons of inferred metallurgical coal resources have been delineated at Flatbed. In the company's recent annual general meeting held in December, a number of key decisions were made, including:

  • The re-election of David Austin, Ian Downie, Anthony Hammond, John Perry, Gregory Waller, and Partha S. Bhattacharyya as directors of the corporation for the year 2024.

  • PricewaterhouseCoopers LLP, Chartered Professional Accountants, were re-appointed as the company's auditor following board approval, and the directors were authorized to set the auditor's compensation.

  • Shareholders approved the continuation of the corporation's current share option plan.

Disclaimers:CapitalGainsReport (CGR) is not operated by a licensed broker, a dealer, or a registered investment adviser. This content is for informational purposes only and is not intended to be investment advice. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. CapitalGainsReport (CGR) is owned by RazorPitch Inc. and has been retained by Benjamin Hill Mining Corp. to assist in the production and distribution of content related to BNN. ‘CGR' is responsible for the production and distribution of this content. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by CapitalGainsReport/RazorPitch or any third party service provider to buy or sell any securities or other financial instruments. All content in this article is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this article constitutes professional and/or financial advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. CGR/RazorPitch is not a fiduciary by virtue of any persons use of or access to this content.

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Canadian Investment Regulatory Organization Trade Resumption - BNN

Canadian Investment Regulatory Organization Trade Resumption - BNN

Trading resumes in:

Company: Benjamin Hill Mining Corp.

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Strategic Metals Announces Alotta Property Option

Strategic Metals Announces Alotta Property Option

Strategic Metals Ltd. (TSXV:SMD) ("Strategic") is pleased to announce that it has entered into a property option agreement with Benjamin Hill Mining Corp. (CSE:BNN)(OTCQB:BNNHF) ("Benjamin") under which Benjamin can acquire a 60% interest in the Alotta project, located in the Whitehorse Mining District, Yukon Territory

The Alotta project hosts an un-drilled porphyry prospect that is situated in a similar geological setting and in close proximity to Western Copper and Gold's Casino Deposit. Alotta is marked by a pronounced magnetic low that coincides with a strong, multi-element soil geochemical anomaly. The core of the geochemical anomaly is enriched in copper, gold and molybdenum and measures 4 km by 1 km. It is surrounded by a distal halo with high lead, zinc and silver values. The Alotta soil geochemical signature exhibits classical features commonly associated with large porphyry deposits. The property is permitted for advanced exploration and only requires an induced polarization survey prior to drill testing.

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Steppe Gold Announces Q1 2024 Financial Results

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Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce its financial results for the quarter ended March 31, 2024.

HIGHLIGHTS

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Steppe Gold Announces Mailing and Filing of Annual General and Special Meeting Materials in Connection with Proposed Transaction with Boroo Gold and Boroo Singapore

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Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold") is pleased to announce that it has filed with the applicable Canadian securities regulatory authorities the management information circular dated May 8, 2024 and related meeting materials of Steppe Gold (the "Meeting Materials") for use at the annual general and special meeting (the "Meeting") of Steppe Gold shareholders (the "Shareholders") to be held in connection with the proposed transaction with Boroo Gold LLC ("Boroo Gold") and Boroo Pte Ltd. ("Boroo Singapore"), or one of its affiliates, as previously announced on April 11, 2024 (the "Transaction"). Steppe Gold has also mailed copies of the Meeting Materials to Shareholders entitled to vote on the Transaction at the Meeting.

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GOLD ROYALTY REPORTS FIRST QUARTER 2024 RESULTS; RECORD REVENUE DRIVES POSITIVE OPERATING CASH FLOW

GOLD ROYALTY REPORTS FIRST QUARTER 2024 RESULTS; RECORD REVENUE DRIVES POSITIVE OPERATING CASH FLOW

Gold Royalty Corp. (" Gold Royalty " or the " Company ") (NYSE American: GROY) is pleased to announce the filing of its operating and financial results for the three months ended March 31, 2024 . All amounts are expressed in U.S. dollars unless otherwise noted.

David Garofalo , Chairman and CEO of Gold Royalty, commented: "We are proud to have delivered on another growth milestone in the first quarter, generating positive operating cash flow for the first time. Our recent acquisitions, royalty generator model, and existing flagship royalties fueled our record revenue this quarter. We also continued to lower our cost profile compared to the prior year. With the gold price near all-time highs and the ramp up of the Côté Gold Mine in the second half of 2024, we expect to see continued royalty revenue growth through the remainder of the year.

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Horizon Minerals Limited  Binding 200KT Toll Milling Agreement Executed with FMR

Horizon Minerals Limited Binding 200KT Toll Milling Agreement Executed with FMR

Perth, Australia (ABN Newswire) - Horizon Minerals Limited (ASX:HRZ) is pleased to announce that it has entered into a binding Toll Milling Agreement ("TMA") with FMR Investments Pty Ltd ("FMR") to treat 200kt of Horizon ore from the Cannon underground project, or other deposit, commencing in the December 2024 Quarter.

HIGHLIGHTS

- Binding TMA has been executed with FMR, which owns the Greenfields Mill located northeast of Coolgardie and 30km southwest of Kalgoorlie-Boulder in WA

- Horizon will arrange contract mining and hauling of ore from Cannon for ore processing at FMR's 1.0Mtpa Greenfields Mill, located ~67km by road from the Cannon Project

- An agreed 200kt of ore will be processed over a period of eight months, commencing in the December 2024 Quarter

- The TMA contains competitive ore treatment rates with the payment structure as follows:

o Horizon is responsible for delivery of each stockpile to the Greenfields Mill ROM near Coolgardie

o Payment of processing costs must be made before the value of the processed and refined gold at the Perth Mint is transferred from FMR's metal account to Horizon

o If the delivery schedule is missed Horizon will forfeit its allocated tonnes for that month and from the overall 200kt allocation

- An Ore Reserve for Cannon has already been established including forecast economics for the ore to be processed via a Toll Milling Agreement

- Cannon is fully environmentally permitted (with last mining in 2017) with pre-production activities are already underway, including dewatering of the open pit in preparation for underground mining

- The TMA has flexibility that Horizon can treat Horizon ore other than Cannon, including Horizon's own current resources or those acquired through the proposed merger with Greenstone Resources Limited, provided sufficient notice is provided to FMR

Commenting on the toll milling agreement, Chief Executive Officer Mr Grant Haywood said:

"We are very pleased to have converted our 200,000 tonne allocation with FMR into a formal Toll Milling Agreement, and look forward to working closely with them as ore deliveries will commence later this calendar year. This agreement is in addition to our 1.4Mt ore sale agreement with Paddington announced a week ago. Together this will see us generating cash flow from two fronts in this fantastic gold price environment before the end of 2024."

Next Steps

- AMC Consultants has been engaged and undertaken a review of the Cannon Ore Reserve and will progress the revised key financial outcomes for the June 2024 Quarter

- Finalise engagement with underground mining and haulage contractors to finalise tenders for Cannon

- Complete the proposed merger with Greenstone Resources to enhance the long-term production profile with development ready high-grade projects

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/WUABZYMW



About Horizon Minerals Limited:

Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

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