Alpha Metallurgical Soars Over 150% as Top U.S. Met Coal Producer Eyes Growth in India Steel Demand
-
Alpha Metallurgical Resources (AMR) is the largest US producer of metallurgical/coking coal, which is used in steel production. The company has seen its stock price surge over 150% in the past year.
-
AMR is focused on exporting its coal, with about 70% going overseas to fast-growing markets like India. Global steel demand is expected to exceed 1.8 billion metric tons by 2024.
-
The company has been aggressively buying back its stock, repurchasing 28% of outstanding shares since early 2022. This is fuelling further stock price increases.
-
AMR expects to ship 15.5-16.5 million tons of met coal in 2023. It has also authorized an additional $300 million in buybacks, now totalling $1.5 billion.
-
Despite short-term economic uncertainties, the author believes AMR has long-term growth potential in met coal. But the stock is volatile so positions should be small.