Any time you have a disruption, you have a loss in (coal) production. But I don't think this will be an event that shuts down the coal industry. |
But I am not sure how much someone would be prepared to pay for James River, rather than buying a private company. |
It would remove some production from an already tight market. |
The big picture for investors is what will it do for production. What will it mean for supply and demand and pricing? |
The demand for Appalachian coal is strong, and it's cheap compared to other fuel prices. |
There has been a lot of pressure from large shareholders. The market is reacting well to it...everyone is talking about consolidation (in the coal industry). |
They had encouraging operating numbers. Their lower cost guidance was also good. |