Patriot Coal On Hold With High Costs

Patriot Coal Corporation

saw large expenses in its 2Q that were inflated by increased inspections and operational issues, according to Dahlman Rose. Costs have increased $5/ton for Central Appalachia and Illinois Basin as well, and management expects a $1-2/ton impact for all eastern underground mines to be ongoing. Material costs are rising and productivity is slowing, says Dahlman, and its rating stays at "hold" for PCX. Patriot Coal Corporation closed yesterday at $12.18.