Warrior Met Coal Sees Production Surge; Materion Updates Earnings Forecast; Contango To Acquire HighGold And More: Thursday's Top Mining Stories

Zinger Key Points
  • Warrior Met Coal reported Q1 net income of $137 million, 17% increase in production and reaffirmed its 2024 guidance.
  • Materion Q1 net sales were $385.3 million with net income of $13.4 million and it updated its FY EPS forecast to $5.60 to $6.20.

Top Stories for May 2, 2024

Warrior Met Coal HCC: The Brookwood, Alabama-based company reported Q1 results with net income of $137 million, sales of $503.512 million and adjusted EBITDA of $200.2 million.

  • Warrior Met saw a 17% increase in production volumes for its highest quarterly production in over three years. 
  • After investing in its Blue Creek project, it returned $30.6 million to shareholders via dividends. 
  • Despite reduced demand and lower coal prices, the company reaffirmed its 2024 guidance.

Materion MTRN: The Mayfield Heights, Ohio-based company reported Q1 results with net sales of $385.3 million. Net income came in at $13.4 million, or 64 cents per diluted share and 96 cents adjusted earnings per share.

  • The company updated its full-year earnings forecast to $5.60 to $6.20 per share, reflecting a 5% annual growth at the midpoint. 
  • Sales declined due to weaker semiconductor and industrial markets, offset by strength in space and defense. 
  • Operating profit was $22.2 million, down from $36.9 million last year and adjusted EBITDA was $45.2 million, maintaining similar margins due to cost improvements despite lower volumes.

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Contango ORE CTGO: The Fairbanks, Alaska-based company will acquire HighGold Mining HGMIF in a court-approved transaction.

  • HighGold is valued at about $37 million. 
  • HighGold shareholders will receive 0.019 Contango shares per HighGold share, a 59% premium. 
  • Post-transaction, Contango shareholders will own about 85% of the combined company while HighGold shareholders will own the remaining 15%.

ArcelorMittal AMSYF: The Luxembourg-based company reported its Q1 results, emphasizing health and safety with a significant focus on zero serious injuries. 

  • The period saw a 5% increase in steel shipments and a rise in EBITDA to $2 billion from $1.5 billion in the previous quarter. 
  • Net income was $0.9 billion, recovering from a net loss of $3 billion in Q4 2023, and seasonal investments led to a free cash outflow of $1.4 billion. 
  • The company’s net debt stood at $4.8 billion, showing strong cash generation despite substantial investments and shareholder returns.

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