Patriot Coal Drops Following Production Update
Friday, January 13, 2022 9:39 AM

Patriot Coal Corp. (NYSE:PCX) announced that waning demand for metallurgical coal used to make steel will result in reduced production, and its shares dropped 5.4 percent in early trade.

The St. Louis, Missouri-based thermal coal miner said it will idle one contractor-operated mine and two subsidiary-operated production units in the Rocklick complex as well as two contractor-operated mines in the Wells complex.

"These production cuts, in conjunction with other cost-reduction measures... are aimed at lowering our mining costs," Chief Executive Richard Whiting said.

The company had said late last year it expects higher pricing and strong export demand.

However, slowdown in the global economy has resulted in weak demand for the commodity in the last few months.

The stock, which has been trading in the range of $6.92 to $29.20 in the past year, is currently down 5.7 percent to $8.50 on Friday.