This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Metals and Mining: Winners and Losers

NEW YORK ( TheStreet) -- James River Coal (JRCC), Peabody Energy (BTU - Get Report) and Consol Energy (CNX - Get Report) rallied higher, whereas Mines Management (MGN), Hecla Mining (HL) and MAG Silver (MVG) showed weakness.

Most of the metal and mining winners last week comprised of major coal stocks in the U.S. Industry analysts say that U.S.-based coal miners are set to gain from the growing safety concerns of nuclear energy in major European countries. Furthermore, as nuclear-powered electricity generation diminishes, coal and natural gas will emerge strong viable alternatives.

Leading the advancers' list, James River Coal gained 15.9% last week, as speculation of a nuclear meltdown in Japan mounted. The ongoing nuclear crisis in Japan has renewed political opposition to nuclear power in the U.S. Peabody Energy accumulated 11.2% past week. The U.S. giant revealed that it is keen to invest in Bangladesh's lone coal mine Barapukuria, which has proven reserves of around 389 million tonnes of coal. Peabody expects to extract 10% to 20% of the total reserves through underground mining within the next 30 years.

Most of the coal sourced from the Appalachian mountains in the eastern U.S. will be diverted to European power plants in order to restore an electricity shortfall in Germany, where seven old nuclear reactors have been shut down for three months. Coal miners like Consol Energy, Alpha Natural Resources (ANR), Patriot Coal (PCX) and Arch Coal (ACI) export from the East Coast facilities. These companies now have the opportunity to fill the gap as traditional suppliers of Europe from South Africa, Russia and Colombia have redirected shipments to Asia to leverage the robust demand arising there.

Metallurgical coal constitutes a major portion of Japan's total 101-107 million tonnes coal imports. Following the positive industry happenings, Consol Energy and Cloud Peak Energy were up 10.9% and 9.1%, respectively during the past week. In 2010, Consol Energy sold about 13 million tonnes of metallurgical coal to export markets.

Alpha Natural Resources, Patriot Coal and Arch Coal gained 8.2%, 8.1% and 6.1% last week, respectively. During 2010, Alpha exported 9.6 million tonnes of metallurgical coal, while Arch Coal generated almost 15% ($471.5 million) of its total revenue from exports. Arch Coal also owns a 38% stake in a loading facility near Colombia River, which is currently being expanded to handle 5 million tonnes of coal annually. Meanwhile, for 2011, Patriot Coal has already booked orders of almost one million tonnes of thermal coal from Europe, compared to nil in 2010.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ACI $0.43 22.51%
JRCC $0.00 0.00%
AHGP $17.45 1.50%
ANR $0.04 3.17%
CNX $14.66 0.58%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.60 -0.52 -0.03%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs