NEW YORK (TheStreet) -- Alpha Natural Resources (ANR) was falling 6.93% to $5.10 at 10:03 a.m. on Friday in the wake of the news that the second-largest U.S. coal producer would pay a $27.5 million fine under a proposed settlement with the U.S. government over poisonous discharges from the company's mines in five states.
Under the terms of the settlement, Alpha Natural Resources would pay the fine and spend approximately $200 million on wastewater treatment systems. The company and 66 subsidiaries will install and operate the systems and institute upgrades across the system to decrease the toxic discharges from coal mines in Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia, according to Bloomberg.
Goldman Sachs also downgraded Alpha Natural Resources to "sell" from "neutral" due to the company's lower met coal forecasts. The firm decreased its target price to $4 from $6.
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TheStreet Ratings team rates ALPHA NATURAL RESOURCES INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALPHA NATURAL RESOURCES INC (ANR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."