Arch Coal (ACI)

 

We seek to optimize our coal production and leverage our knowledge of the coal industry through a variety of marketing, trading and other asset optimization strategies. We maintain a system of complementary processes and controls designed to monitor and control our exposure to market and other risks as a consequence of these strategies. These processes and controls seek to balance our ability to profit from certain marketing, trading and asset optimization strategies with our exposure to potential losses. While we employ a variety of risk monitoring and mitigation techniques, those techniques and accompanying judgments cannot anticipate every potential outcome or the timing of such outcomes. In addition, the processes and controls that we use to manage our exposure to market and other risks resulting from these strategies involve assumptions about the degrees of correlation or lack thereof among prices of various assets or other market indicators. These correlations may change significantly in times of market turbulence or other unforeseen circumstances. As a result, we may experience volatility in our earnings as a result of our marketing, trading and asset optimization strategies.

 

 

We seek to optimize our coal production and leverage our
knowledge of the coal industry through a variety of marketing,
trading and other asset optimization strategies. We maintain a
system of complementary processes and controls designed to
monitor and control our exposure to market and other risks as a
consequence of these strategies. These processes and controls
seek to balance our ability to profit from certain marketing,
trading and asset optimization strategies with our exposure to
potential losses. While we employ a variety of risk monitoring
and mitigation techniques, those techniques and accompanying
judgments cannot anticipate every potential outcome or the
timing of such outcomes. In addition, the processes and controls
that we use to manage our exposure to market and other risks
resulting from these strategies involve assumptions about the
degrees of correlation or lack thereof among prices of various
assets or other market indicators. These correlations may change
significantly in times of market turbulence or other unforeseen
circumstances. As a result, we may experience volatility in our
earnings as a result of our marketing, trading and asset
optimization strategies.