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ACI » Topics » Our profitability depends upon the long-term coal supply agreements we have with our customers. Changes in purchasing patterns in the coal industry could make it difficult for us to extend our existing long-term coal supply agreements or to enter into newThis excerpt taken from the ACI 10-K filed Mar 1, 2010. Our
profitability depends upon the long-term coal supply agreements
we have with our customers. Changes in purchasing patterns in
the coal industry could make it difficult for us to extend our
existing long-term coal supply agreements or to enter into new
agreements in the future.
We sell a portion of our coal under long-term coal supply
agreements, which we define as contracts with terms greater than
one year. Under these arrangements, we fix the prices of coal
shipped during the initial year and may adjust the prices in
later years. As a result, at any given time the market prices
for similar-quality coal may exceed the prices for coal shipped
under these arrangements. Changes in the coal industry may cause
some of our customers not to renew, extend or enter into new
long-term coal supply agreements with us or to enter into
agreements to purchase fewer tons of coal than in the past or on
different terms or prices. In addition, uncertainty caused by
federal and state regulations, including the Clean Air Act,
could deter our customers from entering into long-term coal
supply agreements.
Because we sell a portion of our coal production under long-term
coal supply agreements, our ability to capitalize on more
favorable market prices may be limited. Conversely, at any given
time we are subject to fluctuations in market prices for the
quantities of coal that we have produced but which we have not
committed to sell. As described above under “A substantial
or extended decline in coal prices could negatively affect our
profitability and the value of our coal reserves,” the
market prices for coal may be volatile and may depend upon
factors beyond our control. Our profitability may be adversely
affected if we are unable to sell uncommitted production at
favorable prices or at all. For more information about our
long-term coal supply agreements, you should see the section
entitled “Long-Term Coal Supply Arrangements.”
This excerpt taken from the ACI 10-K filed Feb 27, 2009. Our
profitability depends upon the long-term coal supply agreements
we have with our customers. Changes in purchasing patterns in
the coal industry could make it difficult for us to extend our
existing long-term coal supply agreements or to enter into new
agreements in the future.
We sell a portion of our coal under long-term coal supply
agreements, which we define as contracts with terms greater than
one year. Under these arrangements, we fix the prices of coal
shipped during the initial year and may adjust the prices in
later years. As a result, at any given time the market prices
for similar-quality coal may exceed the prices for coal shipped
under these arrangements. Changes in the coal industry may cause
some of our customers not to renew, extend or enter into new
long-term coal supply agreements with us or to enter into
agreements to purchase fewer tons of coal than in the past or on
different terms or prices. In addition, uncertainty caused by
federal and state regulations, including the Clean Air Act,
could deter our customers from entering into long-term coal
supply agreements.
Table of Contents
Because we sell a portion of our coal production under long-term
coal supply agreements, our ability to capitalize on more
favorable market prices may be limited. Conversely, at any given
time we are subject to fluctuations in market prices for the
quantities of coal that we have produced but which we have not
committed to sell. As described above under “A substantial
or extended decline in coal prices could negatively affect our
profitability and the value of our coal reserves,” the
market prices for coal may be volatile and may depend upon
factors beyond our control. Our profitability may be adversely
affected if we are unable to sell uncommitted production at
favorable prices or at all. For more information about our
long-term coal supply agreements, you should see “Long-Term
Coal Supply Arrangements” beginning on page 17.
This excerpt taken from the ACI 10-K filed Mar 1, 2007. Our profitability depends
upon the long-term coal supply agreements we have with our
customers. Changes in purchasing patterns in the coal industry
could make it difficult for us to extend our existing long-term
coal supply agreements or to enter into new agreements in the
future. |
We sell a substantial portion of our coal under long-term coal
supply agreements, which we define as contracts with a term
greater than one year. Under these arrangements, we fix the
prices of coal shipped during the initial year and may adjust
the prices in later years. As a result, at any given time the
market prices for similar-quality coal may exceed the prices for
coal shipped under these arrangements. Changes in the coal
industry may cause some of our customers not to renew, extend or
enter into new long-term coal supply agreements with us or to
enter into agreements to purchase fewer tons of coal than in the
past or on different terms or prices. In addition, uncertainty
caused by federal and state regulations, including the Clean Air
Act, could deter our customers from entering into long-term coal
supply agreements.
Because we sell a substantial portion of our coal production
under long-term coal supply agreements, our ability to
capitalize on more favorable market prices may be limited.
Conversely, at any given time we are subject to fluctuations in
market prices for the quantities of coal that we have produced
but which we have not committed to sell. As described above
under “Our profitability and the value of our coal reserves
depend upon coal demand by United States electric power
generators and other factors beyond our control,” the
market prices for coal may be volatile and may depend upon
factors beyond our control. Our profitability may be adversely
affected if we are unable to sell uncommitted production at
favorable prices or at all. For more information about our
long-term coal supply agreements, you should see “Long-Term
Coal Supply Arrangements” beginning on page 17.
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