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Walter Energy suspends quarterly dividend

29th January 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Cash-strapped Walter Energy suspended its quarterly dividend on its common stock on Wednesday to enhance its financial flexibility in the current turbulent metallurgical coal market conditions.

The pure-play metallurgical coal producer had previously paid a quarterly dividend of $0.01 a share.

Coal miners across the globe were finding little respite in the current low oil prices, as stubbornly low coal prices, a global supply glut and competition from natural gas had forced cash-poor miners to idle unprofitable mines and retrench thousands of miners. In the US, increasingly strict environmental legislation was also putting a stranglehold on the coal industry’s growth prospects.

Last year Walter idled its Canadian operations in the second quarter.

The company expected full-year 2014 met coal production of about 9.5-million tons.

Thirteen Wall Street analysts on average expected the miner to report an adjusted loss of $1.59 a share for the three months ended December 31.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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