Deutsch Bank Issues Alert On Patriot Coal (PCX)

Deutsch Bank has published a research report on Patriot Coal PCX today after Patriot Coal reported its Q4 2010 earnings. In the report, Deutsche Bank states, "PCX issued volume guidance of 30-32m t (vs. DBe of 32m t), with 8-8.4m t of met coal (above DBe of 7.4m t). Since 3Q call, it booked +2m t of met coal at an avg price of $135/t, with 500k t booked in Jan at $155/t. It has 3-3.4m t of met coal unpriced for '11. Average prices on '11 contracted tonnages include App thermal at $59 (was $55) and met at $127 (was $119). Lastly, production costs are expected to be in $63-67/t in Appalachia and $40-43/t ton in IB for 2011, vs $59/t and $42/t respectively for 2010, with the higher App costs mainly attributable to mix." Shares of Patriot Coal were trading at $26.78 in pre-market trading at the time of posting, up 2.33% from Monday's market close.