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Investing.com - Benchmark maintained its Buy rating and $105.00 price target on Core Natural Resources (NYSE:CNR) despite recent challenges at the company’s Leer South mine. According to InvestingPro data, CNR maintains a "GOOD" financial health score, with the stock currently trading near its Fair Value. The company has demonstrated solid revenue growth of 11.29% over the last twelve months.
The mining company re-entered the Leer South mine on June 10 as planned and successfully re-established ventilation, restored hydraulic pressure along the longwall face, and confirmed the longwall was largely undamaged by the previous combustion event.
However, on June 26, carbon monoxide levels began to increase as water was pumped out of low-lying areas of the panel, prompting the company to re-seal and flood that portion of the mine and reposition the longwall equipment approximately 1,000 feet down the panel.
Core Natural Resources expects this containment strategy will allow longwall production to resume within four months, and the company has maintained its full-year coking coal sales guidance, supported by strong performance at its Leer mine and available excess inventory.
The company estimates future insurance recoveries will exceed $100 million, which should partially offset expenses related to the mine setback, though Benchmark noted there could be some pressure on metallurgical segment cost per ton due to Leer South’s delayed return to operation.
In other recent news, Core Natural Resources has temporarily resealed a section of its Leer South mine due to elevated carbon monoxide levels detected during recovery operations. This action follows a combustion-related event earlier in the year, and the company is collaborating with federal and state officials on a recovery plan expected to take approximately four months. Despite this setback, Core Natural Resources maintains its 2025 coking coal sales volume guidance and expects insurance recoveries exceeding $100 million related to the incident. Meanwhile, UBS has initiated coverage of Core Natural Resources with a Buy rating, citing the company’s strong balance sheet and robust free cash flow generation. UBS analysts see positive stock-specific catalysts emerging over the next 6-12 months, offering what they describe as an attractive entry point for investors.
Additionally, Canadian National Railway (TSX:CNR) Company announced the election of its board of directors at its annual shareholder meeting, with all 11 management-nominated candidates elected. RBC Capital analysts have maintained an Outperform rating for Canadian National Railway, expressing optimism about growth potential at the Prince Rupert facility. The analysts foresee significant multi-year volume growth driven by bulk products, natural gas liquids, and intermodal services. These recent developments offer insights into the operational and financial strategies of both Core Natural Resources and Canadian National Railway.
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