Core natural resources delays Leer South mine restart due to gas levels

CANONSBURG - Core Natural Resources, Inc. (NYSE:CNR), a $3.57 billion mining company with a "GOOD" financial health rating according to InvestingPro, announced today it has temporarily resealed a section of its Leer South mine after detecting elevated carbon monoxide levels during recovery operations following a combustion-related event that occurred in January.

According to a company press release, Core personnel and regulatory officials had re-entered the sealed area on June 10 as planned and successfully re-established ventilation, restored hydraulic pressure along the longwall face, and conducted equipment inspections. The company reported that major longwall components remained in good condition.

However, on June 26, rising carbon monoxide levels forced the evacuation of the mine and prompted the restoration of pumpable seals to the affected area. Core is now working with federal and state officials on a recovery plan that is expected to take approximately four months.

"While recent developments are expected to delay the restart of the longwall, we are encouraged by the condition of the mine and related infrastructure," said George J. Schuller Jr., Core’s senior vice president and chief operating officer, in the statement.

Despite the setback, Core maintained its 2025 coking coal sales volume guidance for its metallurgical segment. The company also expects to receive insurance recoveries exceeding $100 million related to the Leer South incident.

Core Natural Resources was formed in January 2025 through the merger of CONSOL Energy and Arch Resources. The company operates several mines including the Pennsylvania Mining Complex, Leer, Leer South, and West Elk.

The company plans to provide further updates on the Leer South recovery efforts in its second quarter earnings release in early August.

In other recent news, Core Natural Resources has been initiated with a Buy rating by UBS analysts, who set a price target of $80.00. UBS highlighted the company’s strong financials, including $38 million in net cash and robust free cash flow generation exceeding $500 million annually. This financial strength supports a $1 billion buyback program, with 75% of free cash flow being returned to shareholders. UBS noted that despite challenges like merger synergy realization and recovery from a fire-driven loss, the company presents a favorable entry point for investors.

Meanwhile, RBC Capital has maintained an Outperform rating on Canadian National Railway, with a price target of Cdn$163.00. Analysts expressed optimism about the company’s growth potential at the Prince Rupert facility, anticipating multi-year volume growth driven by bulk products and intermodal services. Additionally, Canadian National Railway announced the election of its board of directors at their annual shareholder meeting. All 11 management-nominated candidates were elected, with Shauneen Bruder re-elected as board chair. This election reflects strong shareholder support, with vote percentages ranging from 98.61% to 99.81%.

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