Arch Resources, Inc. (NYSE: ARCH) has announced the retirement of 315,721 of its outstanding shares through the unwinding of capped calls associated with its now-retired convertible senior notes. This move represents a reduction of nearly 2% of the company’s outstanding share count. Since May 2017, the total net reduction in share count has increased to 6.4 million shares, which equates to 26% of shares outstanding.
Following the completion of the cashless transaction, Arch’s diluted share count declined from 18.9 million shares to 18.6 million shares outstanding. Matthew C. Giljum, Arch’s chief financial officer, stated, “With the completion of these transactions, Arch has taken another significant step in the reduction in our share count, having now retired more than a quarter of our initial outstanding shares. When combined with our intensifying focus on share repurchases, we expect to continue to substantially reduce the number of outstanding shares over the course of 2024.”
It is important to note that these transactions will not result in any changes to Arch’s financial position or have any impact on its first-quarter financial results. As of the end of 2023, Arch had $320.5 million of cash, cash equivalents, and short-term investments on its balance sheet, and a net positive cash position of $178.4 million, given its total indebtedness of $142.1 million.
Arch Resources is a premier producer of high-quality metallurgical products for the global steel industry, operating large, modern, and highly efficient mines that consistently set the industry standard for mine safety and environmental stewardship. Following these announcements, the company's shares moved 1.6%, and are now trading at a price of $181.72. If you want to know more, read the company's complete 8-K report here.
