(MEE) - Massey - year-over-year increase of 38% for produced coal revenue

October 9th, 2008

Massey’s (MEE) fundamentals signal growth, and the company is growing through coal mine acquisitions. Massey recently announced the acquisition of a metallurgical coal mine in West Virginia. The company noted that it can add significant metallurgical coal production almost immediately with relatively low start-up costs.

Company Description

Massey Energy Company, which is the fourth largest coal company in the United States based on produced coal revenue, is headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia.

Growth Through Mine Acquisition

The company recently announced the acquisition of a metallurgical coal mine in West Virginia. MEE noted that this acquisition can add significant metallurgical coal production almost immediately with relatively low start-up costs.

An Update on the Company’s Guidance

In early September, Massey Energy backed its 2008 forecast, noting that it still expects full-year 2008 results, excluding a litigation charge recorded in the second quarter, to be within the ranges of full-year guidance provided previously but with produced tons sold and average price per ton trending toward the lower end of the respective ranges.

Management added that Global demand for coal remains very strong and prices have remained at very high levels. Massey’s Chairman and CEO Don Blankenship said, “with continuing progress in our expansion efforts and prices in excess of our original plans, Massey is on track for another record year.”

In the company’s second-quarter report, which was released in late July, it projected 2008 produced coal shipments to be between 41.5 and 43.0 million tons, with average produced coal realization between $65.00 and $66.00 per ton. MEE said that excluding the WP litigation charge, average cash cost per ton for the full year 2008 is expected to be between $47.00 and $50.00. Other income is expected to be between $20 and $100 million.