Arch Resources, Inc. (ARCH): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the new energy giants, and the recent formation of Core Natural Resources, built around Arch Resources, Inc. after its January 2025 merger with CONSOL Energy Inc., is a big shift you need to understand. Honestly, this isn't just another coal operation; they've carved out a position as a first-quartile cost leader, supplying premium metallurgical coal to global steelmakers. With a combined revenue scale near $4.6 billion and projected operating synergies hitting up to $140 million, the structure is defintely tight. Want to see exactly how they plan to move that high-calorific value coal from their world-class mines to global customers using their East Coast logistics? Keep reading for the full Business Model Canvas breakdown below.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Key Partnerships

The Key Partnerships for the entity now known as Core Natural Resources, Inc., following the merger of Arch Resources, Inc. and CONSOL Energy Inc. in January 2025, are central to its operational scale and market reach.

The merger itself represents a foundational partnership, creating a combined entity with an expected initial market capitalisation of approximately $5.2bn.

Core Natural Resources, Inc. operates 11 mining sites across six states in the US, leveraging established relationships for moving its product.

Logistics partnerships are critical for accessing both domestic and international customers, particularly for the metallurgical coal segment which is the primary revenue driver.

• Historically, Appalachian mining complexes utilized the CSX railroad for transport.
• Management in late 2025 anticipated improved thermal segment costs driven by lower rail rates in the latter half of the year.

Access to seaborne markets is anchored by ownership positions in marine export facilities on the US East Coast.

The partnership with global steel producers is fundamental, as metallurgical coal is an essential input for steelmaking, a market Core Natural Resources, Inc. is positioned to serve worldwide.

• Global steel demand is projected to stabilize at 1.75 billion tonnes in 2025.
• The company focuses on supplying premium metallurgical coal via long-term supply agreements with major steel manufacturers.
• Metallurgical coal remains essential, with 70 percent of steel production relying on it as an input material as of earlier reports.

The combined entity is set to continue playing an essential role in meeting the world's growing steel, infrastructure, and energy requirements.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Key Activities

Operating world-class, low-cost longwall metallurgical mines remains a core activity, now integrated within Core Natural Resources, Inc. following the January 2025 combination. The Leer franchise, comprising the Leer and Leer South mines, produces premium High-Vol A metallurgical coal from the Lower Kittanning seam. Each mine is expected to have an output of approximately 4 million tons per year. The Leer franchise benefits from mining costs situated in the lowest quartile of the cost curve. For the three months ended June 30, 2025, the metallurgical segment sold 10,707 thousand tons. The associated Non-GAAP Segment Cash Cost of Coal Sold for that period was $133,158 thousand. The cash cost of coal sold per ton for the metallurgical segment specifically reached $95.93 in the second quarter of 2025.

Managing an industry-leading logistical network for coal exports is crucial, as the sales strategy leans heavily on international markets. Only around 10% of sales go to domestic North American customers. The remaining volume is split, with 40-45% going to Europe and Asia, and about 5% directed to Brazil. The U.S. Energy Information Administration forecasted aggregate thermal and metallurgical coal exports to total 104.4 million st in 2025. Furthermore, the CONSOL Marine Terminal, now part of the combined operations, has a throughput capacity of approximately 20 million tons per year.

Executing mine reclamation and environmental stewardship programs involves managing significant legacy liabilities. Historically, Arch Coal used over $1 billion in self-bonding to guarantee mine reclamation obligations under the Surface Mining Control and Reclamation Act of 1977. Following bankruptcy proceedings, the Wyoming Department of Environmental Quality accepted $75 million in place of the company's $486 million self-bonding liability to that state.

Advancing operational efficiency at the flagship met mines is a continuous activity. For the Leer South mine in the first half of 2025, the key activity involved managing an unplanned operational interruption. The company incurred $21.2 million in combustion-related and idle costs at Leer South during the second quarter of 2025 alone. Management was working on a plan to recover and reposition the longwall equipment by the end of October 2025, with the objective of resuming longwall production shortly thereafter. The Core team projected incurring fire extinguishment and idle costs between $20 million to $30 million at Leer South in the third quarter of 2025 related to this recovery effort.

Key operational metrics for the first half of 2025 for the combined entity's relevant segments include:

The logistical focus for the metallurgical coal sales involves specific geographic targets:

• Domestic North American Sales: Approximately 10% of total sales volume.
• European Sales: Between 40% and 45% of export volume.
• Asian Sales: Between 40% and 45% of export volume.
• Brazil Sales: Approximately 5% of export volume.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Key Resources

You're looking at the core assets that underpinned Arch Resources, Inc. (ARCH) and now form the foundation of the combined entity, Core Natural Resources, Inc., as of late 2025. These aren't just line items; they are the physical and human capital driving the business.

Extensive, long-lived coal reserves, including high-quality High-Vol A coking coal

The resource base is massive and geographically diverse, spanning Appalachia and the Western regions. The quality of the metallurgical coal, specifically the High-Vol A product, is a key differentiator sought after globally.

• Total proven and probable coal reserves controlled (pre-merger context): approximately 5.5 billion tons.
• As of December 31, 2022, metallurgical coal reserves stood at approximately 145 million tons.
• As of December 31, 2022, thermal coal reserves stood at approximately 528 million tons.

Ownership stakes in two large-scale East Coast marine export terminals

Access to global markets is cemented by logistics infrastructure. The combined entity, Core Natural Resources, leverages ownership interests in these terminals to move product efficiently.

• Ownership interests in two export terminals on the U.S. Eastern seaboard.
• Combined pro forma export capacity across these terminals is approximately 25 Mtpa (million tons per annum).
• The CONSOL Marine Terminal, located in the port of Baltimore, has a throughput capacity of approximately 20 million tons per year.

Flagship longwall mining complexes (Leer, Leer South, and former CONSOL assets)

The operational heart of the metallurgical business lies in these world-class, low-cost longwall mines in Appalachia. The transition of Leer South into full production capacity is a major asset enhancement.

Highly skilled workforce of approximately 3,400 employees (pre-merger ARCH)

The people operating these complex, large-scale assets are critical. The prompt specifies the pre-merger ARCH headcount, which is a key component of the human capital base.

• Approximate full-time employees for Arch Resources, Inc. (pre-merger): 3,400.

Finance: draft 13-week cash view by Friday.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why steelmakers and industrial users choose the coal produced by the entity that resulted from the Arch Resources merger. It's about quality, cost position, and sheer scale now that the combination with CONSOL Energy closed in January 2025 to form Core Natural Resources.

Supplying premium, high-quality metallurgical coal for the global steel industry is central. Arch Resources was already the leading producer of High-Vol A metallurgical coal globally. The combined entity now offers a best-in-sector portfolio of longwall operations, including the Leer franchise, which produces HVA coal. This focus is on export markets, with only about 10% of sales historically going to domestic North American customers.

The cost advantage is clear. The Leer franchise specifically enjoys mining costs in the lowest quartile of the cost curve. Management has expressed expectations of improved yields and lower costs in 2025. For context on the combined platform, CONSOL's cash cost at the Pennsylvania Mining Complex (PAMC) was reported at $36.1/ton in the third quarter of 2024.

For the seaborne thermal market, the value is in the high specifications. The West Elk mine produces coal with a composition of nearly 12,000 Btu/lb and is very low in sulfur, positioning it among the highest ranked US seaborne coals. The new company is set up to deliver more than 25 Mtpa of this high-calorific value thermal coal capacity.

The merger itself delivers enhanced supply security and scale. The new company operates 11 mines across six states. On a pro forma basis for 2023, the combined entity generated revenues of approximately $5.7 billion and adjusted EBITDA of approximately $1.8 billion. You can expect annual cost savings and operational synergies estimated between $110 million and $140 million within six to 18 months of the close.

Here's a quick look at the scale and cost structure post-merger, based on reported figures and projections:

The value proposition is also supported by improved logistics access:

• Access to two East Coast shipping terminals: Consol Marine Terminal in Baltimore, Maryland, and Dominion Terminal Associates near Norfolk, Virginia.
• Strategic access to US West Coast and Gulf of Mexico ports.
• Arch stockholders now own 45% of the combined company, Core Natural Resources.

The commitment to quality extends to governance, with Arch subsidiaries achieving a perfect compliance record in 2023, including zero Notices of Violation from state mining regulators. Also, Arch subsidiaries recorded zero water quality exceedances in 2023 across more than 90,000 measurements.

Finance: review the 2025 projected cost decline against the 3Q24 operating cash flow of $24.9 million for Arch.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Customer Relationships

You're looking at how Arch Resources, Inc. (ARCH) manages its customer interactions across its metallurgical and thermal coal segments as of late 2025. It's all about locking in volume where possible, especially given the strategic merger with CONSOL Energy Inc. which was expected to close by the end of the first quarter of 2025, aiming to create a global leader in seaborne metallurgical and high-rank thermal coal markets.

For the thermal coal side, the relationship with electric power utilities is heavily centered on contracted volumes, which helps manage near-term revenue stability. While I don't have the exact 2025 contracted percentage, we know that for 2024, Arch's thermal coal shipment forecast was more in line with its 52.8 million st of already priced and committed volumes, which was slightly below the 54.2 million st they had under contract for that year. The broader market context suggests continued utility demand, with US electric power sector coal consumption projected to rise to 371.7 million st in 2025.

Direct sales and technical support go to global steel producers, as Arch is a premier producer of high-quality metallurgical products for that industry. The company manages its coal sales by market and coal quality, not by individual mining complex. The merger with CONSOL Energy was positioned to enhance operating execution for the coking coal portfolio in 2025.

When you look at the seaborne markets, which serve both steel producers and international utilities, Arch ships coal to destinations like the Netherlands, China, and Japan. US thermal coal exports, in general, were projected by analysts to increase to 55 million st in 2025. The company uses loadout facilities to export coal to countries in Europe, Asia, North America (excluding the US), and Central and South America. We can see the key international pull from the 2024 data, which shows the top destinations for seaborne US thermal coal exports from January through October 2024:

For uncommitted volumes, Arch definitely relies on transactional spot-market sales, though management has historically signaled a preference for committed volumes to manage volatility. The company's strategy involves pursuing high-quality seaborne thermal business, with CEO Paul Lang noting that the West Elk mine is expected to be a big player in that business for the next 10 years plus.

Here's a quick look at the customer relationship focus areas:

• Focus on long-term contracts for thermal coal supply to utilities.
• Direct sales support for global blast furnace customers (steel mills).
• Exporting coal via loadout facilities to international markets.
• Managing sales across two distinct segments: Metallurgical and Thermal.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Channels

You're looking at how the coal moves from the mine to the customer, which, as of late 2025, is largely defined by the combined logistics power of the entity formed from Arch Resources, Inc. and CONSOL Energy Inc., now operating as Core Natural Resources, Inc. The channel strategy is heavily weighted toward global seaborne markets.

Rail transportation networks for delivery to domestic and export terminals

The movement of coal relies on extensive rail networks connecting the mining complexes, such as the Pennsylvania Mining Complex and the Black Thunder Mine, to key loading points. While specific rail volume statistics for Core Natural Resources in 2025 aren't public, the combined operational footprint necessitates significant rail utilization across the Eastern United States. This rail infrastructure is the critical link to the marine terminals and, secondarily, to domestic utility and industrial customers.

East Coast marine export terminals for global seaborne shipments

The core of the channel strategy involves ownership interests in East Coast marine export terminals, which provide reliable and efficient access to international buyers. The combined entity controls approximately 25 Million tons per annum (Mtpa) of export coal capacity via ownership interests in two terminals on the U.S. Eastern seaboard. One specific asset, the CONSOL Marine Terminal in the port of Baltimore, has a stated throughput capacity of approximately 20 million tons per year.

Here's a quick look at the export focus post-merger, based on pro-forma volume expectations:

Direct sales force managing long-term domestic utility contracts

Even with the pivot to exports, the sales force manages existing domestic relationships. For context, prior to the merger, Arch Resources sold its metallurgical coal to five North American customers and exported to 34 customers overseas in 11 countries in 2023. The sales force manages contracts that typically contain provisions for price adjustment due to new governmental statutes or regulations. While the thermal segment is being systematically wound down, the remaining domestic utility and industrial contracts are managed directly to ensure cash flow harvest continues.

Loadout facilities for international exports to Asia, Europe, and the Americas

The export channel is supported by strategic access points beyond the East Coast terminals. The logistics network ensures the coal, which includes metallurgical coal for steel and high calorific value thermal coal for industrial uses, can reach global markets efficiently. The company maintains strategic connectivity to ports on the West Coast and in the Gulf of Mexico to complement the East Coast terminals.

The key loadout and access points include:

• Ownership interests in two East Coast marine export terminals.
• Access to ports on the West Coast.
• Access to ports in the Gulf of Mexico.
• The CONSOL Marine Terminal ships coal to South America, Asia, and Europe.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Arch Resources, Inc. (ARCH) as of late 2025, post-merger with CONSOL Energy, which created Core Natural Resources.

The company sells substantially all of its coal production to three main groups: steel mills, power plants, and industrial facilities. Arch Resources, Inc. reports operations across two primary segments: Metallurgical (MET) and Thermal. Arch Resources, Inc. is recognized as a leading U.S. producer of metallurgical products for the global steel industry and the leading supplier of premium High-Vol A metallurgical coal globally.

The customer base distribution, based on 2024 revenue figures, shows a significant international component:

Global steel producers are the primary consumers of the Metallurgical coal output. For the three months ended March 31, 2025, the MET segment shipped 7,097 thousand tons of coal. Arch Resources, Inc. guided for coking coal sales volume between 8.6 million st and 9.0 million st for the full year 2024.

Domestic and international electric power utilities, along with industrial facilities, purchase the Thermal coal. The role of US domestic utilities is shifting. For instance, US electric power sector coal consumption is forecasted to increase by 0.4% on the year in 2025, totaling 371.7 million st. Conversely, US thermal coal exports are projected to rise to 55 million st in 2025. Arch Resources, Inc. expected 2024 thermal coal shipments to be between 50 million st and 56 million st, down from 65.6 million st sold in 2023.

Customers in fast-growing Asian markets are critical for both product lines, especially following the merger which aimed to enhance exports to this region. The company ships thermal coal to destinations including China and Japan. The focus on Asia is clear, as it accounted for 30% of ARCH revenue in 2024.

• Global coal demand growth is described as being Asia centric.
• China and India together account for over 60% of global thermal coal demand.
• In the first half of 2024, India's thermal coal imports rose by nearly 10%.
• In the first half of 2024, China's thermal coal imports rose by 8%.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Cost Structure

You're looking at the major drains on Arch Resources, Inc.'s cash flow, which is key to understanding their operational leverage. The cost structure is heavily weighted toward capital-intensive assets.

High fixed costs are definitely associated with operating world-class longwall mines. Arch Resources, Inc. operates four large, modern metallurgical mines, with flagship assets like the Leer and Leer South mines requiring massive initial capital deployment. For instance, the development of the Leer South longwall mine represented an investment of around $400 million to bring that single operation online, which translates directly into significant depreciation and fixed overhead costs regardless of short-term production fluctuations.

Significant transportation and logistics expenses are another major component. Moving that premium metallurgical coal from the mine mouth to the customer, often via rail to East Coast terminals for export, eats up a substantial portion of the revenue base. You see this clearly when breaking down the Q2 2025 costs.

Here's a look at the cost breakdown for the three months ended June 30, 2025, showing where the money went before factoring in fixed overhead like depreciation and amortization:

Labor, materials, and supplies for mining operations are captured within the Cash Cost of Coal Sold per Ton metric, which excludes transportation. For the three months ended June 30, 2025, the direct operating costs were $42.78 per ton for the Metallurgical segment and $91.00 per ton for the Thermal segment. The total Non-GAAP Segment Cash Cost of Coal Sold for the quarter was $647,494 thousand.

The pending transformational merger with CONSOL Energy is expected to significantly alter the combined entity's cost profile. The projected annual operating synergies from this combination are estimated to be between $110 million to $140 million once the transaction closes, which is expected in the first quarter of 2025. This synergy target is a critical driver for future profitability.

From a capital investment perspective, Arch Resources, Inc. reported capital expenditures for the third quarter of 2024 (TTM as of September 30, 2024) of -$183 million. The company has stated a focus on maintaining capital spending at maintenance levels for the foreseeable future following that period, though the merger integration will likely bring new capital allocation decisions.

You should monitor the following key cost drivers:

• High fixed costs from world-class longwall assets.
• Rail rates and terminal fees impacting logistics costs.
• The successful realization of $110 million to $140 million in annual merger synergies.
• The shift in production mix between the lower-cost metallurgical segment and the higher-cost thermal segment.

Finance: draft 13-week cash view by Friday.

Arch Resources, Inc. (ARCH) - Canvas Business Model: Revenue Streams

You're looking at the core ways Arch Resources, Inc. brings in money, which is heavily tied to the global steel and power generation markets. The business model centers on two primary product streams, which, as of late 2025, are expected to be operating under the combined entity following the planned merger with CONSOL Energy Inc., which was targeted to close by the first quarter of 2025.

The first major revenue component is the Sales of metallurgical coal (High-Vol A) to the global steel market. This stream represents the market-exposed upside for Arch Resources, Inc. You see this in the volumes shipped; for example, in the third quarter of 2024, coking coal shipments totaled 2.1 million tons, despite logistical hurdles like a three-week shiploader outage at the Curtis Bay Terminal. To give you a sense of the pricing power, in the first quarter of 2024, the sales price per ton for metallurgical coal was $149.98.

The second stream involves the Sales of thermal coal to domestic and international utilities. This is generally viewed as the more contracted and visible stream, providing a baseline revenue floor. In the first quarter of 2024, thermal coal sales volumes reached 12.8 million tons, with a sales price per ton of $17.60.

Here's a quick look at the segment breakdown using the latest available quarterly data points to illustrate the revenue mix before the full effect of the merger integration:

The overall Annual revenue scale for the combined entity is projected based on the ARCH/CONSOL combined 2024 revenue figure of approximately $4.6 billion. For Arch Resources, Inc. alone, revenues for the third quarter of 2024 were $617.9 million.

For capital returns to shareholders, Arch Resources, Inc. has maintained a policy that includes a Fixed quarterly cash dividend of $0.25 per share, which was declared in the third quarter of 2024 and is payable on November 26, 2024. This fixed component sits alongside any variable dividend declared based on discretionary cash flow. The company has deployed more than $1.3 billion under its capital return program since February 2022.

You can see the revenue focus in the operational goals:

• Positioning the Leer South mine for enhanced execution in 2025.
• Progressing B-Seam reserves at the export-focused West Elk mine.
• The thermal segment returned to profitability, aided by cost-cutting.
• Legacy, lower-priced thermal contracts at West Elk were expected to expire by the end of 2024.