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Exhibit 12.1
Arch Western Resources
Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(Dollars in millions, except ratios)
Six Months
Year ended December 31, Ended June 30,
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1998 1999 2000 2001 2002 2002 2003
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Earnings:
Income (loss) from operations (5,032) 27,152 12,451 60,370 49,824 12,971 36,483
Fixed charges net of capitalized interest 30,943 51,831 49,370 46,908 44,161 21,949 21,291
Amortization of capitalized interest - - 56 40 133 20 20
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Earnings before taxes and fixed charges 25,911 78,983 61,877 107,318 94,118 34,940 57,794
Combined fixed charges and preference dividends:
Interest expense 29,282 49,950 46,957 44,638 43,605 21,567 20,557
Capitalized interest (39) (1,190) - - (711) (287) -
Dividends on preferred membership interest 57 95 96 95 95 48 48
Portions of rent which represent an interest factor 1,700 3,071 2,413 2,270 1,267 622 687
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Total combined fixed charges and preference
dividends 31,000 51,926 49,370 47,003 44,256 21,949 21,291
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERENCE DIVIDENDS (a) 1.52 1.25 2.29 2.13 1.59 2.71
(a) The deficiency of earnings to cover fixed charges and preference dividends
was 5,032 for the year ended December 31, 1998.