Q2 2024 Peabody Energy Corp Earnings Call
Good day and welcome to the Peabody second quarter 'twenty 'twenty four earnings call.
Operator: Good day, and welcome to the Peabody second quarter 2024 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Karla Kimrey, VP of Investor Relations. Please go ahead.
Speaker Change: All participants will be in listen only mode children need assistance. Please signal a conference specialist by pressing the star followed by zero.
After todays presentation, there will be an opportunity to ask questions.
To ask a question you May press Star then one on your telephone keypad to withdraw your question. Please press Star then Chinas. Please note. This event is being recorded.
Speaker Change: I would now like to turn the conference over to codify Kiwi VP Investor Relations. Please go ahead.
Karla Kimrey: Good morning, and thank you for joining Peabody's call for the second quarter of 2024. With me today are President and CEO Jim Grech. CFO, Mark Spurbeck, and our Chief Marketing Officer, Malcolm Roberts. Within the earnings release, you will find our statement on forward-looking information, as well as a reconciliation of non-GAAP financial measures. We encourage you to consider the risk factors referenced there, along with our public filings with the SEC. Now, I'll turn the call over to Jim.
Speaker Change: And thank you for joining peabody's call for the second quarter of 'twenty 'twenty four.
Speaker Change: With me today are president and CEO, Jim Grech.
Speaker Change: CFO, Mark <unk>, and our Chief Marketing Officer, Malcolm Roberts within the earnings release, you will find our statement on forward looking information as well as a reconciliation of non-GAAP financial measures. We encourage you to consider the risk factors referenced there along with our public filings with the SEC now I will turn the call over to Jim.
James Grech: Thanks, Karla, and good morning, everyone. Thank you for taking the time to join us today and for your interest in Peabody. I am pleased to report the second quarter results came in as forecasted, and we have a confident outlook for the second half of 2024. More importantly, to date, Peabody is having a remarkable year with safety, our number one value, as five of our mines have had zero reportable injuries. Peabody is committed to increasing shareholder value through a balanced approach of maximizing shareholder returns and investing in organic metallurgical coal growth at Centurion. A resilient balance sheet allows us to be flexible and dynamic in the prevailing market conditions.
Jim: Thank you Carlos and good morning, everyone. Thank.
Speaker Change: Thank you for taking the time to join US today and for your interest in Peabody.
Jim: I am pleased to report the second quarter results came in as forecasted and we have a confident outlook for the second half of 'twenty 'twenty four.
Speaker Change: More importantly to date Peabody is having a remarkable year with safety our number one value as five of our mines have had zero reportable injuries.
Speaker Change: Peabody is committed to increasing shareholder value through a balanced approach of maximizing shareholder returns.
Speaker Change: And investing our organic metallurgical coal growth at Centurion.
Speaker Change: A resilient balance sheet allows us to be flexible and dynamic in the prevailing market conditions.
James Grech: As a result, and in accordance with our shareholder return policy and favorable outlook for the remainder of the year, we have committed an additional $100 million for opportunistic share repurchase. Centurion, a world-class hard-coking coal growth project, is going very well. The initial underground development rates are exceeding expectations. We were able to mine our first development coal in June, and in July we commissioned our second continuous miner. We are on budget and expect to ship coal from this mine to customers in the fourth quarter, and we are on target for longwall coal in the first quarter of 2020.
Speaker Change: As a result and in accordance with our shareholder return policy and favorable outlook for the remainder of the year.
Speaker Change: We have committed an additional $100 million for opportunistic share repurchases.
Speaker Change: Centurion, our world class hard coking coal growth project is going very well.
Speaker Change: The initial underground development rates are exceeding expectations.
Speaker Change: We are able to mine our first development colon.
Speaker Change: And in July we commissioned our second continuous miner.
Speaker Change: We are on budget and expect to ship coal from this mine to customers in the fourth quarter.
Speaker Change: We are on target for a long haul coal in the first quarter of 2026.
Speaker Change: With the recent acquisition of the awards were all deposit.
James Grech: With the recent acquisition of the Ward's Well Deposit, we have extended the mine life to over 25 years, with an average annual production of approximately 4.7 million tons. This quality of coal is an established cornerstone of Coke and coal blends, highlighting the potential for sustainable financial returns, and is a unique opportunity to reweight Peabody's earnings to Seaborne Met.
Speaker Change: <unk> extended the mine life to over 25 years.
Speaker Change: With an average annual production of approximately four 7 million tons.
Speaker Change: The quality of coal as an established cornerstone of Coca Cola, one highlighting the potential for sustainable financial returns.
Speaker Change: Opportunity to rewrite Peabody's earnings seaborne met.
Speaker Change: I'm moving on to our operating segments.
James Grech: I'm moving on to our operating, Overall, second quarter operational results came in as forecasted, and our mines performed safely. The Seabourn Thermal Segment performed to expectations. Our Wolfenjohn mine continues to operate well with improved equipment availability and truck utilization. We have an alcohol address.
Speaker Change: Overall, our second quarter operational results came in as forecasted at our mines performed safely.
Speaker Change: Seaborne thermal segment performed to expectations I won't pin Jon mind continue to operate well with improved equipment availability and <unk>.
Speaker Change: Truck utilization.
Malcolm: As Malcolm I'll address.
James Grech: The Asian thermal market continues to see demand growth for our Wolfenjohn product. And as such, we have increased volume expectations for the remainder of 2024. The Seabourn MET segment also came in at four.
Malcolm: The agent thermal market continues to see demand growth for Wolfgang join product.
Malcolm: And as such we have increased volume expectations for the remainder of 2024.
Malcolm: The seaborne met segment also came in as forecasted our volumes costs and realized prices rather expected.
James Grech: Our volumes, costs, and realized prices were as expected. Australia did experience some significant rain in the last week of the quarter, and some shipments out of CMJB were delayed. Additionally, CMJB will be mining through challenging geotechnical conditions, which is reflected in our reduced four-year guidance. The Democratic flag in Alabama was opened ahead of schedule in mid-May.
Malcolm: Australia did experience some significant rain in the last week of the quarter.
Malcolm: Shipments out of the <unk> JV were delayed.
Speaker Change: Additionally, C M. J P will be mining to challenging geotechnical conditions, which is reflected in our reduced full year guidance.
Speaker Change: Does the market look like in Alabama was opened ahead of schedule in mid May.
James Grech: While we were pleased with the U.S. Army Corps of Engineers bringing the Demopolis lock online earlier than expected, unfortunately, another lock, the Holt lock, was determined to be unstable on June 22, and is planning to install a bulkhead as a temporary fix by the end of September to early October, which could open the lock intermittently to allow traffic to pass until a permanent fix is achieved. As we did while the Demopolis Lock was down, we will continue to utilize alternative rail transportation at Shoal Creek, at slightly reduced volumes reflected in the full year gain.
Speaker Change: While we were pleased with Us U S Army Corps of engineers, bringing the map looks like online earlier than expected.
Speaker Change: Fortunately another lock.
Speaker Change: All black was determined to be unstable on June 22nd.
Speaker Change: The core is planning to install a bunker that's a temporary effects by the end of September early October.
Speaker Change: Can open a lack intermittently to a lot of traffic to pass until a permanent fix is achieved.
Speaker Change: As we did well with the Marpol block was down we will continue to utilize alternative rail transportation at Shoal Creek.
Speaker Change: That's why they reduce volumes reflected in the full year guidance.
Speaker Change: I want to thank our rail and other logistics providers for their continued partnership and support.
James Grech: I want to thank our rail and other logistics providers for the continued partnership and support. PRB shipments were slightly higher than expectations as we came out of the shoulder season. This segment had strong cash performance with a continued emphasis on operational efficiency resulting in improved margins. While we expect a stronger second half of the year, we felt it was prudent to reduce full-year guidance as customer inventories remain high, along with depressed natural gas prices.
Speaker Change: The pier B shipments were slightly higher than expectations as we came out of the shoulder season.
Speaker Change: Segment had strong cash performance with a continued emphasis on operational efficiency, resulting in improved margins.
Speaker Change: While we expect a stronger second half of the year, we felt it was prudent to reduce full year guidance as customer inventories remain high.
Speaker Change: Along with depressed natural gas prices.
Speaker Change: Whether you're a thermal costs and revenues were in line with expectations.
James Grech: Well, the U.S. thermal costs and revenues were in line with expectations, shipments were slightly less than expected, but up 16% as we began delivering against new contracts originated during the first quarter. In total, for the U.S. thermal markets, we saw nominations and volumes increase as the quarter moved on. We continue to do this in July also. Malcolm Roberts, our Chief Marketing Officer, will be delivering our outlook on the market.
Malcolm: Shipments were slightly less unexpected and up 16% as we began delivering against new contracts originated during the first quarter.
Malcolm: In total for the U S thermal markets, we saw nominations and volumes increase as the quarter moved on.
Speaker Change: We continue to see this in July also.
Speaker Change: Welcome Roberts, our chief marketing officer will be delivering our outlook on the market today.
Malcolm:
Roberts: Thanks, Jim.
Malcolm Roberts: Seabourn Thermal Coal continued to trade in a range for the quarter. In Australia, the Newcastle high energy thermal market is best described by this balance.
Welcome Roberts: It will continue to range for the quarter in Australia, the Newcastle thermal market is best described as balanced.
Malcolm Roberts: The United States imposed further economic sanctions on Russia, resulting in some buyers reducing Russian coal purchases. However, improved Newcastle demand was met with higher rates of production, and the Newcastle high energy thermal coal spot price averaged $136 per metric tonne during the second quarter. Asian thermal coal imports have grown this year, with China continuing to show increases in electricity demand supporting seaborne thermal coal imports, coupled with strong demand growth in Vietnam. Both China and Vietnam have recorded strong year-to-date increases in imports of approximately 15 and 37 percent, respectively.
Speaker Change: Noted states further economic sanctions on Russia, resulting in some boss reducing crushed co purchases.
Malcolm: Cost of demand, which makes it harder, but your production in the Newcastle.
Malcolm: Thermal coal spot prices averaged $136 per metric ton during the second quarter.
Speaker Change: I shouldn't thermal coal imports have grown this year. Please join in continuing to show increases in electricity demand supporting seaborne thermal coal imports coupled with strong demand growth in Vietnam.
Speaker Change: China and Vietnam have recorded strong year to date increases in imports of approximately 15 and 37% respectively.
Malcolm Roberts: Within the seaborne metallurgical coal market, premium hard-coking coal prices during the quarter averaged $242 per metric tonne. Parts of the global steel market reported tepid demand and thin profit margins during the quarter, subduing demand growth for metallurgical coal. In India, steel production was disrupted due to election activities and the onset of the monsoon season.
Speaker Change: Within the seaborne metallurgical coal market.
Speaker Change: Premium hard coking coal processed during the quarter averaged $242 per metric ton parts of the global steel market reported tepid demand. It seems profit margins during the quarter. So during the jewelry demand growth.
Speaker Change: Electrical coal in India steel production was disrupted due to election activities.
Speaker Change: Oh, one same season, while China steel production was mixed with the historically weak market dragging on.
Malcolm Roberts: While China's steel production was mixed with the historically weak market dragging on demand, partially offset by economic stimulus targeting the real estate sector, Coking Coal prices found periodic support during the quarter because of supply-side disruption, including rail and port maintenance limiting exports in Queensland, restricted USA exports from Baltimore, and historically low production in China. The June incident at a major hard-coking coal mine in Queensland is expected to constrain premium hard-coking coal supply in future quarters.
Speaker Change: Not partially offset by economic stimulus targeting real estate sector.
Speaker Change: Coal prices come periodic support during the quarter because of supply disruptions.
Speaker Change: <unk>, well and pool maintenance timing exports see Queensland restricted U S exports from bolt.
Speaker Change: And historically your loan production in China.
Speaker Change: Incident at a major hard coking coal morning points. When do you expect it to constrain premium hard coking coal supply.
Speaker Change: Future causes.
Malcolm Roberts: Despite these supply-side constraints, Coca-Cola Supply proved sufficient to meet demand during the second quarter. In the PCI segment, prices improved during the quarter, supported by constrained supply and some buyers switching to Australian supply in place of Russian. The spot price of PCI increased 23% during the quarter to finish the quarter at $182 per metric tonne, a 78% relative to premium hard coking gold.
Speaker Change: Despite the supply constraints coking coal supply.
Speaker Change: Sufficient to meet demand during the second quarter.
Speaker Change: In the piece, you're always taking prices improved during the quarter supported by constrained supply and some boss switching to Australia supply in place of Russia.
Speaker Change: <unk> processed increased 23% during two finished the quarter at $192 per metric ton.
Speaker Change: 70, <unk> the same relativity to premium hard coking coal.
Malcolm Roberts: Overall, the metallurgical coal market remains finely balanced, exposed to volatility influenced by the rate of exports from Australia and economic performance in China, India, and elsewhere. In the United States, during the six months ended June 30, electricity generation from thermal coal increased slightly year-over-year, driven by an overall increase in electricity demand. This is despite low natural gas prices and stronger renewable generation. The EIA, in its July update to the short-term energy outlook forecast an increase in the use of coal to generate electricity this year, leading to a 12% reduction in inventories by year-end.
Speaker Change: Overall, the metallurgical coal market remains broadly balanced exposed to volatility influenced by the rate of exports from Australia, and economic performance in China, India and elsewhere.
Speaker Change: In the United States. During the six months ended June 30 electricity generation from thermal coal has increased slightly year over year driven by an overall increase in electricity demand. This is the spot light natural gas prices and stronger renewable generation, but July update to the short term any.
Speaker Change: The forecasted increase in the use of coal to generate electricity this year.
Speaker Change: Leading to a 12% reduction in inventories argument I'll now turn it over to Mark to cover the financial details.
Mark Spurbeck: Thanks, Malcolm, and good morning everyone. In the second quarter, we recorded net income attributable to common stockholders of $199.4 million, or $1.42 per diluted share, and adjusted EBITDA of $309.7 million. During the quarter, we reached an insurance settlement for $109.5 million. We included $80.8 million of the settlement in adjusted EBITDA, while the remaining $28.7 million was recorded as the recovery of property and underground development that was previously written off. This settlement covers all property and business interruption losses suffered at Shoal Creek last year.
Mark: Thank you Malcolm and good morning, everyone in the second quarter. We recorded net income attributable to common stockholders of $199 4 million or $1 42 per diluted share and adjusted EBITDA of $309 7 million.
Mark: During the quarter, we reached an insurance settlement for $109 $5 million, we included $88 million of the settlement and adjusted EBITDA, while the remaining $28 7 million was recorded as the recovery of property in underground development that was previously written off.
Mark: This settlement covers all property and business interruption losses suffered at Shoal Creek last year.
Mark Spurbeck: We received a $5.6 million advance payment in the second quarter and will receive the remaining $103.9 million this quarter. At June 30, we had $622 million of cash after acquiring Wardswell and making $113 million of income tax payments, which were both noted on our last call. During the quarter, we paid a $0.075 per share cash dividend, and for the first quarter since restarting the shareholder return program, we didn't repurchase shares.
Mark: We received a $5 6 million advance payment in the second quarter and will receive the remaining $103 9 million this quarter.
Speaker Change: At June 30, we had $622 million of cash after acquiring worthwhile and making $113 million of income tax payments, which were both noted on our last call.
Mark: During the quarter, we paid a seven and a half cent per share cash dividend and for the first quarter. Since restarting. This shareholder return program, we didn't repurchase shares however, with the strong operational recovery in the second quarter and a favorable free cash flow forecast in the second half of the year today, we announced an additional 100 million available for share buybacks.
Mark Spurbeck: However, with a strong operational recovery in the second quarter and a favorable free cash flow forecast in the second half of the year, today we announced an additional $100 million available for share buybacks and, for the sixth quarter in a row, declared a 7.5% per share dividend. Turning now to the second quarter segment. Seabourn Thermal recorded $104 million in adjusted EBITDA, $10 million better than the prior quarter on much improved production from the Wambo complex, resulting in additional Newcastle quality export tons.
Mark: And for the six quarter neuro declared a seven 5% fad per share dividend.
Mark Spurbeck: The segment suggested even a margin of 34% was better than the previous quarter as higher realized prices more than offset the increase in costs from a higher mix of Wombo production. The Seabourn Met segment generated $144 million of adjusted EBITDA, including the insurance settlement, or $63 million, related to second quarter production, a 30% increase compared to the first quarter's $48 million result in an apples-to-apples comparison. Each mine in the segment increased shipments quarter over quarter. And, as noted earlier, we expect to collect over $100 million in cash at Soul Creek in the third quarter. The U.S.
Mark: Turning now to the second quarter segment results.
Mark: Seaborne thermal recorded $104 million and adjusted EBITDA 10 million better than the prior quarter and much improved production from the Wamboldt complex, resulting in additional new castle quality export tons.
Mark: The segment's adjusted EBITDA margin of 34% was better than the previous quarter as higher realized prices more than offset the increase in costs from a higher mix of mambo production.
Mark: The seaborne met segment generated $144 million of adjusted EBITDA, including the insurance settlement or 63 million related to the second quarter production of 30.
Mark: 30% increase compared to first quarter was 48 million result in an apples to apples comparison.
Mark: Each mine in the segment increased shipments quarter over quarter.
Mark: And as noted earlier, we expect to collect over $100 million of cash at Shoal Creek in the third quarter.
Mark Spurbeck: Thermal Mines produced 53 million of adjusted even. The PRB shipped 15.8 million tons below the first quarter's volume, as expected due to the traditional second quarter shoulders. The segment reported $17.8 million of adjusted EBITDA as the mines did an outstanding job managing costs, which despite significantly lower tons, kept average unit costs flat and increased margin approximately 30% from first quarter levels to $1.13 per ton. The other U.S. thermal segment generated $35 million in adjusted EBIT, shipments increased 450,000 tons from the first quarter, and we are expecting even stronger shipments in both the third and fourth quarters.
Mark: The U S thermal mines produced $53 million of adjusted EBITDA.
Mark: <unk> shipped $15 8 million tons below first quarter's volume as expected due to the traditional second quarter shoulder season the.
Mark: The segment reported $17 8 million of adjusted EBITDA as the mines did an outstanding job managing costs, which despite significantly lower tons kept average unit costs flat and increase margin approximately 30% from first quarter levels to $1 13 per tonne.
Mark: The other U S thermal segment generated 35 million and adjusted EBITDA shipments increased 450000 tons from the first quarter and we are expecting even stronger shipments in both the third and fourth quarters.
Mark: Our U S. Thermal platform continues to demonstrate strong positive margins and free cash flows.
Mark Spurbeck: Our U.S. thermal platform continues to demonstrate strong, positive margins and free cash flow. On a combined basis, the U.S. thermal operation shipped 19.5 million tons and realized an adjusted EBITDA margin of $2.73 per ton in the second quarter, after shipping 21.9 million tons at an adjusted EBITDA margin of $2.88 per ton in the first. For the first half of the year, our U.S. thermal lines have produced $1 With the first half in the books, we expect robust, free cash flow in the second half despite a couple of challenges.
Mark: On a combined basis the U S thermal operations shipped 19, and a half million tons and realized an adjusted EBITDA margin of $2 73 per ton in the second quarter.
Mark: After shipping $21 9 million tonnes, and an adjusted EBITDA margin of $2 88 per ton in the first quarter.
Mark: For the first half of the year, our U S. Thermal mines have produced $116 million of adjusted EBITDA, while requiring only $17 7 million of capital.
Speaker Change: With the first half in the books, we expect robust free cash flow in the second half. Despite a couple of challenges as Jim noted, we've adjusted full year guidance for three items.
Mark Spurbeck: As Jim noted, we've adjusted four-year guidance for three items. Seabourn ThermoVolume increased 500,000 tons as Wilpignon continues to outperform expectations, particularly with the strong demand and price support for higher ash products. Seaborne net volume was reduced to 600,000 tons due to the challenging geological conditions of the CMJV and the impact of two successive lock outages on the Black Warrior River at Shoal Creek. The combined volume impacts are expected to increase segment costs for the full year by $8 per ton. We lowered PRV volumes by 5 million tons as customer inventories remain high and natural gas prices remain stubbornly low. We have not negotiated deferral on any of the $85 million prices.
Speaker Change: Seaborne thermal volumes increased 500000 tons is it will be continues to outperform expectations, particularly with the strong demand and price support for higher ash products.
Speaker Change: Seaborne met volume was reduced 600000 tonnes due to challenging geological conditions at the C. M JV and the impact of two successive lock outages on the Black Warrior River at Shoal Creek. The combined volume impacts are expected to increase segment costs for the full year by $8 per ton.
Speaker Change: We lowered PRT volumes by 5 million tonnes at.
Mark: Customer inventories remain high and natural gas prices remained stubbornly low.
Speaker Change: We have not negotiated deferrals on any of the 85 million price tons and as we have done previously we will manage customer volumes, while maintaining peabody's value in all contracts.
James Grech: And, as we have done previously, we will manage customer volumes while maintaining Peabody's value in all contracts. Taking a look at the third quarter, we expect another Seaborne Thermal Quarter very consistent with the first. Shipments are expected to be 4 million tons, including 2.5 million exports. 600,000 tons are priced on average at $120.45, while 1 million tons of Newcastle product and 900,000 tons of high ash product are unpriced. Costs are anticipated to remain stable at $48 to $53 per ton.
Mark: Taking a look at the third quarter, we expect another seaborne thermal quarter very consistent with the first two shipments are expected to be 4 million tonnes, including two and a half million export tons.
Mark: 600000 tons are priced on average at $120.45, well 1 million tons of Newcastle product and 900000 tonnes of high ash product. Our unpriced costs are anticipated to remain stable at 48 to $53 per ton.
James Grech: Seabourn MET shipments are expected to be 1.7 million tons at the midpoint of the first and second quarters. Lower tonnage from SUTU is due to a planned long-wall move at Shoal Creek, and we should also see production and shipment levels rebalance at Metropolitan after shipments ran ahead of production by 200,000 tons in the second quarter. After the recent recovery in PCI prices, we expect to realize better prices relative to the benchmark and achieve 70-80% of the premium hard-coking coal price; costs are expected to be slightly better than the midpoint between the first and second quarters and land between $120 and $130 per ton.
Mark: Seaborne met shipments are expected to be $1 7 million tons at the midpoint of the first and second quarters.
James Grech: <unk> tonnage from Q2 due to a planned longwall move at Shoal Creek, and we should also see production and shipment levels rebalance at Metropolitan After shipments ran ahead of production by 200000 tons in the second quarter.
Speaker Change: After the recent recovery in PCI prices, we expect to realize better prices relative to the benchmark and achieved 70% to 80% of the premium hard coking coal price.
Speaker Change: Costs are expected to be slightly better than the midpoint between the first and second quarters and landed between 120 and $130 per ton.
James Grech: Following the traditional shoulder season and building on the momentum we experienced in the latter part of the second quarter, we expect PRP volume to increase nearly 6 million tons to 'twenty, one and a half million dollars in the third quarter with higher shipments. We also expect to benefit from lower fixed costs per unit and are forecasting cost at 11 50 to $12 50 per.
James Grech: Following the traditional solar season and building on the momentum we experienced in the latter part of the second quarter, we expect PRV volume to increase nearly 6 million tons to 21.5 million tons in the third quarter. With higher shipments, we also expect a benefit from lower fixed costs per unit and our forecasting costs at $11.50 to $12.50 per ton, increasing margin quarter over quarter again to $1.75 per ton in the third quarter.
James Grech: Tun.
Speaker Change: Increasing margin quarter over quarter again to $1 75 per ton in the third quarter.
Speaker Change: Other U S. Thermal shipments are also anticipated to be ahead of prior quarter at 4 million tonnes and costs are expected to remain flat at 44 to $48 per ton.
James Grech: Other U.S. thermal shipments are also anticipated to be ahead of the prior quarter at 4 million tons, and costs are expected to remain flat at $44 to $48 per ton. In summary, we hit all operating targets in the second quarter, reached a key milestone by achieving first development coal at Centurion, and negotiated a favorable settlement for last year's loss at Shoal Creek. The third quarter outlook is equally good, and today we announce another $100 million available for share buyback. Operator, I'd now like to turn the call over to questions.
James Grech: In summary, we hit all operating targets in the second quarter reached a key milestone by achieving first development Colas insuring and negotiated a favorable settlement from last year's loss of Shoal Creek. The third quarter outlook is equally good and today, we announced another 100 million available for share buybacks.
James Grech: Operator, I'd now like to turn the call over for questions.
Speaker Change: Okay cool.
Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been answered and you'd like to withdraw your question, please press star then choose. At this time, we'll pause momentarily to assemble the roaster. The first question comes from Lucas Pipes with B. Reilly. Please go ahead.
Speaker Change: Well now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
Speaker Change: Isn't a speakerphone, please pick up your handset Facebook bathroom to cool.
Operator: But anytime you have a question has been addressed and you'd like to withdraw. Your question. Please press Star then two.
Operator: At this time, well pause momentarily to assemble our wells there.
Lucas Pipes: The first question.
Operator: It is from Lucas pipes with B Riley. Please go ahead.
Lucas Pipes: Thank you very much, Operator. Good morning, everyone.
Lucas Pipes: Thank you very much operator, good morning, everyone.
Lucas Pipes: Jim, Mark, my first question is on the capital allocation side. You have a formula for capital returns. I think it's 65% of available free cash flow. And so, two questions on the back of this.
Lucas Pipes: Jim Mark My first question is on on the capital allocation side.
Lucas Pipes: You have a formula for capital returns I think it's 65% of available free cash flow in and so two questions on the on the back of this one how should we think about the additional allocation of 100 million to buybacks as it is that you're saying look.
Lucas Pipes: One, how should we think about the additional allocation of $100 million to buybacks? Is that you saying, look, with this price environment, we really just want to commit? So maybe if cash flow is a little lower, you have available cash to return it. So you want to make that statement. I'm just trying to understand it because, presumably, with the formula, that additional allocation would technically not be necessary. So I would appreciate the context.
Lucas Pipes: Hmm.
Speaker Change: With this price environment, you really just want to commit so so maybe its cashless in the lower <unk>.
Lucas Pipes: You have to available cash to return it. So so you want to make that statement I'm, just trying to understand it because presumably but its a formula.
Speaker Change: 10, additional allocation would technically not be necessary.
Speaker Change: So I appreciate I appreciate the context, and then bigger picture with capital allocation. There there are some some.
Lucas Pipes: And then, a bigger picture with capital allocation; there are some medical assets for sale in Australia. I've heard of some opportunities in the U.S. market too. How do you think about M&A more broadly, or are you really just focused on your organic growth opportunities and returning capital to shareholders? Thank you very much for all your comments.
Lucas Pipes: Met coal assets, where sale in Australia, and that's sort of some opportunities in the U S market too how do you think about M&A more broadly or are you really just focused on your organic growth opportunities and returning capital to shareholders. Thank you very much for all your color.
Jim: Jim did I do.
Speaker Change: Can you hear me.
Lucas Pipes: Lucas.
James Grech: Lucas. Hi Lucas. Good morning. Good morning.
Lucas Pipes: Lucas good morning.
Speaker Change: Good morning.
James Grech: Lucas, I'd like to, you know, comment on your first question and turn it over to Mark, and then we'll come to your second question. So on the first question, I'd like to just note that on our 65%, we say at least 65%. And we certainly have the optionality to go above that when, you know, when we have the cash and we feel comfortable to do so. And so, you know, what we're doing here is a prime example of that and our commitment to be focused on increasing shareholder value through the share buyback. So, but I think you have some more detail on that for the rest of the year. So, Mark, I'll let you comment on that. Yeah, good morning, Lucas.
Speaker Change: Okay. So I'd like to comment some on your first question and then turn it over to Mark and then we'll come to your second question. So.
James Grech: So on the first question I'd like to just note that we say in our.
Mark Spurbeck: <unk> 65 per cent, we say at least 65%.
Mark: And we certainly have the optionality to go above that.
Mark Spurbeck: Uh huh.
Mark: You have the cash and we feel comfortable to do so and so is it you know what we're doing here is a prime example of that and our commitment to be focused on increasing the shareholder.
James Grech: With the share buyback, so, but yeah I think you have some more detail on that about the rest of the yourself Mark I'll, let you comment on that.
Mark: Yes, good morning Lucas.
Mark Spurbeck: Listen, with the continued development, it's ensuring, I think, $81 million a year to date on net capital, probably $200 million since starting, and the cash purchase awards well here in the second quarter. We always knew we wouldn't generate a lot of free cash flow in the first half of the year. But as Jim mentioned, a resilient balance sheet allows us to be opportunistic when the market presents opportunities. I think our stock recently crossed the 50-day moving average and the 100-day moving average.
Mark Spurbeck: Listen with the.
Mark Spurbeck: Continued development, it's ensuring I think $81 million year to date on that capital probably 200 million since starting in the cash purchase awards well here in the second quarter, we always knew we wouldnt generate a lot of free cash flow in the first half of the year.
Mark Spurbeck: But as Jim mentioned, a resilient balance sheet allows us to be opportunistic when market presents opportunities are I think our stock recently crossed the 50 day moving average in the 100 day moving average is.
Speaker Change: Correct me, they're generally traded off with coal prices. So we see this as a really attractive a point in time and an opportunity to further reduce our share count as we steadily March closer to Centurion coming online as we noted even in our last call. Our program is designed to be flexible.
Mark Spurbeck: So we see this as a really attractive point in time and an opportunity to further reduce our share count as we steadily march closer to Centurion coming online. As we noted in our last call, our program is designed to be flexible and give us an opportunity to be opportunistic with a resilient balance. As far as the remainder of the year, we do see good free cash flows in the second half, and depending on where prices shake out, we should continue to generate free cash flow in the second half and into next year. But, you know, to be clear, you know, no change to the program, and Lucas in response to your second question. I'm sorry, go ahead Lucas, any questions on your first question? No, no, no, no.
Mark Spurbeck: And give us some opportunity to be opportunistic.
Mark Spurbeck: With a resilient balance sheet.
Mark Spurbeck: As far as the remainder of the year, we do see a good free cash flows in the second half and depending on where prices shake out we should continue to generate free.
Lucas Pipes: Free cash flow in the second half and into next year.
Lucas Pipes: But it.
Mark Spurbeck: To be clear.
Lucas Pipes: No change to the program.
Mark Spurbeck: Yeah.
Mark Spurbeck: And.
Mark Spurbeck: Lucas in my answer to your second.
Lucas Pipes: I'm sorry go ahead, though cause any questions on the on your first Scott.
Lucas Pipes: Got it.
Speaker Change: Yeah, that's yeah exactly I think.
Lucas Pipes: Yeah, exactly. I think you know where I wanted to follow up on the M&A. So Lucas, I just want to stress that as a company, our focus is on creating shareholder value, and the focus is on that right now, and with that, there's three or four areas that are at the forefront of that. One is maintaining our balance sheet strength and financial stability, which has taken us a long time to get to, and we're going to continue doing that.
Lucas Pipes: I think you know where where I wanted to follow up on the on the M&A side.
Lucas Pipes: Yeah, So look as I I just want to stress it is as a company.
Lucas Pipes: Our focus is on creating shareholder value.
Lucas Pipes: And in the <unk>.
Lucas Pipes: He is on that right now and with that there's three or four areas that are at the forefront for that wanted to maintaining our balance sheet strength and financial stability, which has taken us a long time to get to and we're going to continue doing that.
Lucas Pipes: We're very focused on the share buybacks and maintaining our dividend. As Mark said, we've paid the dividend seven quarters in a row, and we've just put another $100 million into the share buybacks. We're also very focused on our organic growth, with the investment that we have in the Centurion mine and also just continuing investment in our operations to keep them reliable, safe, and predictable. That is the overwhelming focus. Assets come and go on the market, and everything that's out there, like with every coal company, comes across our desk.
Lucas Pipes: We're very focused on the share buybacks and maintaining our dividend as Mark said, we've done the dividends seven quarters in a row.
Lucas Pipes: Just put another $100 million into the share buybacks. We're also very focused on our organic growth.
Lucas Pipes: The investment that we have and this in turn in mind and also just continuing investment in our operations.
Lucas Pipes: You keep them reliable and safe and predictable that is the overwhelming focus assets come and go on the market and everything that's out there like with every coal company comes across our desk.
Lucas Pipes: But our focus is on maximizing shareholder value, and that's where the number one focus is, and that's where we are. As assets come by, certainly every company takes a look at them, but right now, I think I've hit upon the points that we're very much focused on.
Lucas Pipes: But our focus is on maximizing shareholder value.
Lucas Pipes: That's where the number one focus is and that's where we're at assets come by.
Lucas Pipes: Certainly every company takes a look at them, but right now.
Lucas Pipes: I put up on the points that were very much focused on.
Speaker Change: Very helpful. I appreciate that I when it turned for my second question too.
Lucas Pipes: Very helpful. I appreciate that.
Lucas Pipes: I want to turn my second question to, kind of, the operational outlook on the medical side and, first, the anticipated geological issues at CMJV. When did you first become aware of those issues? What exactly is the issue, and then how long do you think they could last? Could this bleed into 2025? And then on the hold lock, could you maybe elaborate on the mitigation efforts, the anticipated impact on 2024 volumes, and any costs that might be associated with your mitigation efforts?
Speaker Change: Kind of the operational outlook on the medical side.
Lucas Pipes: First.
Lucas Pipes: Anticipated geological issues.
Lucas Pipes: C M JV, what when did you first come aware of those issues what exactly is the issue and then how long do you think.
Speaker Change: Those could last cut to split into 2025.
Speaker Change: And then on the whole block if you could maybe elaborate on the mitigation efforts and the anticipated impact to 2020 for volumes.
Lucas Pipes: And any cost that might be associated with lithium mitigation efforts and then.
Lucas Pipes:
Lucas Pipes: From a numbers accounting perspective, if there are additional costs, would that be reflected in your METCOL cost guidance, or would it actually come out of your realizations that you guide to? Just a clarification on that; I would appreciate it. Thank you very much.
Speaker Change: From a from a numbers accounting perspective, if there are additional costs would that be reflected in your met coal cost guidance or would it actually come out of your realizations.
Lucas Pipes: That guy too. So it's just a clarification on that what would appreciate it. Thank you very much.
Lucas Pipes: Yeah.
Lucas Pipes: Yeah.
Lucas Pipes: Lucas, so first off, on the lock outage, as we said, we were expecting that bulkhead to be installed here towards the end of September, and if the stability is there on the lock, then the lock would then be expected to be opened back up for shipments, maybe not as efficiently as it would without the issue, but for those shipments to resume. We don't think the overall expense that we'll see is material between now and the end of the year.
Speaker Change: So first off on the on the lock outage as he said you were expecting in bulkhead to be installed here towards the end of September.
Lucas Pipes: Stability is there on the WAC than what we though.
Lucas Pipes: What would then be expected as well to be open back up for shipments maybe not as good.
Lucas Pipes: Certainly as it wasn't without the issue, but are those shipments to resume we don't think the.
Lucas Pipes: You know, on the high side, maybe an incremental $8 to $10 million of expense if this goes through the end of the year and we keep shipments going, but that's not what we're looking for. You know, that would be the extent of it. And again, we're looking at alternative transportation. And that's the cost of alternative transportation. And we have a couple different routes we're looking at again to try to bring that expense down even further.
Lucas Pipes: Our overall expense, but we'll see as material between now and you end of the year.
Lucas Pipes: On the high side, maybe an incremental $8 million to $10 million of expense. If this goes through the end of the year and keep the keep kept on selling.
Lucas Pipes: But.
Lucas Pipes: That's.
Lucas Pipes: That would be the extent of it and again, we're looking at ultimate transfer.
Lucas Pipes: That's the cost of alternate transportation and we have a couple of different routes. We're looking at again to try to bring that expense down even further so that would be the extent of the lock outage.
Lucas Pipes: So that would be the extent of the lockout. As far as Coppabella is concerned, you know, the faulting is standard that occurs in the coal seams there. We have it all the time. And what happens is we've had more faults than we anticipated. It's not uncommon for that to happen. We work through it, and we're working through a section right now that, again, had more than we anticipated, and we expect to get through that here through the end of the year. So again, there's nothing out of the ordinary with what's going on at Coppebella. There's always faulting. We've had a little bit more than anticipated, and we're just working through that right now.
Lucas Pipes: As far as copper belt the faulting is.
Lucas Pipes: Standards.
Lucas Pipes: And Nicole seems there we have it all the time.
Lucas Pipes: And what's happened is we've had more more faulting and anticipated it's not uncommon to occur.
Lucas Pipes: Worked through it.
Lucas Pipes: We're working through the section right now that again had more than we anticipated and we expect to get through that here through the end of the year. So again theres nothing out of the ordinary with what's going on at copper Bella Theres always faulting, we got a little bit more than anticipated.
Lucas Pipes: And we're just working through that right now.
Lucas Pipes: Okay.
Lucas Pipes: That's helpful on the 8 to 10 million potential costs with the hold lock on that. Go through METCO unit costs, or would it kind of come out of the realization?
Speaker Change: That's helpful on the on the $8 million to $10 million of potential costs.
Speaker Change: The whole block with that.
Speaker Change: Goes through met coal.
Speaker Change: Unit cost or would it kind of come out of the realizations.
Speaker Change: Yeah Lucas market. That's all included in our segment costs.
Mark Spurbeck: Yeah, Lucas, Mark, it's all included in our...
Lucas Pipes: And it's included in the guide. Excellent. I really appreciate all the color and to the entire team, continued best of luck. Thank you.
Speaker Change: Perfect that's included.
Lucas Pipes: Sure.
Lucas Pipes: Excellent I really appreciate all the color and yeah to the entire team continued best of luck. Thank you.
Operator: Thank you, Lucas. We can now take the next question.
Speaker Change: Thank you Lucas we can take the next question.
Operator: The next question comes from catcher Yan Zhang with BMO capital markets. Please go ahead.
Operator: The next question comes from Katja Jancic with BMO Capital Markets. Please go ahead. Hi, thank you for taking the time.
Katja Jancic: Hi, thank you for taking my question. Maybe staying for a bit on the MET segment, can you provide a little more color on the 600,000 tons decline? How much of that, or the reduction, how much of that is a halt loss?
Katja Jancic: Hi, Thank you for taking my questions.
Katja Jancic: Staying for a bit on the Mat segment can you provide a little more color on the 600000 tonnes decline how much of that reduction how much of that is hawk block.
Katja Jancic: Yeah.
Speaker Change: The majority of that is going to be with the <unk> JV I think maybe about 100000 tons of that maybe with the.
James Grech: The majority of that is going to be with the CMJV. I think maybe about 100,000 tons of that may be with the, you know, approximate, Katja, about 100,000 tons is the Holt Lock, and the other 500 or so is with the CMJV.
Speaker Change: Approximate got you about a about 100000 tons as the whole block and the other 500 or so as with the <unk> JV.
James Grech: Yeah.
Speaker Change: And then maybe you know I think last quarter or the indication was that two thirds of Shoal Creek well ship in the second half.
James Grech: And then maybe, you know, I think last quarter the indication was that two-thirds of Shoal Creek will ship in the second half because of the Demopolis lock closure. So is there a difference between these two locks, how much of an impact they can have?
Speaker Change: Because of the the Marpol. This law closures. So is there a difference between these two locks how much of impact they can have.
James Grech: We have the impacts of both of them, but again, in the overall impact, because we've been looking at alternate transportation routes, that's all factored into the guidance we have, and they said we think it's going to be about a 100,000 ton reduction net after we do the alternate logistics on the tonnages for Shoal Creek for the year.
Speaker Change: We have the impacts of both of them, but you know again in the overall overall impact because we've been looking at alternate transportation routes.
James Grech: All factored into the guidance, we have and that's you know he said, we think it's going to be about 100000 ton.
James Grech: Duction net after we do the alternate logistics to the to the tonnages for Shoal Creek for the year.
Speaker Change: Okay, and then on the Centurion can you remind us how much you expect to ship the development tons in four Q and how we should think about shipments going into next year.
Katja Jancic: Okay, and then on the Centurion, can you remind us how much you expect to ship the development tons in 4Q and how we should think about shipments going into next year? Here, Malcolm Hedlund.
Malcolm Hedlund: Yeah look down from the last time I think we sit at about 100000 it right.
Malcolm Roberts: Yeah, look Malcolm, the last time I think we said around $100,000. Right now, we'd be saying probably $60,000 to $70,000 by the end of the year. And for next year... I'd call it around 200,000 tons.
Speaker Change: That would be saying publicly 60 60 to 70000 by the end of the year.
Malcolm Hedlund: And for next year.
Speaker Change: Oh cool around 200000 tons.
Malcolm Roberts: Perfect. Thank you so much.
Speaker Change: The next question comes from Nathan Martin from the banks.
Operator: The next question comes from Nathan Martin from the Benchmark Company. Please go ahead.
Nathan Martin: <unk> company. Please go ahead.
Nathan Martin: Hey, Thanks, operator, good morning, everyone. Congrats on our second quarter results guys are maybe just sticking with Centurion for a second could you just remind us are there any permit or a regulatory hurdles remaining.
Nathan Martin: Thanks, Operator. Good morning, everyone. Congratulations on the second quarter results, guys. Maybe just sticking with Centurion for a second, can you just remind us, are there any permit or regulatory hurdles remaining before you get to the anticipated long-wall startup in the first quarter of 2026?
Speaker Change: Before you get to the anticipated longwall startup in the first quarter of 'twenty six.
Speaker Change: No Nate we have all the permits and regulatory.
James Grech: No, Nate, we have all the permits and regulatory approvals. (inaudible)
Speaker Change: Regulation hurdles passed so what we're doing right. Now is we were focused on the development and in the month of June as I said in the comments development went better than expected in the month of June we actually developed about three times the amount of footage that we had anticipated.
James Grech: Three times the amount of footage that we had anticipated, getting the prep plan up and running right now, and degassing the longwall section ahead of mining. Those are, if you're looking at things that we're focused on, that we need to stay focused on to get us to mining, those are really the issues ahead of us, not really permitting or regulatory.
James Grech: The prep plant up and running right now and I'm guessing. The longwall section ahead of mining. Those are if you are looking at are things that we're focused on it we need to stay focused on to get us to mining those are really the issues ahead of us not really permitting or regulatory.
Speaker Change: Okay got it thanks, Jim and then.
Nathan Martin: Okay, I got it. Thanks, Jim.
Speaker Change: Just related to the spend I think you guys mentioned in the release you spent about $200 million, thus far of the expected 489 million.
Mark Spurbeck: And then, just related to the spend, I think you guys mentioned in the release that you spent about $200 million thus far of the expected $489 million. Mark, I think I caught you saying you spent about $81 million year-to-date. First, is that correct? Secondly, how much would that leave for the second half? And then how much of the remaining $489 would be spent in 2025 and 2026?
Speaker Change: I think I caught you, saying you spent about $81 million year to date first is that correct.
Mark Spurbeck: Secondly, how much does that leave for the second half and then how much of the remaining 489 would be spending 25 and 26 at this point.
Mark Spurbeck: Yeah, Yeah, that's right I made a we got about 81 million to the due June 30, there's probably about $75 million more for the second half of the year.
Mark Spurbeck: Yeah, that's right, Nate. We got about $81 million through June 30. There's probably about $75 million more for the second half of the year. That would bring us up to about $275 million from the start of the project. We probably will have about $165 million in 2025. The remaining $30-$40 million would be in 2026, still on budget for the 489.
Mark Spurbeck: That would bring us up to about 275 million from the start of the project.
Mark Spurbeck: We probably have about $165 million in 2025, and the remainder of $30 million to $40 million would be in 2026.
Mark Spurbeck: Still on budget for the 489.
Nate: Okay perfect. Thanks, Mark.
Nathan Martin: Okay. Perfect. Thanks, Mark.
C: And then maybe over to C.
J D: J D.
Nathan Martin: Oh, I know Lucas asked a little bit about this but.
Nathan Martin: And then maybe over to CMJV, I know Lucas asked a little bit about this, but I guess maybe my question is, and I'll tie it into this other piece too, I know you guys mentioned, I think it was you, Mark, as well, that you now expect to achieve roughly 70 to 80% of the FOB LC benchmark met price versus 65 to 70% previously. I think I heard part of that was the increase in PCI prices, likely driven by some of the Russian PCI bulls coming out of the market.
Speaker Change: Just maybe my question is all tied into this other piece too I know you guys.
Nathan Martin: You mentioned I think it was you mark as well that.
Nathan Martin: We now expect to achieve roughly 70% to 80% of the F&B also your benchmark met price versus 65% to 70% previously I think I heard part of that would be an increase in PCI prices like.
Speaker Change: We're driven by some of the the Russian P. C are.
Nathan Martin: All coming out of the market, but.
Speaker Change: Is there anything else that's driving that increase there I was curious if you have a JV, but what kind of coal qualities are you minded right now that are gonna be reduced is that helping your mix overall.
Nathan Martin: But is there anything else that's driving that increase there? I was curious, CMJV, what kind of coal qualities are you mining right now that are going to be reduced? Is that helping your mix overall? It'd be great to get any thoughts there.
Nathan Martin: Any thoughts there.
James Grech: Our mix is pretty constant, and our full-year guidance has about 55% PCI sales incorporated within it.
Speaker Change: Yeah I'll take that.
Speaker Change: <unk> is pretty constant and our full year guidance has about 54% PCI silos incorporated within them.
Speaker Change: Yeah. So so most of that most of that increase is the is this the PCI price recovery relative to the benchmark.
James Grech: Yeah, so most of that increase is just the PCI price recovery relative to the benchmark. I think there is a slight increase in the NICS, with some semi-hard coming out of Moorvale that improves the NICS as well.
James Grech: You know I think there's a there is a slight increase in the mix with some semi hard coming out of more bell.
James Grech: To improve the mix as well.
Speaker Change: Okay, Great I appreciate the time guys best of luck in second half.
Nathan Martin: Okay, great. I appreciate the time, guys. Best of luck in the second half.
James Grech: Thanks, Nate.
Speaker Change: Thanks Nate.
Speaker Change: The next question comes from gas pipes with B Riley. Please go ahead.
Operator: The next question comes from Lucas Pipes with Brie Riley. Please go ahead.
Lucas Pipes: Thank you very much operator, thank you very much for taking my follow up question.
Lucas Pipes: Thank you very much, operator. Thank you very much for taking my follow-up question.
Lucas Pipes: In the release this morning, you described Centurion as a 25-year opportunity at 4.7 million tons. I remember February 26 presentation where you kind of broke out Centurion volumes by year, 2026, 3.7, 3.5. The year after, 4.5, 4.4, 3.4. So obviously below the 4.7 million you cited this morning. Is the $4.7 million, is that reflecting Wardswell? And if I remember right, you were planning to update the market on a more comprehensive mine plan update. So, just wondering if that process has been completed and if we should expect anything else. Thank you very much for your call.
Lucas Pipes: In the release. This morning, you describe centurion as a 25 year opportunity at $4 7 million tonnes and I remember February 26th presentation, where you kind of break out.
Speaker Change: Since we in volumes by year 2026, 3735, the year after a 4.5 full points 14.4.
Lucas Pipes: So obviously below that 4.7 million you cited this morning.
Lucas Pipes:
Speaker Change: Is is that the $4 7 million is stat.
Speaker Change: Reflecting works well.
Lucas Pipes: And.
Lucas Pipes: If if I remember right you were planning to update the market maybe on a more comprehensive.
Lucas Pipes: Mine plan update so so just wondering if that process has been completed.
Speaker Change: And if we should expect anything else. Thank you very much for the color.
Lucas Pipes: Lucas.
James Grech: Lucas, a couple of things. One, you're right, the presentation only showed the GM South or the North Kingdome, a proper area that we originally acquired. Those guidance, those tons, you know, 3.7 to 4 million tons for the first four years have not changed. The 4.7 over the 25-year life takes into account the wards well, and areas well. Longer panels, more tons between long, long moves; we're going to get more production on an annual basis.
Speaker Change: A couple of things one the you're right the presentation only showed.
James Grech: G M south or north can get on the property area that we originally acquired those guidance those tons. You know three seven to 4 million tons for the first four years has not changed the $4 seven over the 25 year life takes into account the awards well area as well longer panels more tonnes between a longwall moves we're going to get more production.
Speaker Change: Fuel basis, but nothing has changed in those first few years or is it just you know again demonstrates the value of the awards will bring.
James Grech: But nothing's changed in those first few years. It just, you know, again demonstrates the value that Wards Well brings to this project. As far as an overall update, we are still doing that study again, maximizing those volumes, figuring out costs, and integrating that plan together. We do plan to come to the market here in the second half of the year and give a full update and maybe a presentation on the project in the standalone.
James Grech: Correct.
James Grech: As far as an overall update we are still doing that study again maximizing those volumes figuring out costs and integrating that plan together, we do plan to come to the market here and.
James Grech: In the second half of the year and and give a full update and maybe a presentation on the project on a standalone basis.
Speaker Change: Really appreciate the clarification and look forward to that and again best of luck.
Lucas Pipes: I really appreciate the clarification, look forward to that, and again, best of luck.
Lucas Pipes: Thanks Lucas.
Lucas Pipes: This concludes our question and answer session I would like to turn the conference back over to Paul Black for any closing remarks.
James Grech: This concludes our question and answer session. I would like to turn the conference back over to James Grech for any closing remarks.
James Grech: I'd like to thank everyone for joining our call today, and I'd, especially like to thank our employees for their outstanding focus on safety in the first half of 2024.
James Grech: I'd like to thank everyone for joining our call today, and I'd especially like to thank our employees for their outstanding focus on safety in the first half of 2024. Also, you have our Kayenta Mine and our North Antelope Shell Mine. They were both recognized for their outstanding reclamation efforts, and I really want to thank our employees for the work they've done on the reclamation at those mines to achieve those awards. I'd also like to thank our investors, customers, and vendors for their continued support. Operator, that concludes our call.
James Grech: Also you had a car into mine in our North Antelope Rochelle mine. They were both recognized for their outstanding reclamation efforts and I really want to thank our employees for the work they've done on the reclamation at those mines to achieve those awards.
James Grech: I'd also like to thank our investors customers and vendors for their continued support.
James Grech: Operator that concludes our call.
Speaker Change: That concludes our conference call. Thank you for attending today's presentation you may now disconnect.
Operator: This concludes the conference call. Thank you for attending today's presentation. You may now disconnect.
Operator: [music].
Operator: Okay.
Operator: [music].
Speaker Change: Uh huh.
Operator: [music].
Operator: Okay.
Operator: Yeah.
Operator: Okay.
Operator: Yeah.
Music: ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ???
Music: [music].
Music: Yeah.
Music: [music].
Music: Yeah.
Music: [music].
Music: Yes.
Music: [music].