Q4 2024 Ramaco Resources Inc Earnings Call

Unknown Executive: Good day ladies and gentlemen and welcome to Ramaco Resources fourth quarter 2024 results conference 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.

Good day, and a descent chance Lynn and I'll come to your remarks, it resources fourth quarter 2024 results conference call.

All participants will be in listen only mode.

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Unknown Executive: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then 1 on your telephone keypad. You enjoy your question. Please press star, then 2.

After today's presentation.

Speaker Change: But you need to ask patients Charles.

Speaker Change: Can I ask a question you May press Star and then one on your telephone keypad.

Keith: The Australia question, Keith space store they choose.

Unknown Executive: Please note that this event is being recorded.

Keith: Please note that this issue can be coded.

Unknown Executive: I'd now like to turn the conference over to the Chief Financial Officer, Jeremy Sussman. Please go ahead, sir. Thank you.

Jeremy Sussman: I actually had a country and say that she is the chief financial Officer, Jeremy Sussman Pease go ahead Sir.

Randall Atkins: On behalf of Ramaco Resources, I'd like to welcome all of you to our fourth quarter 2024 earnings conference call. With me this morning is Randy Atkins, our Chairman and CEO, Chris Blanchard, our EVP for Mind Planning and Development, and Jason Fannin, our Chief Commercial Officer.

Jeremy Sussman: Thank you.

Jeremy Sussman: On behalf of <unk> resources I'd like to welcome all of you to our fourth quarter 2024 earnings Conference call with me. This morning is Randy Atkins, our chairman and CEO, Chris Blanchard, our EVP for mine planning and development adjacent spanning our chief commercial officer before we start I'd like to share our normal cautionary statement.

Jeremy Sussman: Before we start, I'd like to share our normal cautionary statement. Certain items discussed on today's call constitute forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco's expectations concerning future events. These statements are subject to risks, uncertainties, and other factors, many of which are outside of Ramaco's control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and except as required by law, Ramaco does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Jeremy Sussman: Certain items discussed on today's call constitute forward looking statements within the meaning of the private Securities Securities Litigation Reform Act of 1095.

These forward looking statements represent <unk> expectations concerning future events.

Jeremy Sussman: These statements are subject to risks uncertainties and other factors many of which are outside of <unk> control, which could cause.

Jeremy Sussman: Cause actual results to differ materially from the results discussed in the forward looking statements.

Jeremy Sussman: Any forward looking statements speak only as of the date on which it is made and except as required by law for Amoco does not undertake any obligation to update or revise any forward looking statements whether as a result of new information future events or otherwise I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss today.

Jeremy Sussman: I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss today in our press release, which can be viewed on our website, www.ramacoresources.com.

Jeremy Sussman: Our press release, which can be viewed on our website at www Dot <unk> resources Dot com.

Jeremy Sussman: Lastly, I'd encourage everyone on this call to go onto our website and download today's investor presentation.

Speaker Change: Lastly, I'd encourage everyone on this call to go onto our website and download today's investor presentation with that said, let me introduce our chairman and CEO Randy Atkins.

Randall Atkins: With that said, let me introduce our Chairman and CEO, Randy Atkins. Good morning, and thank you for joining the call. On the medical side of our business, the fourth quarter was clearly our strongest quarter of the year, both financially and operationally. This was despite continued market headwinds on price. controlled what we could control, which were costs and volume. We also achieved three milestones for the Corps. We had record tons sold, we exited the year with cash costs well under $100 a ton, and we ended with record levels of liquidity. All in all, we had a very strong core.

Speaker Change: Good morning, and thank you for joining the call.

Speaker Change: On the met coal side of our business the fourth quarter was clearly our strongest quarter of the year, both financially and operationally.

Speaker Change: This was despite continued market headwinds on pricing.

Speaker Change: We controlled what we could control, which would cost and volume.

Speaker Change: We also achieved three milestones for the quarter.

Speaker Change: We had record total so we exited the year with cash cost well under $100 a ton and we ended with record levels of liquidity.

Speaker Change: All in all we had a very strong quarter.

Randall Atkins: As a result of this solid performance, especially on cash mine costs, the fourth quarter margins remained at $33 a ton. This was down just $2 a ton since the second quarter, and despite an almost $30 drop in MEDCO prices between the second to the fourth quarter. Based on the results from all of our publicly traded peers in Central Appalachia, Ramaco's cash margins were almost 50% higher than the next highest public peer for both the third and fourth quarters. For that, I compliment both our mine operations and sales. The year-long negative pricing environment, of course, stretched into the fourth quarter.

Speaker Change: As a result of this solid performance, especially on cash mine costs, the fourth quarter margins remained at $33 a ton.

Speaker Change: This was down just $2 a ton since the second quarter and despite an almost $30 drop in met coal prices between the second to the fourth quarters.

Speaker Change: Based on the results from all of our publicly traded peers in central Appalachia, where amoco's cash margins were almost 50% higher than the next highest public peer for both the third and fourth quarters for that I complement both our mine operations and sales teams.

Speaker Change: The year long negative pricing environment of course stretched into the fourth quarter.

Randall Atkins: China continued dumping its overproduction of steel to all world markets.

Speaker Change: Trying to continued dumping its overproduction of deal to all world market. This.

Herb Price: This is Herb Price. Steel companies have cut back their own production and reduced the price they can pay for METCALP feedstock. But while the overall steel demand remains weak, there are reasons to hope that the MET prices may hopefully increase in the second half of Indeed, we've already seen a bump in the domestic steel HRC pricing from less than $700 per ton in Q3 to $940 per ton today.

Speaker Change: As Eric prices.

Speaker Change: Companies have cut back their own production and reduce the price they can pay for met coal feedstock.

Speaker Change: But while the overall steel demand remains weak there are reasons to hope that the met prices may hopefully increase in the second half of the year.

Indeed, we've already seen a bump in the domestic steel HRC pricing from less than $700 per ton in Q3 to $940 per ton today.

Herb Price: Looking at the supply side, I'm not sure the investing public understands how much carnage the drop in pricing has done to METCOL production in the U.S. over the past year and is still doing. We believe that by the end of this year, as much as 16 million domestic tons of med production will have come out of the U.S. market since its peak in Q2 of 2014. If you take 16 million tons out of an overall U.S. met coal production that was 72 million tons last year, that 20% drop in supply is going to eventually impact.

Speaker Change: Looking at the supply side I'm not sure the investing public understand how much carnage the drop in pricing is done to met coal production in the U S over the past year, and it's still doing well.

Speaker Change: We believe that by the end of this year as much as 16 million domestic tons of med production will come out of the U S market since its peak in Q2 of 'twenty four.

Speaker Change: If you take 16 million tonnes out of an overall U S met coal production that was 72 million tonnes last year that 20% drop in supply is going to eventually impact the market.

Herb Price: The main reason for the production drop and higher cost producers is simply the crushing negative cash. This has already caused a number of recent bankruptcies.

Speaker Change: The main reason for the production drop at higher cost producers is simply the crushing negative cash burn.

Speaker Change: This has already caused a number of recent bankruptcies.

Herb Price: In addition, there have been two large longwall mines that experienced ignition events that caused those mines to remain offline, and in one case, to declare bankruptcy as well. Also in January, we began to notice an increase in inbound European customer interest for spot availability. We believe this was primarily due to an increase in demand from Ukraine as a result of the closure of the country's only domestic coal mine. And also in Poland, a large mine had an ignition event about the same time. The aggregate impact of all these factors has created a noticeable tightening of supply in the U.S.

Speaker Change: In addition, there have been two large longwall mines that experienced ignition events that caused those mines to remain offline and in one case to declare bankruptcy as well.

Speaker Change: Also in January we began to notice an increase in inbound European customer interest for spot availability.

Speaker Change: We believe this was primarily due to an increase in demand from Ukraine. As a result of the closure of the country's only domestic coal mine.

Speaker Change: And also in Poland, a large mine had an ignition event about the same time the aggregate impact of all of these factors has created a noticeable tightening of supply in the U S.

Herb Price: Going forward, we expect to see more domestic idling of highball production destined for Asian markets. Current netbacks are cash negative for high cost operations. Several producers in this spot probably can't renew all of their annual Asian contracts. which would typically begin next.

Speaker Change: Going forward, we expect to see more domestic idling of high vol production destined for Asian markets.

Speaker Change: Current net backs are cash negative for high cost operations.

Speaker Change: Several producers in the spot probably can't renew all of their annual Asian contract business, which would typically begin next month.

Herb Price: Absent a large increase in pricing, we expect another round of highball supply cuts over the next few I would also note that Australian producers, in terms of volume shipped from Queensland, are off to their worst start of the year, going back for several years. The cyclone last week will not help.

Speaker Change: Absent a large increase in pricing, we expect another round of high vol supply cuts over the next few months.

Speaker Change: I would also note that Australia and producers in terms of volume shipped from Queens, Queensland are after there where it started the year going back for several years.

Speaker Change: Cyclone last week will not help.

Herb Price: On the demand side, everyone is watching potential impacts of tariffs on steel. Our own analysis is that tariffs might produce roughly two to three million tons of potential increase in domestic coal. This happens when tariffs limit steel imports and domestic blast furnaces then ramp up production to fill the gap. You are starting to see that already in the run up in domestic HRC prices.

Speaker Change: On the demand side, everyone is watching potential impacts of tariffs on steel imports our own analysis is it tariffs might produce roughly two to 3 million tons of potential increase in domestic coal demand.

Speaker Change: This happens when tariffs limit steel imports and domestic blast furnaces and ramp up production to fill the gap.

Speaker Change: You were starting to see that already in the run up in domestic HRC pricing.

Speaker Change: Yeah.

Randall Atkins: I'd also like to touch on our balance. We have recently been maintaining record amounts of liquidity. It was about $140 million at the year end. We regard keeping this high level of dry powder as both defensive as well as offensive. In a tricky market environment, it's prudent to have liquidity to meet whatever conditions might arise. We also want to position ourselves to execute on opportunities that might present themselves during market distress.

Speaker Change: I'd also like to touch on our balance sheet.

Speaker Change: We have recently been maintaining record amounts of liquidity it was about $140 million at the year end we.

Speaker Change: We regard keeping this high level of dry powder is both defensive as well as offensive.

Speaker Change: And a tricky market environment, it's prudent to have liquidity to meet whatever conditions might arise.

Speaker Change: We also don't want to position ourselves to execute on opportunities that might present themselves growing market distress.

Randall Atkins: One item I want to emphasize is that despite the current market gloom, we remain positive over the medium and longer term on our plan to increase future production. When we can finally see some stronger market clarity, we are ready to add roughly 2 million tons of lowball production in relatively short order. Specifically, we would proceed with both the 1.5 million ton deep mine expansion at our Maven complex and also continue mining into the number 3 and number 4 sections at our Maven complex, which would add another 500,000 tons. These low vol additions would allow us to increase overall production to roughly six and a half to seven million ton level within a 24 to 36 month period once we start.

Speaker Change: One item I want to emphasize is that despite the current market gloom, we remain positive over the meeting medium and longer term on our plan to increase future production.

Speaker Change: When we can finally see some stronger market clarity, we are ready to add roughly 2 million tons of low vol production in relatively short order.

Speaker Change: Specifically, we would proceed with both the $1 5 million tonnes deep mine expansion at our May have been complex and also continue mining into the number three and number four sections and are made in complex, which would add another 500000 tons.

Speaker Change: These low vol additions would allow us to increase overall production to roughly six and a half to 7 million ton level within a 24 to 36 month period once we start.

Randall Atkins: This would also shift our overall production slate to a majority of low vol production, which we feel gives us a strong quality posture for the future.

Speaker Change: So you said also shift our overall production slate through majority of low vol production, which we feel gives us a strong quality posture for the future.

Randall Atkins: Now switching gears to our Wyoming operation. I'm pleased to report that our Rare Earth and Critical Minerals Project is moving forward at an accelerated clip. We have been delayed for months in receiving third-party chemistry and metrologic test results. Almost all of that test data is now back. We expect later in April to release both Fluor's preliminary techno-economic analysis as well as an update from WEIR on geology grade and concentration. When these reports are released, this will provide not only granular technical information on the development, but also the economics and CapEx. I would note that to date, considering the outsized potential impact on us, we have spent a relatively modest $10 million directly on this project.

Speaker Change: Now switching gears to our Wyoming operations I'm pleased to report that our rare Earth and critical minerals project is moving forward at an accelerated clip.

Speaker Change: We have been delayed for months and receiving third party chemistry and met or allergic test results almost all of that test data is now back.

Speaker Change: We expect later in April to release, both fluor's preliminary techno economic analysis as well as an update from we're on geology grade and concentration.

Speaker Change: When these reports were released this will provide not only granular checker technical information on the development, but also the economics and Capex estimates.

Speaker Change: I would note that to date, considering the outsized potential impact on US we have spent a relatively modest $10 million directly on this project.

Randall Atkins: Upon release of these reports, we will have a great deal more to say and may indeed hold a special call on this as we did last year. To give you a sense of how we feel about the data that's coming in, we have decided to begin full scale mining in July to provide the rare earth material for a pilot processing facility. We will start construction on this fall. We are, of course, mindful of the U.S. government's interest in rapidly creating a domestic supply of critical materials. I can disclose that we are in ongoing discussions with several arms of the federal government regarding our development.

Speaker Change: Upon release of these reports we will have a great deal more to say and May Indeed hold a special call on this as we did last year.

Speaker Change: To give you a sense of how we feel about the data that's coming in we have decided to begin full scale mining in July to provide the rare earth materials for a pilot processing facility, we will start construction on this fall.

Speaker Change: We are of course mindful of the U S government's interest and rapidly, creating a domestic supply of critical minerals.

Speaker Change: I can disclose that we are in ongoing discussions with several arms of the federal government regarding our development.

Randall Atkins: On the Wyoming front, we are pleased to have received a $6 million matching fund grant recommendation from the Wyoming Energy Authority, which is to be applied towards building our pilot While we wait to disclose all the technical data with the release of the FLIR and the WEIR reports, I will provide some preliminary results today. The overall size of the resource is now estimated in the range of 1.7 million. This increased from the 1.5 million size we disclosed last year and now includes results from all rare earths and critical minerals we will be focusing on. We will continue additional coring and exploration on the overall area.

Speaker Change: On the Wyoming front, we were pleased to have received a $6 million matching fund grant recommendation from the Wyoming Energy authority, which has to be applied towards building our pilot plant.

Speaker Change: While we wait to disclose all the technical data with the release of the floor and the Weir report I will provide some preliminary results today.

Speaker Change: The overall size of the resource is now estimated in the range of $1 7 million tons. This increase from the $1 5 million size, we disclosed last year and now includes results from all rare Earths and critical minerals, we will be focusing on.

Speaker Change: We will continue additional coring and exploration on the overall area.

Randall Atkins: As you remember, to date, we have only tested about a third of the site at predominantly shallow depth. We will now core at deeper levels, which frankly, in many instances, have shown higher concentrations of rare earths than at shallower formations. But any way you look at it, given both the size of the unconventional deposit and the fact that it is found in softer, non-radioactive material, makes this a generationally unique development. As we view the project today, we will concentrate our commercial efforts specifically on about seven rare earths and critical minerals. These comprise about 30% of the material discovered to date that are estimated to generate over 95% of the revenue.

Speaker Change: As you remember to date, we have only tested about a third of the site it predominantly shallow depth.

Speaker Change: We will now core at depot deeper levels, which frankly in many instances have shown higher concentrations of rare Earth, then it's shallower formations.

Speaker Change: But any way you look at it given both the size of the unconventional deposit and the fact that it is found in softer non radioactive material makes this a generationally unique development.

As we view the project today, we will concentrate our commercial efforts specifically on about seven rare Earths and critical minerals.

Speaker Change: These comprise about 30% of the material discovered to date that are estimated to generate over 95% of the revenue.

Randall Atkins: On the rare side, we will focus on the heavy and medium magnetic oxides of neodymium, presidium, dysprosium, and terbium, which are all showing extremely strong rates of recovery. On the critical mineral side, as discussed in December, Fluhrer informed us that the Brook Mine may be the only primary source mine in the world for gallium, germanium, and scandium. Indeed, scandium may be one of the strongest revenue components of the product mix. As you know, gallium and germanium were banned by China from export to the United States last year.

Speaker Change: On the rare Earth side, we will focus on the heavy and medium magnetic oxides of Neil N M President am dysprosium and turbine.

Speaker Change: Which are all showing extremely strong rates of recovery.

Speaker Change: On the critical minerals side as discussed in December Fluor informed us that their brook mind may be the only primary source mine in the world for gallium germanium and scandium, Indeed, scandium, maybe one of the strongest revenue components of the product mix.

Speaker Change: As you know gallium and germanium were banned by China from export to the United States last year.

Randall Atkins: One last point which should bear some emphasis. We will approach this project with the same conservative conservative business discipline that is characterized all of our investment. This is a new and complex business. It is one with a far different macro-competitive overlay than coal. Indeed, here the Chinese have a monopoly on the space and want to make it commercially difficult for anyone else to even get a foothold. But with that said, the Brook Mine would be the first new rare earth mine in the United States in over 70 years. There is clearly a need for this strategic project.

Speaker Change: One last point, which should bear some emphasis though we will approach. This project with the same conservative conservative business discipline that has characterized all of our investment decisions.

Speaker Change: This is a new and complex business it.

Speaker Change: It is one with a far different macro competitive overlay than coal.

Speaker Change: Indeed here the Chinese have a monopoly on the space and want to make it commercially difficult for anyone else to even get a foothold.

Speaker Change: But with that said the Brook mine would be the first new rare Earth mine in the United States in over 70 years. There is clearly a need for this strategic product.

Randall Atkins: But as I said, we will approach the investment and financing of what could be a transformative business in a measured fashion and ensure that it delivers a strong return to our shareholders.

Speaker Change: But as I said, we will approach the investment and financing of what could be a transformative business in a measured fashion and ensure that it delivers a strong return to our shareholders.

Randall Atkins: So to wrap up my remarks, while the world's met coal markets still remain weak, we're cautiously optimistic that our price levels are nearby. By late summer, we hope they begin to move higher throughout the back half. I'm also, again, incredibly proud of the Ramaco team for being able to improve our operational sales and financial metrics throughout 2020. And to end by emphasizing again, this culminated in the fourth quarter being our strongest of the year, despite being the period with the weakest price. We're looking forward to 2025 and proving as the year moves along.

Speaker Change: So to wrap up my remarks, while the world met coal markets still remain weak we're cautiously optimistic that our price levels are near a bottom.

Speaker Change: By late summer, we hope they begin to move higher throughout the back half.

Speaker Change: I'm also again incredibly proud of the <unk> team for being able to improve our operational sales and financial metrics throughout 2024.

Speaker Change: And to end by emphasizing again this culminated in the fourth quarter being our strongest of the year, despite being the period with the weakest pricing.

Speaker Change: We're looking forward to 2025, improving as the year moves along and lastly on the railroad front I will leave it to be further update next month.

Randall Atkins: And lastly, on the rare earth front, I will leave it to be further updated next.

Jeremy Sussman: With that, I'll turn the floor over to the rest of our team to discuss finances, operations and markets. So, Jeremy, please start with a rundown on finance. Thank you, Randy. As you know, that fourth quarter 2024 operational results were the strongest of the year, despite metallurgical coal entities being the weakest. One testament to all of the hard work of our mine employees is that cash margins have declined only $2 since Q2, while met coal indices have fallen $30 per ton. To get into specifics, Q4 adjusted EBITDA was $29 million compared to $24 million in Q3.

Speaker Change: With that I will turn the floor over to the rest of our team to discuss finances operations and markets. So Jeremy Please start with a run down on finance. Thank.

Jeremy Sussman: Thank you Randy.

Jeremy Sussman: As you noted fourth quarter 2024 operational results were the strongest of the year. Despite metallurgical coal entities being the weakest one testament to all of the hard work of our mind employees is that cash margins have declined only $2 in Q2, while met coal indices have fallen $30 per ton.

Jeremy Sussman: Get into specific Q4, adjusted EBITDA was $29 million compared to $24 million in Q3, Q4, net income of $4 million compared to breakeven in Q3.

Jeremy Sussman: Q4 net income of $4 million compared to break-even in Q3. Class A EPS showed a $0.06 gain in Q4 versus a $0.03 loss in Q3. The primary reasons for the increase in both Q4 EBITDA and EPS were the $6 per ton sequential decline in our quarterly cash costs and the almost 100,000 ton increase in tons sold. On the cost front, we exited 2024 in the mid-90s per ton range, which was the best among our publicly traded peers. We've always said that one of the pillars of Ramaco, going back to our pre-production days, was to operate in the first quartile of the U.S.

Jeremy Sussman: Laughs eight EPS showed a 6% gain in Q4 versus the three cent loss in Q3.

Jeremy Sussman: The primary reasons for the increase in both Q4, EBITDA and EPS for the six dollar per ton sequential decline in our quarterly cash costs and he almost 100000 ton increase in tons sold.

Jeremy Sussman: On the cost front, we exited 2024 in the mid Ninety's per ton range, which was the best among our publicly traded peers we've.

Jeremy Sussman: We've always said that one of the pillars of <unk> going back to our pre production days was to operate in the first quartile of the U S cost curve indeed.

Jeremy Sussman: cost curve. Indeed, that is where we now stand. On the tons sold front, we exited the year at a 4.5 million ton per annum run rate for the highest level in company history despite challenging market conditions. Looking forward, we're maintaining all of our 2025 guidance other than bumping up our book tax rate to 25-30% that we'd expect to pay minimal cash taxes in the current environment. In terms of our guidance, we're maintaining a meaningful spread between the low and high ends of production, sales, cash cost, and CapEx guidance. This is in large part due to current market uncertainty.

Jeremy Sussman: Indeed that is something where we now stand.

Jeremy Sussman: On the tons sold front, we exited the year at a $4 5 million tonne per annum run rate for the highest level in company history, despite challenging market conditions.

Jeremy Sussman: Looking forward, we're maintaining all of our 2025 guidance other than bumping up our book tax rate to 25% to 30% that we'd expect to pay minimal cash taxes in the current environment.

Jeremy Sussman: In terms of our guidance, we're maintaining a meaningful spread between the low and high ends of production sales and cash cost and Capex guidance. This is in large part due to current market uncertainty.

Jeremy Sussman: To give you a little more color, if weak market conditions were to persist throughout the year, we'd likely come in towards the lower end of all four of these metrics of production, sales, cash costs, and CapEx by trimming back on some higher cost production. At the same time, we hope that market conditions improve, especially in the second half of the year, given all of the potential supply curtailments that Randy discussed.

Jeremy Sussman: Give you a little more color if weak market conditions were to persist throughout the year, we'd likely come in towards the lower end of all four of these metrics of production sales cash cost and capex by trimming back on some higher cost production at the same time, we hope that market conditions improve especially in the second half of the year given all of the potential.

Jeremy Sussman: Supply curtailments that Randy discussed.

Jeremy Sussman: Looking specifically at Q1 of 2025, all of us in Central Appalachia encountered two very challenging weather events. First, we experienced freezing temperatures for two weeks in January and then saw historic flooding in February. As a result, costs per ton sold are anticipated to come in towards the high end of the full year guidance range in Q1. And coupled with the normal typical inventory build ahead of the Great Lakes opening in the spring, Q1 tons sold are anticipated to be $850,000 to $950,000, with Q2 shipments up by more than one-third sequentially. Moving to the balance sheet, our liquidity at year-end of $138 million was up more than 50% year-on-year.

Jeremy Sussman: Looking specifically at Q1 of 2025 all of us in Central Appalachia incurred encountered two very challenging weather events first we experienced freezing temperatures for two weeks in January and then stopped saw historic flooding in February.

Jeremy Sussman: As a result cost per ton sold are anticipated to come in towards the high end of the full year guidance range in Q1.

Jeremy Sussman: When coupled with the normal typical inventory build ahead of the great lakes to opening in the spring Q1 tons sold are anticipated to be 850000 to 950000 with Q2 shipments up by more than one third sequentially.

Jeremy Sussman: Moving to the balance sheet, our liquidity at year end of $138 million was up more than 50% year on year. This was by far the highest year end liquidity in company history.

Jeremy Sussman: This was by far the highest year-end liquidity in company history. We also had nothing drawn on our revolver at year-end. At the same time, our overall credit metrics remain quite strong, with net debt-to-adjusted EBITDA of just 0.5 times on the trailing 12-month basis. The bottom line is that despite challenging market conditions, our cash margins remained relatively unchanged for the past few quarters, despite the meaningful decline in pricing. At the same time, we ended the year with record liquidity and minimal net debt to EBITDA.

Jeremy Sussman: We also had nothing drawn on our revolver at year end.

Jeremy Sussman: At the same time, our overall credit metrics remain quite strong with net debt to adjusted EBITDA of just 0.5 times on a trailing 12 month basis.

Jeremy Sussman: The bottom line is that despite challenging market conditions, our cash margins remained relatively unchanged for the past few quarters, despite the meaningful decline in pricing.

Speaker Change: At the same time, we ended the year with record liquidity and minimal net debt to EBITDA I'd now like to turn the call over to our EVP for mine planning and development, Chris Blanchard to discuss operations.

Christopher Blanchard: I'd now like to turn the call over to our EVP for mine planning and development, Chris Blanchard, to discuss operations. Thanks, Jeremy. Thank you to everyone who joined us this morning. As we've discussed, it's nice to be able to talk about positive performance at the operations, even if the underlying market wasn't as strong as we would all prefer. The fourth quarter operational performance and the improvement seen throughout the full year was the result of both the diligent efforts of the entire team and commitment to the development and growth plans we put in place late in the preceding year.

Chris Blanchard: Thanks, Jeremy.

Speaker Change: You to everyone, who joined US this morning.

Speaker Change: As we've discussed it's nice to be able to talk about positive performance at the operations, even if the underlying market wasn't as strong as we would all prefer.

Speaker Change: The fourth quarter operational performance and the improvement seen throughout the full year was the result of both the diligent efforts of the entire team and commitment to the development and growth plans, we put in place late in the preceding year.

Christopher Blanchard: 2024 was always projected to be a transitional year as we completed development mining in some of our older and thinner reserves at our legacy mines and transitioned into new areas with favorable geology throughout the year. Among the most significant milestone was the completion of the construction of our Maven plant, which ended the need to transport raw coal to our Berwyn complex and reduced net trucking costs by over $20 per clean ton. Work continues at Maven, completing final construction and optimization projects at the plant itself, but we are now processing on a regular schedule and working through the raw coal inventories we had stockpiled at the complex.

Speaker Change: 2024 was always projected to be a transitional year as we completed development mining and some of our older and thinner reserves at our legacy mines and transitioned into new areas with favorable geology throughout the year.

Speaker Change: Among the most significant milestone was the completion of the construction of our maiden plan, which ended the need to transport raw coal to a Bedouin complex and reduced net trucking costs by over $20 per clean ton.

Speaker Change: Work continues it may even completing final construction and optimization projects at the plant itself.

Speaker Change: But we are now processing on a regular schedule and working through the raw coal inventories, we had stockpiled at the complex.

Christopher Blanchard: Company wide, while individual mines production levels fluctuate normally as their conditions ebb and flow, we saw month over month increases in overall productivities throughout the fourth quarter. Some of this was attributable to easing employee turnover rates as the overall coal markets have cooled from what was an extremely tight labor market in the Central Appalachian region. Continuing into 2025, the labor market is still tighter than its historical average. And the reductions in the industry and the belt tight tightening has not yet translated into an abundance of skilled coal miners available.

Speaker Change: Company wide, while individual mines production levels fluctuate normally as their conditions ebb and flow we saw a month over month increases in overall productivity throughout the fourth quarter.

Speaker Change: Some of this was attributable to easing employee turnover rates as the overall coal markets have cooled from what was an extremely tight labor market in the central Appalachian region.

Speaker Change: Continuing into 2025, the labor marker market is still tighter than its historical average and the reductions in the industry and the belt type tightening has not yet translated into an abundance of skilled coal miners are available.

Christopher Blanchard: Pricing continues to languish in its current range. However, on our growth plan, we are still continuing to advance several development projects, so that we're positioned to execute when there's a rebalancing of market dynamics. The biggest group of projects relate to the Maven complex. This will involve the development of the underground reserves, which will ultimately ramp the complex up to one and a half million clean tons per year. At Maven, the permits are being advanced and work related to opening these underground mine continues. We believe that these mines can be brought online and ramped within 12 to 15 months when they are green.

Speaker Change: Pricing continues to languish in its current range. However on our growth plan, we are still continuing to advance several development projects. So that we're positioned to execute when theres a rebalancing of market dynamics.

Speaker Change: The biggest group of projects relate to the Maven complex.

Speaker Change: This will involve the development of the underground reserves, which will ultimately ramp the complex up to one 5 million clean tons per year.

Speaker Change: It may have been the permits are being advanced and work related to opening these underground mine continues well.

Speaker Change: We believe that these mines can be brought online and ramp within 12 to 15 months when they are green lighted.

Christopher Blanchard: Much of the lead time then will be the procurement of the underground mining equipment.

Speaker Change: Much of the lead time, then we'll be the procurement of the underground mining equipment.

Christopher Blanchard: Also, at our Berlin complex. Several capital projects continue related to new ventilation shafts and a new portal area in the heart of Ramaco's fee coal position at this moment. These safety-related and cost-saving projects will continue. This will allow the Berlin mine to have the proper ventilation, safety and logistical infrastructure to operate at its full planned capacity of four super sections when market conditions allow. We expect the first of the three new air shafts to be on the line late in the second quarter of 2025 after receiving the final federal permits needed for the approval of this.

Speaker Change: Also at our Berlin complex <unk>.

Speaker Change: Several capital projects continue related to new ventilation shaft, and a new portal area in the heart of Raymond because the coal position at this mine.

Speaker Change: These safety related and cost savings projects will continue.

Speaker Change: This will allow the berwyn mind to have the proper ventilation safety and logistical infrastructure to operate at full planned capacity for super sections when market conditions allow.

Speaker Change: We expect the first of the three new aircrafts to be on the bond weight in the second quarter of 2025 after receiving the final federal permits needed for the approval of this work.

Christopher Blanchard: Indeed, across all of our operations, we have started to see some of the permit backlog unwind and our minor permit revisions and additions to again be approved in a timelier manner.

Speaker Change: Indeed across all of our operations, we have started to see some of the permit backlog unwind and our minor permit revisions and additions to again be approved in a timely manner.

Christopher Blanchard: Turning briefly to 2025. As Jeremy mentioned, in Q1, the extreme winter snow and freeze events followed by historic flooding did impact operations and ship In West Virginia, the impacts to McDowell, Logan, and Wyoming counties where we operate were devastating. Beside the impact on actual mining operations, the damage to homes of the families of our employees was heartbreaking. We continue to work with some of the most stricken for relocation and recovery of their homes. Also throughout the region, we continue to work with charitable organizations and local groups supporting the recovery however we can. More directly at the mining complexes, the biggest impact of this weather was hundreds of collective employee shifts missed during January and February.

Speaker Change: Yeah.

Speaker Change: Turning briefly to 2025 as Jeremy mentioned.

Speaker Change: In Q1, the extreme winter snow and freeze event, followed by historic flooding did impact operations in shipping.

Speaker Change: In West, Virginia, the impacts to Mcdow, Logan and Wyoming counties, where we operate were devastating.

Speaker Change: Beside the impact on actual mining operations the damage to the homes of the families of our employees was heartbreaking.

Speaker Change: We continue to work with some of the most strict and for relocation and recover recovery of their homes.

Speaker Change: Throughout the region, we continue to work with charitable organizations and local groups supporting the recovery. However, we can.

Speaker Change: More directly at the mining complex is the biggest impact of this weather was hundreds of collective employee shifts missed during January and February.

Christopher Blanchard: We also had some additional downtime and costs associated with the flooding in February. primarily from unusual accumulations of water in the sealed or inactive areas of our underground coal mine. as well as some slowing of surface and plant operations. Fortunately, as we enter March, all of these conditions have abated and subsided and we have resumed our normal operational cadence.

Speaker Change: We also had some additional downtime and costs associated with the flooding in February.

Speaker Change: Primarily from unusual accumulations of water in the field or inactive areas of our underground coal mines as.

Speaker Change: As well as some slowing of surface and plant operations.

Speaker Change: Fortunately as we enter Mark all of these conditions have abated and subsided and we have resumed our normal operational cadence.

Christopher Blanchard: We continue to watch the markets and hope for price improvement. In the meantime, we remain disciplined in operational performance and costs to focus on those areas we do have some level of control. We're positioned to be nimble to adjust as necessary to the economics of the market.

Speaker Change: We continue to work to watch the markets and hope for price improvement in the meantime, we remain disciplined in operational performance and cost to focus on those areas. We do have some level of control over.

Speaker Change: We're positioned to be nimble to adjust as necessary to the economics of the market.

Jason Fannin: discuss all these factors driving the market right now, I would like to turn the call over to our Chief Commercial Officer Jason Fannin. Thanks, Chris. And good morning, everyone.

Speaker Change: Discuss all of these factors driving the market right now I would like to turn the call over to our Chief commercial officer, Jason Fannin.

Jason Fannin: Thanks, Chris and good morning, everyone today, I'll share our views on coking coal and steel markets as well as our sales outlook.

Jason Fannin: Today, I'll share our views on coking coal and steel markets as well as our sales outlook. Global cooking coal markets have continued to weaken from a pricing stand. with average cooking coal index prices down approximately 6% since the start of Q1. If current index levels remain flat through the end of March, Q1 index averages will also be down 6% versus Q4. As of March 10th, the U.S. East Coast Index values were 182.50 per ton for low vol, 179.50 per ton for high vol A, and 166.50 per ton for high vol B. Published U.S. East Coast price indices have drifted lower over the last two weeks.

Jason Fannin: Global coking coal markets have continued to weaken from a pricing standpoint with average coking coal index prices down approximately 6% since the start of Q1.

Jason Fannin: If current index levels remained flat through the end of March Q1 index averages will also be down 6% versus Q4s.

Jason Fannin: As of March stance, the U S East Coast Index values were $182 50 per ton for low vol, $179 50 per ton for high vol, a and.

Jason Fannin: And $166 50 per ton for high Vol B.

Jason Fannin: <unk> U S East coast price indices have drifted lower over the last two weeks.

Jason Fannin: We believe these levels are not at all reflective of the supply side tightness in Central and Northern App due to recent bankruptcies, mine idlings, operational cutbacks, and the extreme weather experienced in much of the Central Appalachian coalfields during January and February. The Australian premium low vol index currently sits at $181 per tonne. A level last seen briefly in September and before that not since mid 2021 during the China ban on Australian coal The second tier low vol cooking coal index is priced at $142.50 per ton, and has significantly underperformed relative to premium grades. As a result, many Australian producers in Queensland and the broader region are experiencing severe margin compression.

Jason Fannin: We believe these levels are not at all reflective of the supply side tightness in central and northern App due to recent bankruptcies mine idling operational cut backs and the extreme weather experienced in much of the central Appalachian coal fields during January and February.

Jason Fannin: The Australian premium low Vol index currently sits at $181 per ton.

Jason Fannin: A level last seen briefly in September and before that not since mid 2021 during the China ban on Australian coal imports.

Jason Fannin: The second tier low vol. Coking coal index is priced at $1 $42 50 per ton.

Jason Fannin: Has significantly underperformed relative to premium grades as a result, many Australian producers in Queensland, and the broader region are experiencing severe margin compression.

Jason Fannin: We believe the majority of mines in Queensland are operating at breakeven cast costs or worse. We are also witnessing profitability issues in the U.S. Producers with an inability to control higher costs are struggling. We have already seen a fair deal of idlings, bankruptcies, layoffs, and associated supply rationalization because of the continued poor pricing environment.

Jason Fannin: We believe the majority of mines in Queensland are operating at breakeven cash cost or worse.

Jason Fannin: We're also witnessing profitability issues in the U S producers with an inability to control higher costs are struggling.

Jason Fannin: We have already seen a fair deal of idling bankruptcies layoffs and associated supply rationalization because of the continued poor pricing environment.

Jason Fannin: Over the next few quarters, the dominant theme for smaller and less well capitalized producers will likely be weak profitability and continued supply cuts. Investors will have an increased focus on liquidity management across the industry. This will be especially impactful for those smaller and or private producers who are more heavily exposed to seaborne markets. and perhaps are overlooked by public markets and industry reporting agents.

Jason Fannin: Over the next few quarters, the dominant theme for smaller and less well capitalized producers will likely be weak profitability and continued supply cuts.

Jason Fannin: Answers will have an increased focus on liquidity management across the industry.

Jason Fannin: This will be especially impactful for those smaller <unk> private producers, who are more heavily exposed to seaborne markets and perhaps are overlooked by the public markets and industry reporting agencies.

Jason Fannin: If these weak market conditions continue, we believe the next phase will be more significant supply cuts, which may lead to a rebalancing of market dynamics. This will present many opportunities for Ramaco to capture market share, establish additional long term customer relationships and continue to grow our sales The weakness in coking coal prices is primarily a reflection of poor profitability at steel mills worldwide, rather than an oversupply of METCO. Queensland, for instance, has seen its lowest shipment volumes in over a decade, start to year, yet prices continue to decline. According to MSHA data, quarterly production of coking coal in the U.S.

Jason Fannin: If these weak market conditions continue we believe the next phase will be more significant supply cuts, which may lead to a rebalancing of market dynamics.

Jason Fannin: This will present, many opportunities for amoco to capture market share and establish additional long term customer relationships and continue to grow our sales book.

Jason Fannin: The weakness in coking coal prices is primarily a reflection of poor profitability at steel mills worldwide, rather than an oversupply of met coal.

Jason Fannin: Waveland, France has seen its lowest shipment volumes in over a decade to start the year prices continued to decline.

Jason Fannin: According to Amsterdam quarterly production of coking coal in the U S has declined successively since Q2 of 2024.

Jason Fannin: has declined successively since Q2 of 2024.

Jason Fannin: This underscores the broader struggles of the global steel industry, which remains in a prolonged downturn. The key factor in this dynamic is the surge in Chinese steel exports, which continues to pressure global steel mill prices. Since early 2022, annual Chinese steel exports have been 104 million tons on average, peaking at an annualized rate of nearly 150 million tons in October last year, a huge increase which has impacted steel pricing on a global scale. So far this year, Chinese domestic demand has failed to rise enough to push down steel exports from these astronomically high levels.

Jason Fannin: This underscores the broader struggles at the global steel industry, which remains in a prolonged downturn the.

Jason Fannin: A key factor in this dynamic is the surge in Chinese steel exports, which continues to pressure global steel mill products.

Jason Fannin: Since early 2022 annual Chinese steel exports have been 104 million tons on average, peaking at an annualized rate of nearly 150 million tons in October last year, a huge increase which has impacted steel pricing on a global scale.

Jason Fannin: So far this year Chinese domestic demand has failed to rise enough to push down steel exports from these astronomically high levels.

Jason Fannin: We therefore continue to look for green shoots in the Chinese economy as it relates to potential steel consumption growth in their domestic market. Fortunately, many leading indicators have rebounded.

Jason Fannin: We therefore continue to look for green shoots in the Chinese economy as it relates to potential steel consumption growth in their domestic market.

Jason Fannin: Fortunately many leading indicators have rebounded. This suggests the cycle is turning up again, although it will likely take some time for excess steel exports to decline meaningfully.

Jason Fannin: This suggests the cycle is turning up again, although it will likely take some time for excess steel exports to decline meaning In the Atlantic Basin, Ramaco's turn volumes and demand from our usual specialty customers remain solid, while at the same time the U.S. steel market is staging a prolific rebound in response to the Trump terror. With integrated blast furnace production currently holding a cost advantage over electric arc furnace operations, we may see domestic producers ramp up blast furnace output in response to rising steel prices. This would likely result in higher domestic cooking coal consumption, which provides a natural hedge against weak pricing in the seaborne.

Jason Fannin: In the Atlantic Basin, <unk> term volumes and demand from our usual specialty customers remained solid while.

Jason Fannin: While at the same time the U S steel market is staging a prolific rebound in response to the Trump tariffs.

Jason Fannin: With integrated blast furnace production currently holding a cost advantage over electric arc furnace operations, we may see domestic producers ramp up blast furnace output in response to rising steel prices.

Jason Fannin: This would likely result in higher domestic coking coal consumption, which provides a natural hedge against weak pricing in the seaborne market.

Jason Fannin: The potential for increased domestic demand later in the year aligns well with our sales strategy for 2025. So far, we have committed 3.5 million tons for sale during 2025. We have booked 1.6 million tons to North American customers at an average fixed price of $152 per and 1.9 million tons to the seaborne market at mostly index link price. Most of our uncommitted volumes are associated with production in the back half of the year because we are largely sold out in the first half.

Jason Fannin: The potential for increased domestic demand later in the year aligns well with our sales strategy for 2025.

Jason Fannin: So far we have committed $3 5 million tons for sale during 2025.

Jason Fannin: One 6 million tonnes to north American customers at an average fixed price of $152 per ton.

Jason Fannin: The $1 9 million tonnes for the seaborne market at mostly index linked pricing.

Jason Fannin: Most of our uncommitted volumes are associated with production in the back half of the year as we are largely sold out in the first half.

Jason Fannin: This leaves us with the flexibility to take advantage of evolving market dynamics and layer in additional sales opportunities with pricing arrangements we view as favorable from a risk versus reward standpoint.

Jason Fannin: This leaves us with the flexibility to take advantage of evolving market dynamics and layer in additional sales opportunities with pricing arrangements, we view as favorable from a risk versus reward standpoint.

Jason Fannin: Turning to an overview of Ramaco's various seaborne markets, recent mine outages in the US and in Europe have caused a tightening in US supply markets as buyers seek supplemental met volume. This trend began before the various major mine outages in the U.S. and Europe, as well as prior to the extreme weather in Central Africa in January and February, and continues today.

Jason Fannin: Turning to an overview of <unk> various seaborne markets recent mine outages in the U S and in Europe have caused a tightening in U S supply markets as buyers seek supplemental met volumes.

Jason Fannin: This trend began before the various major minor outages in the U S and Europe as well as prior to the extreme weather in central App During January and February and continues today.

Jason Fannin: The broader European steel market began 2025 on an upbeat tone with rising steel prices as potential safeguard measures threaten to cut off cheap competition from imports. While the European steel industry remains fragile due to slowing economic growth, we see indications that policymakers may shift away from long-standing fiscal conservatism. toward expansionary pro-growth strategies. This would create a much-needed tailwind for investment and spur downstream steel.

Jason Fannin: The broader European steel market began 2025 on an upbeat down with rising steel prices as potential safeguard measures threatened to cut off cheap competition from imports.

Jason Fannin: While the European steel industry remains fragile due to slowing economic growth, we see indications of Hollywood policymakers may shift away from long standing fiscal conservatism.

Jason Fannin: Toward expansionary pro growth strategies.

Jason Fannin: This would create a much needed tailwind for investment and for downstream steel consumption.

Jason Fannin: South American markets continue to be stable with modest demand growth expected as steel safeguard measures provide support for increased pig iron production in 2025. Ramaco's term contract order book in South America continues to perform well, and we have seen increased spot tenders from a few buyers, particularly on the low vault.

Jason Fannin: South American markets continued to be stable with modest demand growth expected as steel safeguard measures provide support for increased pig iron production in 2025.

Jason Fannin: Amoco's term contract order book in South America continues to perform well and we have seen increased spot tenders from a few buyers, particularly on the low voltage side.

Jason Fannin: Looking ahead, we expect Indian coking coal demand to strengthen later in 2025, supported by the addition of 11.5 million tons of new blast furnace capacity. Over the past two years, cooking coal demand has lagged behind India's overall steel consumption. largely due to increased seaborne met cocaine. However, with the implementation of Metcalfe import quotas late last year, we anticipate coking coal consumption will better align with blast furnace iron production trends going forward.

Jason Fannin: Looking ahead, we expect Indian coking coal demand has strengthened later in 2025 supported by the addition of 11 5 million tons of new blast furnace capacity.

Jason Fannin: Over the past few years coking coal demand has lagged behind India's overall steel consumption.

Jason Fannin: Largely due to increased seaborne met coke imports however, with the implementation of met Coke import quotas late last year, we anticipate coking coal consumption will better align with blast furnace iron production trends going forward.

Jason Fannin: Additionally, we are closely monitoring potential Indian steel import safeguard measures, which, if implemented, could enhance domestic steel mill profitability and support higher cooking culture. In terms of our market strategy in the Pacific Basin, we continue to engage and supply a core group of customers in Asia. This is a group with whom we've fostered long-term relationships, even as the price environment in the Pacific has become challenging for many U.S. As market headwinds persist, we are adopting a cautious, systematic approach to our remaining uncommitted volume. We plan to allocate these volumes to the highest return sales opportunities while continuing to supply our long-term customer base.

Speaker Change: <unk>, we are closely monitoring potential Indian steel imports safeguard measures, which if implemented.

Jason Fannin: Should enhance domestic steel mill profitability and support higher coking coal prices.

Jason Fannin: In terms of our market strategy in the Pacific Basin, we continue to engage and supply a core group of customers in Asia.

Jason Fannin: This is a group with whom we fostered long term relationships, even as the price environment in the Pacific has become challenging for many U S suppliers.

Jason Fannin: As market headwinds persist, we are adopting a cautious systematic approach to our remaining uncommitted volumes.

Jason Fannin: We plan to allocate these volume to the highest return sales opportunities, while continuing to supply our long term customer base, all with a focus strategically on future growth.

Jason Fannin: all with a focus strategically on future growth.

Unknown Executive: With that said, I would now like to return the call to the operator for the Q&A portion of the call. Operator? Thank you, sir.

Jason Fannin: With that said I would now like to return the call to the operator for the Q&A portion of the call operator.

Speaker Change: Thank you, Sir we will now be conducting the question and answer session.

Unknown Executive: We will now be conducting the question and answer session. To ask a question, you may press star and then 1 on your telephone keypad. If you are using speakerphone, please pick up the handset before pressing the keys. If at any time your question has been addressed and you wish to withdraw your question, please press star and then 2.

Speaker Change: A question you May press Star and then one on your telephone keypad.

Speaker Change: Hey, guys using speaker phone, please pick up the handset before pressing the keys.

Speaker Change: You bet, Jamie Tommy accretion has been decreased and at least if it's truly a Christian piece.

Speaker Change: And then Chi.

Unknown Executive: At this time, we'll pause momentarily to assemble our roster.

Speaker Change: At this time, there are bullish that materially to assemble our roster.

Nick Giles: Our first question comes from Nick Giles from B. Riley Securities. Please go ahead. Thank you, Operator. Good morning, everyone. Guys, congratulations on the lower cash costs and the successful additions of production at Elk Creek in 2024. My first question, if I saw correctly, you have some seaborne volumes fixed at $111 per ton, and so I was hoping you could add some color around where you see netbacks today for your various qualities. I think you mentioned that current Atlantic indices aren't fully reflective, so where do you see the highest return opportunities in the current market? Thank you very much.

Josh Drum: Our first question comes from Josh Drum beat.

Speaker Change: <unk> Securities. Please go ahead.

Speaker Change: Thank you operator, good morning, everyone guys.

Speaker Change: Guys congratulations on the lower cash costs and the successful additions of production at Bell Creek in 2024.

Speaker Change: My first question is if I saw correctly you have some seaborne volumes fixed at $111 per ton and so I was hoping you could add some color around where you see netback today for your various qualities I think you mentioned that Kurt Atlantic indices arent fully reflected so.

Speaker Change: Where do you see the highest return opportunities in the current market. Thank you very much.

Jason Fannin: That Nick on the 111 there that those are the next link prices that have settled out for January and February. Large portion that were from a couple of our Asian highball contracts have since rolled off. That's the impact you're seeing there in the fixed price number. To your question on where we see the highest returns in the current Seaborne market certainly has seen the Atlantic. You know, when you factor out the freight differential to the Pacific, and then, frankly, the near parity now with the Pacific indices versus the Atlantic indices, there's a differential there. In terms of current netbacks, just broadly speaking, where indices are at today, I think our high vol, you're in the 125 per net ton range back at the mine, with low vol, you know, up, I'd say $3 to $5 above that.

Nick on the 111, there that those are index linked prices settled out for January and February.

Speaker Change: Large portion of that war from a couple of our agent <unk> contracts that have since rolled off.

Speaker Change: That's the impact Youre seeing there in that fixed price number.

Speaker Change: To your question on where we see the highest returns in the current.

Speaker Change: LIBOR market certainly outages in the Atlantic.

When you factor out the freight differential to the Pacific and then frankly, the the near parity now with the Pacific indices versus the Atlantic indices, there's a differential there.

Speaker Change: In terms of current net backs just broadly speaking where indices are at today.

Speaker Change: I think our high volume in the $125 per net ton range back at the mine.

Speaker Change: With low ball up I'd say three to $5 above that.

Speaker Change: Okay.

Jeremy Sussman: Yeah, it's Jeremy here. If I could just add a couple things to that. So, you know, just on the 111 number, I'd say about 40 to 45% of what was shipped in January and February on the export market was to Asia, that's about double sort of our normal Asian cadence. So I'd say it's a little bit wonky from that perspective. But, you know, regardless of sort of the, you know, netbacks and whatnot, I mean, I think that the key is, you know, our cash margins are, you know, call it 33 bucks a ton. That's down $2 a ton since the second quarter.

Speaker Change: Yeah got it.

Jeremy Sussman: It's Jeremy here, if I could just add a couple of things to that so.

Speaker Change: Just on the 111 number.

Speaker Change: I'd say about 40% to 45% of what was shipped in January and February on the export market was was to Asia, that's about double sort of our normal Asian cadence. So I'd say, it's a little bit a little bit wonky from that perspective.

Speaker Change: But regardless of sort of the you know net backs and whatnot I mean I think the key is you know our cash margins are call. It 33 Bucks a ton that's down $2 a ton since the second quarter.

Jeremy Sussman: And, you know, certainly about 50% or more than 50% higher than I think the next highest in Central Appalachia, when you kind of average Q3 and Q4. And, you know, frankly, competing with, with the Alabama long wall margins. So, you know, all in all, again, kudos to Jason, Chris, and their teams for, you know, keeping, keeping our margins, you know, very strong on a relative basis.

Speaker Change: Certainly about 50% or more than 50% higher than I think the next highest in central Appalachia. When you kind of average Q3, and Q4 and frankly competing with with the Alabama Longwall margins. So all in all again kudos to Jason Kristian there teams for Keith.

Speaker Change: Keep in keeping our margins.

Speaker Change: Very strong on a relative basis.

Nick Giles: Jeremy, Chris, I appreciate all that additional detail and for the clarification. It'd be just on the gross side and your guidance. Noted that you could respond to higher prices with some of the growth projects you have at your disposal. And so could you remind us of the capital intensity of each of those and what would you ultimately need to see to move forward? And then is any of this potential growth capex included in your current guidance of 60 to 70 million? Sure, a few questions there, Nick. So I guess, you know, first, from the standpoint of our total capital, you know, our guidance is about $60 to $70 million.

Jeremy Sussman: Jeremy Chris I appreciate all that additional detail and for the clarification.

Speaker Change: Maybe just on the gross side in your guidance.

Speaker Change: You've noted that you could respond to higher prices with some of the growth projects you have at your disposal and so could you remind us of the capital intensity of each of those and what would you ultimately need to see to move forward and then is any of this potential growth Capex included in your current guidance.

Speaker Change: $60 million to $70 million.

Speaker Change: Sure.

Speaker Change: A few questions there Nick so I guess first from the standpoint of our total capital.

Speaker Change: Our guidance is about $60 million to $70 million.

Jeremy Sussman: I'd say our normal sort of maintenance capex is around $9 to $10 a ton. So sort of embedded in that is about $20 million of growth capital. I'd say it's split, you know, pretty evenly between Elk Creek and Burwind. I mean, there's a few million in addition. But, you know, at Elk, really, it's, you know, basically increasing the, you know, infrastructure for the most part to make sure that we can get to 3 million tons on a sustainable basis. You know, and at Burwind, Chris discussed, you know, a number of the projects that basically allow us to, you know, mine full out ultimately in the third and fourth section.

Speaker Change: They are normal sort of maintenance capex is around 9% to $10 a ton so sort of embedded in that is about $20 million of growth capital I would say, it's split pretty evenly between.

Speaker Change: Elk Creek in Berlin.

Speaker Change: A few million dollars in addition, but oh really.

Speaker Change: Basically increasing the infrastructure for the most part to make sure that we can get to 3 million tonnes on a sustainable basis.

Chris Blanchard: And at Berwyn, Chris discussed.

Speaker Change: Number of the projects to basically allow us to.

Speaker Change: Mines full out ultimately in the third and fourth section. So I guess, what I would say is if market conditions remain weak there, there's probably some room in our capex to come down at.

Jeremy Sussman: So I guess what I would say is, you know, if market conditions, you know, remain weak, there's probably some room in our capex to come down. At the same time, you know, as Randy sort of detailed in his remarks, there's a lot of carnage out there. And certainly, we do think that, you know, the market is poised to move higher in the second half of the year.

Speaker Change: At the same time as Randy sort of detailed in his remarks, there's a lot of carnage out there and certainly we do think that.

Speaker Change: The market is poised to.

Speaker Change: To move higher in the second half of the year.

Jeremy Sussman: Yeah, I'll make one other comment. So I mean, you know, basically, you know, in this kind of a sideways market, In terms of committing new capital to growth, we basically, as I said, want to see some clarity, whether that's one or two quarters of stabilized pricing or hopefully even increased pricing remains to be seen. But the nice thing about where we're teed up, at Maimon, of course, we already have a prep plant in place. We've got probably, for the deep portion, about a $30 million spend, which would be graduated over a period of time. That's not a one-year spend.

Speaker Change: Yeah, I'll make one other comment.

Speaker Change: Acyclic when this kind of a.

Speaker Change: Sideways market.

Speaker Change: In terms of committing new capital to growth, we basically as I said, we want to see some clarity.

Speaker Change: Whether thats, one or two quarters of stabilized pricing or hopefully even increased pricing.

Speaker Change: Remains to be seen but the.

Speaker Change: The nice thing about where we're teed up it may even and of course, we already have a prep plant in place.

Speaker Change: We've got probably for the deep portion about a $30 million spend which would be graduated over a period of time, that's not a one year span and that's probably more like a two year spend.

Jeremy Sussman: That's probably more like a two-year spend. And at Berwyn, we're essentially just continuing through an existing mine to add more sections. So that's a relatively modest spend, I'd say, in about the $10 million range. And that's, once again, not a one-year spend. That's probably a two-year spend. So our cap requirements for these additions are, in relative terms, pretty darn modest. I can't think of too many people who can add 2 million tons for essentially $40 million in CapEx. So that's how I'd look at it.

Speaker Change: And in Berwyn, we're essentially just continuing through an existing mine to add more section. So that's that's a relatively modest spend I would say in the begin about the $10 million range and that's once again not a one year span and that's probably a two year span so our cap.

Speaker Change: <unk> for these additions are in relative terms pretty darn modest I can't think of too many people, who can add 2 million tons for essentially 40 million Bucks in capex. So that's how I'd look at it.

Nick Giles: Jeremy, Randy, thanks again for all the additional detail. Good to hear you have that optionality.

Speaker Change: Jeremy Randy Thanks, again for all the additional detail good to hear you have that optionality.

Nick Giles: Maybe just one last one on the rare earth side. I mean, this seemingly a project of tremendous scale. So what kind of order of magnitude should we be anticipating as far as development, cap back?

Speaker Change: Maybe just one last one on the <unk> side.

Speaker Change: Side I mean, this is seemingly a project at tremendous scale. So what kind of order of magnitude should we be anticipating as far as development Capex and.

Jeremy Sussman: Is there a CAPEX level you'd be able to point us to that's required for the construction of the pilot plant later this year? Sure. So the way that I teed it up, I think both in our earnings release, as well as in my remarks, we will have a pretty granular description of, you know, not only the technical aspects of the deposit, the grades, the recovery rates, but also, of course, the economics and the CAPEX, which are inclusive in the floor techno-economic report. That's been hung up bluntly because there's such an overwhelming demand for people doing testing of various rare earth projects that the labs that do the chemistry and metrologic analysis for those are quite backed up, and we've been having delays in getting those test results back.

Speaker Change: Is there a capex level you'd be able to point us to that's required for the construction of the.

Speaker Change: Pilot plant later this year.

Speaker Change: Sure so the way that I teed, it up but I think both in our earnings release as well as in my remarks.

Speaker Change: We will have a pretty granular description.

Speaker Change: Not only the technical aspects of the deposit.

Speaker Change: The grades recovery rates, but also of course, the economics and the Capex, which are inclusive in the floor techno economic report.

Speaker Change: That's been hung up lumpy because there is such a overwhelming demand for people doing testing of various rare earth projects that the labs to do the chemistry in matter of allergic analysis for those or are quite backed up and we've been having delays in getting the test results back we've got those.

Randall Atkins: We've got those results back, and Flora is telling us by the middle of the latter part of next month, they will have completed the report. And so, you know, instead of front-running that report by kind of drip and drabbing out, you know, CAPEX numbers and pilot plant numbers, we'll let the report speak for itself.

Speaker Change: <unk> back in.

Speaker Change: Florida is telling us by the middle to latter part of next month. They will have completed the report.

Speaker Change: And so instead of front running that report by kind of drip and dragging out capex numbers and pilot plant numbers, we'll let the report speak for itself.

Nick Giles: And as I said, once we put that out there, we'll be even happy to have a sort of a separate rare earth call, which we've done before, to go into far more detail than we would on this call, you know, certainly today or certainly even on a normal. Earnings Call where we're talking about our MET operation. Fair enough, Brandy. Well...

Speaker Change: And as I said once we put that out there will be even happy to have a sort of a separate rare earth call, which we've done before to go into is far more detailed than we would.

Speaker Change: On this call certainly today are certainly even on a normal.

Speaker Change: Our earnings call, where we're talking about are met operations as well.

Speaker Change: Yeah.

Randy Atkins: Fair enough Randy well.

Nick Giles: Guys I appreciate all the color, nice work and continued best of luck.

Speaker Change: Guys I appreciate all the color.

Speaker Change: Nice work and continued best of luck.

Speaker Change: Thanks, Nick.

Chris LaFenma: Our next question comes from Chris LaFenma of Jefferies. Please go ahead. Thanks, operator. Hi, guys, thanks for taking my questions. I just want to ask first around the reduction in unit costs. I mean, that's been an impressive performance there. And obviously, it's helped offset some of the weakness in prices. But I'm wondering to what extent, let's assume that Metco prices begin to really recover in the next year. Does some of the cost reductions that you've realized so far begin to reverse? That's my first question.

Speaker Change: Our next question comes from Chris the FINMA.

Speaker Change: Jefferies. Please go ahead, thanks, operator, hi, guys. Thanks for taking my questions.

Speaker Change: Just wanted to ask first round.

Speaker Change: The reduction in unit costs I mean, that's been an impressive performance there.

Speaker Change: Obviously, it's helped offset some of the weakness in prices, but I'm wondering.

Speaker Change: To what extent lets assume that met coal prices begin to recover in the next year to some of the cost.

Speaker Change: Reductions that you've realized so far I begin to reverse that's my first question.

Christopher Blanchard: So, that's Chris. Oh, I'm sorry, this is Chris, but largely the cost reduction has been driven by the move from, you know, more challenging geology and some of our older mines into thicker horizons where the clean tons per foot is higher and it drives down the units. Obviously, we've seen a little bit of benefit, I guess, by the lower sales price in our royalty costs and other sales related. So that would reverse as the prices go back up. But absent a spike in pricing, we wouldn't expect to see major labor increases, which is what sort drove a lot of it in 2022-2023.

Speaker Change: So.

Chris Blanchard: Largely that's Chris Im sorry, this is Chris but.

Chris Blanchard: Largely the cost reduction has been driven by the move from.

Chris Blanchard: More challenging geology, and some of our older mines into thicker horizons, where the clean tons per foot is higher and it drives down the unit cost.

Chris Blanchard: Obviously, we've seen a little bit of.

Chris Blanchard: Benefit I guess by the lower sales price and our royalty costs and other sales related to that would reverse as the price prices go back up.

Chris Blanchard: But absent a spike in pricing, we wouldn't expect to see major labor increases, which is what sort of.

Chris Blanchard: And drove a lot of it in 2022 2023, so I think.

Christopher Blanchard: So I think structurally, the lower cost should be in place with just the normal moves around sales related.

Chris Blanchard: Structurally the lower costs should be in place with just the normal moves around sales related.

Randall Atkins: And Chris, this is Randy, I'd add, you know, as you heard from our remarks, we are seeing a lot of supply reductions out there. So in the space, not only vis-a-vis labor, but some of the other types of equipment, steel related and other, we're seeing a softening somewhat in the market. So we would not expect that trend to reverse, given the amount of supply coming out of the market unless there's really, as Chris said, a real spike. We're just going to see, you know, somewhere around 15 to 20 million tons come out of the Central App and Northern App markets.

Randy Atkins: And Chris This is Randy I'd add.

Speaker Change: As you heard from our remarks, we're seeing a lot of supply reductions out there so.

Speaker Change: In this space not only vis vis labor, but some of the other types of equipment.

Speaker Change: Steel related in other.

Speaker Change: We're seeing a softening somewhat in the market. So we would not expect that trend to reverse.

Speaker Change: Given the amount of supply coming out of the market unless there is really as Chris said a real spike.

Speaker Change: Because if.

Speaker Change: We're just going to see.

Speaker Change: Somewhere around <unk>.

Speaker Change: 15 to 20 million tons come out of central App and northern App market, that's going to create a large hole.

Randall Atkins: That's going to create a large hole for not only suppliers, but also the labor market. And does that capacity come back online in a better market or is some of this capacity you think permanently gone? I think Chris, a lot of that capacity may be gone on a on a permanent basis. The one thing, of course. A lot of people don't appreciate as much is really the depletion that's in the Central Appalachian Basin. You know, it's a mature basin, and a lot of these mines, particularly for a lot of the larger legacy producers, are in mines that are very mature.

Speaker Change: For not only suppliers, but also the labor market.

Speaker Change: And does that capacity come back online in a better market or is some of this capacity you think permanently gone.

Speaker Change: I think Chris a lot of that capacity may be gone on a on a permanent basis. The one thing of course.

Speaker Change: A lot of people don't appreciate as much as really the depletion that's in the central Appalachian Basin.

Speaker Change: Mature base and then a lot of these mines, particularly for a lot of the larger legacy producers.

Speaker Change: In minds that are very mature.

Randall Atkins: And they are coming, if not to the end of their useful life, they're certainly coming to a point where the geology is declining. That's why, you know, we've got relatively new mines, sort of fresh geology and thicker seams, which is obviously an advantage to us from a cost perspective.

Speaker Change: And they are coming not to the end of their useful life. There is certainly coming to a point, where the geology is declining.

Speaker Change: That's why we've got relatively new mines sort of fresh geology, and thicker seams, which is obviously an advantage to us from a cost perspective.

Speaker Change: Okay.

Chris LaFenma: Thanks, that's very helpful. I appreciate that. Good luck. Thanks, Chris. Appreciate you getting on the call.

Speaker Change: Thank you that's very helpful. I appreciate that good luck.

Chris Blanchard: Thanks, Chris I appreciate you getting on the call.

Nathan Martin: Our next question comes from Nathan Martin of the Benchmark Kemp Company. Please go ahead. Thanks, operator. Good morning, guys. Congrats on the fourth quarter results and the continued cost per tonne progress and maybe just kind of starting there and more of a clarification question. You mentioned the commissioning of the Maven prep plant in fourth quarter, you know, reduce those trucking costs by roughly $20 a tonne at that complex. However, I know you guys have previously talked about a number around $40 a tonne. Is there more savings potentially there? Or is that just maybe a clean versus raw tonne comparison?

Speaker Change: Our next question comes from Nathan Martin of the Benchmark Company go ahead.

Nathan Martin: Thanks, operator, good morning, guys.

Nathan Martin: <unk> fourth quarter results and the continued cost per ton progress and maybe just kind of starting there in more of a clarification question.

Nathan Martin: You mentioned the commissioning of the maiden prep plant in fourth quarter and reduce those trucking costs by roughly $20 a ton at that complex. However, I know you guys had previously talked about a number around $40. A ton is is there more savings potentially there or is that just maybe a clean versus raw tonne comparisons just wanted to get clarification.

Christopher Blanchard: Just wanted to get clarification. Yeah, so so good question. This is Chris again. The trucking cost on a raw basis was converted back to clean, was about $40 a ton, so we're avoiding that. However, until we build the railroad out directly on site, we're now trucking our clean coal, which has approximately the same unit cost of $20. So when we build our load out and load the rail cars directly, it may have been in that additional $20 will come out as well.

Chris Blanchard: Yes. So good question this is Chris again.

Chris Blanchard: The trucking cost on a raw basis was converted back to clean was about $40 a ton.

Chris Blanchard: So we're avoiding that.

Chris Blanchard: However, until we build the railroad out directly on site, we're now tracking our clean coal, which has approximately the same unit cost of $20 per ton. So when we.

Chris Blanchard: Build our load out and rail the railcars directly it made and then that additional $20 will come out as well.

Christopher Blanchard: And Chris, when do you expect that to be complete? Well, that project is, I guess I would say, under consideration. We're going ahead with engineering work and some of the design work on that, but probably not this calendar year. Okay, but is it right to assume that that would potentially improve those costs even more? Yes, absolutely. As soon as that project is put in place, we'd expect... you know, just on the top side of $20 cost savings. Okay, perfect. Thanks for clarifying that. And then maybe just sticking with the cost per ton, you guys just talked about some of the variable costs associated with price.

Speaker Change: Chris when do you expect that to be a complete.

Speaker Change: With that we are the project is I guess I would say under consideration.

Speaker Change: We're going ahead with engineering work and some of the design work on that but probably not this calendar year.

Speaker Change: Okay, but is it right to assume then that would potentially improve those costs, even more yes. It absolutely as soon as that project is put in place we would expect.

Speaker Change: Just on the top side, a 20 dollar cost savings.

Speaker Change: Okay perfect. Thanks for clarifying that and then maybe just sticking with the cost per ton geysers.

Speaker Change: You guys just talk about some of the variable costs associated with price.

Jeremy Sussman: What price range are you assuming in your four-year cost per ton guidance range? We're just I made it scare me. We're just generally using the forward curve for for planning purposes. Okay. Thanks, Chairman.

Speaker Change: This range are you assuming in your full year cost per ton guidance range.

Speaker Change: We're just hey, Nate it's Jeremy we're generally using the forward curve for planning purposes.

Nate: Okay. Thanks, Jeremy.

Randall Atkins: And then maybe finally, you know, you guys have touched on this a bit, but I wanted to ask, how would you rank or prioritize your capital spending today? Obviously, liquidity position strong, you've got the dividend policy in place. But, you know, we continue to see this prolonged weakness in the market. You mentioned there could be some opportunities for M&A because of that. You're also continuing down the path of the rare earth process at the Brookmine. So how do you see balancing, you know, growth, whether it's internal or external shareholder returns and then protecting your business during this downturn?

Speaker Change: And then maybe finally you guys have touched on this a bit but I wanted to ask you how.

Speaker Change: How would you rank or prioritize your capital spending today, obviously liquidity position strong got the dividend policy in place.

Speaker Change: But you know we continue to see this prolonged weakness in the market you mentioned there could be some opportunities for M&A because of that Youre also continue down the path of the rare earth process at the Brookline. So how do you see balancing.

Both whether it's internal or external shareholder returns and then you're protecting your business during this downturn.

Randall Atkins: Sure, this is Randy. I think, you know, to your question about M&A, as I've said before, we're not too fond of the M, but we're happy to look at the A. So, you know, in this kind of a down or distressed market, we will try to be opportunistic if we see situations where, particularly reserve plays or perhaps infrastructure plays that might become available at opportunistic prices, we'll take a look at that. That's something you can't really plan. You can hope for, but you certainly don't expect. As far as our normal cadence for growth capex, I think we've explained that.

Randy Atkins: Sure. This is this is Randy.

Randy Atkins: I think to your question about M&A as I've said before we were not too fond of the M. But we're happy to look at the a.

Randy Atkins: So in this kind of a down our distressed market, we will try to be opportunistic if we see.

Randy Atkins: Situations, where particularly reserve plays or perhaps infrastructure players that might become available at at opportunistic prices would take a look at that that's something you can't really plan.

Randy Atkins: You kind of hope for but we certainly don't expect.

Randy Atkins: As far as our normal.

<unk> for growth Capex I think we've explained that we've got a very modest growth capex laid out for 25, obviously, reflecting the market.

Randall Atkins: We've got a very modest growth capex laid out for 25, obviously reflecting the market. You know, we're not ready to push the start button on some of these projects at Maven and Burwin until we see a little bit more clarity. As far as what's going on in Wyoming, you know, we have been, you know, frankly, surprised at how modest our spend has been, you know, to take this project to where it is for about $10 million, I think it's been a very well used amount of our capital to advance that. It's a project that has, you know, transformative potential.

We're not we're not ready to push the start button on some of these projects that may have been in berwyn until we see a little bit more clarity.

Randy Atkins: As far as what's going on in Wyoming.

Randy Atkins: We have been.

Randy Atkins: Frankly.

Randy Atkins: Priced at how modest our spend as Ben.

Randy Atkins: Let's take this project to where it is for about $10 million.

Randy Atkins: It's been a very well used.

Randy Atkins: Out of our capital to advance that project that has transformative potential but as we move forward right now.

Randall Atkins: But as we move forward right now, you know, we've gotten a recommendation from the Wyoming Energy Authority for $6 million, which is certainly appreciated. That'll be focused on the prep plant or the pilot plant rather. We don't have too much. Additional drilling that we have to do, we'll probably continue to drill, you know, throughout the years, because this is such a prolifically large site that to really prove it up is going to take, you know, a good deal of time. You know, somebody remarked to me, it's almost like you've got a Permian basin of rare earth.

Randy Atkins: <unk> gotten a recommendation from the Wyoming Energy authority for 6 million Bucks, which is certainly.

Randy Atkins: I appreciated that will be focused on the prep plant or the pilot plant or either.

Randy Atkins: We don't have.

Randy Atkins: Too much.

Randy Atkins: Additional drilling that we have to do we will probably continue to drill.

Randy Atkins: Without the years because this is such a prolifically large site that to really prove it up is going to take.

Speaker Change: A good deal of time somebody remarked to me, it's almost like you've got a Permian basin of rare Earth.

Randall Atkins: So you've got a lot of work to do to geologically scope it out. As far as the pilot plant and the future commercial plant, those will be dictated in some instance by the nature of the process we will ultimately use chemically and metallurgically to actually refine the rare earths and the critical minerals. We're going through that testing now. Obviously, the pilot plant is designed to refine that testing and come up with a solution that will be optimized as we move forward. We don't have too much capital that we've allocated to that for 2025. On the mining, the same thing.

Randy Atkins: So you've got a lot of work to do to geologically scope it out.

Speaker Change: <unk>.

Speaker Change: As far as the pilot plant.

Speaker Change: A few.

Speaker Change: Future commercial plant.

Speaker Change: Those will be dictated in some.

Speaker Change: Since by the.

Speaker Change: Nature of the process, we will ultimately use chemically and met our logically to actually were fine the rare earth and the critical minerals.

Speaker Change: Going through that testing now obviously the pilot plant is designed to refine that testing.

Speaker Change: And come up with the <unk>.

Speaker Change: Solution that will be optimized as we move forward so.

Speaker Change: We don't have too much capital that we've allocated to that for 25.

Speaker Change: And on the mining the same thing we've already started doing some of the main mobilization. There now will start really moving some dirt around probably in June and July timeframe.

Randall Atkins: We've already started doing some of the mine mobilization there now. We'll start really moving some dirt around probably in June and July time frame, and then we'll start construction on site for the pilot plant sometime. I would say late summer, early fall. We're going to basically bifurcate the pilot process because we're going to have some of it designed and tested off-site in a test facility at one of our chemical testing third party laboratories, and then we'll take that process and essentially move it to the Wyoming site, and that's what will start to occur.

Speaker Change: Timeframe and then we will start construction on site for the pilot plant.

Speaker Change: I would say late summer early fall.

Speaker Change: We're going to basically bifurcate the pilot process because were going to have some of it designed and tested.

Speaker Change: Off site in a test facility at one of our chemical testing.

Speaker Change: Third party <unk>.

Speaker Change: <unk> and then we will take that process and essentially move it to.

Speaker Change: To the Wyoming site.

Speaker Change: And Thats, what we will start to occur this fall.

Jeremy Sussman: Very helpful, Randy. I guess just one thought there too. Is that pilot plant CapEx included in the current 60 to 70 million dollar CapEx range for this year? Yes, yes, it is. Okay, perfect. All right, guys. Very, very helpful. Appreciate the time. And honestly, we did not include originally the $6 million that we've now been recommended to receive an award from Wyoming. So that's an extra bit of wind in our sails, so to speak. Got it. Appreciate it. Thanks, Nate. Thank you.

Speaker Change: Very helpful. Randy I guess, just one one thought there too is that pilot plant Capex included in the current $60 million to $70 million Capex range for this year.

Randy Atkins: Yes, yes it is.

Speaker Change: Okay perfect Alright, that's very very helpful. I appreciate the time and honestly. We did not include originally the $6 million that we have now been <unk>.

Randy Atkins: I commend the placebo and award from Wyoming. So.

Speaker Change: That's an extra bit of wind in our sails so to speak.

Randy Atkins: Got it.

Randy Atkins: I appreciate it.

Randy Atkins: Yeah.

Randy Atkins: Thanks Nate.

Speaker Change: Thank you ladies and gentlemen, this concludes our question answer session.

Randall Atkins: Ladies and gentlemen, this concludes our question and answer session. I would now like to turn the conference back over to the Chairman and CEO, Randall Atkins. Searching Remote Well, I'd like to thank everyone for being on the call today.

Speaker Change: I would now like to turn the conference back here.

Speaker Change: The chairman and CEO Randall Atkins.

Speaker Change: Okay. That's helpful.

Speaker Change: Yes.

Speaker Change: But I'd like to thank everyone for being on the call today, We will certainly look forward to our next earnings call and then also hopefully do.

Randall Atkins: We will certainly look forward to our next Ernie's call, and then also hopefully to, in the interim, have a call with you all related to our Rare Earth project. So once again, thanks very much. Thank you.

Speaker Change: In the interim May have a call with you all related to our rare earth projects. So once again, thanks very much.

Speaker Change: Thank you the conference has now concluded.

Unknown Executive: The conference has now concluded. Thank you for attending today's presentation and we now disconnect your line.

Speaker Change: Thank you for attending today's presentation.

Speaker Change: We now disconnect your lines.

Speaker Change: [music].