Q1 2025 Core Natural Resources Inc Earnings Call

Unknown Executive: Good morning, ladies and gentlemen, and welcome to the Core Natural Resources Incorporation first quarter 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session.

Good morning, ladies and gentlemen, and welcome to the core Natural Resources Corporation first quarter. So that's 25 earnings conference call.

At this time all lines are in listen only mode. Following the presentation, we will conduct a question answer session.

Unknown Executive: If at any time during this call you require immediate assistance, please press star followed by zero for the operator.

If at any time during this call you're acquiring needed assistance. Please press star followed by zero for the reader.

Unknown Executive: This call is being recorded on Thursday, May 8, 2025.

This call is being recorded Thursday may eight 2025.

Doug Sloan: I would now like to turn the conference over to Mr. Doug Sloan. Please go ahead.

Speaker Change: I would now like turn the conference over to Mr deck Slone.

Please go ahead.

Doug Sloan: Good morning from Cannonsburg, Pennsylvania, everyone, and thanks for joining us today.

Speaker Change: Good morning from Kansas Berg, Pennsylvania to everyone and thanks for joining us today before we begin let me remind you that certain statements made during this call including statements relating to our expected future business and financial performance may be considered forward looking statements. According to the private Securities litigation.

Doug Sloan: Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These uncertainties, which are described in more detail in the annual and quarterly reports that we file with the SEC, may cause our actual future results to be materially different than those expressed in our forward-looking statement. We do not undertake to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law.

Speaker Change: Reform Act forward looking statements by their nature address matters that are to different degrees uncertain.

Speaker Change: These uncertainties, which are described in more detail in the annual and quarterly reports that we filed with the SEC may cause our actual future results to be materially different than those expressed in our forward looking statements. We do not undertake to update our forward looking statements whether as a result of new information future events or otherwise, except as may be required.

Speaker Change: <unk> by law.

Doug Sloan: I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss this morning at the end of our press release, a copy of which we have posted in the investor section of our website at corenaturalresources.com.

Speaker Change: I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss this morning at the end of our press release, a copy of which we have posted in the investors section of our website at core natural resources Dot com.

Doug Sloan: Also participating on this morning's call will be Paul Lang, our CEO, Mitesh Thakkar, our President and CFO, and Bob Braithwaite, our Senior Vice President of Marketing and Sales. After some formal remarks from Paul and Mitesh, the four of us will be happy to take questions.

Paul Lang: Also participating on this morning's call will be Paul Lang, our CEO attached to car, our president and CFO and Bob Braithwaite, Our senior Vice president of marketing and sales.

Paul Lang: After some formal remarks from Paul I'm attach the four of us will be happy to take questions.

Paul Lang: With that, I'll now turn the call over to Paul. Thanks, Dick, and good morning, everyone. We're happy you could join us on the call today. I'm pleased to report that CORE is off to an exceptionally strong start and is already delivering on its tremendous potential after just four months as a combined company. During the first quarter, the team generated $123.5 million of adjusted EVA-DA despite generally soft market environment. Returned $106.6 million to investors through share buybacks and quarterly dividends. Increased our target for merger-related synergies by 10% at the midpoint of guidance. between $125 and $150 million.

Paul Lang: With that I'll now turn the call over to Paul Paul.

Paul Lang: Thanks, <expletive> and good morning, everyone. We're happy you could join us on the call today.

I am pleased to report that the core is off to an exceptionally strong start and is already delivering on its tremendous potential after just four months as a combined company.

Paul Lang: During the first quarter the team generated $123 5 million of adjusted EBITDA, Despite generally soft market environment.

Paul Lang: Returned $106 $6 million to investors through share buybacks and quarterly dividends.

Paul Lang: Priest, our targets for merger related synergies by 10% at the midpoint of guidance to between 125 and $150 million.

Paul Lang: Made excellent progress towards the full resumption of operations at Lear South. and executed several well-timed capital market transactions. that in aggregate have established a strong and strategic capital structure in support of our future growth process. Of equal importance, the team is executing at a strong level operation. In particular, the high CV thermal segment continues to hit on all cylinders. This segment generated substantial free cash flow in Q1 by leveraging its strong book of contracted business. Taking Advantage of Strengthening Domestic Power. and capitalizing on solid pricing and key segments of the international marketplace where we have a strategic advantage.

Paul Lang: We made excellent progress towards the full resumption of operations at Leer South.

Paul Lang: Executed several well timed capital market transactions that in aggregate have established a strong and strategic capital structure in support of our future growth prospects.

Paul Lang: Of equal importance. The team is executing at a strong level operationally.

Paul Lang: Particular, the high CV thermal segment continues to hit on all cylinders.

Paul Lang: Segment generated substantial free cash flow in Q1 by leveraging its strong book of contracted business. Thank.

Paul Lang: <unk> taken advantage of strengthening domestic power markets.

Paul Lang: Capitalized solid pricing in key segments of the international marketplace, where we have a strategic advantage.

Paul Lang: While market conditions were more challenging for the metallurgical segment, The team turned in a solid cost performance across most of the portfolio, led by record quarterly production at the Lear Mine, which also served to partially mitigate the impact of the longwall outage at the Lear South Mine. We're focused on maintaining this strong operational momentum as we progress through the remainder of the year. This, along with our ongoing capture of the substantial and increasing synergies, as well as the projected restart of the longwall at Lear South mid-year, should provide further tailwinds in the months ahead. As you'll note from the guidance table contained in our earnings release, we have affirmed or improved upon our guidance in all.

Paul Lang: Market conditions were more challenging for the metallurgical segment. The team turned in a solid cost performance across most of the portfolio led by record quarterly production at the Leer mine, which also served to partially mitigate the impact of the longwall outage at the Leer South operation.

Paul Lang: We're focused on maintaining the strong operational momentum as we progress through the remainder of the year.

Paul Lang: This along with our ongoing capture of the substantial and increasing synergies as well as the projected restarted a longwall at Leer South mid year should provide further tailwind in the months ahead.

Paul Lang: As you'll note from the guidance table contained in our earnings release, we have affirmed or improved upon our guidance in all instances.

Paul Lang: In particular, we're projecting a full year of cash costs for the high CV thermal segment of $39 at the midpoint of guidance, which is more than $3 per ton lower than in Q1 when we had three longwall moves at the Pennsylvania Mining Complex. We also reduced the projected cash cost for our metallurgical segment to $96 per ton at the midpoint of guidance, which is $2 per ton favorable to the previous estimate. For the back half of the year, following the restart of the Lear South Longwall, we're still projecting a cash cost in the lower $90 per ton for the segment.

Paul Lang: Particular, we're projecting a full year of cash cost for the high CV thermal segment of $39 at the midpoint of guidance, which is more than $3 per ton lower than in Q1, when we had three longwall moves at the Pennsylvania mining complex.

Paul Lang: We also reduced the projected cash costs for our metallurgical segment to $96 per ton at the midpoint of guidance, which is $2 per ton favorable to the previous estimate.

Paul Lang: For the back half of the year following the restart of Leer, South longwall, we're still projecting a cash cost of a lower $90 per ton for the segment.

Paul Lang: I'd now like to spend a few minutes on the CAF return. As you recall, we announced a new capital return framework in February, which was designed to reward our shareholders for their strong ongoing support in which we consider a central tenant of CORE's long term value proposition. The centerpiece of this framework is the targeted return to shareholders of around 75% of the previous quarter's free cash flow through share repurchases and a sustaining quarterly dividend of $0.10 per share. As indicated, we wasted no time in putting this capital return program into full effect. During Q1, we invested around $101 million to buy back 1.4 million shares, or around 3% of our outstanding shares at the program's launch, at an average price of $73.52 per share.

Paul Lang: I'd now like to spend a few minutes on the capital return program.

Paul Lang: As you recall, we announced a new capital return framework in February which was designed to reward our shareholders for their strong ongoing support and which we consider a central tenet of course long term value proposition.

Paul Lang: The centerpiece of this framework, it's a targeted return to shareholders of around 75% of the previous quarters free cash flow through share repurchases and a sustaining quarterly dividend of <unk> 10 per share.

Paul Lang: We indicated we wasted no time in putting this capital return program into full effect.

Paul Lang: During Q1, we invested around $101 million to buy back one 4 million shares or around 3% of our outstanding shares at the program's launch at an average price of $73 52 per share.

Paul Lang: We also returned about $5 million to stockholders through the March dividend payment. In addition, as noted in the release, we also intend to pay a quarterly dividend of $0.10 per share. Let me reiterate that we expect the share repurchases to be most highly valued creating at current valuation. At a time when most of the global resource sector is focused on cash preservation, we're putting our excess cash to work opportunistically in today's depressed equity market environment. As indicated, the board has authorized a total of $1 billion in share repurchase. in support of the Capital Return Framework, and at the end of Q1, we had roughly $900 million remaining on that authorization.

Paul Lang: We also returned about $5 million to stockholders through the March dividend payment.

Paul Lang: <unk> as noted in the release, we also intend to pay a quarterly dividend of <unk> 10 per share in June.

Paul Lang: Let me reiterate that we expect the share repurchases to be most highly value creating at current valuations.

Paul Lang: At a time when most of the global resource sector is focused on cash preservation, we are putting our excess cash to work opportunistically in today's depressed equity market environment.

Paul Lang: As indicated the board has authorized a total of $1 billion in share repurchases in support of the capital return framework and at the end of Q1, we had roughly $900 million remaining on that authorization.

Paul Lang: That authorization level further underscores the board's confidence in our near, mid, and long-term outlook, as well as the company's great cash generating.

Paul Lang: That authorization level further underscores the board's confidence in our near mid and long term outlook as well as the company's great cash generating capability.

Paul Lang: Now let's turn to Synergy Capture, which also remains a sharp focus of the team and a huge lever for future value creation. During Q1, the team executed on strategies that put us on pace to deliver at the midpoint of the initially indicated guidance and identified another tranche of opportunities that prompted us to raise the bar still higher on this critically important. With this, we now expect to deliver an annual synergy value of between $125 and $150 million, and we're not done. Remember, the full team has only been working together as an integrated unit for about four months.

Paul Lang: Now, let's turn to synergy capture which also remains a sharp focus of the team and a huge lever for future value creation for us.

Paul Lang: During Q1, the team executed on strategies that put us on pace to deliver at the midpoint of the initially indicated guidance and identified another tranche of opportunities that prompted us to raise the bar is still higher on this critically important fronts.

Paul Lang: With this we now expect to deliver an annual synergy value of between 125 and $150 million and we're not done.

Paul Lang: Remember the full team has only been working together as an integrated unit for about four months ago.

Paul Lang: and the level of collaboration and creativity has been impressive. We expect those efforts to continue to develop new opportunities, particularly around the area of sharing of best practices between the While Mitesh will provide additional commentary on this important topic in his prepared remarks, We still expect more uplift in the synergy arena as cold markets normalize, which should act to drive incremental value in areas such as marketing and product blending.

Paul Lang: The level of collaboration and creativity has been impressive.

Paul Lang: We expect those efforts to continue to develop new opportunities, particularly around the area of sharing of best practices between the mines.

Paul Lang: While the test will provide additional commentary on this important topic in his prepared remarks, we still expect more uplift in the synergy arena as coal markets normalize we should act to drive incremental value in areas, such as marketing and product blending.

Paul Lang: Turning now to the status of LearCell. As you know, the mine experienced a combustion event around the time of the merger's completion. Once again, I want to commend the LearSouth team as well as the federal and state regulators. for their exceptional ongoing work in managing this situation in a safe and efficient manner. Since the combustion event occurred, the team has made tremendous progress in putting the mine on a path to resume longwall operations by mid-year. To date, the team has safely sealed off the affected area, extinguished combustion-related activity, and resumed development work with continuous minor In addition, we continue to use remote cameras to monitor the lung wall, which reaffirms our belief that the equipment was largely unaffected by the.

Paul Lang: Turning now to the status of Leer South.

Paul Lang: As you know the mine experienced a combustion event around the time of the merger completion once again I want to commend the leer south team as well as the federal and state regulators for their exceptional ongoing work and manage this situation in a safe and efficient manner.

Paul Lang: Since the combustion event occurred the team has made tremendous progress in putting the mine on a path to resume longwall operations by mid year.

Paul Lang: The team is safely sealed off the affected area extinguished combustion related activity and resumed development work with continuous miner units.

Paul Lang: In addition, we continue to use remote cameras to monitor the longwall, which reaffirms our belief that the equipment was largely unaffected by the event.

Paul Lang: It's also worth underscoring that restart of the continuous mining units in mid-February has acted to significantly improve the development lead time for future longwall production. We expect this increased lead time to translate into higher longwall productivity once the system resumes operation.

Paul Lang: It's also worth underscoring restarted the continuous mining units in mid February has acted to significantly improve the development of lead time for future longwall production.

Paul Lang: We expect this increased lead time to translate into higher longwall productivity once the system resumes operation.

Paul Lang: Before passing the call to Mitesh, I'd like to spend a few minutes on global market dynamics. As indicated, our two primary lines of business, metallurgical and high CV thermal coal, continue to encounter soft market conditions in the international arena, due in part to trade related uncertainties. While we hope the current tariff situation proves to be transitory, we have pivoted quickly to redirect our products away from country. that have established retaliatory tariffs, and we believe we're in generally good shape for the balance of 2025 and heading into 2035. In the high CV thermal segment, our substantial contracted position is also acting to counterbalance current export market softness, along with continued stability in key industrial market segments and strong domestic Through April, U.S.

Paul Lang: Before passing the call to attached I'd like to spend a few minutes on global market dynamics.

Paul Lang: As indicated our two primary lines of business metallurgical as high CV thermal coal continued to encounter soft market conditions in the international arena due in part to trade related uncertainties.

Paul Lang: While we hope the current tariff situation proves to be transitory, we have pivoted quickly to redirect our products away from countries that have established retaliatory tariffs and we believe we're in generally good shape for the balance of 2025 and heading into 2026.

Paul Lang: And the high CV thermal segment, our substantial contracted position is also acting to counterbalance current export market softness along with continued stability in key industrial market segments and strong domestic demand.

Paul Lang: power generation is up 3.8% after increasing around 3% in 2021. The 2025 demand increase was satisfied with a 20% increase from coal that acted to offset a small decline from natural gas emissions. Our ability to opportunistically direct time on a real time basis to the strongest market segment is invaluable. Importantly, we're starting to see production curtailments in major thermal supply regions, which should lead to improved market dynamics over time.

Paul Lang: Through April U S power generation is up three 8% after increasing around 3% in 2024.

Paul Lang: 2025 demand increase was satisfied with a 20% increase from coal, but actually to offset a small decline from natural gas.

Paul Lang: Our ability to opportunistically direct tons on a real time basis to the strongest market segment is invaluable.

Paul Lang: Importantly, we're starting to see production curtailments and major thermal supply regions, which should lead to improved market dynamics over time.

Paul Lang: In the metallurgical segment, the long-term market outlook remains compelling. Despite Weak Pricing. New blast furnace capacity continues to come online across Southeast Asia, while Indian imports of seaborne coking coal remain on an upward trend, increasing an estimated 3% in 2016. In addition, Chinese imports of seaborne coking coal increased around 20 million tons in 2000. Transcripts provided by Transcription Outsourcing, LLC. While we believe the current market uncertainty is changing some of the historical trade patterns, we do not think it had an impact on the overall demand. On the supply side, globally for both the metallurgical and high CV markets, mine output remains constrained by years of underinvestment, ongoing degradation and depletion of the global reserve.

Paul Lang: In the metallurgical segment, the long term market outlook remains compelling.

Paul Lang: Weak pricing levels, new blast furnace capacity continues to come online across South East Asia, while Indian imports of seaborne coking coal remain on an upward trend increasing an estimated 3% in 2020 forward.

Paul Lang: In addition, Chinese imports of seaborne coking coal increased around 20 million tons in 2020 for a trend that is acting to support broader global market dynamics and to help counterbalance higher Chinese steel exports.

Paul Lang: We believe the current market uncertainty is changing some of the historical trade patterns. We do see we do not think it had an impact on the overall demand at this point.

Paul Lang: On the supply side globally for both the metallurgical and high CV markets mine output remains constrained by years of Underinvestment ongoing degradation in depletion of the global reserve base as well as continuing regulatory pressure.

Paul Lang: as well as continuing regulatory pressure. Moreover, current pricing levels appear to be inducing supply rationalization among high-cost producers, not only in the United States, but globally.

Paul Lang: Moreover, current pricing levels appear to be inducing supply rationalization among high cost producers not only in the United States, but globally, which should act to support healthier supply demand balance over time.

Paul Lang: which should act to support healthier supply-demand balance over In closing, the core team is off to an excellent start in integrating the combined operating, marketing and logistics portfolio into a cohesive high performing unit and capturing the substantial and growing synergies created by our transformational merge. We believe we're building a company that is uniquely equipped to capitalize on compelling global cold market dynamics with our world-class mind. Strategic Logistical Network, Strong Balance Sheet, Tremendous Cash-Generating Capabilities, and most importantly, an Exceptional Work.

Paul Lang: In closing the core team is off to an excellent start in integrating the combined operating marketing and logistics portfolio into a cohesive high performing unit and capturing the substantial and growing synergies created by our transformational merger we.

Paul Lang: We believe we are building a company that is uniquely equipped to capitalize on compelling global coal market dynamics with our world class mines strategic logistical network strong balance sheet tremendous cash generating capabilities and most importantly, an exceptional workforce.

Paul Lang: A workforce that I want to thank for their hard work and support of the merger as well as their creativity in finding synergies, while at the same time maintaining operational excellence in the areas of safety, compliance, and continuous improvement. It is an amazing group to work with. As we look ahead, we expect to continue to generate significant amounts of free cash flow, particularly in the second half of the year, and to continue to return a majority of that cash to stockholders through our capital return program.

Paul Lang: A workforce that I want to thank for their hard work and support of the merger as well as their creativity and finding synergies while at the same time, maintaining operational excellence in the areas of safety compliance and continuous improvement. It has an amazing group to work with.

Paul Lang: As we look ahead, we expect to continue to generate significant amounts of free cash flow, particularly in the second half of the year and to continue to return a majority of that cash to stockholders through our capital return program.

Mitesh Thakkar: With that, I'll now turn the call over to Mitesh for some additional detail on our financial performance and outlook, as well as ongoing progress to the Synergy Arena. Mitesh? Thank you, Paul, and good morning, everyone. Let me begin by providing an update on several actions we took to form up the capital structure of course that resulted in enhanced liquidity, extended maturities, reduced financing costs, and improved financial flexibility, which has lowered our weighted average cost of capital. In conjunction with the merger closing in mid-January, we completed an upsizing of our revolving current facility from $355 million to $600 million.

Speaker Change: With that I'll now turn the call over to attest for some additional detail on our financial performance and outlook as well as ongoing progress through the synergy arena.

Speaker Change: Thank you Paul and good morning, everyone.

Speaker Change: Let me begin by providing an update on several actions, which took the form of the capital structure of course that resulted in enhanced liquidity extended maturities reduced financing costs and improved financial flexibility, which has lowered our weighted average cost of capital.

Speaker Change: In conjunction with the merger closing in mid January we completed an upsizing of our revolving credit facility from 355 million to $600 million.

Mitesh Thakkar: We not only achieved a sizable increase in capacity, but we also reduced our credit spread by 75 basis points across the grid and improved our financial flexibility. Through Less Restrictive Negative Coverage. We also extended the maturity to April 30, 2029. More recently, we successfully remarketed and refinanced our three legacy tranches of tax-exempt bonds previously issued by Consolve or Arch at the end of the quarter. We increased the total bond amount from $276 million to $307 million, established a new 10-year term, and reduced the weighted average interest rate by 92 basis points. Equates to nearly $3 million in annual interest savings despite a high interest rate environment relative to the current economy.

Speaker Change: Not only achieve a sizable increase in capacity, but we also reduced our credit spread by 75 basis points across the grid and improve our financial flexibility through less restrictive negative covenants.

Speaker Change: We also extended the maturity to April 32029.

Speaker Change: More recently, we successfully remarketed and refinanced a three legacy tranches of tax exempt bonds previously issued by Consol are at at the end of the quarter.

Speaker Change: We increased the total bond amount from 276 million to 307 million established a new 10 year term and reduced the weighted average interest rate by 92 basis points, which equates to nearly $3 million in annual interest savings. Despite a high interest rate environment relative to when those bonds with previously issued.

Mitesh Thakkar: when those bonds were previously. Most importantly, we were successful in removing multiple restrictive covenants and eliminating first and secondly insecurities on our West Virginia and Pennsylvania.

Speaker Change: Most importantly, we were successful in deploying multiple restrictive covenants and eliminating first and second lien securities on our West, Virginia, and Pennsylvania bonds, respectively.

Mitesh Thakkar: With our financial flexibility, through our low debt levels, no significant near-term debt maturities, and strong liquidity, we believe we have built a solid balance sheet capable of withstanding the cyclicality of the coal markets while also promoting the company's long-term growth and shareholder return.

Speaker Change: With our financial flexibility through our low debt levels, no significant near term debt maturities and strong liquidity. We believe we have built a solid balance sheet capable of withstanding the cyclicality of the coal markets. While also promoting the company's long term growth and shareholder return goals.

Mitesh Thakkar: Now let me provide a quick update on our financial results before providing an update on the outlook and synergy. This morning, we reported a net loss of $69 million, or $1.38 per dilutive share, and adjusted EBITDA of $123 million for 1Q24. In the quarter, we spent $65 million on capital expenditures and generated $49 million in free cash.

Speaker Change: Now let me provide a quick update on our financial results before providing an update on the outlook and synergy fronts.

Speaker Change: This morning, we reported a net loss of $69 million.

Speaker Change: <unk> 38 per dilutive share and adjusted EBITDA.

Speaker Change: $23 million for $1 25.

Speaker Change: In the quarter, we spent $65 million on capital expenditures and generated $49 million and free cash flow.

Mitesh Thakkar: Additionally, during 1Q25, we incurred some atypical items that damped our earnings, such as $49 million in merger-related expenses, $12 million in debt extinguishment and refinancing costs, and $36 million related to the Lear South combustion event and items. Successfully manage our capital expenditures to shift the spending to align with our expectation of a stronger back half of 2025 when near-south long-wall operations In February, we announced our Comprehensive Capital Return Program, which envisioned returning approximately 75% of free cash flow with the optionality to deploy additional cash that was built during the period between merger announcement and completion.

Speaker Change: Additionally, doing $1 25, and got some atypical items that Tampa earnings such as $49 million and merger related expenses 12 million and debt extinguishment.

Speaker Change: The refinancing cost and $36 million related to the Leer, south combustion event and idling cost.

Speaker Change: We successfully managed our capital expenditures to ship the spending to align with our expectation of a stronger back half of 2025, when Leer South longwall operations, Brazil.

Speaker Change: In February we announced a comprehensive capital return program, which envisioned returning approximately 75% of free cash flow with the optionality to deploy additional cash across both during the period between merger announcement and completion.

Mitesh Thakkar: Due to the current market dynamics impacting our share price, the progress being made at Lear South and our success on the financial side. We felt confident in deploying additional cash towards our shareholder return program in 1Q21. As Paul indicated, during the quarter, we repurchased 1.4 million shares for approximately $101 million at the weighted average share price of $73.52. Unpaid Dividends totaling approximately $5 million.

Speaker Change: Due to the current market dynamics impacting our share price and the progress being made at Leer, South and our success on the financing front, we felt confident and deploying additional cash towards our shareholder return program and <unk> 25.

Speaker Change: As Paul indicated during the quarter, we repurchased one 4 million shares for approximately $101 million.

Speaker Change: Weighted average share price of $73 52.

Speaker Change: And paid dividends totaling approximately $5 million.

Mitesh Thakkar: In addition, we announced this morning that the Board of Directors has declared a $0.10 per share dividend payable on June 13, 2025 to stockholders of record on May 30, 2025. At the end of the quarter, CNR had total liquidity of $858 million. Shifting to our operating results, during 1Q25, we sold 7.1 million tons of high-CV thermal coal at a realized coal revenue per ton sold of $63.80. Due to a colder than normal winter, we received substantial uplift on our PowerPriceLink contract. Stemming from Harpy Gem, West Daylight Power Pricing. The High CV Thermal segment had a cash cost of $42.78 per ton, mostly driven by 3 scheduled longwall moves at the PMC in the first quarter and higher power.

Speaker Change: In addition, we announced this morning that the board of Directors has declared a <unk> 10 per share dividend payable on June 13, 2025 to stockholders of record on May 32025.

Speaker Change: At the end of the quarter C&I had total liquidity of $858 million.

Julian: Shifting to our operating results Julian 125, we sold $7 1 million tonnes of high CV thermal coal at a realized core revenue per tons sold of $63 18.

Julian: Due to a colder than normal winter, we receive substantial uplift on our power price linked contracts stemming from higher PJM west power prices.

Julian: The Hiseq with thermal segment had a cash cost of coal sold of $42 78 per ton, mostly driven by three scheduled longwall moves at the PMC in the first quarter and higher power costs.

Mitesh Thakkar: The remainder of the year, we expect more edible cadence of longworm. On the metallurgical side, during 1Q25, we sold 2.3 million tons, including 442,000 tons of thermal bypass. For the coking product alone, we achieved a realized coal revenue per ton sold of $113.70 and $98.26 per ton for the entirety of the metallurgical process. Metallurgical Segment reported a cash cost of gold sold of $91 per ton which excluded the leerside, idle, and combustion related costs. The PRB segment, we took advantage of strong demand during the quarter and sold 10.7 million tons at a realized gold revenue per ton sold at $14.93.

Julian: The remainder of the year.

Julian: We expect more ratable cadence of longwall moves.

Julian: On the metallurgical side during 125, we sold $2 3 million tons, including 442000 tons of thermal byproduct.

Julian: The cooking product alone.

Julian: We achieved a realized core revenue per tonne sold a $113 70, and $98 26 per ton for the entirety of the metallurgical segment.

Julian: Metallurgical segment reported a cash cost of coal sold of $91 per ton, which excluded the near site idled and combustion related costs.

Julian: For the <unk> segment, we took advantage of strong demand during the quarter and $10 7 million tonnes at a realized core revenue per ton sold or $14 93.

Mitesh Thakkar: Cash Cost of Coal Sold of $12.44 per ton. During 1Q25, we increased our 2025 high CV thermal and metallurgical segment contractor position to 26.5 million tons and 7.2 million tons respectively. We also contracted additional volume in the PRB segment to bring the 2025 contracted physician to 41.9 million.

Julian: And a cash cost of coal sold of $12 44 per ton.

Julian: During 125, we increased our 2025 high CV thermal and metallurgical segment contracted position to $26 5 million tons, and $7 2 million tons respectively.

We also contracted additional volume in the <unk> segment to bring the 2025 contracted position to $41 9 million tonnes.

Mitesh Thakkar: Now let me provide a quick update on our outlook for 2024. As Paul mentioned, we are maintaining our guidance ranges for most categories while improving the following. On the metallurgical cash cost side, we are lowering our cash cost of cold sold guidance by $2 to a new range of $94 to $98. mainly due to some cost-shaving measures and the transfer of some of the best practices as a result of the model. We are also improving our committed tonnage position for the high CV thermal segment to approximately 87% of tons contracted at the midpoint of our guidance.

Julian: Now let me provide a quick update on our outlook for 2025.

Julian: As Paul mentioned, we are maintaining our guidance ranges for most categories, while improving the following.

Julian: On the metallurgical cash cost side, we are lowering our cash cost of coal sold guidance by $2 to a new range of 94 to $98 per ton, mainly due to some cost saving measures and the transfer of some of the best practices as a result of the merger.

Julian: So that also improving our committed tonnage position for the Hiseq with thermo segment to approximately 87% of tons contracted at the midpoint of our guidance range and maintaining our projected pricing range between 61 and $63 per ton.

Mitesh Thakkar: and maintaining our projected price and range between $61 and $63. Even though commodity prices have declined since our last earnings call, we are able to offset this impact due to higher power prices and lending synergies we expect to achieve.

Julian: Even though commodity prices have declined since our last earnings call. We are able to offset this impact due to higher oil prices and lending synergies, we expect to achieve.

Mitesh Thakkar: For our PRB segment, we are increasing our sales volume guidance by 2.5 million tons at midpoint to 39 to 42 million. committed and proposition by 4 million tons to 41.9 million tons at a realized coal revenue of approximately $14.70 per ton.

Julian: For our <unk> segment, we are increasing our sales volume guidance by $2 5 million tons at the midpoint, the 39 to 42 million tons.

Julian: Submitted proposition by 4 million tons to $41 9 million tons at a realized core revenue of approximately $14 70.

Mitesh Thakkar: Let me now just provide our thoughts on the near-term market dynamics that underpins our 2025 guide. The High CV Thermal Segment, Tariff Uncertainties, and Muted Demand in Europe are being counterbalanced by nearly 10% year-on-year annual cement production growth in India.

Julian: Per ton.

Julian: Let me now just provide our thoughts on near term market dynamics that underpins a 2025 guidance.

Julian: The IC with thermal segment tariff uncertainties and muted demand in Europe are being counterbalanced by nearly 10% year on year annual cement production growth in India.

Mitesh Thakkar: Furthermore, as Paul noted, strong natural gas prices led to improved coal-fired power generation, which increased the demand for our high- For more information, visit www.fema.gov Comparison to the first quarter of 2024, natural gas prices increased 93% while gas storage levels declined year-over-year by 22%.

Julian: Furthermore, as Paul noted strong natural gas prices led to improved coal fired power generation, which increased the demand for our high CV and PIV thermal product in the domestic market coal fired generation hit the quarterly.

Julian: Yes level since one or $2 22.

Julian: The comparison to the first quarter of 2020 for natural gas prices increased 92%, while gas storage levels declined by.

Mitesh Thakkar: providing further support for incremental domestic On the metallurgical side, geopolitical risk and reciprocal tariffs continue to reduce demand and result in lower PLV prices. Our pricing has begun to increase as marginal production costs remain below pricing levels and at the midpoint of the guidance range, we have 93% of our metallurgical coking coal production committed.

Julian: By 22% and 6% below the five year average.

Julian: Whiting photo support incremental domestic demand.

Julian: On the metallurgical side geopolitical risk and less broker tariffs continue to reduce demand and resulting lower PLD pricing.

Julian: Our pricing has begun to increase as module production cost remained below pricing levels and at the midpoint of the guidance range, we have 93% of our metallurgical coking coal production committed.

Mitesh Thakkar: We will continue to optimize our portfolio to minimize any potential impact of tariffs but realize that we operate in a very uncertain environment and our outlook may be further impacted.

Julian: We will continue to optimize our portfolio to minimize any potential impact of tariffs, but realize that we operate in a very uncertain environment and our outlook maybe further impacted.

Mitesh Thakkar: Let me now provide an update on the progress we have made on the synergy. As a reminder, the merger announcement guided to an average annual run rate of $110 to $140 million of synergies within 6 to 18 months following close. two companies combined, the key goal was to improve our value creating process.

Julian: Let me now provide an update on the progress we have made on the synergy front as a reminder, at the merger announcements guided to an average annual run rate of $110 million to $140 million of synergies within six months to 18 months following close.

Julian: The two companies combined the key goal was to improve our value creating process. We are pleased to report that we now expect an updated range of $125 million to $150 million of expected annual synergies within 18 months.

Mitesh Thakkar: We are pleased to report that we now expect an updated range of 125 to 150 million dollars of expected annual synergy within 18 months. During our last call, we highlighted that we had already executed strategies expected to yield approximately $40 million in annualized synergies. And we have continued to make meaningful progress since that. In less than four months, since the close of the merger, we have now executed strategies that are expected to yield over $100 million in annual sales.

Julian: During our last call. We highlighted that we had already executed strategies expected to yield approximately $40 million in annualized synergies.

Julian: And we have continued to make meaningful progress since that time.

Julian: In less than four months since the close of the merger. We have now executed strategies that are expected to yield over $100 million in annual synergies.

Mitesh Thakkar: Let us delve a little deeper into some of the synergy. First, for marketing, we have already realized $6 million in actual blending. Based on the success, we now forecast approximately $30 million in blending synergies during 2025. Through the strategic ownership of our Baltimore terminal and our ownership interest in the DTA terminal coupled with our diversified and high quality products. We continue to enhance the value of our products via blending and transportation. On the administrative front, we have realized $16 million in annualized syringes during 1Q25. Additional synergies are expected to be achieved through the further elimination of overlapping corporate and support.

Julian: That is still a little deeper into some of these synergy items first for marketing, we have already realized $6 million in actual blending synergies.

Julian: Based on the success, we now forecast approximately $30 million and blending synergies during 2025.

Julian: <unk> strategic ownership of our Baltimore terminal and our ownership interest in the DTA terminal, coupled with our diversified and high quality product slate.

Julian: We continue to enhance the value of our products, we are blending and transportation synergies.

Julian: On the administrative front, we have realized $16 million in annualized synergies to 125 <unk>.

Julian: Synergies are expected to be achieved through the for the elimination of overlapping corporate and support position.

Mitesh Thakkar: As a reminder, we anticipate this number will grow as we transition various systems in process. and build out a new IT infrastructure. We expect to analyze Synergy Laundry to reach $30 million in overall administrative costs within 12 months of the merger. We have also realized approximately 24 million synergies associated with sharing of best practices which we believe will lower the cost of sales for our metallurgical coal sector. The remaining pocket of executed synergies includes items such as procurement, financing costs, legal costs, and other public company costs, as well as best practices. Continue to identify additional public company cost reductions and be secure.

Julian: As a reminder.

Julian: We anticipate this number will grow as we transition various systems and processes and build out a new IP infrastructure.

Julian: Expected annualized synergy run rate reached $30 million and overall administrative cost within 12 months of the merger close.

Julian: We have also realized approximately $24 million in synergies associated with the sharing of best practices, which we believe will lower the cost of sales for our metallurgical coal segment.

Julian: The remaining bucket of executed synergies includes items, such as procurement financing costs legal costs and other public company costs as well as best practices.

Julian: Continue to identify additional public company cost reductions and we secured incremental financing cost reductions with the completion of the tax exempt bond refinancing.

Mitesh Thakkar: Incremental financing cost reductions with the completion of the tax exempt bond refinance. Our operations team have worked closely to share best practices and resources across the organization. remain focused on driving standardization through ongoing collaboration and have already seen intangible, potential, and quantifiable results in this regard. Furthermore, from a procurement perspective, we continue to work closely with our suppliers to leverage our size and scale in order to secure improved pricing and payment. While we are still early in the process, we are moving quickly and are pleased with our synergy progress.

Julian: Our operations team have worked closely to share best practices and resources across the organization.

Julian: We remain focused on driving standardization through ongoing collaboration and have already seen intangible potential and quantifiable results.

Doug: Sure Doug.

Doug: Furthermore, from a procurement perspective, we continue to work closely with our suppliers to leverage our size and scale in order to secure improved pricing and payment terms.

Doug: While we are still early in the process. We are moving quickly and are pleased with our synergy progress to date.

Mitesh Thakkar: We also have multiple ions in the fire, from which we expect to yield additional synergies in the near term, and we are aggressively pursuing upside to the initial range in an effort to create additional value for our shareholders.

Doug: We also have multiple irons in the fire from which we expect to yield additional synergies in the near term and we are aggressively pursuing the upside to the initial range and therefore create additional value for our shareholders.

Mitesh Thakkar: In closing, we are very pleased with the progress that has been made since the merger closed in mid-January. Successfully Completed Multiple Refinancing Efforts to make progress on synergies, providing investors with a strong first quarter capital return and made significant strides towards resuming long-haul production at Lear South.

Doug: In closing we are very pleased with the progress that has been made since the merger closed in mid January.

Doug: <unk> successfully completed multiple refinancing effort continued to make progress on synergies, providing investors with a strong first quarter capital Don.

Doug: And made significant strides towards resuming longwall production at Leer shopped.

Mitesh Thakkar: All noted, let me finish by thanking our employees for their efforts over these last Our operations, marketing, and corporate support teams continue to remain focused on getting the highest value for our products and keeping our costs low, all while working safely and compliant. Combining the legacy companies into one seamless, integrated unit has been no small feat, and the progress the team has made so far is a testament to the hard work, dedication and professionalism.

Paul Lang: Paul noted, let me finish by thanking our employees for their efforts over these last four months.

Paul Lang: Our operations marketing and corporate support teams continue to remain focused on getting the highest value for our products and keeping our costs low all while working safely and compliant leaf.

Paul Lang: Combining the legacy companies into one seamless integrated unit has been no small feat and the progress. The team has made so far is a testament to the hard work dedication and professionalism.

Unknown Executive: Operator, we're now ready to begin the Q&A session of our call. Could you please provide the instruction to our callers? Thank you.

Speaker Change: Operator, we're now ready to begin the Q&A session of our call could you. Please provide the instruction to our callers.

Unknown Executive: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by one on your touched telephone.

Johan: You will hear upfront that Johan has been raised.

Johan: Should you wish to decline from the calling process. Please press the star followed by the two <unk>.

Johan: If youre using a speaker phone please lift.

Johan: The handset before pressing.

Johan: One moment. Please for your first question.

Nathan Martin: Your first question comes from Mr. Nathan Martin from Benchmark Company. Please go ahead. Thanks, operator. Good morning, everyone. Good morning, Nate.

Johan: Okay.

Speaker Change: Your first question comes from Mr. Nathan Martin from Benchmark Company. Please go ahead.

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

Nathan Martin: A couple questions, I guess, on the MET segment to start. First, just to clarify, it appears you did not back the cost for idle operations out of your adjusted EBITDA of $123 million, correct? So it is not in that number, if that's what you mean.

Speaker Change: Good morning.

Speaker Change: A couple of questions I guess on the met segment to start first just to clarify appears you did box back the cost for idle operations out of your adjusted EBITDA of $123 million correct.

Speaker Change: So it is not in that number if that's what you mean.

Nathan Martin: We'll be back. The guidance also doesn't reflect the idle mind call. Right, I guess I'm gonna touch my question is $123 million with Chessity, but that doesn't add back the $36 million in New South Island costs you talked about. We're thinking that that $36 million is kind of one time, assuming that the mine comes back mid-year. It does add value. Okay, so that's all included in that 123. Got it.

Speaker Change: So with that with the 123 guidance all of our it doesn't reflect the idle mine cost.

Speaker Change: Right I guess when you're touching my question is $123 million of adjusted EBITDA.

Speaker Change: Doesn't add back with $36 million on yourself idling costs, you talked about.

Speaker Change: We're thinking about $36 million is kind of one time, assuming that demand comes back mid year.

Speaker Change: It does add back.

Speaker Change: Okay. So that's all included in that 140 gig.

Nathan Martin: Then, you know, strong, strong cost performance on the MET segment side, well below, you know, the low end of even your new lower guidance range. So, was that mainly because of higher sales? I know you called out record production at Lear. You know, are there any other productivity improvements there that could possibly carry forward? Just trying to get a sense of, you know, 2Q MET segment costs, you know, before that planned restart at Lear South and your guidance going to the low 90s, as you've reiterated.

Speaker Change: Got it.

Speaker Change: Then strong strong cost performance on the met segment side well below the low end of even your new lower guidance range. So.

Speaker Change: Mainly because of higher sales I know you called out record production with leader.

Speaker Change: Are there any other productivity improvements there that could possibly carry forward just trying to get a sense of <unk>.

Speaker Change: <unk> segment costs before the planned restart of Leer South.

Paul Lang: Hey, Nate, this is Paul. Look, Q1 was a great quarter. And I said in my comments, the cost across most portfolio some really good numbers. You know, but clearly what led the pack was we had an outstanding performance at Lear. And you think about it, that was the best record production we've had in 13 years. They really did a great job.

Speaker Change: <unk> go into the low nines as you've read.

Speaker Change: Right.

Paul Lang: Hey, Nate this Paul look Q1 was a great quarter.

Speaker Change: I said in my comments.

Paul Lang: The costs across both portfolio.

Speaker Change: Some really good numbers.

Speaker Change: But clearly what led the pack was we had an outstanding performance at Leer and you think about it.

Speaker Change: Record production, we've had in 13 years combined.

Paul Lang: As you look at Q2, Nate, I think probably the one thing that we will see is Lear does have a long-wall move coming up, so look, I think the guidance takes into account that we were off to a great start, so we lowered the cardins down and we're looking for a little bit more favorable than what we had said at the start of the year, but Q2 will be slightly impacted by a planned long-wall movement. Okay, good to know. Thank you for that, Paul.

Speaker Change: They really did a great job as you look at Q2, Nate I think the probably the one thing that we will see as winter does have a longwall move coming up so look I think the guidance takes into account that we were off to a great start so we lowered the cartons down.

Speaker Change: Looking for a little bit more favorable than what we have said it started the year, but Q2 will be slightly up.

Speaker Change: Play a longwall move at later.

Bob Braithwaite: And then, you know, maybe sticking with one more on the on the Met side of things. Average realized price per ton for coke and coal, $114, a little lower than expected. If I kind of assume the average one cube glass high vollet price, which I think was about $180. But maybe it was quality mix or more stiff R sales. But maybe you just help us bridge kind of that that $114 realized price.

Speaker Change: Okay. Good to know thank you for that Paul and then.

Speaker Change: Maybe just sticking with one more on the on the met side of things average realized price per ton for coking coal $114, a little lower than expected if I kind of assume the average <unk> price, which I think it was about $180.

Speaker Change: Maybe it was quality mix or more CFR sales.

Speaker Change: Can you just help us bridge kind of that $114 realized price.

Bob Braithwaite: This is Bob. You know, during the quarter, approximately 1.8 million of our 1.9 million coking coal tons were exported in the first quarter. As Paul mentioned on the call, and as we discussed in the past, you know, the growth for this coal has really shifted to Asia, especially in the first quarter. So as a result, the mix of our, I'll say, PLV contracts had increased, in fact, about 45% of the coal under our metallurgical segment moved into the Asian market in Q1. Good news is the product has been, you know, really well received in the Asian market, and we've seen a very high customer retention rate.

Speaker Change: Sure Nate this is Bob.

Speaker Change: During the quarter, approximately $1 $8 million of our $1 9 million coking coal tons.

Speaker Change: Were exported in the first quarter.

Speaker Change: As Paul mentioned on the call and as we discussed in the past the growth for this coal has really shifted to Asia, especially in the first quarter.

Speaker Change: As a result, the mix of our I'll say pov contracts had increase in fact about 45% of the coal under our metallurgical segment moved into the Asian market. In Q1. Good news is the product has been really well received in the Asia market and we've seen.

Bob Braithwaite: Looking ahead in Q2, you know, the lake season's open, so that affords us the ability to move more coal of our contracted coal, I'll say, domestically. So we could see a slight improvement there quarter on quarter, as we have a little bit more domestic tons in our mix. But, you know, really, when you look at just the balance of the year, you're probably going to look at that 40-so percent level into the Pacific market or the Asian market going forward. about those tons or those CFR tons then where you guys are responsible for the ice and freight.

Speaker Change: Very high customer retention rate.

Speaker Change: Looking ahead in Q2 lakes season's open said that affords us the ability to move more coal of our contracted coal I'll say domestically. So we could see a slight improvement there quarter on quarter.

Speaker Change: As we have a little bit more domestic tons in our mix, but.

Speaker Change: Really when you look at just the balance of the year.

Speaker Change: Youre, probably going to look at that 40% level into the Pacific market or the Asian market going forward.

Speaker Change: Yes.

Speaker Change: Bob those tons are those CFR tonnes than where you guys are responsible for that.

Bob Braithwaite: It's a mixture, but majority of them, yes, CFR tons. Okay. Got it. Perfect.

Speaker Change: It's a mixture, but majority of them, yes CFR tons.

Bob Braithwaite: And Bob, while I have you, could we get an updated breakdown of the 26 million tons of committed and priced coal in the high CV segment? Yeah, so in the first quarter, it was 7.1 million tons of which 6.4 was PAMC, 700,000 was West Elk. That leaves us with about 19.4 left contracted for the Q2 through Q4, about 16.3 of that is PAMC, we have about 3.1 that's linked to API2, all have ceilings and floors, and I'll tell you Nate, you know, we're hovering around the floor now, so there's not much, you know, downside to that, we have 1.8 linked to power, and about 300,000 linked to high vol B, and then the balance of that will be fixed price.

Speaker Change: Okay got.

Bob: Got it perfect and Bob while I have you.

Bob: Could we get an updated breakdown of the 26 million tons of uranium.

Colin: Colin the ICD segment.

Colin: Yes, so in the first quarter was $7 1 million tonnes of which $6. Four was PMC 700000 was west Elk.

Colin: That leaves us about $19 four left contracted for the for the Q2 through Q4 about $16 three of that is PMC.

Colin: We have about $3 one that's linked to API, two all have ceilings and floors and ill tell you Nathan.

Colin: Around the floor now so there's not much downside to that.

Colin: We have $1 eight linked to power and about 300000 linked to high vol. B and then the balance of that would be fixed price.

Bob Braithwaite: And then $3.1 million is West Elk, $2.6 is Fixed Price, and the balance or call it roughly $500,000 is linked to Newcastle. I appreciate that.

Colin: And then $3 1 million as west Elk to six is fixed priced and the balance are call. It roughly 500000 is linked to new castle.

Paul Lang: And then maybe just one more, guys, if I could kind of higher level, you know, Paul, maybe your thoughts on the recent executive orders and it bolstering the U.S. coal industry and coal-fired generation. You know, what are you guys hearing from your customers so far? Any additional color would be helpful. And then, you know, do you see the possibility of more capital being spent to bring online some thermal coal production or keep coal fired plants running longer? You know, what do you think would incentivize that or make people comfortable doing that? I mean, it's an interesting question, Nate.

Colin: Alright, I appreciate that and then.

Colin: Maybe just one more guys, if I could kind of higher level.

Speaker Change: Paul maybe just maybe your thoughts on the recent executive orders.

Speaker Change: Is it bolstering the U S coal industry and coal fired generation.

Speaker Change: What are you guys hearing from your customers. So far any additional color would be helpful. And then where do you see the possibility of.

Speaker Change: Yes, more capital being spent to bring online some thermal coal production or keep coal fire plants running longer.

Speaker Change: Incentivize that or make people comfortable doing that.

Paul Lang: I mean, I think first and foremost, it's nice to have an administration that recognizes the industry. and the importance that it has on the U.S. economy and really what it means relative to power prices in the U.S. You know, they believe coal should be in the mix and should stay in the mix. You know, I think the executive orders reflected that general sentiment. So I think that's all positive. I think one of the concerns, if any, that the utilities have is, you know, these are all well and good. But, you know, what is going to happen?

Speaker Change: Yeah.

Speaker Change: I mean, it's interesting question David.

Speaker Change: I think first and foremost it's nice to have an administration that recognized as the industry.

Speaker Change: And the importance that it has on the U S economy.

Speaker Change: What it means relative to power prices in the U S.

Speaker Change: They believe coal should be in the mix and should stay in the mix.

Speaker Change: The executive orders reflected that general sentiment.

Speaker Change: So I think that's all positive I think one of the concerns if any that the utilities have is these are these are all well and good.

Paul Lang: for years. And is this the basis to make strong investments? You know, I think they're waiting. Everybody's being a little cautious. Look, I think it's headed in the right direction, and I think there's some actions that I think the administration would like to do legislatively that could instill some of these things a little more solidly.

Speaker Change: What is going to happen.

Speaker Change: Four years from now.

Speaker Change: Just the basis to make strong investments or.

Speaker Change: I think they are waiting everybody is being a little cautious about it.

Speaker Change: And.

Speaker Change: I think it is headed in the right direction and I think there are some actions that I think the administration would like to do legislatively could still some of these things a little more solid.

Paul Lang: And you know, that's really what we'd like to see, is these be a little more durable and something that people could plan after. NativStack.

Speaker Change: That's really what we'd like to see as these be a little more durable.

Paul Lang: Listen, I would add to that, you know, the fact is that, you know, just since last fall, the delayed retirements have continued to build. And so, you know, we're looking now, relative to last fall, an additional four gigawatts of operating capacity and 26, 27, 28. And hopefully, that drumbeat will continue. And look, as important as the sort of the policy stuff is, and it's really important, I think what you saw in January, February, in terms of capacity factors for the fleet is equally important, because last year, the fleet in its entirety operated about 43%. January, February, it operated at more than 60%, which tells you the art of the possible there.

Speaker Change: I think that people could play out.

Speaker Change: Native stack I listen I would I would add to that the fact is that just since last fall. The delay retirements have have continued to build and so we're looking now relative to last fall and additional four gigawatts of operating capacity in 'twenty, six 'twenty $7 28, and hopefully that drumbeat.

Speaker Change: We will continue and look at it as important as the sort of the policy stuff is and it's really important I think what you saw in January February in terms of capacity factors for the fleet is equally important because last year. The fleet in its entirety operated about 43% January February it operated it at more than 60%, which tells you the art of the possible there.

Paul Lang: So, you know, as we do see growth in power demand, last year was up 3%. So far year to date, it's up 3.8%. So we still, you know, we're seeing that power demand growth continue to manifest itself. But as we see that, we believe that the, you know, the fleet that continues can operate at substantially higher capacity factors, which obviously is also quite significant. Gas prices being now, if you look at the strip, around $4 is another, you know, will be another dynamic that will serve to lift those capacity factors potentially. So, you know, we're enthusiastic about what we're seeing.

Speaker Change: So as we do see growth in power demand last year was up 3%. So far year to date, it's up three 8%. So we still we're seeing that power demand growth continue to manifest itself, but as we see that we believe that the.

Speaker Change: The fleet that continues can operate at substantially higher capacity factors, which which obviously is also quite significant gas prices being now if you look at the strip around $4 is another.

Speaker Change: It will be it will be another dynamic that will serve to lift those capacity factors potentially so we're enthusiastic about what we're seeing.

Unknown Executive: All right, great. Very helpful, guys.

Unknown Executive: I'll leave it there. Best of luck. Thank you.

Speaker Change: Alright, great very helpful guys I'll leave it there best of luck.

Chris Latamina: Your next question comes from Chris Latamina from Jeffries, LLC. Please go ahead. Hi, thanks, guys.

Speaker Change: Alright, Thanks Nate.

Speaker Change: Thank you. Your next question comes from Chris <unk> from Jefferies. LLC. Please go ahead.

Chris Latamina: Good morning, Chris. Just one question. Just on the capital return, so big buyback in the quarter, which at, you know, these prices it seems like a pretty good use of capital, but obviously the buyback in the first quarter was well above what your free cash flow was, even if you include the proceeds from the asset sales and the cash proceeds from the merger. So, you know, you still have a strong balance sheet, guidance is for at least 75% of free cash flow to be used for buybacks or capital returns. If the share price stays kind of where it is now, should we expect buybacks to exceed the free cash flow?

Chris: Hi, Thanks, guys.

Speaker Change: Good morning, good morning, good morning.

Speaker Change: Yes.

Speaker Change: On the capital return.

Speaker Change: Big buyback in the quarter.

Speaker Change: These prices it seems like a pretty good use of capital but.

Speaker Change: Obviously, the buyback in the first quarter was well above what your free cash flow was even if you include the proceeds from the asset sales and the <unk>.

Speaker Change: Cash proceeds from the merger so.

Speaker Change: You still have a strong balance sheet guidance is for at least 75% of free cash would be used for buybacks or capital returns to.

Speaker Change: The share price is kind of where it is now.

Chris Latamina: I mean, do you see this as a highly opportunistic level to step in and buy more, or should we now think about balance sheet has been rebased and now it's back to 75% of free cash flow? Thanks.

Speaker Change: Should we expect buybacks to exceed the free cash flow I mean do you see this is a highly highly opportunistic level to step in and buy more or should we now think about balance sheet has been rebased and now it's back to 75% of free cash flow.

Mitesh Thakkar: Chris, this is Mitesh here. As you can imagine, we don't want to get into providing guidance on a quarterly basis. We have provided you with two signposts, if you will. One is, as you mentioned, our target to return approximately 75% of the free cash flow. And second is our preference for a net debt neutral balance sheet. And as we demonstrated in Q1, as cash builds on our balance sheet, we will continue to deploy it opportunistically towards the best use. Right now, that is the shared buyback route. And given the value proposition of our stock today, I wouldn't be surprised if we have another robust quarter of share repurchase.

Speaker Change: Chris This is Natasha as you can imagine we don't want to get into providing guidance on a quarterly basis.

Speaker Change: We have provided you with two signposts if you will.

Speaker Change: One is as you mentioned our target to return approximately 75% of the free cash flow and second is our preference for net debt neutral balance sheet.

Speaker Change: And as we demonstrated in Q1 as cash builds on our balance sheet. We will continue to deploy opportunistically towards the best use right now that is the share buyback route.

Speaker Change: And given the value proposition of our stock today I wouldn't be surprised if we have another robust quarter of share repurchases.

Mitesh Thakkar: Okay, thanks. And secondly, on on Lear South, can you just give us the timeline and the next steps in terms of getting the long wall back online there?

Speaker Change: Okay. Thanks.

Speaker Change: Secondly on Leer, South can you just give us the timeline and the next steps in terms of getting the longwall back online there. Thank you.

Mitesh Thakkar: Thank you. get ventilation re-established in that area. Once that gets through, we'll start the usual inspection of the sealed area as well as the longwall equipment.

Speaker Change: Hey, Chris so.

Speaker Change: Mine's been sitting for about 90 or 100 days.

Speaker Change: Which is kind of around the rule of thumb timeframe.

Speaker Change: We currently have a plan with them to reenter the mind here in the next week or two we're going to keep watching the readings.

Speaker Change: If we feel comfortable in the authorities feel comfortable we will reenter the mine.

Speaker Change: Relative to the loan area with the longwall will breach the seals.

Speaker Change: Good ventilation reestablished in that area and once we breached the field there is a 72 hour waiting period.

Speaker Change: Once that gets through we will start the usual inspection of the sealed area as well as the longwall equipment.

Mitesh Thakkar: The good news right now, and I mentioned it in my prepared remarks, is we have cameras on the longwall equipment. You know, by all indications, the long wall is stayed. well intact, and we feel pretty good about where we're at. The difficulty, I've given the timeline, is the unknowns, Chris. And while the lung wall itself is in good shape, and I think establishing that small area and the ventilation is not going to be a big issue, the unknowns relatively are some of these electronics have been sitting in a very humid environment for three or four months.

The good news right now and I mentioned in my prepared remarks is we have cameras on the longwall equipment.

Speaker Change: By all indications of long haul has stayed.

Speaker Change: Well intact.

Speaker Change: We feel pretty good about where we're at the difficulty on given the timeline is the unknown as Chris and while the longwall itself is in good shape and I think establishing that small area and the ventilation is not going to be a big issue.

Speaker Change: The unknowns relatively are some of the electronics have been sitting in a very humid environment for three or four months and.

Mitesh Thakkar: And the difficulty is, is that going to take us a week to fix or three weeks to fix? But those are all fixable things, and we won't know the exact timing until we get in there and put our hands on them. You know, I just gotta say, I feel really good about where we're at. We hit the schedule that we laid out in early January and right now things seem to be clicking along as they should.

Speaker Change: The difficulty is as you know is that going to take us a week the fixed for three weeks to fix that.

Speaker Change: Those are all fixable things, we won't know the exact timing until we get in there and put our hands on things, but I just got to say I feel really good about where we're at.

Speaker Change: We hit the schedule that we laid out in early January and right now things seem to be clicking along as they should there is a critical step coming up here in the next couple of weeks, but.

Mitesh Thakkar: There's a critical step coming up here in the next couple of weeks. I really feel the team's ready for it. It should be said. That's good.

Speaker Change: I really feel the team is ready for it.

Mitesh Thakkar: Thank you and good luck with that. You know, thanks. Thank you.

Speaker Change: It should be set.

Speaker Change: That's great. Thank you and good luck with that.

Nick Giles: Your next question comes from Nick Giles from B. Reilly Securities. Please go ahead. Thank you, Operator. Good morning, everyone.

Chris: Thank you Chris.

Speaker Change: Okay. Thank you. Your next question comes from Nicholas <unk> from B Riley Securities. Please go ahead.

Nick Giles: Is that, you know, obviously three longwall moves in one queue that impacted costs on the high CV side and you are maintaining your full year guide. So I was wondering how we should think about both volume and cost cadence in the quarters ahead. And if I saw correctly, there are two longwall moves left. So curious when we could see those. Thank you. One of them is going on right now. And the other one, you know, could be back half the year. You know, as you look at the costs and, you know, one thing that's kind of been lost here is one of the positives.

Nicholas: Thank you operator, good morning, everyone. Good morning, good morning.

Speaker Change: Is that obviously three longwall moves in <unk> that impacted costs on the high CV side and you are maintaining your full year guide. So I was wondering how we should think about both volume and cost cadence in the quarters ahead, and if I saw correctly there are two longwall moves.

Speaker Change: So curious when we could see those thank you.

Speaker Change: One of them is going on right now and.

Speaker Change: And the other one will be a back half of the year.

Speaker Change: As you look at the costs.

Paul Lang: you know, was the power price adjustment we had, particularly at PAMC. And the offset of that was we paid a higher power cost now. We made a lot more on the revenue. Roughly about 50 cents of that increase in cost of PEMC for the quarter was a good reason because power costs and PGM So I think we feel that, you know, as we get through, we should see a drop in Q2 costs on the high CV thermal segment, then kind of averaging down as we go through.

Speaker Change: One thing that's kind of been lost here is one of the positives.

Speaker Change: It was the power price adjustment, we had particularly at PMC and the offset of that was we paid higher power costs now we made a lot more on the revenue but.

Speaker Change: Roughly about 50 cents of that increase in cost of PMC for the quarter was a good reason because power costs in PJM were so high.

Speaker Change: So I think we feel that as we get through we should see a drop in Q2 costs.

Speaker Change: On the high CV thermal segment than kind of averaging down as we go through the year.

Mitesh Thakkar: I'll just add, Nick, as I mentioned on my prepared remarks, I think the cadence of the long wall moves is pretty variable for the remainder of the year as well by quarter. So I think that should provide some tailwinds for the back half. Again, you know, things could change, but the way I would think about it is second quarter we are going to see some drop relative to the first quarter, and then third and fourth quarter will be a little bit lower as well. from the second quarter. Got it. Thank you, Paul and Mitesh. That's very helpful.

Speaker Change: I'll just add Nick as I mentioned on my prepared remarks, I think the cadence of the longwall moves us pretty ratable for the remainder of the year as well by quarter. So I think that should provide some tailwind for the back half so.

Speaker Change: Again things could change, but the way I would think about it as second quarter, we are going to see some drop relative to the first quarter, and then third and fourth quarter will be a little bit lower as well.

Speaker Change: In the second quarter.

Bob Braithwaite: My next question was just on the high CV pricing side. And API2 has been hanging in there somewhat, especially relative to Newcastle. So I was curious if you could touch on some of the supply-demand dynamics you're seeing out there. Are you still seeing relative strength in pet coke? And which end markets have you been targeting more recently? If you wouldn't mind touching on the domestic market as well, I'd appreciate it. Looking at the international markets, primarily India and Egypt, which is our large industrial markets that we serve, demand is there and continues to grow. We are in a bit of a price wall.

Speaker Change: Got it.

Speaker Change: Polymer test that's very helpful. My next question was just on.

Speaker Change: On the high CV pricing side in API, two has been hanging in there somewhat especially relative to new castle. So I was curious if you could touch on some of the supply chain.

Speaker Change: Demand dynamics Youre seeing out there are you still seeing relative strength in pet Coke and which end markets have you been targeting more recently.

Speaker Change: When I touch on the domestic market as well I'd appreciate it.

Nick: Yes, Nick.

Speaker Change: On the thermal side I think we mentioned that we've seen a significant increase in demand domestically.

Nick: Domestically year on year.

Speaker Change: Paul referenced some statistics in his remarks and deck further reiterated.

Nick: One thing too if you look at the PJM market, which is what I would call our core primary market for our PMC Cole.

Nick: Total generation, there was actually up 5% with coal generation up over 30%.

Nick: <unk> seen inventory levels come down significantly across our customer base and because of that we've actually were successful in locking in some.

Nick: Some spot some spot deals most recently and in fact, we're seeing rfps out earlier than what we usually would we actually have a couple of rfps out today.

Nick: One is actually through 2031 through 2028, so again I think youre starting to see the customer base there.

Nick: Really looking at securing longer term contracts, which is going to benefit us in the long term as well.

Nick: Looking at the international markets, primarily India, and Egypt, which is our large industrial markets that we serve.

Bob Braithwaite: We have seen petco prices come off a bit, but we would expect that to pick back up in the coming months.

Nick: And is there and continues to grow we are in a bit of a price law, we have seen pet coke prices come off a bit, but we would expect that to pick back up in the coming months and then the other thing we haven't really touched upon but if we do see a trade deal between China and U S.

Bob Braithwaite: And then the other thing we haven't really touched upon, but if we do see a trade deal between China and the US, I would suggest that China will be back buying US coal, and not only but petco, which will certainly tighten that market for India. So overall, I'll tell you, I'm very bullish thermal coal, specifically on our portfolio as a coal for the reasons I just mentioned.

Nick: Would suggest that China will be backed by in U S coal and not only cold, but pet coke, which will certainly tighten that market.

Nick: So.

Nick: For India. So overall I will tell you I'm very bullish thermal coal specifically on our portfolio as a whole for the for the reasons I just mentioned and Nick maybe I'll jump in and just on the on the.

Paul Lang: And Nick, maybe I'll jump in just on the macro perspective. Look, we are seeing those cuts, Russian exports down appreciably last year, so these prices are weighing on supply. The Australian exports down through the first four months of the year. So look, some positive developments out there.

Nick: Macro perspective look we are seeing those cuts Russian exports down appreciably last year. So these prices are weighing on supply the Columbia cuts that we've seen announced recently is certainly useful and interesting Australian exports down.

Paul Lang: Now exactly when those corrective measures begin to affect price is TBD. But you can see that these prices are weighing on some of these suppliers.

Nick: Through the first four months of the year. So look some positive developments out there know exactly when those corrective measures began to affect price is TBD, but you can see that these prices are weighing on some of these suppliers and we'll just add again as we've said before look the one of the great advantages of core is that we can toggle between these markets as Bob.

Paul Lang: And we just add again, as we've said before, look, one of the great advantages of core is that we can toggle between markets. As Bob just discussed, because we are so exceptionally high rank in our high CD thermal segment, we are able to enter those markets that are most attractive to move into the cement markets when those are most promising. And obviously, we continue to see good growth in Indian cement. So we do have that ability to move between and toggle between markets.

Bob: Just just discussed.

Nick: Cause we are so exceptionally high rank.

Nick: Our thermal segment.

Nick: We're able to enter those markets that are most attractive to move into the cement markets. When those are most promising and obviously, we continue to see good growth in Indian cement. So we do have that ability to move between and toggle between markets. We talked about the domestic thermal opportunity will continue to capitalize on that.

Paul Lang: We talked about the domestic thermal opportunity. We'll continue to capitalize on that.

Mitesh Thakkar: Dick, I really appreciate all those comments, maybe just on the synergy side, you appear to have made some strong progress thus far and apologies if I missed any of this, but curious how we should think about the incremental EBITDA impact that we could see in the second half as you approach full run rates or said differently, is there anything that would not be fully reflected in your current guidance that we could see? Thank you. So, I'm assuming your question is on the synergy side. I think from a synergy perspective, I would say one of the components of the synergy is the blending synergies, and if you think about the guidance that we provide for the coking coal segment, there's not a guidance for the mids, and mids as in the thermal byproduct, I think that's where we see a lot of the value uplift.

Nick: I really appreciate all those comments.

Nick: Maybe just on the <unk>.

Speaker Change: Synergy side.

Speaker Change: Appear to have made some strong progress thus far and apologize if I missed any of this but.

Speaker Change: Curious, how we should think about the incremental EBITDA impact that we could see in the second half as you approach full run rates or said differently is there anything that we would not be fully reflected in your current guidance that we could see thank you.

Speaker Change: Yeah. So.

Speaker Change: I'm assuming your question is on the synergy side.

Speaker Change: From a synergy perspective, I would say.

Speaker Change: One of the components of the synergies are blending synergy then if you think about the guidance that we provided for the coking coal segment. There is not a guidance for the mid <unk> and mid <unk> in the thermal byproduct I think thats, where we see a lot of the value uplift.

Mitesh Thakkar: I would think about 600,000 to 700,000 tons of meds a year for 2025 and around a $30 value uplift. That's probably not reflected or captured in the guidance we provide. give you some perspective.

Speaker Change: I would think about 600 to 700000.

Speaker Change: Tons of merger.

Speaker Change: For 2025 and around $30 value uplift, that's probably not reflected are captured in the guidance we provide.

Mitesh Thakkar: Mitesh, that's super helpful. Thanks so much and continue the best work. Thank you.

Speaker Change: Does that.

Speaker Change: Give you some perspective.

Speaker Change: That's super helpful.

Speaker Change: Okay.

Speaker Change: Okay. Thanks, so much and continued best of luck.

George Ede: The last question comes from Mr. George Ede of UBS. Please go ahead. Hi Tim, thanks for the opportunity. A few questions which are mostly follow-ups on previous ones.

Speaker Change: Thank you thank you Nick.

Speaker Change: Thank you.

George: <unk> comes from Mr. George <unk> of UBS. Please go ahead.

Speaker Change: Yes, hi, thanks for the opportunity a few questions, which are mostly follow ups on previous one firstly just on <unk> could you maybe quantify how far ahead development is of a lot more now and how does this compare to previous years, where it's been a bit of a constraint and just secondly their app.

Mitesh Thakkar: Firstly, just on Lear South, could you maybe quantify how far ahead development is of the Longhorn now and how does this compare to previous years where it's been a bit of a constraint and just secondly, once it's up and running, how quick do you foresee if things are going well you can get back to sort of usual production rates? So we've been tied on development, really, for the last year and a half. And we were starting to open up at the end of last year and getting back in a better spot. But right now, we are almost to the point where we're willing to slow down development because we are far enough ahead.

Speaker Change: Once it's up and running how quickly fsh, if things a gallon while you can get back to sort of usual production rates.

Speaker Change: So we've been tight on development really for the last year and a half and.

Speaker Change: And we were starting to open up.

Speaker Change: At the end of last year and getting back in a better spot.

Speaker Change: But right now we are.

Speaker Change: Almost to the point, where we're willing to slowdown development because we're far enough ahead, I'd say I don't want you know development is one of those things that you want to stay ahead on but you don't want to get too far ahead on and where Henry that sweet spot in that call. It 30 to 60 days.

Mitesh Thakkar: I'd say development is one of those things that you want to stay ahead on, but you don't want to get too far ahead on. We're entering that sweet spot, and I'd call that 30 to 60 days. If there's been anything positive out of this event, that's what we've been able to do. And it also means that we'll be able to pull back on some of the development going forward.

Speaker Change: And.

Speaker Change: If there's been anything positive out of this event, that's what we've been able to do.

Mitesh Thakkar: We got into District 2. District 2 appears to be everything we thought it would be. And we're just moving forward with well intent about what we said. So I guess in general, it got us in a good spot. And relative to the cadence once we start up, look, I think having been through these type of things, I know there's going to be some gremlins in the electronics for a while. But I expect us to hit the ground running pretty hard on a relatively quick pace.

Speaker Change: It also means that we will be able to pull back on some of the development going forward because we got into district to district, two appears to be everything we thought it would be.

Speaker Change: We're just moving forward with well intent about what we said.

Speaker Change: I guess in general it it got us in a good spot.

Speaker Change: Relative to the cadence once we start up look I think having been through these types of things I know theres going to be some gremlins in the electronics for a while but I expect us to hit the ground running pretty hard.

Mitesh Thakkar: Okay, now that's clear, thank you.

Speaker Change: On a relatively quick pace.

Mitesh Thakkar: And then just moving to the balance sheet and financials a bit, Sam. Just on the buyback, so over $100 million this quarter, maybe just colour on how much you could actually get done per quarter on a go-forward sort of thinking about basis, given blackout periods, etc. Can you sort of comfortably manage $100 million if free cash flow prices sort of permitted?

Speaker Change: Yeah. Okay. That's clear. Thank you and then just moving to the balance sheet and financials debate, Sam just on the buyback side.

Speaker Change: $100 million this quarter, maybe just color on how much you could actually get done third quarter on a go forward sort of thinking about basis, given blackout periods et cetera can you.

Mitesh Thakkar: Just how to think about that, how much you can actually do, I guess. Yeah, George. So, so certainly, we don't believe there's any sort of barrier there to, you know, that level of buyback. We'll have plenty of open days, we, you know, we won't be restricted. So again, to your point, you're good qualifier, you know, free cash flow permits. Absolutely. That wouldn't, that cadence would not be problematic.

Speaker Change: Comfortably manage $100 million free cash flow and prices sort of permitted just how to think about that how much you can actually do I guess.

Speaker Change: Yes, George so so certainly we don't believe theres any sort of barrier there to that level of buyback.

Speaker Change: We will have plenty of open days, we won't be restricted so again to your point, you're good qualifier free cash flow permits.

Mitesh Thakkar: How high, could you guys sort of double that, sort of ballpark, $200 million a quarter? Just from a technical perspective, I don't think it would be a limitation, but like I said, we have to follow the signposts that I mentioned. That's what we have. Nada.

Speaker Change: Absolutely that wouldn't that cadence would not be problematic.

Speaker Change: Could you guys go to double that sort of ballpark $200 million a quarter.

Speaker Change: Okay.

Speaker Change: Just from a technical perspective, I don't think it would be elimination, but like I said, we have to.

Speaker Change: We have followed.

Mitesh Thakkar: Yeah, no, that's right. That's, that's good. Thank you.

Speaker Change: A signpost that I mentioned.

Paul Lang: And then lastly, on M&A, like, how are you thinking about that in context of everything you sort of flagged, given potential supply rationalization as well, meaning assets could come online at reasonable prices, as you flagged earlier on, guys? Look, George, this was an easy one. At our current valuation, I think the best thing we could do is buy back our own stock. We're cheap and... That's the view from both management and the board.

Speaker Change: Got it.

Speaker Change: Yes, yes, that's right. That's good. Thank you and then just lastly on M&A like how you're thinking about that in context of everything you sort of flagged given.

Speaker Change: Potential supply rationalization as well, meaning assets could come online at reasonable prices as you flagged earlier.

Speaker Change: Look to it up.

Speaker Change: This was an easy one at our current valuation I think the best thing we can do is buy back our own stock.

Paul Lang: That's what we're going to pursue here for the next couple of quarters. Yep, okay. Now that sounds good. Thanks, James. Thanks George. Thank you.

Speaker Change: Cheap.

Speaker Change: That's the view for both management and the board that's what we're going to pursue here for the next couple of quarters.

Speaker Change: Okay, no that sounds good thanks, Jeff.

Nick Giles: So we have a question from Nick Giles from B-Rail Securities. Please go ahead. Thanks so much for taking my follow up. And I think it I think Nate might have asked this earlier, but I did just want to clarify the idling costs of 36 million. These are added back and reflected to in your $123 million of adjusted EBITDA. I'm just looking at the bridge in the Met segment and seeing a roughly negative $20 million, and I would have assumed that this didn't include the EIDLINC cost.

George: Thanks, George Thank you.

Speaker Change: Thank you.

Hi, I have a question from Nick <unk> from <unk> Securities. Please go ahead.

Speaker Change: Sure.

Speaker Change: Thanks, So much for taking my follow up I think it.

Speaker Change: I think Nate Might've asked this earlier, but I did just want to clarify.

Speaker Change: Idling costs of 36 million. These are added back and reflected too.

Speaker Change: In your $123 million of adjusted EBITDA Im just looking at the bridge in the met segment and seeing a roughly negative $20 million and I would have assumed that didn't include the idling costs.

Mitesh Thakkar: So Nick, on the idling cost, let me just clarify. So if you look at the metallurgical cash cost of 91, right? then the idling cost is added back to reflect it appropriately that sets the cash cost, right? But when you look at the EBITDA, we are not adding it back into the EBITDA. So, hypothetically, if you were to add that back, your EBITDA would be higher than the 123 we reported. Does that clarify it? That is extremely helpful, Mitesh. I really appreciate that. Okay. Thanks. Thanks again, guys. Thank you.

Speaker Change: Yes.

Speaker Change: So Nick on the idling costs, let me just clarify so if you look at that.

Speaker Change: The metallurgical cash cost of 91 right.

Speaker Change: Then it is the idling cost is added back to reflect it appropriately that that's the cash cost right, but when you look at EBITDA, we are not adding it back into the EBITDA. So hypothetically. If you were to add that back your EBITDA would be higher than the 123, we reported does that clarify it.

Speaker Change: That that is extremely helpful. I really appreciate that.

Speaker Change: Okay.

Doug Sloan: So there are no further questions at this time, so I will now turn the call over to Mr. Dex Sloan. Please continue. Well, you got pollens to the deck.

Speaker Change: Okay. Thanks, Thanks again guys.

Speaker Change: Thanks, Nick.

Speaker Change: Thank you.

Speaker Change: So there are no further questions at this time, so I will now turn the call over to Mr. <unk>. Please continue.

Doug Sloan: So anyway, look, I want to thank you again for your interest in CORE and participating in the call today. Look, these are exciting times for the company. And the current market environment clearly, you know, indicates why we did this merger, because at this point in the market, diversity, mass, low cost operations and a strong balance sheet, they do matter and will matter more in this market going forward.

Speaker Change: Well you got Paul understood it accelerated.

Speaker Change: Look I want to thank you again for your interest in core participating the call today, but these are exciting times for the company and the current market environment.

Speaker Change: Indicates why we did this merger.

Speaker Change: At this point in the market diversity mass low cost operations and a strong balance sheet.

Unknown Executive: Stay safe and healthy, everyone, and we look forward to reporting to the group in early August. Thank you.

Speaker Change: Do matter and will matter more in this market going forward.

Unknown Executive: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: Stay safe and healthy everyone and we look forward to reporting to the group in early August.

Speaker Change: Okay.

Speaker Change: Ladies and.

Speaker Change: Gentlemen, This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Thanks.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Yes.