Q1 2025 Warrior Met Coal Inc Earnings Call

We will conduct a question and answer session.

Operator: are in listen-only mode. Following the presentation, we will conduct a question-and-answer session.

Operator: Are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. This call is being recorded and will be available for replay on the company's website. I would like to turn the call over to Brian Chopin, Chief Accounting Officer and Controller. Please go ahead.

This call is being recorded and will be available for replay on the company's website.

Operator: This call is being recorded and will be available for replay on the company's website.

I would like to turn the call over to Brian Shipman, Chief Accounting Officer and controller.

Brian Chopin: I would like to turn the call over to Brian Chopin, Chief Accounting Officer and Controller. Please go ahead.

Speaker Change: Please go ahead.

Speaker Change: Good afternoon, and welcome everyone to Warriors first quarter 2025 earnings conference call.

Brian Chopin: Good afternoon and welcome, everyone, to Warrior's first quarter 2025 earnings conference call. 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. Board-looking statements, by their nature, address matters that are, to different degrees, uncertain. These uncertainties, which are described in more detail in the company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected in our forward-looking statement.

Brian Chopin: Good afternoon and welcome everyone to Warrior's Q1 2025 Earnings Conference Call. 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 company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected 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 by law. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings.

Speaker Change: Before we begin lamirande that certain statements made during this call including statements relating to our expected future business and financial performance may be considered forward looking statements.

Speaker Change: According to the private Securities Litigation Reform Act.

Speaker Change: 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 company's annual and quarterly reports filed with the SEC may cause our actual future results to be materially different from those expected in our forward looking statements.

Speaker Change: 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.

Brian Chopin: We do not undertake to update our forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by law. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings.

Speaker Change: For more information regarding forward looking statements. Please refer to the company's press releases and SEC filings.

We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our first quarter press release furnished to the SEC on form 8-K, which is also posted on our website.

Brian Chopin: We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures, in our first quarter press release, Furnace to the SEC on Form 8K, which is also posted on our website. Additionally, we will be following our Form 10Q for the quarter ending March 31, 2025 with the SEC this afternoon.

Brian Chopin: We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our Q1 press release furnished to the SEC on Form 8-K, which is also posted on our website. Additionally, we will be filing our Form 10-Q for the quarter ending 31 March 2025, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a Q1 supplemental slide deck that was posted this afternoon. Today on the call with me are Mr. Walt Scheller, Chief Executive Officer, and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we'll be happy to answer any questions. With that, I will now turn the call over to Walt.

Speaker Change: Additionally, we will be filing our Form 10-Q for the quarter ending March 31, 2025 with the SEC. This afternoon.

Speaker Change: You can find additional information regarding the company on our website at Www Dot warrior met coal Dot Com, which also includes a first quarter supplemental slide deck that was posted this afternoon.

Brian Chopin: You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a first quarter supplemental slide deck that was posted this afternoon.

Walt Sheller: Today on the call with me are Mr. Walt Sheller, Chief Executive Officer, and Mr available oils, Chief Financial Officer.

Brian Chopin: Today on the call with me are Mr. Walt Scheller, Chief Executive Officer, and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we'll be happy to answer any questions.

Speaker Change: After our formal remarks, we'll be happy to answer any questions.

Walt Sheller: With that I will now turn the call over to Walt.

Walt Scheller: With that, I will now turn the call over to Walt. Thanks, Brian.

Walt Sheller: Thanks, Brian Hello, everyone and thank you for taking the time to join US today to discuss our first quarter 2025 results.

Walter Scheller: Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our Q1 2025 results. After my remarks, Dale will review our results in additional detail, then you'll have the opportunity to ask questions. While weak market conditions continued as we expected through the Q1, I'm pleased with our relentless focus on our operations, which enabled us to deliver an increase in volumes, performed well from a cost perspective, and generated positive cash margins. This operational backbone gives us the ability to drive strong performance relative to the market despite the current macro headwinds. At the same time, we continue to make excellent progress at Blue Creek with the work this quarter keeping us on budget and on schedule for the start-up of the longwall at this world-class growth project.

Walt Scheller: Hello, everyone, and thank you for taking the time to join us today to discuss our first quarter 2025 results. After my remarks, Yale will review our results in additional detail, and you'll have the opportunity to ask questions. While weak market conditions continued as we expected through the first quarter, I'm pleased with our relentless focus on our operations, which enabled us to deliver an increase in volumes, perform well from a cost perspective, and generate a positive cash margin. This operational backbone gives us the ability to drive strong performance relative to the market, despite the current macro headwind.

Walt Sheller: After my remarks, I will review our results in additional detail and then you'll have the opportunity to ask questions.

While weak market conditions continued as we expected through the first quarter I am pleased with our relentless focus on our operations, which enabled us to deliver an increase in volumes performed well from a cost perspective and generated positive cash margins.

This operational backbone gives us the ability to drive strong performance relative to the market. Despite the current macro headwinds.

Walt Sheller: At the same time, we continue to make excellent progress with Blue Creek.

Walt Scheller: At the same time, we continue to make excellent progress at Blue Creek, with the work this quarter keeping us on budget and on schedule for the start-up of the long wall at this world-class growth project.

Walt Sheller: With the work this quarter, keeping us on budget and on schedule for the startup of the longwall at this world class growth project.

Walt Sheller: So let's start by looking at the current dynamics of the market for steelmaking coal we've.

Walt Scheller: Let's start by looking at the current dynamics of the market for steelmaking coal. We've seen a dramatic change in the steelmaking coal markets where average premium low vol index prices have dropped by 40 percent or $112 per ton compared to last year's first quarter. First quarter premium lowball prices averaged $280 per short ton in the first quarter of 2024, compared to $168 per short ton in the first quarter of this year. In addition, average index pricing for our high vol A product has decreased 43% in that same time period. We've now seen four consecutive quarters of weakening, still making coal prices.

Walter Scheller: Let us start by looking at the current dynamics of the market for steelmaking coal. We've seen a dramatic change in the steelmaking coal markets where average Premium Low Vol index prices have dropped by 40% or $112 per short ton compared to last year's Q1. Q1 Premium Low Vol prices averaged $280 per short ton in Q1 2024 compared to $168 per short ton in Q1 of this year. In addition, average index pricing for our High Vol A product has decreased 43% in that same time period. We've now seen 4 consecutive quarters of weakening steelmaking coal prices. While we cannot control market fundamentals, we can control our response to these weaker markets by tightly managing our spending at the mines, operating the mines as efficiently as possible, and rationalizing all other spending throughout the organization.

Walt Sheller: We've seen a dramatic change in the steelmaking coal markets, where average premium low vol index prices have dropped by 40% or $112 per short ton compared to last year's first quarter.

Walt Sheller: First quarter premium low vol prices averaged $280 per short ton in the first quarter of 2024 compared to $168 per short ton in the first quarter of this year.

Walt Sheller: In addition average index pricing for our high Vol. A product has decreased 43% in that same time period.

Walt Sheller: We've now seen four consecutive quarters of weakening steelmaking coal prices.

Walt Sheller: While we cannot control market fundamentals, we can control our response to these weaker markets by tightly managing our spending at the mines.

Walt Scheller: While we cannot control market fundamentals, we can control our response to these weaker markets by tightly managing our spending at the mines, operating the mines as efficiently as possible, and rationalizing all other spending throughout the organization. On the supply and demand side, overall market fundamentals for the past quarter were weak, but generally in line with our expectations. Chinese steel exports remained at elevated levels and continue to stress our customers' domestic and export markets. while global demand for steel was challenging. On the steelmaking coal side, supply remained healthy while some customers engaged in a resale of cargos, both of which contributed to a weaker pricing environment for our market.

Walt Sheller: Operating the mines as efficiently as possible and rationalizing all other spending throughout the organization.

Walt Sheller: On the supply and demand side overall market fundamentals for the past quarter were weak but.

Walter Scheller: On the supply and demand side, overall market fundamentals for the past quarter were weak, but generally in line with our expectations. Chinese steel exports remained at elevated levels and continued to stress our customers' domestic and export markets, while global demand for steel was challenging. On the steelmaking coal side, supply remained healthy while some customers engaged in a resell of cargoes, both of which contributed to a weaker pricing environment for our markets. However, we were again reminded of how vulnerable the steelmaking coal supply chain is with several mining events occurring at other steelmaking coal facilities during Q1, which could potentially impact the reliability of supply for several quarters this year. Trade flows have also been impacted following China's decision to apply retaliatory tariffs on US steelmaking coals, which has essentially halted coal trade between both countries.

Walt Sheller: But generally in line with our expectations.

Walt Sheller: Chinese steel exports remained at elevated levels and continued to stress our customers domestic and export markets.

Walt Sheller: While global demand for steel is challenging.

Walt Sheller: On the steelmaking coal side supply remained healthy while some customers engaged in the resale of cargoes, both of which contributed to a weaker pricing environment for our markets.

Walt Sheller: However, we were again reminded of how vulnerable the steelmaking coal supply chain is with several money events occurring and other steelmaking coal facilities during the first quarter.

Walt Scheller: However, we were again reminded of how vulnerable the steelmaking coal supply chain is, with several mining events occurring at other steelmaking coal facilities during the first quarter. which could potentially impact the reliability of supply for several quarters this year.

Walt Sheller: Which could potentially impact the reliability of supply for several quarters. This year.

Walt Sheller: Trade flows have also been impacted following China's decision to apply retaliatory tariffs on U S steelmaking coal's.

Walt Scheller: Trade flows have also been impacted following China's decision to apply retaliatory tariffs on U.S. steelmaking coals. which is essentially halted coal trade between both countries. It is too early to quantify, or for that matter, adequately assess the impacts of U.S. trade policy announcements we'll have on the flow of steelmaking coals, but we continue to monitor the situation closely. Prices at these levels are especially challenging for others still making coal producers higher on the cost curve than we are. Even the recent disruptions in global mining production have only had an insignificant impact on seaborne prices. Our cost discipline continues to be a key differentiator for us in this environment.

Walt Sheller: Which is essentially halted coal trade between both countries.

Walt Sheller: It is too early to quantify or for that matter adequately assess the impacts of U S. Trade policy announcements will have on the flow of steelmaking Coal's will we continue to monitor the situation closely.

Walter Scheller: It is too early to quantify or for that matter, adequately assess the impacts of US trade policy announcements will have on the flow of steelmaking coals, but we continue to monitor the situation closely. Prices at these levels are especially challenging for other steelmaking coal producers higher on the cost curve than we are. Even the recent disruptions in global mining production have only had an insignificant impact on seaborne pricing. Our cost discipline continues to be a key differentiator for us in this environment. As I noted earlier, average premium steelmaking coal prices have now declined for four straight quarters since last year's Q1.

Walt Sheller: Prices at these levels are especially challenging for other steelmaking coal producers higher on the cost curve than we are.

Walt Sheller: Even the recent disruptions in global mining production I've only had an insignificant impact on seaborne pricing.

Walt Sheller: Our cost discipline continues to be a key differentiator for us in this environment.

Walt Sheller: As I noted earlier average premium steelmaking coal prices have now declined for four straight quarters since last year's first quarter.

Walt Scheller: As I noted earlier, average premium steelmaking coal prices have now declined for four straight quarters since last year's first quarter. Our primary index, the POV FOB Australia, ended the first quarter at $153 per short ton, which was $25 per short ton lower than the end of the fourth quarter, 2024, and averaged $168 for the first quarter, 2025. Similar declines were observed in the PLAS LVHCC index for our high vol-A product sold primarily in Asia. which ended the first quarter at $126 per short. This was $15 per short ton lower than the end of the previous quarter.

Walt Sheller: Our primary index the <unk>, Australia ended the first quarter at $153 per short ton.

Walter Scheller: Our primary index, the PLV FOB Australia, ended Q1 at $153 per short ton, which was $25 per short ton lower than the end of Q4 2024 and averaged $168 for Q1 2025. Similar declines were observed in the Platts Low Vol HCC index for our High Vol A product sold primarily into Asia, which ended Q1 at $126 per short ton. This was $15 per short ton lower than the end of the previous quarter. We achieved the gross price realization of 83% for Q1, which was a function of product mix, geography, tariffs, and freight rates. This result was slightly lower than our annual targeted range of 85% to 90%, and could be lower throughout this year as spreads have widened more in the last 12 months than historically.

Walt Sheller: Which was $25 per short ton lower than the end of the fourth quarter 2024.

Walt Sheller: And averaged $168 for the first quarter of 2025.

Walt Sheller: Similar declines were observed in the class LTE HCC index for a high vol. A product sold primarily into Asia.

Walt Sheller: Which ended the first quarter at $126 per short ton.

Walt Sheller: This was $15 per short ton lower than the end of the previous quarter.

Walt Sheller: We achieved the gross price realization of 83% for the first quarter, which.

Walt Scheller: We achieved a gross price realization of 83% for the first quarter, which was a function of product mix, geography, tariffs, and freight rate. This result was slightly lower than our annual targeted range of 85 to 90 percent. It could be lower throughout this year as spreads have widened more in the last 12 months than historical.

Walt Sheller: Which was a function of product mix geography, tariffs and freight rates.

Walt Sheller: This result was slightly lower than our annual targeted range of 85% to 90% it could be lower throughout this year as spreads have widened more in the last 12 months and historically.

Walt Sheller: According to the World Steel Association monthly report global Pig Iron production decreased by 2% in the first three months of 2025 as compared to the prior year period.

Walt Scheller: According to the World Steel Association monthly report, global pig iron production decreased by 0.2% in the first three months of 2025 as compared to the prior year period. Pig iron production in China, which is the world's largest production region, grew by 0.8% for the same period. The rest of the world's pig iron production experienced a decline of 2.2% for the first three months of 2025.

Walter Scheller: According to the World Steel Association monthly report, global pig iron production decreased by 0.2% in the first 3 months of 2025 as compared to the prior year period. Pig iron production in China, which is the world's largest production region, grew by 0.8% for the same period. The rest of the world's pig iron production experienced a decline of 2.2% for the first 3 months of 2025. India remains a bright spot with a growth rate of 6.2% and is expected to continue growing with new blast furnace capacity expected to come online this year. Now let me turn to our Q1 results. Importantly, our strong sales volume was driven by excellent performance from our existing mines. Our Q1 sales volume was 2.2 million short tons compared to 2.1 million short tons in last year's same Q, representing a 2% increase.

Walt Sheller: Pig iron production in China, which is the world's largest production region grew by <unk>, 8% for the same period.

Walt Sheller: The rest of the world's pig iron production experienced a decline of two 2% for the firm.

Walt Sheller: First three months of 2025.

Walt Sheller: India remains a bright spot with a growth rate of six 2% and is expected to continue growing with new blast furnace capacity expected to come online this year.

Walt Scheller: India remains a bright spot with a growth rate of 6.2% and is expected to continue growing with new blast furnace capacity expected to come online this year.

Now, let me turn to our first quarter results importantly, our strong sales volume was driven by excellent performance from our existing mines.

Walt Scheller: Now, let me turn to our first quarter results. Importantly, our strong sales volume was driven by excellent performance from our existing mine. Our first quarter sales volume was 2.2 million short tons compared to 2.1 million short tons in last year's same quarter, representing a 2% increase. This increase is particularly notable given the market dynamics I described earlier.

Walt Sheller: Our first quarter sales volume was $2 2 million short tons compared to $2 1 million short tons in last year's same quarter, representing a 2% increase.

Walt Sheller: This increase is particularly notable given the market dynamics I described earlier.

Walter Scheller: This increase is particularly notable given the market dynamics I described earlier. Our sales by geography for Q1 break down as follows: 43% into Asia, 37% into Europe, and 20% into South America. Most of the sales into Asia during Q1 were customers in India and other Southeast Asian countries. There were no sales into China during Q1 this year. Our spot volume was 8% for Q1 2025, which is primarily sold into Europe. For the full year, our spot volume is expected to be approximately 15% of total sales volume. Production volume in Q1 2025 was 2.3 million short tons compared to 2.1 million short tons in the same quarter of last year, representing a 10% increase.

Walt Sheller: Our sales by geography for the first quarter breakdown as follows 43% into Asia, 37% in the Europe and 20% in South America.

Walt Scheller: Our sales by geography for the first quarter break down as follows. 43% into Asia, 37% into Europe, and 20% into South America. Most of the sales into Asia during the first quarter were customers in India and other Southeast Asian countries. There were no sales into China during the first quarter this year. Our spot volume was 8% for the first quarter of 2025, which is primarily sold into Europe. For the full year, our spot volume is expected to be approximately 15% of total sales volume.

Walt Sheller: Most of the sales in the Asia during the first quarter, where customers in India and other southeast Asian countries.

And when those sales into China during the first quarter this year.

Walt Sheller: Our spot volume was 8% for the first quarter of 2025, which is primarily sold into Europe.

Walt Sheller: For the full year, our spud volume is expected to be approximately 15% of total sales volume.

Walt Sheller: Production volume in the first quarter of 2025 was $2 3 million short tons compared to $2 1 million short tons in the same quarter of last year, representing a 10% increase.

Walt Scheller: Production volume in the first quarter of 2025 was 2.3 million short tons compared to 2.1 million short tons in the same quarter of last year, representing a 10% increase. Our existing mines continued to perform well, and the continuous mining units at our Blue Creek mine produced 251,000 short tons during the first quarter and drove the overall increase in production volume. Our coal inventory remained nearly the same at 1.1 million short tons at the end of the first quarter, compared to the fourth quarter, 2024.

Walt Sheller: Our existing mines continue to perform well and the continuous miner unit and our Blue Creek mine produced 251000 short tons during the first quarter and drove the overall increase in production volume.

Walter Scheller: Our existing mines continued to perform well, and the continuous mining units at our Blue Creek mine produced 251,000 short tons during Q1 and drove the overall increase in production volume. Our coal inventory remained nearly the same at 1.1 million short tons at the end of Q1 compared to Q4 of 2024. During Q1, we spent $79 million on CapEx and mine development. Of that amount, CapEx spending totaled $69 million. Mine development costs for the Blue Creek project were $11 million during the quarter and were below budget. We expect our mine development cost to continue to grow throughout 2025 and until the longwall production starts at Blue Creek, which is expected to occur no later than Q2 2026.

Walt Sheller: Our coal inventory remained nearly the same at $1 1 million short tons at the end of the first quarter compared to the fourth quarter 2024.

Walt Sheller: During the first quarter, we spent $79 million on Capex in mine development.

Walt Scheller: During the first quarter, we spent $79 million on CapEx and mine development. of that amount, CapEx spending totaled $69 million. My development costs for the Blue Creek Project were $11 million during the quarter and were below budget. We expect our mine development costs to continue to grow throughout 2025 and until the loam wall production starts at Blue Creek, which is expected to occur no later than the second quarter of 2026. Excluding the Blue Creek capital expenditures invested during the first quarter, we tightly managed all other capital spending to $13 million.

Walt Sheller: Of that amount of capex spending totaled $69 million.

Walt Sheller: Mine development costs for the Blue Creek project were $11 million during the quarter and were below budget.

Walt Sheller: We expect our mine development cost to continue to grow throughout 2025 and in total loan wall production starts with Blue Creek, which is expected to occur no later than the second quarter 2026.

Walt Sheller: Excluding the Blue Creek capital expenditures invested during the first quarter, we tightly managed all of those other capital spending to $13 million.

Walter Scheller: Excluding the Blue Creek capital expenditures invested during Q1, we tightly managed all other capital spending to $13 million. Turning to our transformational Blue Creek growth project. During Q1, we continued to make excellent overall progress while remaining on budget and on schedule. The development of the first longwall panel produced 251,000 short tons of steelmaking coal and remains on track to produce 1 million short tons for the full year 2025. We are pleased with the progress that has been made to date in the development as well as our tight management of costs. We started taking delivery of the longwall shields during Q1. We expect to have all shields on-site during Q2 this year. In addition, our recruiting and hiring efforts for this new mine continue to be on track.

Walt Sheller: Turning to our transformational Blue Creek growth project during the first quarter, we continued to make excellent overall progress while remaining on budget and on schedule.

Walt Scheller: Turning to our transformational Blue Creek growth project, during the first quarter we continue to make excellent overall progress while remaining on budget and on schedule. The development of the first longwall panel produced 251,000 short tons of steel making coal and remains on track to produce 1 million short tons for the full year 2025. We're pleased with the progress that has been made to date in the development, as well as our tight management of costs. We started taking delivery of longwall shields during the first quarter and we expect to have all shields on site during the second quarter this year.

Walt Sheller: The development of the first longwall panel produced 251000 short tons of steelmaking coal remains on track to produce 1 million short tons for the full year 2025.

Walt Sheller: We're pleased with the progress that has been made to date in the development as well as our tight management of costs.

Walt Sheller: We started taking delivery of the longwall shields during the first quarter and we expect to have all fields on site during the second quarter. This year.

Walt Sheller: In addition, our recruiting and hiring efforts for this new mine continue to be on track.

Walt Scheller: In addition, our recruiting and hiring efforts for this new mine continue to be on track. In the first quarter, we continued to make excellent progress on building out the surface infrastructure at Blue Creek, including the overland, clean coal belt, and barge loadout. We made considerable progress on the dry slurry processing system, the refuse area, and the preparation plan.

Walt Sheller: Yeah.

In the first quarter, we continued to make excellent progress on building out the surface infrastructure of Blue Creek, including the Oberland clean coal belt and barge load out.

Walter Scheller: In Q1, we continued to make excellent progress on building out the surface infrastructure at Blue Creek, including the overland clean coal belt and barge loadout. We made considerable progress on the dry slurry processing system, the refuse area, and the preparation plant. We are excited to announce that in the last few days subsequent to the end of Q1, we hit 2 major milestones at Blue Creek earlier than expected. We completed the A module of the preparation plant, and we started washing coal and preparing it for sale. At the preparation plant, we continue to make significant progress on the B and C modules, and the full commissioning of those modules remains on schedule. In addition, we recently completed the truck dump at the rail loadout to move the coal from the preparation plant to the rail loadout.

Walt Sheller: We made considerable progress on the dry slurry processing system, the refuse area and the preparation plant.

We're excited to announce that in the last few days subsequent to the end of the first quarter. We hit two major milestones at Blue Creek earlier than expected.

Walt Scheller: We're excited to announce that in the last few days, subsequent to the end of the first quarter, we hit two major milestones at Blue Creek earlier than expected. We completed the A-module preparation plant, and we started washing coal and preparing it for sale. At the preparation plant, we continue to make significant progress on the BNC modules, and the full commissioning of those modules remains on schedule. In addition, we recently completed the truck dump at the rail loadout to move the coal from the preparation plant to the rail loadout. Also, we completed the rail loadout, where we began loading our first trains to move the Blue Creek Coal to the Port of Mobile.

Walt Sheller: We completed the amas, where the preparation plant and we've started washing coal and preparing it for sale.

Walt Sheller: At the preparation plant, we continue to make significant progress on the BMC modules and the full commissioning of those margins remains on schedule.

Walt Sheller: In addition, we recently completed the truck dump with the rail load out to move the call from the preparation plant to the railroad out.

Also we completed the railroad out where we began loading our first trains to move with Blue Creek coal to the port of mobile.

Walter Scheller: Also, we completed the rail loadout, where we began loading our first trains to move the Blue Creek coal to the Port of Mobile. We expect to begin shipping small amounts of Blue Creek product in Q2 ahead of schedule. We plan to post short videos of these key milestone achievements to our website soon. We could not have achieved these major milestones early without our project team continuing to do an excellent job of managing the schedule and capital spending. All remaining key development progress milestones remain on track, including the aforementioned $55 million invested in capital expenditures in Q1. The total project investment to date is $772 million, which has been and 100% funded from internally generated cash flows from existing operations. Equally important, we believe that we have sufficient liquidity on hand to complete the project.

Walt Sheller: We expect to begin shipping small amounts of Blue Creek product in the second quarter ahead of schedule.

Walt Scheller: We expect to begin shipping small amounts of Blue Creek product in the second quarter ahead of schedule.

Walt Sheller: We plan to post short videos of these key milestone achievements to our website soon.

Walt Scheller: We plan to post short videos of these key milestone achievements to our website soon. We could not have achieved these major milestones early without our project team continuing to do an excellent job of managing the schedule and capital spending. All remaining key development progress milestones remain on track, including the aforementioned $55 million invested in capital expenditures in the first quarter.

Walt Sheller: We could not have achieved these major milestones early without a project team continuing to do an excellent job of managing the schedule and capital spending.

Walt Sheller: All remaining key development progress milestones remain on track, including the aforementioned $55 million invested in capital expenditures in the first quarter.

Walt Sheller: The total project investment to date of $772 million, which has been a 100% funded from internally generated cash flows from existing operations.

Walt Scheller: The total project investment to date is $772 million, which has been 100% funded from internally generated cash flows from existing operations. Equally important, we believe that we have sufficient liquidity on hand to complete the project. We remain focused on tight capital spending discipline until the project is fully completed. The total of $772 million invested in the development of Blue Creek to this point is more than 70% of the expected total project capital expenditure.

Walt Sheller: Equally important we believe that we have sufficient liquidity on hand to complete the project.

Walt Sheller: We remain focused on tight capital spending discipline until the project is fully completed.

Walter Scheller: We remain focused on tight capital spending discipline until the project is fully completed. The total of $772 million invested in the development of Blue Creek to this point is more than 70% of the expected total project capital expenditure. Absent any unexpected or unusual event, we continue to believe we will deliver the project on schedule as planned and within our total capital expenditure estimate of approximately $995 million to $1.1 billion. This estimate excludes the impact of any trade and tariff policy announcements that may be implemented, which could increase the final total estimated cost. While at this point, there's too much uncertainty to quantify any potential impacts of the recent trade and tariff policy announcements, we will continue to monitor the situation and will provide any updates at the appropriate times.

Absent any unexpected or unusual events. We continue to believe we will deliver the project on schedule as planned and within our total capital expenditure estimate of approximately $995 million to $1 1 billion.

Walt Scheller: Absent any unexpected or unusual event, we continue to believe we will deliver the project on schedule as planned and within our total capital expenditure estimate of approximately $995 million to $1.1 billion. This estimate excludes the impact of any trade and tariff policy announcements that may be implemented, which could increase the final total estimated cost. While at this point, there's too much uncertainty to quantify any potential impacts of the recent trade and tariff policy announcements, we will continue to monitor the situation and will provide any updates at the appropriate time.

Walt Sheller: This estimate excludes the impact of any trade and tariff policy announcements that may be implemented which could increase the final total estimated costs.

Walt Sheller: While at this point is too much uncertainty to quantify any potential impacts of the recent trade and tariff policy announcements.

Walt Sheller: We will continue to monitor the situation and will provide any updates at the appropriate times.

Walt Sheller: Blue Creek represents one of the last remaining untapped premium high quality high vol. A coal reserves in the U S and we anticipate this product will generate strong margins.

Walt Scheller: Blue Creek represents one of the last remaining untapped premium, high-quality, high-voltage coal reserves in the U.S. And we anticipate this product will generate strong margins. We expect incremental annualized production of at least 4.8 million short tons after the start-up of the loan wall, ramping to a nameplate capacity of 6 million short tons as market conditions dictate. This will enhance and strengthen our already strong global cost curve positioning and deliver incremental profit and cash flows.

Walter Scheller: Blue Creek represents one of the last remaining untapped premium high-quality, High Vol A coal reserves in the US. We anticipate this product will generate strong margins. We expect incremental annualized production of at least 4.8 million short tons after the start-up of the longwall, ramping to a nameplate capacity of 6 million short tons as market conditions dictate. This will enhance and strengthen our already strong global cost curve positioning and deliver incremental profit and cash flows. I'll now ask Dale to address our Q1 results in greater detail.

Walt Sheller: We expect incremental annualized production of at least $4 8 million short tons. After the startup of the longwall ramping to a nameplate capacity of 6 million short tons as market conditions dictate.

Walt Sheller: I'll now ask Gail to address our first quarter results in greater detail.

Dale Boyles: I'll now ask Gail to address our first quarter results in greater detail. Thanks, Walt. I would like to make one overall note on our financial strengths and market positioning before diving into the numbers. We have built our company to thrive in most market price environments, with strong customer-contractor relationships, high-quality products that realize premium pricing, and high-quality products that realize premium pricing, and high-quality products that realize premium pricing.

Thanks, Paul.

Speaker Change: I would like to make one overall note on our financial strength and market positioning before diving into the numbers.

Dale Boyles: Thanks, Walt. I would like to make one overall note on our financial strength and market positioning before diving into the numbers. We have built our company to thrive in most market price environments with strong customer contractual relationships, high-quality products that realize premium prices, a low and variable cost structure, and a strong balance sheet. As a result, we believe demand for our products will continue even in the current market conditions and in the face of uncertainty of trade and tariff policy changes. We also have the flexibility to continue to rationalize and manage our costs and capital spending. These are unique assets. In addition, we have the remaining capital anticipated to be needed to fund the completion of the Blue Creek project with cash on our balance sheet.

Speaker Change: We have built our company to thrive in both market price environments with strong customer contractual relationships high quality products that realize premium prices are low and variable cost structure and strong balance sheet.

Dale Boyles: a low and variable cost truck. Strong Belt. As a result, we believe demand for our products will continue even in the current market conditions and in the face of uncertainty of trade and tariff policy changes. We also have the flexibility to continue to rationalize and manage our costs in capital spending. These are unique assets. In addition, we have the remaining capital anticipated to be needed to fund the completion of the Blue Creek project with cash on our balance. We do not expect to slow down or suspend the project if these market conditions continue to persist for a prolonged period.

Speaker Change: As a result, we believe demand for our products will continue even in the current market conditions and in the face of uncertainty of trade and tariff policy changes.

Speaker Change: We also have the flexibility to continue to rationalize and manage our cost and capital spending.

Speaker Change: These are unique assets.

Speaker Change: In addition, we have the remaining capital anticipated to be needed to fund the completion of the Blue Creek project with cash on our balance sheet.

Speaker Change: Do not expect to slow down or suspend the project. If these market conditions continue to persist for a prolonged period.

Dale Boyles: We do not expect to slow down or suspend the project if these market conditions continue to persist for a prolonged period. All of which means we can both weather the storm and emerge well-positioned for the future. Now, let us look at more detail on our first quarter financial results. For the first quarter of 2025, Warrior recorded a net loss on a GAAP basis of $8 million or $0.16 per diluted share, compared to net income of $137 million or $2.62 per diluted share in the same quarter of 2024. These decreases in quarter-over-quarter results were primarily driven by 42% lower realized average net selling prices, partially offset by lower variable costs for transportation and royalties, other lower production cost spending, and 2% higher sales volume.

Speaker Change: All of which means we can both weather the storm and emerge well positioned for the future.

Dale Boyles: All of which means we can both weather the storm and emerge well-positioned for the future.

Speaker Change: Now, let us look at more detail on our first quarter financial results.

Dale Boyles: Now let us look at more detail on our first quarter financial results.

Speaker Change: So the first quarter of 2025, we recorded a net loss on a GAAP basis of $8 million or <unk> 16 per diluted share compared to net income of $137 million or $2 62 per diluted share in the same quarter of 2024.

Dale Boyles: For the first quarter of 2025, Warrior recorded a net loss on a gap basis of $8 million, or $0.16 per diluted share, compared to net income of $137 million, or $2.62 per diluted share, in the same quarter of 2024. These decreases in quarter-over-quarter results were primarily driven by 42% lower realized average net selling price. partially offset by lower variable cost for transportation and royalties, other lower production cost spending, and two percent higher sales volume. We reported a adjusted EBITDA of $40 million in the first quarter of 2025, compared to $200 million in the same quarter of last year.

Speaker Change: These decreases in quarter over quarter results were primarily driven by 42% lower realized average net selling prices.

Speaker Change: Partially offset by lower variable cost for transportation and royalties other lower production cost spending and 2% higher sales volume.

Speaker Change: We reported adjusted EBITDA of $40 million in the first quarter of 2025 compared to $200 million in the same quarter of last year.

Dale Boyles: We reported adjusted EBITDA of $40 million in Q1 2025 compared to $200 million in the same quarter of last year. Our adjusted EBITDA margin was 13% in Q1 2025 compared to 40% in the same quarter of last year. On a per ton basis, our adjusted EBITDA margin was $18 per short ton for Q1 2025 compared to $94 in last year's Q1. As I previously mentioned, these decreases in quarter over quarter results were primarily driven by 42% lower realized average net selling prices, partially offset by lower variable costs for transportation and royalties, other lower production cost spending, and 2% higher sales volume. Total revenues were $300 million in Q1 of this year compared to $504 million in Q1 2024.

Speaker Change: Our adjusted EBITDA margin was 13% in the first quarter of 2025 compared to 40% in the same quarter of last year.

Dale Boyles: Our adjusted EBITDA margin was 13% in the first quarter of 2025 compared to 40% in the same quarter of last year. On a per ton basis, our adjusted EBITDA margin was $18 per short ton for the first quarter of 2025 compared to $94 in last year's first quarter. As I previously mentioned, these decreases in quarter-over-quarter results were primarily driven by 42% lower realized average net selling price. partially offset by lower variable costs for transportation and royalties, other lower production cost spending, and 2% higher sales volume. Total revenues were $300 million in the first quarter of this year, compared to $504 million in the first quarter of 2024.

Speaker Change: On a per ton basis, our adjusted EBITDA margin was $18 per short ton for the first quarter of 2025% compared to $94 in last year's first quarter.

Speaker Change: As I previously mentioned these decreases in quarter over quarter results were primarily driven by 42% lower realized average net selling prices.

Speaker Change: Partially offset by lower variable costs for transportation and royalties.

Speaker Change: Other lower production cost spending and 2% higher sales volume.

Speaker Change: Total revenues were $300 million in the first quarter of this year compared to $504 million into first quarter of 2024.

Speaker Change: This overall decrease of $204 million was primarily due to the decrease in average gross selling prices of $222 million.

Dale Boyles: This overall decrease of $204 million was primarily due to the decrease in average gross selling prices of $222 million. partially offset by the impact of higher sales volume of $9 million. In addition, demerage and other charges were $9 million lower compared to the first quarter of 2024 and resulted in an average net selling price of $136 per short ton in the first quarter of 2025 compared to $234 per short ton in the same quarter of last year. Cash cost of sales in the first quarter of 2025 was $244 million, or 83% of mining revenue. compared to $284 million, or 57% of mining revenues in the first quarter of last year.

Dale Boyles: This overall decrease of $204 million was primarily due to the decrease in average gross selling prices of $222 million, partially offset by the impact of higher sales volume of $9 million. In addition, demurrage and other charges were $9 million lower compared to Q1 2024 and resulted in an average net selling price of $136 per short ton in Q1 2025 compared to $234 per short ton in the same quarter of last year. Cash cost of sales in Q1 2025 was $244 million or 83% of mining revenues, compared to $284 million or 57% of mining revenues in Q1 last year. Of the $40 million net decrease in cash cost of sales, $46 million of the decrease was driven primarily by the lower variable transportation royalty cost on 42% lower steelmaking coal prices.

Speaker Change: Offset by the impact of higher sales volume of $9 million.

Speaker Change: In addition, demurrage and other charges were $9 million lower compared to the first quarter of 2024 and resulted in an average net selling price of $136 per short ton in the first quarter of 2025 compared to $234 per short ton in the same quarter of last year.

Speaker Change: Cash cost of sales in the first quarter of 2025 was $244 million or <unk>, 83% of mining revenues compared to $284 million or 57% of mining revenues in the first quarter of last year.

Speaker Change: Of the $40 million net decrease in cash cost of sales.

Dale Boyles: of the $40 million net decrease in cash cost of sales. $46 million of the decrease was driven primarily by the lower variable transportation royalty cost on 42% lower steel making coal price. In addition, we rationalized and tightly managed our spending on supplies and other repairs and maintenance expenses. These decreases were partially offset by a $6 million increase in sales. Cash cost of sales per short ton, FOB port, was approximately $112 in the first quarter of this year, compared to $133 in the first quarter of 2024. The decrease is primarily related to the lower variable transportation and molding costs on lower steelmaking coal prices.

Speaker Change: $46 million of the decrease was driven primarily by the lower variable transportation and royalty cost them, 42% lower steelmaking coal prices.

Speaker Change: In addition, we rationalized and tightly managed our spending on supplies and other repairs and maintenance expenses.

Dale Boyles: In addition, we rationalized and tightly managed our spending on supplies and other repairs and maintenance expenses. These decreases were partially offset by a $6 million increase in sales volumes. Cash cost of sales per short ton FOB port was approximately $112 in the Q1 this year compared to $133 in the Q1 of 2024. The decrease was primarily related to the lower variable transportation and royalty costs on lower steelmaking coal prices and tightly managing our overall spending at the mines. We ended the Q1 below the bottom end of our 2025 guidance range for cash cost of sales per short ton. This result was primarily due to the lower actual steelmaking coal prices in the Q1 compared to our price assumption for the full year.

Speaker Change: These decreases were partially offset by a $6 million increase in sales volumes.

Speaker Change: Cash cost of sales per short ton Fob port was approximately $112 in the first quarter this year compared to $133 in the first quarter of 2024.

Speaker Change: The decrease was primarily related to the lower variable transportation and royalty costs on lower steelmaking coal prices and tightly managing our overall spending at the mines.

Dale Boyles: tightly managing our overall spending at the mine. We ended the first quarter below the bottom end of our 2025 guidance range for cash cost of sales per short. This result was primarily due to the lower actual steel making coal prices in the first quarter compared to our price assumption for the full year. Our cash cost of production for the first quarter of 2025 was 66% of our total cash cost for short-term. compared to 61% in the same quarter last year. Overall, transportation royalty costs, with 34% of our cash cost of sales per short ton in the first quarter this year, on lower average net selling price.

Speaker Change: We ended the first quarter below the bottom end of our 2025 guidance range for cash cost of sales per short ton.

Speaker Change: This result was primarily due to the lower actual steelmaking coal prices in the first quarter compared to a price assumption for the full year.

Speaker Change: Our cash cost of production for the first quarter of 2025, 66% of our total cash cost per short ton.

Dale Boyles: Our cash cost of production for the first quarter of 2025 was 66% of our total cash cost per short ton, compared to 61% in the same quarter last year. Overall, transportation royalty costs were 34% of our cash cost of sales per short ton in the first quarter this year on lower average net selling prices, compared to 39% in the same quarter last year. As a result of the lower average net selling price, our cash margin per short ton was $23 in the first quarter of this year, compared to $100 in the same quarter of last year. SG&A expenses were about $18 million in the first quarter of 2025 and were slightly lower than the first quarter of last year. This was primarily due to a decrease in employee-related stock compensation expenses.

Speaker Change: Paired to 61% in the same quarter last year.

Speaker Change: Overall transportation and royalty cost were 34% of our cash cost of sales per short ton in the first quarter. This year.

Speaker Change: On lower average net selling prices.

Speaker Change: Paired to 39% in the same quarter last year.

Dale Boyles: compared to 39% in the same quarter last year. As a result of the lower average net selling price, our cash margin per short ton was $23 in the first quarter this year, compared to $100 in the same quarter of last year. SG&A expenses were about $18 million in the first quarter of 2025 and were slightly lower than the first quarter of last year. This is primarily due to a decrease in employee-related stock compensation. Appreciation and depletion expenses were $45 million in the first quarter of 2025 and were higher than last year, primarily due to the additional assets placed into service at Blue Our net interest income earned from cash investments is lower in the first quarter than in the second.

Speaker Change: As a result of a lower average net selling price our cash margin per short ton was $23 in the first quarter this year compared to $100 in the same quarter last year.

Speaker Change: SG&A expenses were about $18 million in the first quarter of 2000 and.

Speaker Change: And were slightly lower than the first quarter of last year.

Speaker Change: This was primarily due to a decrease in employee related stock compensation expenses.

Depreciation and depletion expenses were $45 million in the first quarter of 2025 and were higher than last year, primarily due to the additional assets placed into service at Blue Creek.

Dale Boyles: Depreciation and depletion expenses were $45 million in Q1 2025 and were higher than last year, primarily due to the additional assets placed into service at Blue Creek. Our net interest income earned from cash investments was lower in Q1 this year due to lower average cash balances and lower rates of return. Our effective income tax rate for Q1 was approximately 42% because of the pretax loss. Turning to cash flow. During Q1 2025, free cash flow was -$68 million. This was the result of cash flows generated by operating activities of $11 million, less cash used for capital expenditures and mine development of $79 million. Excluding the investment in developing Blue Creek of $66 million during Q1 2025, free cash flow was nearly breakeven.

Speaker Change: Our net interest income earned from cash investments was lower in the first quarter. This year due to lower average cash balances and lower rates of return.

Dale Boyles: due to lower average cash balances and lower rates of return. Our effective income tax rate for the first quarter was approximately 42% because of the pre-tax law. Earning the Cash Flow.

Speaker Change: Our effective income tax rate for the first quarter was approximately 42% because of the pre tax loss.

Speaker Change: Turning to cash flow.

During the first quarter of 2025 free cash flow was a negative $68 million.

Dale Boyles: During the first quarter of 2025, free cash flow was a negative $68 million. This was the result of cash flows generated by operating activities of $11 million.

Speaker Change: This was the result of cash flows generated by operating activities of $11 million less.

Speaker Change: Less cash used for capital expenditures and mine development of $79 million.

Dale Boyles: The Cash Use for Capital Expenditures and Mine Development of $79 Million Excluding the investment in developing Blue Creek of $66 million during the first quarter of 2025, free cash flow was nearly breakeven.

Excluding the investment in developing Blue Creek of $66 million during the first quarter of 2025 free cash flow was nearly breakeven.

Speaker Change: Our total available liquidity at the end of the first quarter of 2025 was $617 million and consisted of cash and cash equivalents of $455 million short and long term investments of $48 million and $114 million available under our ABL facility.

Dale Boyles: Our total available liquidity at the end of the first quarter of 2025 was $617 million and consisted of cash and cash equivalents of $455 million short and long term investments of $48 million and $114 million available under our ABL facility.

Dale Boyles: Our total available liquidity at the end of Q1 2025 was $617 million and consisted of cash and cash equivalents of $455 million, short and long-term investments of $48 million, and $114 million available under our ABL facility. Let's turn to our outlook and guidance for the full year 2025. We expect the weak market conditions we have seen over the last few quarters could persist for a prolonged period and could continue to put downward pressure on steelmaking coal prices. Any new tariffs or trade wars could put additional pressure on seaborne pricing. Despite these expected market conditions, we have a favorable operational performance outlook for 2025 and anticipate both higher sales and production volumes.

Speaker Change: <unk>.

Speaker Change: Now, let's turn to our outlook and guidance for the full year 2025, we expect the weak market conditions, we have seen over the last few quarters could persist for a prolonged period and could continue to put downward pressure on steelmaking coal prices.

Dale Boyles: Now let's turn to our outlook and guidance for the full year 2025. We expect the weak market conditions we have seen over the last few quarters could persist for a prolonged period and could continue to put downward pressure on steelmaking coal prices. In addition, any tariffs or trade wars could put additional pressure on seaborne prices. Despite these expected market conditions, we have a favorable operational performance outlook for 2025 and anticipate both higher sales and production volumes. We expect the demand from our contracted customers to remain stable. While we also expect spot demand to continue to be stronger in the Pacific Basin compared to our traditional markets in the Atlantic.

Speaker Change: In addition, any new tariffs or trade wars could put additional pressure on seaborne pricing.

Speaker Change: Despite these expected market conditions, we have a favorable operational performance outlook for.

Speaker Change: 25, and anticipate both higher sales and production volumes.

Speaker Change: We expect the demand from our contracted customers to remain stable. While we also expect spot demand to continue to be stronger in the Pacific basin compared to our traditional markets in the Atlantic.

Dale Boyles: We expect the demand from our contracted customers to remain stable, while we also expect spot demand to continue to be stronger in the Pacific Basin compared to our traditional markets in the Atlantic. We will continue to pursue our successful strategy of focusing on contracted customers with value-added spot activity. We are entering 2025 with a stronger contracted volume of approximately 85% and spot volume of 15%. With this context, we are keeping our initial 2025 guidance unchanged until there is additional clarity on the impact of the recent trade and tariff policy announcements. At this time, it is extremely difficult to estimate the impact of these recent policy decisions on our business due to the uncertainty and market volatility. We expect to provide further updates to our financial outlook in connection with our Q2 earnings call to be held in early August 2025.

Speaker Change: We will continue to pursue our successful strategy of focusing on contracted customers with value added spot activity.

Dale Boyles: We will continue to pursue our successful strategy of focusing on contracted customers. with value-added spot. We are entering 2025 with a stronger contracted volume of approximately 85% and spot volume of 15%.

Speaker Change: We are entering 2025 with a stronger contracted volume of approximately 85% and spot volume of 15%.

Speaker Change: With this context, we are keeping our initial 2025 guidance unchanged until there is additional clarity on the impact of the recent trade and tariff policy announcements.

Dale Boyles: With this context, we are keeping our initial 2025 guidance unchanged until there is additional clarity on the impact of the recent trade and tariff policy in the country. At this time, it is extremely difficult to estimate the impact of these recent policy decisions on our business. due to the uncertainty in market volatility.

Speaker Change: At this time is extremely difficult to estimate the impact of these recent policy decisions on our business due to the uncertainty and market volatility.

Speaker Change: We expect to provide further updates to our financial outlook in connection with our second quarter earnings call to be held in early August 2025.

Dale Boyles: We expect to provide further updates to our financial outlook in connection with our second quarter earnings call to be held in early August 2025.

I'll now turn it back to Walt for his final comments.

Walt Scheller: I'll now turn it back to Walt for his final comment. Thanks, Dale. As we look forward, we believe the global steel market will continue to face challenges for the rest of the year due to China's overcapacity and the uncertainty caused by recent changes in trade and tariff policies. However, we expect some of these headwinds to be balanced with an increase in steelmaking coal demand from India during the year, as new steel production is commissioned. We also expect the recent mining events to cause temporary tightness in the steelmaking coal availability, which could lead to slightly higher prices compared to the previous.

Walt Sheller: Thanks Dale.

Dale Boyles: I'll now turn it back to Walt for his final comments.

Speaker Change: As we look forward, we believe the global steel market will continue to face challenges for the rest of the year due to China's overcapacity and the uncertainty caused by recent changes in trade and tariff policies.

Walter Scheller: Thanks, Dale. As we look forward, we believe the global steel market will continue to face challenges for the rest of the year due to China's overcapacity and the uncertainty caused by recent changes in trade and tariff policy. However, we expect some of these headwinds to be balanced with an increase in steelmaking coal demand from India during the year as new steel production is commissioned. We also expect the recent mining events to cause temporary tightness in the steelmaking coal availability, which could lead to slightly higher prices compared to the previous quarter. Until there's a meaningful change in the global steel market fundamentals, it is unlikely that steelmaking coal prices will return to their previous levels.

Speaker Change: However, we expect some of these headwinds to be balanced with an increase in steelmaking coal demand from India. During the year as new steel production is commissioned.

Speaker Change: We also expect the recent mining events caused temporary tightness in the steelmaking coal availability, which can lead to slightly higher prices compared to the previous quarter.

Speaker Change: But until there is a meaningful change in the global steel market fundamentals. It is unlikely that steel, making coal prices will return to their previous levels.

Walt Scheller: But until there's a meaningful change in the global steel market fundamentals, it is unlikely that steelmaking coal prices will return to their previous level.

Speaker Change: While we recognize that we're operating in an uncertain environment on world class asset base highly flexible cost structure and a high performing workforce will allow us to navigate successfully through the remainder of this year and beyond.

Walt Scheller: While we recognize that we're operating in an uncertain environment, a world-class asset base, highly flexible cost structure, and a high-performing workforce will allow us to navigate successfully through the remainder of this year and beyond.

Walter Scheller: While we recognize that we're operating in an uncertain environment, our world-class asset base, highly flexible cost structure, and a high-performing workforce will allow us to navigate successfully through the remainder of this year and beyond. With that, we'd like to open the call for questions. Operator?

Speaker Change: With that wed like to open the call for questions operator.

Operator: With that, we'd like to open the call for questions. Operator? At this time, I would like to remind everyone that to ask a question, please press star, then the number one on your telephone keypad.

Speaker Change: At this time I would like to remind everyone that to ask a question. Please press Star then the number one on your telephone keypad.

Operator: Your first question comes from the line of Katja Jancic with BMO Capital Markets. Please go ahead.

Speaker Change: We will pause for just a moment to compile the Q&A roster.

Operator: We will pause for just a moment to compile the Q&A roster.

Speaker Change: Your first question comes from the line of Scott <unk> with BMO capital markets. Please go ahead.

Katja Jancic: Your first question comes from the line of Katja Jancic with BMO Capital Markets. Please go ahead. Hi, thank you for taking my questions. Maybe starting on the pricing side, I think Walt you mentioned that price utilization could stay below the 85%. So given the current market environment, is it fair to still assume somewhere between 80 to 85% or how should we think about it?

Hi, Thank you for taking my questions, maybe starting on the pricing side I think Walter you mentioned that.

Katja Jancic: Hi. Thank you for taking my questions. Maybe starting on the pricing side. I think, Walt, you mentioned that price realization could stay below the 85%. Given the current market environment, is it fair to still assume somewhere between 80% to 85%, or how should we think about it?

Speaker Change: Price realization could stay below the 85% so given the current market environment is it fair to still assume somewhere between 80% to 85% or how should we think about it.

Speaker Change: Alright, I think thats a reasonable worst.

Walt Scheller: I think that's reasonable, you know, we're still hopeful it will be above that, but I think that's reasonable, 80 to 85%. And then in this environment, given how good your costs were this quarter, is the $120 per ton something we should be considering in the near term, or what are some of the moving pieces there?

Walter Scheller: I think that's reasonable. We're still hopeful it'll be above that. I think that's reasonable, 80% to 85%.

Speaker Change: Hopefully it will be above that but I think thats reasonable 80% to 85%.

Speaker Change: And then in this environment given how good your cost.

Katja Jancic: In this environment, given how good your costs were this quarter, is the $120 per ton something we should be considering in the near term, or what are some of the moving pieces there?

Speaker Change: This quarter is this one.

Speaker Change: $120 per ton something we should be considering in the near term or what are some of the moving pieces there.

Scott: Hi, Scott is scale.

Scott: Well as far as the low end of the range that was because of the prices that average.

Dale Boyles: Hi, Katja. It's Dale. Well, as far as the low end of the range, that was because the prices that averaged what they did in the quarter was much lower than our assumption for the year. It really depends on where prices go the remainder of the year. We've seen them bounce up a little bit here in the last couple of weeks. It's really going to be price dependent because our transportation royalties are variable. Prices continue to go down from here. We could see some more improvement as well as our management of our cost as well. If met coal prices rise, we'll see a rise in our variable cost as well. Sorry, I can't give you a really good example unless you can give me an exact met coal price for the year.

Dale Boyles: Dale. Well, as far as the low end of the range, you know, that was because the prices at average You know, what they did in the quarter was much lower than our assumption for the year. So it really depends on where prices go the remainder of the year. You know, we've seen them bounce up a little bit here in the last couple of weeks. So it's really going to be price dependent because our transportation royalties are So prices continue to go down from here. more improvement as well as our management of our cost as well, but if prices, Met Coal prices rise, you know, we'll see a rise in our variable.

Scott: They did in the quarter was much lower than our assumption for the year. So it really depends on where prices go of the remainder of the year, we've seen them.

Scott: Ounce up a little bit here in the last couple of weeks. So it's really going to be price dependent because our transportation royalties are variable. So prices continue to go down from here, we could see some more improvement as well.

Scott: Our our management of our cost as well.

Scott: But if prices nickel prices rise, we will see a rise in our variable cost as well.

Scott: So sorry, I can't give you a really good example of this you can give me an exact met coal price for the year.

Dale Boyles: So sorry, I can't give you a really good example unless you can give me an exact met coal price. Yeah, more and more. I was more thinking about near term, right? If prices stay at these levels in 2Q. I assume that this cost level would still be sustainable. Is that fair? Yeah, it's fair.

Scott: More and more I was more thinking about near term Ryan if prices stay at these levels and QQ.

Katja Jancic: Yeah. I was more thinking about near term, right? If prices stay at these levels in Q2, I assume that this cost level would still be sustainable. Is that fair?

Scott: I assume that.

Scott: This cost level would still be sustainable is that fair.

Scott: Yes, that's fair yes.

Speaker Change: One more if I may if I'm not mistaken your longwall shields are imported from Europe.

Dale Boyles: Yeah. It's fair. Yes.

Katja Jancic: One more, if I may. If I'm not mistaken, your longwall shields are imported from Europe.

Katja Jancic: One more, if I may. If I'm not mistaken, your longwall shields are imported from Europe. Based on the current situation, are you responsible for the 10% tariffs that are in place?

Scott: Are you based on the current situation are you responsible for the 10% tariffs are in place.

Dale Boyles: Are you, based on the current situation, are you responsible for the 10% tariffs that are in place? With those shields, when they'll all be delivered, we will not incur any tariff impacts on those shields. Perfect, thank you.

With those shields with when they will all be delivered we will not incur any tariff.

Walter Scheller: With those shields, when they'll all be delivered, we will not incur any tariff impacts on those shields.

Speaker Change: Impacts on those yields.

Speaker Change: Perfect. Thank you.

Speaker Change: Q.

Katja Jancic: Perfect. Thank you.

Speaker Change: Yeah.

Nick <unk>: Our next question comes from Nick <unk> with B Riley Securities. Please go ahead.

Walter Scheller: Thank you.

Nick Giles: Our next question comes from Nick Giles with B. Reilly Securities. Please go ahead. Thanks, Operator. Good afternoon, everyone. My first question was just back on the realizations. You listed a number of factors that that drove things lower. And I was wondering if you could add some color around that. I mean, should we think about transportation differentials and hire sales to Asia as some of the biggest drivers or any color you could add around, you know, the type of discounts that U.S. producers are ultimately taking to to send tons to Asia? Thank you very much. Thanks, Nick.

Operator: Our next question comes from Nick Giles with B. Riley Securities. Please go ahead.

Nick: Thanks, operator, good afternoon, everyone.

Nick: My first question was just back on the realizations you listed a number of factors that that drove things lower and I was wondering if you could add some color around that I mean should we think about transportation differentials and higher sales to Asia is as some of the biggest drivers or.

Nick Giles: Thanks, operator. Good afternoon, everyone. My first question was just back on the realizations. You listed a number of factors that drove things lower, and I was wondering if you could add some color around that. Should we think about transportation differentials and higher sales to Asia as some of the biggest drivers, or any color you could add around the type of discounts that US producers are ultimately taking to send tons to Asia? Thank you very much.

Nick: Any color you could add around the.

Nick: The type of discounts that U S. Producers are ultimately taking two to 10 tons to Asia. Thank you very much.

Speaker Change: Yes, thanks, Nick.

Speaker Change: Yes, those factors is what drove it and it really depends on where we sale our volumes into Asia.

Dale Boyles: Thanks, Nick. Yes, those factors are what drove it, and it really depends on where we sell our volumes into Asia. Right? The transportation we saw last year rates as high as $50, $55 a ton. We're more in that mid-30s now. It's come down quite substantially over time. With the trade and tariff noise, those rates have started to rise recently, given the potential with the landed vessel charge that was talked about there for a while. Those are the things that can drive those things, as well as the difference between the relativity between the PLV and the High Vol A that prices off of Platts. Those are really the biggest factors.

Dale Boyles: Yes, those factors are what drove it. And it really depends on where we sell our volumes into Asia. Right. So the transportation we saw last year rates as high as $50-$55 a We're more in that mid-30s now, so it's come down quite substantially over time. But, you know, with the trade and tariff noise, those rates have started to rise recently. the Landed Vessel Charge that was talked about there for a while. So, those are the things that kind of drive those things, as well as the difference between The Relativity between the PLV and the High Vol A that you know prices are So those are really the.

Speaker Change: So the transportation, we saw last year rates as high as 50 $55 a ton were more in that mid thirties now.

Speaker Change: So it's come down quite substantially over time, but with.

Speaker Change: With the with the trade and tariff noise those rates started to rise recently.

Speaker Change: Given the potential with the.

Speaker Change: Unit the landed vessel charge that was talked about there for a while so those are the things that count kind of drive those things as well as the difference between.

Speaker Change: The relativity between the <unk> and the high vol. A debt prices off of flat. So those are really the biggest factors.

Got it thanks for that Dale.

Speaker Change: Maybe just back to the shipment side I mean shipments were higher than expected based on the midpoint of your guidance and when taking into account Blue Creek volumes in the second half. So curious how we should think about volumes in the second quarter.

Nick Giles: Got it. Thanks for that, Dale.

Nick Giles: Got it. Thanks for that, Dale. Maybe just back to the shipment side. Shipments were higher than expected based on the midpoint of your guidance and when taking into account Blue Creek volumes in H2. Curious how we should think about volumes in Q2. Is it fair to assume that they could step down?

Nick Giles: Maybe just back to the shipment side. I mean, shipments were higher than expected based on the midpoint of your guidance and when taking into account Blue Creek volumes in the second half. So, curious how we should think about volumes in the second quarter.

Speaker Change: Is it fair to assume that they could step down.

Dale Boyles: Is it fair to assume that they could step down? Well, if you look at our, you know, historical what we sell in the second half of the year, you know, the fourth quarter is very light.

Speaker Change: Yeah.

Speaker Change: Well, if you look at our historical what we sell in the second half of the year in the fourth quarter is very light.

Dale Boyles: Well, if you look at our historical, what we sell in the H2, the Q4 is very light. I'm not going to give guidance on the Q2. Just to say that, look, for the year, we're within our range. We're 85% contracted for the year. Volumes can shift between quarters if a customer calls and all of a sudden moves a vessel that's supposed to ship the last day, moves it 2 days into the next quarter. That happens. We don't read too much into the difference between the quarters. We really focus on the year.

Speaker Change: Im not going to give guidance on the second quarter just.

Dale Boyles: I'm not going to give guidance on the second quarter, just to say that for the year within our range, we're 85% contracted for the year. So, you know, volumes can shift between quarters if a customer calls and all of a sudden moves a vessel that's supposed to ship the last day, moves it two days into the next quarter, that type of thing. So we don't read too much into. where you can really focus. Hey, fair enough.

Speaker Change: Just to say that look for the year within a range, where 85% contracted for the year.

Speaker Change: So <unk>.

Volumes can shift between quarters, if a customer calls and all of a sudden moves the vessel that's supposed to ship the last day moves it two days into the next quarter that happens so we.

Speaker Change: We don't we don't read too much into the difference between the quarters, we really focus on the year.

Speaker Change: Okay fair enough and one.

Speaker Change: If I could.

Nick Giles: Hey, fair enough. One more, if I could. There's obviously been a lot of pain out there in the US met markets, and so I was wondering if you could comment on the overall production outlook. Do you have any rough estimate for how much production could have come offline during this period, and what level of US production is ultimately at risk?

Theres, obviously been a lot of pain out there in the U S met markets and so I was wondering if you could comment on the overall production outlook.

Nick Giles: And one more, if I could, you know, there's obviously been a lot of pain out there in the U.S. met markets, and so I was wondering if you could comment on the overall production outlook. You know, do you have any rough estimate for how much production could have come offline during this period, and what level of U.S. production is ultimately at risk? I think that's really difficult to say because even today we're hearing more rumors of different things going on in different operations. We know where we sit on the cost curve and we know there's a lot of pain being incurred right now throughout the industry.

Speaker Change: Do you have any rough estimate for how much production could have come offline. During this period and what level of U S production is ultimately at risk.

Speaker Change: Yes.

Speaker Change: That's really difficult to say because even today, we're hearing more rumors of different things going on in different operations.

Walter Scheller: I think that's really difficult to say, because even today, we're hearing more rumors of different things going on in different operations. We know where we sit on the cost curve, and we know there's a lot of pain being incurred right now throughout the industry. I wouldn't be terribly surprised to see some curtailments. Sometimes those take a little time.

Speaker Change: We know where we sit on the cost curve and we know there's a lot of pain being incurred right now throughout the industry. So I wouldn't be terribly surprised to see.

Nick Giles: So I wouldn't be terribly surprised to see some curtailments, but sometimes those take a little time. Fair enough.

Speaker Change: Some curtailments.

Speaker Change: But sometimes those take a little time.

Speaker Change: Yes.

Speaker Change: Fair enough well on it.

Speaker Change: And you're on your ability to navigate these tough market. So keep up the good work.

Nick Giles: Fair enough. Well, I want to commend you on your ability to navigate these tough markets, so keep up the good work.

Nick Giles: Well, I want to commend you on your ability to navigate these tough markets, so keep up the good work. Thank you.

Speaker Change: Thank you. Thank you.

Walter Scheller: Thank you.

Speaker Change: The next question comes from George <unk> with UBS. Please go ahead.

Dale Boyles: Thank you.

George Edie: The next question comes from George Edie with UBS, please go ahead. Yeah, hi, Walton, Dale, hope you're both well. My first question is on Blue Creek and the remaining $220 to $300 million capex. Could you maybe just clarify what it is specifically, or at least what the big parts are and when it will be spent over the next 12 months? Yeah, so a lot of this is final construction. So labor, a lot of things like that. The majority of the large purchases of steel. I would say we have the majority. So this is really finishing out the project.

Operator: The next question comes from George Eadie with UBS. Please go ahead.

Speaker Change: Yes, Hi, Walt and Dale.

Speaker Change: Well My first question is on Blue Creek, and the remaining 220 million Capex could you maybe just clarify what it is specifically Europe based both the big parts off and brand that will be spent over the next 12 months.

George Eadie [Equity Research Associate: Hi, Walt and Dale. Hope you're both well. My first question is on Blue Creek and the remaining $220 to 300 million CapEx. Could you maybe just clarify what it is specifically or at least what the big parts are, and when it will be spent over the next 12 months?

Speaker Change: Oh go ahead deal yes.

Speaker Change: A lot of this is final construction right.

Dale Boyles: Go ahead, Dale.

Walter Scheller: Yeah. A lot of this is final construction. Labor, a lot of things like that. The majority of the large purchases of steel and

Speaker Change: Alright, so labor a lot of things like that but the majority of the large purchases of steel.

Speaker Change: Sure.

Speaker Change: Equipment.

Speaker Change: Say, we have the majority of that already.

Dale Boyles: Equipment, I would say we have the majority of that already on hand. This is really finishing out the project. If you look, our estimate was $225 to 250 million for this year. That's what we look to spend this year, and the $55 million in Q1 is right on target with that. It steps down significantly in 2026.

Speaker Change: And so this is really finishing out the project.

Speaker Change: So if you look at our estimate was $2 25 to $2 50 for this year.

Walt Scheller: So if you look, our estimate was $225 to $250 for this year. So, that's what we look to spend this year in the $55 million in the first quarter right on target with them. that it steps down significantly. It's the build out of those other two modules we talked about with the prep plant, the labor to do that. the Overland Belt, finishing construction of that, which is to come online in the fourth quarter. Plus, we continue to work on the barge loadout. So those are the three big, when Dale talks about the labor, those are the three big buckets of the project that are continuing throughout this year.

Speaker Change: So that's.

Speaker Change: That's what we look to spend this year and $55 million in the first quarter is right on target with that so that it steps down significantly in 2026.

Speaker Change: It's the it's the build out of those other two modules, we've talked about with the prep plant the labor to do that it's the overland belt, finishing construction of that wishes to come online in the fourth quarter plus we continue to work on the barge load out. So those are the three big.

Walter Scheller: It's the build-out of those other 2 modules we talked about with the prep plant, the labor to do that. It's the overland clean coal belt, finishing construction of that, which is to come online in Q4. Plus, we continue to work on the barge load-out. When Dale talks about the labor, those are the 3 big buckets of the project that are continuing throughout this year.

Speaker Change: They will talk about the labor. So those are the three big buckets of the projects that are continuing throughout this year.

Speaker Change: Yes, that's good thanks for clarifying that and maybe the working cap Saturday 2 million sale. This quarter is that mostly attributable to Italy, Craig in cash should we maybe think about that in the coming quarters, where we see a similar trend potentially though.

Dale Boyles: Yep, that's good, thanks for clarifying that. And maybe the working cap, so $32 million bill this quarter, is that mostly attributable to Blue Creek? And how should we maybe think about that over coming quarters? Will we see a similar trend potentially, Dale? Yes, you know, as we mentioned, we did start washing some of the Blue Creek coal. Our inventory's been building. from the production there. So as we start to wash that coal and get it delivered to the port and then sold, we'll start to turn some of that working capital in the second half. So I would imagine you're gonna see.

George Eadie [Equity Research Associate: Yep. That's good. Thanks for clarifying that. Maybe the working capital, that $32 million build this quarter, is that mostly attributable to Blue Creek? How should we maybe think about that over coming quarters? Will we see a similar trend potentially, Dale?

Speaker Change: Yes.

Speaker Change: You know as we mentioned we did start watching some of the Blue Creek coal.

Dale Boyles: Yes. As we mentioned, we did start washing some of the Blue Creek coal, and our inventory's been building from the production there. As we start to wash that coal and get it delivered to the port and then sold, we'll start to turn some of that working capital in H2. I would imagine you're going to see over Q2 and early Q3, you're going to see a working capital build, and then we'll start to see some improvement in H2, late.

Speaker Change: Our inventory has been building from.

Speaker Change: From the production there so as we start to wash that call and get it delivered to the Port and then sold will start to turn some of that working capital in the second half so I would imagine youre going to see.

Speaker Change: Over the second and early third quarter, you're going to see a working capital build and then we will start to see some improvement in the second half.

Dale Boyles: Over the second and early third quarter, you're going to see a working capital build and then we'll start to see some improvement.

Speaker Change: Late.

Speaker Change: Yes, okay. Thanks, very much and then just last one guidance what are called.

George Edie: Yep, okay, thanks very much. And then just, last one, guidance, what Met Coal price was that based off? It's based on $200. And that's metric, so whatever that is, 180. Yeah, perfect. Thank you.

George Eadie [Equity Research Associate: Yep. Okay, thanks very much. Then just last one. Guidance, what met coal price was that based off?

Speaker Change: POS was that lifestyle.

Speaker Change: It's based on $200.

Dale Boyles: It's based on $200, and that's metric. Whatever that is, $185-ish.

Speaker Change: And thats metric so.

Speaker Change: That is 185 ish.

Speaker Change: Yeah sure. Okay. Thank you. Thanks, guys. Thanks, Steph Thanks, a lot.

George Eadie [Equity Research Associate: Yeah. Sure. Perfect. Thank you. Thanks, guys. Thanks, Dale. Thanks, Walt.

Speaker Change: Thank you.

George Edie: Thanks, guys. Thanks, Dale. Thanks a lot. Thank you.

Speaker Change: Thank you.

Walter Scheller: Thank you.

Speaker Change: Again, if you wish to ask a question. Please press Star then one.

Operator: Thank you. The next question comes from Nathan Martin with The Benchmark Company. Please go ahead.

Operator: Again, if you wish to ask a question, please press star, then 1.

Speaker Change: Okay.

Speaker Change: The next question comes from Nathan Martin with the Benchmark Company. Please go ahead.

Nathan Martin: The next question comes from Nathan Martin with The Benchmark Company. Please go ahead. Thanks operator. Good afternoon, gentlemen. Maybe first a clarification question. Walt, I might have heard this incorrectly, but I think you mentioned you price your your High Vol A product off the Platts U.S. Low Vol HCC index, not the U.S. High Vol A. Did I hear that correctly? You did, and you know, how it gets priced depends on where the customer is, so it varies, but yes, that's correct. Okay, got it. You know, as we've seen, I guess, the all CPLB price has increased some, which is positive, but those U.S.

Nathan Martin: Thanks, operator, good afternoon gentlemen.

Nathan Martin: Maybe first a clarification question I might have heard this incorrectly, but I think you've mentioned pressure high vol. A product off the plus U S. Low vol. HCC indexed off the U S High Vol a.

Nathan Martin: Thanks, operator. Good afternoon, gentlemen. First a clarification question. Walt, I might have heard this incorrectly, but I think you mentioned you price your High Vol A product off the Platts US low vol HCC index, not the US High Vol A. Did I hear that correctly?

Nathan Martin: I hear that correctly.

Nathan Martin: You did and how it gets priced depends on.

Walter Scheller: You did. How it gets priced depends on where the customer is. It varies. Yes, that's correct.

Nathan Martin: Where are the customers so it varies.

Nathan Martin: That's correct.

Nathan Martin: Okay got it.

Nathan Martin: As we've seen I guess, the Aussie Pov price that has increased some which is positive but those U S prices have not quite kept pace in the discount spread has widened.

Nathan Martin: Okay. Got it. As we've seen, I guess the Aussie PLV price has increased some, which is positive, but those US prices have not quite kept pace, and that discount spread has widened, as I think you guys also called out. I'm interested to get your thoughts on the published US prices, if you think those are reflective of the current market and do you think this discount can tighten up?

Walt Scheller: prices have not quite kept pace and that discount spread has widened, as I think you guys also called out. So, I'm interested to get your thoughts on the published U.S. prices, if you think those are reflective of the current market and, you know, do you think this discount can tighten up? Over time, I expect the discount to tighten up. I can't tell you how or when that'll happen, especially when you look at some of the operations that are having production issues this year and some of the tons that I think are under quite a bit more cost pressure right now.

Nathan Martin: <unk> also called out so interested to get your thoughts on the published U S. Prices. If you think those are reflective of the current market.

Nathan Martin: Do you think this discounting tightened up.

Nathan Martin: Over time, I expect the discounts will tighten up I can't tell you how or when that will happen, especially when you look at some of the operations that are having production issues. This year on some of the tons that I think are under quite a bit more cost pressure right. Now so I would expect it to tighten up I don't know how.

Walter Scheller: Over time, I expect the discount to tighten up. I can't tell you how or when that'll happen, especially when you look at some of the operations that are having production issues this year and some of the tons that I think are under quite a bit more cost pressure right now. I would expect it to tighten up. I don't know how quickly and how much, but that would be my expectation over time.

Nathan Martin: Quickly and how much but that would be my expectation over time.

Walt Scheller: So I would expect it to tighten up. I don't know how quickly and how much, but that would be my expectation over time. And then, Walt, do you see that what you're hearing from customers is kind of reflective of that index that Platts publishes, or are there any discounts or premiums for that matter? I think it's pretty much reflective of what the price Got it. Appreciate that.

Nathan Martin: And then just.

Nathan Martin: See what's you're hearing from customers is kind of reflective of that index of class publishes or are there any discounts or premiums for that matter.

Nathan Martin: Walt, do you see that what you're hearing from customers is reflective of that index that Platts publishes, or are there any discounts or premiums for that matter?

Nathan Martin: I think it's pretty much reflective of what the pricing.

Dale Boyles: I think it's pretty much reflective of what the pricing is.

Nathan Martin: Okay got it I appreciate that and then.

Nathan Martin: Good to hear.

Nathan Martin: Okay. Got it. Appreciate that. Good to hear, Ari, that the rail load-out and the prep plant module A being completed early. As you guys begin to start trucking that Blue Creek coal over to the load-out and shipping it, how should we think about the impact on cost per ton of the operations?

Nathan Martin: The rail load out the prep plant module a.

Dale Boyles: And then, good to hear, Ari, that the rail loadout, the prep plant, Module A, being completed early. You know, as you guys begin to start trucking that Blue Creek coal over to the loadout and shipping it, you know, how should we think about the impact on cost per ton of the operation? Well Nate, this is Dale. That won't have a dramatic impact because the volume this year is small comparative to the run rate volume, so it'll have some benefit, but It won't stand out this year like it will. Okay, Dale. Yeah, I was just thinking it might actually be a little bit of a drag or drive cost higher just because I would assume transportation costs would be a little bit higher from trucking.

Nathan Martin: Being completed early.

Speaker Change: Are you guys beginning to start trucking.

Speaker Change: Coal over to the load out and shipping it how should we think about the impact on cost per ton of the operations.

Dale: Well Nate this is dale.

Dale: That won't have a dramatic impact because of the volume this year.

Dale Boyles: Well, Nate, this is Dale. That won't have a dramatic impact because the volume this year is small compared to the run rate volume. It'll have some benefit, but it won't stand out this year like it will starting next year.

Dale: Small comparative to the run rate volume so it will have some benefit but.

Dale: It won't standout this year like it will starting next year.

Dale: Okay. Yeah, I was just thinking it might actually be.

Nathan Martin: Okay. Dale, yeah, I was just thinking it might actually be a little bit of a drag or drive costs higher just because I would assume transportation costs would be a little bit higher from trucking. Is that not the case, though?

Dale: A little bit of a.

Dale: Drag or drive cost higher just because I would assume transportation costs were little.

Dale: A little bit higher from trucking is that not the case, though.

Dale: Hi.

Dale Boyles: Is that not the case, though? If, if, what, if, what, that, um... The cost is going to be great coming out of Blue Creek, but the additional trucking for a short, short period of time shouldn't add anything. material calls to that. We're really focused on the cost right now and all the items that we have control over. to the extent we can mitigate that. know that didn't mean we attacked America, we attacked this country, we can't let That makes sense.

Dale: <unk>.

Dale: Look to that.

Dale Boyles: Look, the cost is going to be great coming out of Blue Creek, but the additional trucking for a short period of time shouldn't add any significant material cost to that. We're really focused on the cost right now and all the items that we have control over. To the extent we can mitigate that so that there's really no impact, we'll do that.

Dale: The cost is going to be great coming out of Blue Creek, but the additional trucking for a short short period of time shouldn't add any significant material cost to that.

Dale: And we're really focused on the cost right now and all the items that we have control over so to the extent, we can mitigate that said theres really no impact we will do that.

Dale: That makes sense and then as you just mentioned.

Nathan Martin: That makes sense. As you just mentioned, Dale, hoping to get maybe some more of your thoughts around what meaningful levers you could use to trim or defer some CapEx if need be during this persistently weak market.

Dale: Hoping to get maybe some more of your thoughts around what meaningful levers you could use to share and we'll defer some capex if need be during this persistently weak market.

Dale Boyles: And then, as you just mentioned, Dale, hoping to get maybe some more of your thoughts around what meaningful levers you could use to trim or defer some CapEx, if need be, during this persistently weak market. I think what we're doing is we are, you know, we're squeezing our existing operations pretty hard and making sure we're only spending on things that we absolutely have to have in the short term, and we'll continue to do that. And you know, we're constantly looking for every nickel and dime we can save in this type of a situation. And you know, when we...

Dale: Well I think what we're doing is we are we're squeezing.

Walter Scheller: I think what we're doing is we're squeezing our existing operations pretty hard and making sure we're only spending on things that we absolutely have to have in the short term. We'll continue to do that. We're constantly looking for every nickel and dime we can save in this type of a situation. We've kind of tried to design ourselves for this type of situation so that we're able to respond and thrive in this kind of a market as well as the upper end. We're pulling the levers we need to pull.

Dale: Our existing operations pretty hard and making sure. We're only spending on things that we absolutely have to have in the short term.

Dale: And we will continue to do that and we're constantly looking for every nickel and dime, we can save.

Dale: In this type of a situation.

Dale: We've kind of tried to design ourselves for this type of situations. So that we're able to respond.

Dale Boyles: We've kind of tried to design ourselves for this type of situation so that we're able to respond and thrive in this kind of a market as well as the upper end. So we're pulling the levers we need to pull. Tim, we have the ads in. Look, we have over $500 million of cash sitting on the balance sheet, so... As someone brought up earlier, you know, you have a maximum amount of three. So that's still...

Dale: And thrive in this kind of a market as well as the upper end so.

Dale: We're pulling the levers we need to pull.

Dale: Yes.

Dale: Look we have.

Dale Boyles: We have the asset benefit. Look, we have over $500 million of cash sitting on the balance sheet. As Money brought up earlier, you have a maximum amount of $300 million left to spend, so that still leaves you with another $200 million of cash if you need it for other things in a worst case.

Dale: Over $500 million of cash on the balance sheets.

Speaker Change: If someone brought up earlier you know you have a maximum amount of 300 million left to spend so that still leaves you with another $200 million of cash if you need it for other things.

Dale: Worst case.

Speaker: Well, a massive thank you to RainbowLeadership.org for allowing us to go on a look at all these finalists, wonderful people that just want to scroll back to the video. Okay, ta-da! Got it. Very helpful.

Speaker Change: Got it very helpful. I'll leave it there guys I appreciate the time best of luck.

Nathan Martin: Got it. Very helpful. I'll leave it there, guys. Appreciate the time and best luck.

Speaker: I'll leave it there, guys. Appreciate the time and best of luck. Thank you.

Dale: Thank you. Thank you.

Dale: Thank you.

Walter Scheller: Thank you.

Dale Boyles: Thank you.

Speaker Change: At this time there are no further questions I will now turn the call over to Mr. <unk> for any comments.

Operator: Thank you. At this time, there are no further questions. I will now turn the call over to Mr. Scheller for any comments.

Operator: At this time, there are no further questions.

Walt Scheller: I will now turn the call over to Mr. Scheller for any comments.

Speaker Change: That concludes our call. This afternoon. Thank you again for joining US today, we appreciate your interest in warrior.

Walt Scheller: That concludes our call this afternoon. Thank you again for joining us today. We appreciate your interest in Warrior. Thank you.

Walter Scheller: That concludes our call this afternoon. Thank you again for joining us today. We appreciate your interest in Warrior.

Speaker Change: Thank you.

Speaker Change: And that concludes our conference for today. Thank you also participating you may now disconnect.

Operator: Thank you. That concludes our conference for today. Thank you all for participating. You may now disconnect.

Operator: And that concludes our conference for today. Thank you all for participating.

Operator: You may now disconnect.