Arch Resources (ARCH) 9 Feb 212020 Q4 Earnings call transcript

Good day, and welcome to the Arch Resources, Inc. Fourth Quarter 2020 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Deck Slone, Senior Vice President of Strategy. Please go ahead, sir.

St. from morning Good for today. thanks joining and us Louis,

While boardroom, that I conducting this guidelines the from Arch's morning's call closely. CDC want following is spaced we widely are team and to assure you

remind me including Private financial Securities to call, to performance let begin, be relating we you certain forward-looking during statements business statements future expected Act. the considered Litigation that our may Reform this made and according Before statements

a are otherwise, degrees their I'd also statements. be that by different you that do financial archrsc.com. section to measures call happy in press forward-looking to law. address we not will in Investors' be can this uncertain. the posted a the website at to our result copy These in to than except nature Giljum, required information, by our which Paul that the of COO; release, the we take SEC reports end different remind statements have non-GAAP our of this our Forward-looking may morning undertake plan of discuss the to With as we on Also, and our which of actual are over call be events a will future CEO; participating questions. of annual at reconciliation uncertainties as expressed those morning's find our I'll Matt new remarks, materially be our Lang. formal CFO. Lang, Paul cause matters to John described the with turn may or we Drexler, Paul? After that, forward-looking our quarterly that detail more our you to and We results update future like whether in statements file

call Thanks Deck I on and morning, you the appreciate everyone. us today. joining good

workforce a face ongoing time. begin during a in the for several over the and expressing weeks remained and the infection from precautions to at that providers. in to is essential continue all challenging complex taking Arch their Arch step gratitude the as another one mirrored Even my commitment up level while quite significant virus what highest its in to rates deep execute The to the steadfast Let the of the their last service entire dedication surge recommended families me nationwide. by obviously team protect

We've liquidity strategic Leer our reductions. build segment proud the to maintained fortunate of cost associated reposition navigating associated project world are driven are with disciplined in We we highlights. growth to number efforts. a market company project our quartile objectives. our volume That with list of as out strong just significant the during coal accomplishments employees for was professional crisis, successful coking to South Hitting Arch's future all maintained the made development same them. health despite work class transformational the I'm tremendous structure the global and funded teammates on display and The our and the the some in team our augmented this have excellence of we and XXXX momentum of core through to in financing three first in success. commitment progress of requirements Despite a be achieving

year. of leadership many $XX capturing our employees our critical overhead voluntary costs the program We in environmental safety And again the our towards on with governance awards, and metallurgical industry's that We've by reduced of all strategic separation a arena our by streamlined company. structure industry of to per coal million organizational XX% their corporate staffing the fronts. top and the leading through and by Knight social and and shift levels these cut the continued markets thermal environmental, steel contribution Hawk Viper yet mine demonstrated

dynamic and even accelerated the as explore market to our align rapidly alternatives In in reclamation Power to Basin closure [Indiscernible]. quickly plan and move to we initiated we've strategic output continue our summary, demonstrated operations, even an pure Finally, platform an we changing pivot operational ahead excellence generation stronger continued the coal for thoughtful thermal future for River coking manner. logical with in all cash strategic and the in plan with our our business, facets create and a to of pushed a producer our

towards delivered top efforts metallurgical began growth franchise, its ability to Arch markets supported markedly to priority accelerated Most and powerhouse cost those projects. and an in a of products shift nearly we've premium XX slate metallurgical recent best-in-class As a focus structure, we’ve on strategic our steel ago, years quarters. US by outstanding and critically,

cement Leer and High-Vol as the of States, in of premier the With coal United the as of A addition our South, supplier globally. to coal the metallurgical we producer preeminent position metallurgical expect

for Illinois time, and importantly, same projected the forward. legacy stand our significant we've the remaining this operate effort which to the Knight in contributed optimizing took end, as thermal built drive sense of mine platform step geared and Viper with in value South Hawk long-term test longwall operate in forward them. closure Coal, when a to strong reducing the Just we the the At We tandem, generation. going time next liabilities we linchpins Leer with urgency a systematically will thermal the to Leer mine assets, to a our the and to associated as at of financial continue with serve in of year in

transaction, obligations we As by undiscounted $XX long-term about our this mine million. reduced closure of part

inflated historic Creek significant with to requirements step levels. we line and to where mines. this plan by in with this XX-month. $XX we Significantly, mine, forward efforts next The to of maintain reduce to obligations obligation we course effort River these move the the reduce up XX% at to we our the achieve As the structure believe shrink come Coal Retirement accelerate over million will Asset of to cost can closure of of footprint goal associated around bonding a in long-term next we plan calculated operating Basin the Powder stake XXXX, and our

closure tons of sensitive normal pit that employee we the of way, XXXX, course, reclamation the Wyoming before reductions expect will In around of mining final through XXXX, Creek active Of the of necessitate site, an commencing million operation of we to our anticipate in discontinuing principally but of Coal last further workforce, Coal full producing achieve by the the at X followed and in facilities. Creek, year the demolition attrition.

even term in cash mechanism an order for closure, mine. to reduce cash we're sinking the to be point, final free translate our order Coal funding be yet, facilitate as putting dual we plan future we've establishment closures or as developing in Creek the ultimate plan similar of not may Thunder will these will the seek process near requirements. At While but focus, aside reclamation the for fund the accelerated to for in Black details finalized our a also flows provide into maintain strong this use. of Balancing to objectives mine

long-term River confident Thunder continue of course, responding well to Of out reforms the program. its owner levels number closure the speed that proceed, of state's dynamics, currently on own obligations. factors, to its will generate positioned wind to willingness market depend including and Black Basin the of the to is of a consider segment cash how sufficient reasonable Regardless to fund Powder we we're

performance. for markets to handing before Finally, further to John I'd our Drexler operating on like the the a call on comment share metallurgical few over thoughts

the well aware in global virus As higher the lockdowns you're in has been in all wake gear the economy and recent into disruptions of shifting of months related XXXX.

of XXXX XXXX December rolled that running is XXXX global whole depending year's XX% and X% the well XXX% more now less have with the in in levels utilization at Association watermark market. when strength, now markets resurgence evident the compared in emblematic despite global resurgence uncertainty at being where are Nowhere above just Moreover, metallurgical steel the rates of surrounding ahead you even their last than progress pandemics on Pricing Moreover, is industry, steel virus what December pre production of as finished production markets, more is give down international in sense steel import blast that Chinese than Steel of the well. global XXXX, steadily year Arch levels. robustly regional pandemic this X% nearly of climbed for was estimates relative up the to versus as World low hot spite at That To driven seeing a America stand low XXXX. is on the stage XX% points coil XX% a trading up to North impact. and to we're by of of supported course, furnace of the policies.

last assessment of A the is indicator East an US to summer's of the press up High-Vol when As Coast price nearly XX% lows. of strengthening compared

downturn of has the taken expected from the projects to came with the Canada, demand the disrupted, the Mozambique, modest plans percentage cadence tons of than producers even cut supply believes tightening serving these pipeline. global has market. be XX XXXX addition began also coking late and that cuts the some from currently more of continue, to more the Russia been of the since resurgent bolstering United States permanent. are over of Arch cancel a coking Australia, only or Obviously, of but demand, number meaningful development to in expansion exact not these global coal coal total timeframe. continue relatively delay that production market announce supply the of the but in dynamic. will What's projects Moreover, the that supplies million out to been further In

saying remain future too plan seeing XXXX and plans, encouraged persist; long-term interest early in we and While, to price strong are straightforward creation value let highly strengthening closing, the and customers are In that we open their current remaining our say whether confident about are committed will our growth. deeply reiterate for me volumes. by our to a what it's

in believe to to performance committed low transitions proven our are of positioned we're growth XXXX. Drexler ever high on cost operational for In our a to to to and metallurgical slate our and call With using we with of ESG expecting stakeholders. and now South to our value track the excel we're last pandemic what turn As over platform future, our our well the and on John? details well industry quality further excellence short, leading performance other John our build as for our owners positions, record that, during world create operating best-in-class to project. assets, we products, post quarter, long-term continue Leer our as strengthening like I'll

to and of despite Paul how all like so I'd XXXX Paul the of other no tremendous workforce months. contributions recent I'm of proud like and has Arch's morning, in good the great year executed sentiments distraction. Thanks, challenges been has about a the everyone. echo and team the dedication and

our of platform. out highest As Paul single the ongoing strategic and build class Arch's coking remains world coal noted, objective successful

and During XXXX, and in already we breadth the tier a time, in volume related once change our depth difficult market expertise forward with portfolio, expanding environment, reduction, we our again deliver should of despite base. virus cash capabilities. our expansion and our capabilities step a same At significant existing of customer performance project portfolios the that delivering sales generating drove top the a demonstrated Leer South cost leveraging logistics the

time, With months expect key for of per six ton success, including the startup virtually metric every in realize average that and long-term about cost, quality. to improvements in volumes, transformational asset we

million reduction we was the shipments. above X of ton, For per which start midpoint cash achieved $XX.XX of the just at a driven of coking the ended, ton coal year XXXX our guidance slightly nearly in despite our pandemic only costs

per for in up the second In year, most target until track fact, in of a on half quarter. $XX hit ton were of the step infection that to significant we fourth rates the level

impacts progress another entering of recorded are longwall run. and is now developing we segment ton make South QX, channel. two our nearly more the related period. first have that stretch team the Down our Leer that reduced operating output than costs The approximately tons to increased its strong in $X operating way to well We metallurgical XXX,XXX by on virus long, in by and per quarter mile

the have All of have and by first to quarter. shields manufactured been site the system the we the on entire end of XXX longwall expect

completing include the of shale. milestones ventilation and modernization significant and the the new high Additional capacity preparation plan. Completion upgrading layout of finishing last

remaining the expanded network greatly that capacity projects of major final and to replacement renovated existing ties higher the the of slope well plan. a cutover the the the with underground preparation system as to One

The to approximately excitement prior and you imagine. As the this of theme will startup with now. anticipated, longwall from been major the outage build substantial a of change system combination system [Indiscernible] out, course, is six months necessitate has of this day will longwall. as of startup come the the of XX The might the the mine

be ago, and months also of the is working steadily before a we well output the the South due the While should mine we over. two Leer out capital will reaping virus the we million, in that other spent years within range now that XXXX that ramping projected to higher during end to million although remains the of of relationship start kinks and towards period for to part $XXX we mine the report provided benefits impacts. approximately which anticipate the guideposts gravitating anticipate large I'm $XXX losses, original quarantines pleased we several of

contemplated increasingly to South Leer ramp we opportunity As market appears the into to be at had environment strengthened production a likely.

coal vast midpoint the The business XX% fourth XXXX down majority compared this million of give to has year Chinese these QX at of a million close this plan steel our for team year's of a for at to at XXX,XXX X delivered producer XXXX. rapidly plan of X.X index, sign committed new metallurgical in during another To have coal the commitments incremental of market. committed tons the delivery million X.X ever months marketing including overall on XX% some recent with in XXXX. from of last first we of term time sales the quarter strength metallurgical been our leer ton tons on Our are tons, been to perspective, QX locking position busy

is complementing focus our As environmental, our on strategic metallurgical leadership. build is and But social I priority. noted, governance intensifying our strategic pivot out that the of portfolio top

nearly standard XXXX, industry United we incident large better than the time integrated diversified is for During the Xx of a loss across all average. again set producers operations our the once X.XX, producers again in with industry lead rate States. of And the which

well all the our XXX,XXX quality only against at bar one for again wide. XXX environmental operations measured parameters company In of fourth a as addition, as recording set across year one compliance, in water SMCRA the just we for violation row, points discharge NPDES

remarkable For truly accomplishment. a compliance rate of a XX.XXX%,

South, and it's of ESG Good nation's mine Award, for Interior's The Department the West reclamation laying addition two of state state safety commitment milestone excellence safety, excellence, Virginia the highest the Safety And safety nation's Leer claim top the evidence the the way highest Leer these of for and In Leading five thus West for which operations operations Sentinels Award, Virginia Greenland's of our honor. is further our award, Cornerstone award engagement. to claim highest of community distinction honor future. honor. of continued awards three our where and Neighbor the foundation in outreach the clear is

our bit discuss detail. our a assets let's just plans more in Now for thermal

cash for generation deployment in dual a optimizing and reclamation an down At those Viper closure. alternatives in As fashion mines purpose move thermal these with and thermal of at we and are Hawk. are the with for currently forward final track consistent contribute reducing time to footprint strategic with the the objectives we recent to Knight accelerated don't our event, materialize, in the moving assets exploring same alternatives

we months efforts total of optimization At targeting cash and around good so. just are Creek or both ARO in drive Fortunately, at greatest. reclamation of in where simultaneously. margin Coal we total fronts In annually our we are Coal to is progress accelerated positioned well on that our million expect efforts reduction initially, XX% Black even focus or our That's to the mine only is $XX around Creek, potential tied instances. though at ARO to XX mines words, present. of And other our XX% because produces Creek, plan X Coal an we million Thunder at tons both roughly results

In effort good in XX focus people to already on mine reclamation. a and made the a mine Thunder around transferring Black start fact, have we of after from December that suite on final exclusively equipment to Creek Coal

is Coal majority work already consistent For accelerated a the also with the even ship level of per with achieve reclamation to would year, expect to ton in Creek. which cost we the XX vast tons, the million historical recent mines averages, its PRB committed. expect generally We about

of bond thermal ability to Black the we footprint. efforts their While projects to the primary Coal several Thunder We pursue reduce will focus its requirements remain shrink closure and confident sufficient at this be assets Creek intend surety operational generate of its also cash year our to for ultimate own reclamation of in costs. pay levels our to

we shifts metallurgical are in already idled early for impacts we in the impacts continuing are our While cautious COVID-XX over at outlets that of full miner about far enthusiastic year virus XXXX, operations XXXX. Due of part the XX the have continuous our to year. related thus about

We versus up in our last step sequential quarter. shipments expect modest coal a QX only coking

Finally, rates the the first be shipping case as the the PRB year is tend typically of in in the half lower second. versus to

conclude by commitment enterprise. entire restating driving continuous to and me the Let our excellence operational improvement across

level South ESG on our thoughts his focused Leer critical world the are depth executing focus breadth and advance performance. performance. our that, existing strong With of of South, out area to Matt? the We the and in our metallurgical Leer industry reach our financial portfolio. startup, in leadership expanding for on I'll call build Finishing on over to a at with class market of Matt turn of intensifying

Thanks, John good everyone. morning, and

the into getting bonding. like our financials, discussion for the focus around would Before with a to thermal I surety the on a to plans add little operations

reduction plan we with the two that in more along in perform as funds thermal spending. should of in the reducing line to impact years operational for legacy next of John obligations. his As future Creek. prepared Paul generated of the requirements had Retirement Thunder limited bonding Black requirements same reclamation Clearly, of Viper a is those in excess our setting opportunities The our and any aside work which Coal is bonding flows significant result a and current at from step first divestiture thermal the total the time, noted Asset the XX% Bond step, mentioned, The remarks for with of flexibility. to related John million, represents approximately priority segment is bonding the for in for initial accelerated reduction Reduction reclamation, will operations. Paul next the obligation alluded of the nearly our without allow $XX reclamation At begin to that reclamation on logical cash over in

the in we would typical underway, latter along funding Given the that volumes, anticipate reclamation begin this seasonality PRB currently of amount with shipping part of the significant to in year.

divestiture expect the under the improve expected we capital substantially would lower was end Turning million. volumes with of spending liquidity; Viper to flows million capitalized third the constrained of to meaningfully production $XX and million both quarter, million $X than the taxes PRB project both and under given payment the all borrowing the flows for from throughout the and metallurgical to operating Leer quarter, operating of facilities to fourth annual the quarterly $XXX up base quarter facilities and million our than of maintenance our prior capital cash current metallurgical increased Availability finished the quarter cash $XX related nearly trend was million million and following prices quarter. CapEx that with cash Capital were Total interest. more for levels, the the year the Maintenance have with and reflecting weaker credit $XXX project for liquidity costs, results and was $X quarter operations. at South If million, remain the of spending in We including year total of of semi $XX sequentially. unrestricted $XX XXXX. than segment.

wanted liquidity year. I note of other sources to for this In two addition,

us remaining $XX bond qualifying $X be approximately substantially and offering be million Leer million in balance our of of half for restricted federal land summer's have exempt with sheet all South made of available year. cash settlement, our expenditures from XXXX finally, from we tax received approximately that And this the will first on expected First, to XXXX. in to this of remains

interest morning's on ramps some getting $XX release. like of would net When levels. respect the a to compared an to reduced provided Beginning income relaxed. our $XX SG&A, financial total been expand our million the of to XXXX with eventually for more And interest, anticipate million. from the cash represents $XX $XX SG&A guidance increase I even are XX% at to expense of more total spending as reduction with bit has XXXX, by SG&A we restrictions COVID Leer an activities the in With original Next, million of statement we're lower. for which this of nearly guidance and than then portion XX%. midpoint million X% cash Cash a South are as midpoint, expense than increase XXXX guiding up to marketing we in levels, on from represents of is

down For capitalized the convertible cash million; by offset cash to million interest increased breaks substantially non due interest of the component the $XX expense modeling notes. The accounting for has purposes expense of interest million. XXXX amortization treatment interest to non $XX cash of $XX

capital spending metallurgical maintenance total approximately expenditures with targeting South. to $XXX total million that million remainder that And relates Finally, at our midpoint. Leer $XX operations. million XX% related represents Roughly $XXX the of more is interest. capitalized the Of land than and we are at

includes of million for which of in the of in slightly the South perspective, $XX.X shields longwall we lost recall, towards Leer replacement you first is From a XXXX. spending South the back year timing half majority were vast the expect to with the the while associated Mountain Leer occur maintenance we Laurel, weighted reimbursed As end. in spending

on to Initiative. briefly I Q&A, wanted to ongoing mention Before one moving Financing

expect As complete opportunity have to tax to that we discussed, the financing exempt the in we efforts started XXXX. previously

year raised we funds. Virginia's of exempt As tax the policies will by was $XX State last recall, West that allocation the surrounding of limited you million

And for we'll to We additional now remaining another $XX look obtain raise state million expenditures. qualifying have to worked with allocation. the the

we With interest the rate, this a call of attractiveness take ready are to Operator, back we questions. you. the Given opportunity this turn quarter. carried plan that, the pursue recall that X% I first financing, to will in trance over the to original

from is Pipes question first Our Instructions] Lucas from B. Riley Securities. [Operator

Good both COVID and particular difficult job the done morning, into little bit to everybody well. wanted more. year and ESG first I as CapEx go front on the in on very well a then

the versus capital it But touched Leer provide XXXX? you CapEx then, sustaining with on think we growth you maintenance remarks. I prepared in breakdown kind in a look checkout? XXXX, think but give we it's should spending can past what Thank you a COVID us course, for term you expect? you. Of post sense where via And longer on as early, capital can of

is Hey, Drexler. John Lucas, this

As $XXX we're trending we've some that we're to end late seen be COVID in fourth the quarter. the within Leer at we've inefficiencies indicated the that indicated here the still and million of to given challenges We've some million the range of of $XXX guidance of South, going of range, that towards upper

the to the CapEx $XX highlighted did million for $XXX plus for In begins million CapEx. upper get for million. Leer we CapEx the Mount the million, a the of would lost be the $XX.X then of longwall addition, Laurel, And capitalized of to shields total maintenance sorry, recovery, includes $XXX for this the in I'm million project of that $XX and the $XX that insurance remainder the recovery insurance year million end at so at we you maintenance then that South, XXXX

are $XXX under to maintenance prior run Leer in we've million. forward, XXs, look that there the indicated CapEx generally somewhere starting up, would our to XX we South high As

or Leer modeling We're depth here above range finish been here project. markets. We commitment through to see got into the as great and that It's with of it's and bringing on as this, this coming from we a generating capabilities the But strengthening to there the and capital that of into slightly maintenance and we running. as online a maintenance would think needs think market startup line $XXX challenges we're ongoing cash COVID million capital South us a going get a then for we've Leer forward. the is the where and up excited worked South move impact transformational perspective forward. big capital I and probably we've capital

just $XXX dots we really time deck another million, or Leer million this to for so $XX that so clearly that's have. $XXX we to spending more get at look the And connect the of to address so that million that one South,

$XX recovery. got replacement the compensated shields, effectively what have for for in with insurance which XXXX million We is we the

around interest at that to and the $XXX then you million So CapEx or for to to capitalized about you midpoint. with gets million. about that $XX which the And you $XXX gets that rounding $XX million, gets $XXX million million at so maintenance

helpful. very Terrific,

one you about about this, Lucas, bigger to piece want the on and project, time and modest budget. brought complicated it's but really out in effectively I thing to being it's this I point have think that this if on think did unusual, it, pretty this industry project

his done. So of group and just tremendous of rest amount respect for team the everything that and John has

cost applies include question is us similar other of your even thermal there's other wondered PRB example? pieces does thermal? operations, or well. rates, can there to Does is some this thing, at their and to thermal as Or in also to as for what Or not that's your And PRB, And place volumes XX. that My XX.XX on maybe restaurant this or on the the but kind I you'd exclusively guidance, well. of, and moving somewhat just this this guidance, to price kind historical touched cost, to you in say remarks, great help guidance of look cost the I prepared hear. XXXX you bucket. second Yes, you. in I then recent but Thank think

Yes, Lucas, I'll others and here well. off start as can jump in

other And to on metallurgical PRB. in coal we we've segments, in the exclusively operation As Elk then longwall be you Viper focused continue operation West additional transformation had thermal our and included as thermal operation Illinois know, or our other two Colorado. thermal,

here the of is which influenced of we Thunder. have are contribution kind that leaves representing guidance in us thermal by and of operations, continues and Colorado, thermal. PRB the Black the majority obviously, the with focusing our on which for now putting the and Hawk operation into West that, together The that path With specifically Viper PRB Knight vast we're that, Elk that combination both into we of the

I XXXX, a we to despite the year to costs in around think delivered segment, significant XXXX. if needed last you look with the adjustments make ton PRB full back we segment the year in for the $XX.XX for PRB in

the to to you guiding $XX.XX $XX; in we're influenced of look guidance segment, obviously, influence is the PRB. majority that As the in thermal performance that heavily vast

that not operation tons We've Our volumes here; some the about opportunity reposition basis. to but as Newcastle there placed million in X.X annual market gotten West seen we've an markets, to the asset the contributes get discussion on Elk worked here. well. we've on has been what There

So thermal is about West how segment. and there we Elk feel operation guidance operations PRB combination our obviously that's of [Indiscernible] good, we The the the the and both

As together John strategy thought sense strategy. and made the with roll how assets how we're thermal it proceeding said, our we legacy to Lucas, given the

itself. Additionally, West Elk segment by have been would a

have we on alone. that sharing comfort So specificity didn't kind of West Elk

course us one terms coking Can Understood. with Appreciate Then, clarification. cadence on that of outlook, And in we volume second QX ramp would how you more volume maybe what we you. QX, the up recommend you the the of think year? and broadly? half for share should of me kind coal over quite robust. Thank that full last year about expect of side, the

the effectively, we indicated manage we'll what that's believe going to time, here we shipment We're as influence vaccine encouraged the to the see we're that impact quarter guiding and the prepared we're remarks, continuing rates to fourth of would levels. we be to over quarter. Lucas, COVID with COVID So think to continue we first similar just in in our experienced rollout, but

South optimizing the increase that bring starts operation is takes longwall guiding time and through expect And asset shipments focus a an ramping month can with and to continues on to so the we'll or we've It in the continue obviously online that then to half see opportunity got typically longwall coming year. once run, in the comes work over here up starting the back of Leer out we'll you that. of be up of the to to online, here but know, third you quarter working what the up. in we're that As nuances to and kind

flat portfolio now shipment for have right levels from the -- we indicated we've So QX.

then to look we historically build modestly up continue through and should better we kind ultimately now that midpoint QX to into to X.X QX historical could step in into of our to ton. you got that think as and trends I of some QX it million ramp quarters

question next Gagliano BMO Our from David Capital Markets. from

Hi. side. Great. to want just -- ask the my taking little On questions. more Thanks on coal a for

of First they're gave us us actually the you through sold all, dynamics, as obviously of in those volumes, terms as pricing going committed be buckets the through priced to year of go walk XXX% of we each how on can well. on

I'll Lucas, once in. here, So start others jump can again,

to to South Leer Sentinel, market portfolio South as indicated prior very strong the majority So we've you Leer of XX% Leer with pricing. production predecessor built, and feel having being our at stage we committed feel We that of the game, operation. online the the good a to exposed position; know coming really between that the commitment vast we book of this about unpriced

You're is X low which High-Vol is with got A million got of Laurel you've million million coking running then Mount tons. a being at B, that a High-Vol you've Beckley which ton coal tons vol, about and

across you all spread What of that environment. rest that the team prices and we a build a portfolio. an index proud we've average and can of in model. [Indiscernible] to market we're with very very was the seen, of pricing, the a take pricing of strong that proud market last lot of of kind So course the at and that marketing over qualities improving And quarter. the the the of has back And I'm market real put

midpoint XX% obviously, the fixed got a be our at can guidance look about, look you you of about if price. we've David, As

of XX% the remaining has a of pricing. about leaves POV. index index that I off priced specifically, as more So there's our that question, I that's position to indices small or your East assessments, Coast majority subject think of vast understood the And Australian although percentage

business Asian of is our of of off as Australian Paul most so priced the that, off and said, Deck POV it's price. so David,

first pricing that'll fact, pretty recovery fact the that in of quarter that first short our in And significantly, with lived. POV a said so the Having the in quarter. that had you'll here be see the you will the that reflection see lagged

pricing POV rebound terms And so the Asia reflecting we've of that business we've should significantly Queensland in on balance terms pricing. into what in of based signed and seen

CFR based about is note Additionally, well we know quite that that XXX,XXX of now, priced will right sold tons is be China, so did over that the strong delivered price as we and into $XXX. business on the you China, which

we sit today. And so here that's as advantageous

averages is $XXX to averages for quarter, USPS week High-Vol last codes I through for the look close those even ton at you Vol primary Dave, fourth if A High metric a $XXX. product, these mean, of to the codes, that A were end So averaging delivered

feel market as So that about clearly and is across all increase of the us built forward. markers, over how it primary we we the strength good perform book $XX how in so for will move a

helpful. Thanks. Okay, that's

piece? percentage on of of that -- basis or to think Pacific open, price the so that on Atlantic actually much basis price the Pacific just price? bucket I just is basin that it I that Rim frame into linked is Pacific down. that higher to XX% than just a you much So how Can can I got ton and break actually linked price, and basin XX% most want significantly to maybe how that is you break

XX% David it Coast would be would price. be the US than East more

thanks. Okay, That's helpful.

heavily. weighted specifically to High-Vol we're Of course, marker pretty A, that's the that the how majority the vast being given High-Vol A

right could bonding fund, of the wondering just frame us up if Okay, reclamation you not But to to perfect. size fully topic. of this sinking gears this, to on the apologize I'm speed help Thank I'm surety And you. And this [Indiscernible] the size switch I wanted potential just I subject.

that. Matt. Dave, Yes, is start this I'll on

to reclamation to I we characterize on In essentially second that ongoing One kind other that generating we of PRB, think doing, life terms sureties in make mine piece, of the while sinking ultimately the the can't the that and sense that until mining things. the makes can do remainder it's our really of work production build worked an work to to longer we're we're we revenue. and understand fund remaining can done need we're will long be have that. on continues. And with The no is work that remainder as distinct two putting we focus we do is build be as there's the work as sure in done fashion we're that. And the no they end it with and for towards funding we've as a the that think current

up CapEx $XX thermal year, at going about on what talking of price going to million this kind average $XX of less to are look $XX about million generate million to the XX thermal than guidance, we're tons in the $XX just an be we operations. as rounded million. use needs based to frame The you So if roughly and we're to

would available those life fund and it's put leave the of to in So $XX done to $XX to that go of mine Creek, $XX there's going million million million, available, a we're that Coal majority the being end $XX work spend million $XX million, reclamation million somewhere on $XX to probably today, $XX that be million into for neighborhood be call of to going roughly activity. going it the will at to to

about So that's we're the way kind it here. of thinking

over Thunder, that ARO In their terms At to bucket. Black what time. is of that of up probably builds second half fund in roughly there's

over how discussions would it have to. I So today. to good we're as build with mentioned concept. we both that the $XXX And had very be think neighborhood fact that's a about that our work partners But the million that that's time something in of to And reducing we're doing supportive the and bonding to good the forward. path $XXX about They're thinking million we're of and today. meaningfully ARO surety the going

footprint, at that on. as of as the reclamation the have for ARO, things. of we the where two It items that time the the coal using our have requirement, mine I cash, the footprint. significant Creek very indicated then while Coal to that that just opportunity provide that well, cash position life, we At reduces eliminates that we generated obligation We footprint we've only a Thunder. in to laid the continue make couple to and also bonding maybe final fund to comment on look we're producing sinking in meaningful recorded focus simultaneously And balance to out working markets couldn't cash end examples other the on Coal can the is the on mine Thunder, the think we're also not this now Matt indicated, but it does Black reducing advances Matt operation Black generating sheet. given that two and a shrink where And for closure in over better as future. final generate Dave, portfolio Creek

color hopefully, on and that. little So a that gives you more insight

David, it's one And just point Deck. final that. on

it's know, during commitment you we a Just sheet. a three XXXX. conservative with them that to had. with saw financings the that we're did engagement conveying have to Certainly multifaceted effort It's the that I balance question some and strong And surety. that multifaceted

on online, So South sheet position, very making them is sure apprised going kept a that generating greatly well we've balance capabilities. described, of that amounts And the in strong cash coming we just generally, cash of the we generate in financial which it's meaningful clear of we continue Leer lots PRB. and the that have we're John to as And PRB. expand continue cash to will to our convey committed

providing announced We that Matt continue the have and laid as then Creek. are Coal on progress. as going to well next bonding we're the option. out in we of the Creek really sort to the aggressive of closure contemplating, the as focusing expand plan closure be reclamation that the of Coal the we upon, both this step today sinking ongoing mechanism closure reducing we're And as Asset Retirement accelerated fund

are providers, discussions of our So and to we should feel a comfort think things where provide today. about those all good lot those

very Thank you. that's helpful. Okay,

ring So the the thermal when coal cash funding up sort business, that end and, that of business cash bonding generated be net it the Or that and whatever or the the all bonding from isolated? surety coal take of remaining requirements? some you is fenced with is that will and free thermal enough be also business expected will the flow And requirements? will for associated together, of surety there expectation

Yes, Dave, this is Matt.

that got to selling that also for that the but obligations term, the the generated years, today that the in next -- our the that pay expectation there. to be view over our cash there's think we're of business committed the handful given I we've business certainly and is demand the enough for can in plants PRB are the near thermal

there have think reflection, in seen nature of significant out I just a we'll levels, we've us we continuing that we generate to that to costs years, changes we allow team sit asset And confidence to tier once there outstanding of the cost, Dave as the volume the the for here And do today, again, be we've great that's one is that out got on able cash. continue moving deliver have that forward. despite to

pretty consistent mean, John over years, maintained Dave And margin I last the the we've has as over that you we've if mentioned, XX production, back as systematically been look that reduced timeframe.

meaningful flex also XX. of of extensively We've cash. conservatism the assumptions become talked flex amounts to yet, built XX some generate ability the tons time, we so tons And need the million But still million into have on cash. liability. our And about to will become still we as will that XX over generating

pay cash flows. their So pay of own sort we from closure good feel those the to being online quite final way costs about able to thermal assets continue here,

the David road without pushing too this far. down

you as way the this at is back, simple. look pretty think I stand I

what doing; controlling We're things think steer. of we I First, we're control that positive see we're the taking the can situation.

The from gets never experience, other thing or easier. is and reclamation it's my just cheaper

on and it get done, we what have done tended than we always I it we liability. to if we think cheaper it get have get done quickly,

the here. kind to what we're do philosophy, that's overriding trying So of

our further closing turn or to conclude question-and-answer no for the And have any session. call like to additional Paul does remarks. now that questions. that, we appears it over back I'd And with Lang

time everyone call. in quarterly interest our your thank for I'd in again like Arch participate to and to taking today

As you build a optimism tell, to closer. continues as longwall Leer draws South our can startup and enthusiasm

that post consumer positioned their to always era, is with looking we advantage same of peril, a be are to very pent-up appears At which market fraught trying is could we're well stimulate guess to economies. that While pandemic demand starting to countries timing materialize. it the take time many

coal However, up forward coking I with intend Stay that conclude recognize operator, capabilities With significant in timing and Thank to I out everyone. April. healthy, look to to safe you. will in our plays that, that with we're and platform. the a expanding to step the prepared be call reporting we going group

And call. your participation. with that, that does conclude today's you Thank for

You disconnect. now may