Peabody Energy (BTU) 27 Apr 232023 Q1 Earnings call transcript

Good day, and welcome to the Peabody First Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Karla Kimrey, Vice President of Investor Relations. ahead. go Please

thank the and are joining earnings Mark Peabody’s and Good quarter you of for Spurbeck. CFO, and first Jim today XXXX. call CEO, morning, Grech; for With President me

find you’ll a public to filings with as non-GAAP consider release, earnings risk of the our on referenced as reconciliation encourage forward-looking We measures. SEC. our factors with statement financial the the well information you along Within there,

the turn Jim. over call I’ll Now, to

Peabody’s XXXX, portfolio In the Thanks, strong first of produced Karla, and morning, quarter of another good everyone. quarter diverse financial results.

we past XX a aggressively the allocation. balance For our for sheet approach we months, to have committed been remain de-leveraging capital and disciplined

In a we will a component, that variable program consist fixed dividends. April, of shareholder share announced return dividend repurchases and

a share fixed and program weighting a heavy to transition starting repurchases expected including a share variable towards plan with are repurchases, and dividends. dividends, We

expand Before employees position I we like would workforce, financial we efficiently. global to in today. markets the our and our safely talented Without thank continued working strong operations, on not are the be on of dedication the their would for and in focus

Now, amid Africa, in countries. disruptions showed global recently March Colombia, prices improvement China, turning coal demand stabilized and coal markets. Global South from strong and to ASEAN ongoing in India, supply thermal and

shoulder conditions fuel and stocks healthy are Although seasoned influencing demand elsewhere.

import generation additional its China have Australian Australian over Australian of to for demand start providing production coal, million ban and thermal Domestic has the has tons imports been coal renewable unofficial in rates ended coal per X which resulted of year. strong month.

been strong. year-over-year as higher coal has has demand demand import been However, overall

India elevated XXX first elevated of activity and early imports imports rate an close it economic all domestic resulting increased shown XXXX, time improved tons. coal early of this the approximately quarter XXXX in of run production. the too signs of While is in demand, in to power high million has year, despite

constrained across it the is coal and globe. seaborne for demand robust Overall, remains supply thermal

However, prices of levels are and lower LNG in in coal across terms that globe. pricing Europe high headwinds we acknowledge the inventory short-term

market, Within price improving weather second March demand, metallurgical by characterized amid continued in ongoing in coal macroeconomic increases Met and macroeconomic month coal further the was eroded induced seaborne early half of the volatility supply Australia. turbulence, volatility global as disruptions counteracted and quarter sediment. the the

metric To record have since prices prompt coal. $X.XX prices per are the the remaining lowest this level mmBtu. headline albeit States at ton levels. to due hard-coking per $XXX gas healthy approximately gas further natural around United for natural mid-January, near quarter, U.S. production In gas weakened

natural gas to EIA half is response rates XXXX during forecasting currently to volumes flat. in higher LNG exports while second mmBtu end $X above natural Henry increase production gas Hub feed of remain spot to the prices per

be gas expected coal a low of and for to muted result near-turn stronger is U.S. prices Overall, thermal renewable generation. demand as

as the However, export increased the of and demand summer in half potential low second increase LNG has XXXX. weather coal prices, pressure to total demand brings stronger gas

operating on to segments. moving our Now,

of [indiscernible] Wambo increased were Our well per spend. sequencing lower lower stronger exports of overall production a a expected cost to mine out result productivity. As improved due than were thermal tons anticipated seaborne than and better due quarter as production as result as to first of efficient more the anticipated Cash than segments Open-Cut coal

the All safely JX a mine and and Creek mine. quarter roof evacuated Our in mine to March were the transport of due rains Shoal experienced down fill structure volumes and fire to heavy Seaborne involving congestion on the was met fourth the year. rail XX, Shoal Australia Creek from lower production XXXX, longwall utilized to the at earlier mine. material On void due from the panel, stabilize the personnel

to previously assess XX, and mined and only JX MSHA sealing times rescue equipped limited JX affected mine for perform temporary allowed On in the preparation work has temporary MSHA the area, into the program a installing panel. underground April panel of at situation various approved consists personnel to mine seals. the which

continue spend planned approximately to advance At we million redevelopment efforts North XXXX. and to in Goonyella, expect as $XXX

a a grade operation Australia As hard longwall tons over in coking is coal reminder, Queensland, North Goonyella with reserves. million XX premium of

the XX% historical increase considered phase. performance. grade In coal prices operation’s coal the is Peabody’s in long-term to and meaningfully volumes this is and PRB metallurgical due customer nominations coking feedstocks approximately globally. to coking higher This rail coal of better recovered expected returns be to at cornerstone Goonyella North production initial U.S., sales of generate

some We are XXXX. the quarter and pull lower availability truck improve to to for forward remainder of first able maintenance the into cost

mines thermal to as U.S. well other expected. Our continue perform

still our for committed essentially levels. operations and railroads XXXX, their are at the improvement are U.S. We showing fully domestic service in

customers working While in our retaining sold their with we while are be we to the value out, are responsive contracts. needs our to

conditions. going market U.S. forward, account to sales of assessment the current our reflects taking guidance Our current

I’ll to now over it the turn Mark financial cover details. to

completing Jim. collateral We pre-funding long-term $XXX and performance quarter, mine from adjusted diluted reclamation reported income for nearly and and $X.XX $XXX operating EBITDA cash had XX% prior other million year adjusting obligations. cash XX, of the the million of quarter. of net we Thanks, flow recorded share at common million after $XXX of of stockholders In or closure cash the March per increase and all $XXX first a attributable million,

will nearly X.XX%. in for buybacks price, first $X.XXX of to million dividend outstanding result at program, yield has importantly, program The we of the the about per agreement sheet credit $X shareholders, current X.X% pleased balance Under of the of better cash quarterly to the a and performance quarter return to or returned our shares. current our authorized announce $XXX approximately share on million and complete, bank for implemented $XXX.X we buyback regular comprehensive surety a More share delivered initiatives being letter were a amend eliminate share With program. facility. board billion million shares than X.X common commitments including shareholder

results. adjusted first million Turning Thermal segment of now Seaborne quarter $XXX to EBITDA. recorded the

As XXX,XXX from higher by $XX expected tons but shipments drive prior rates move quarter both production anticipated help due Wilpinjong Wambo than cost to expected, production a were at longwall Open-Cut the and than a lower exceeded ton. to per due export expectations Higher lower the to venture. joint Wambo, than

the a despite down benchmark. margin. average winding segment same Castle of in the With the the price legacy we XX% program, average adjusted hedge export quarter, an decline the EBITDA New the Overall, reported XX% nearly fourth realized as a

generated Seaborne million EBITDA. of Metallurgical The segment adjusted $XX.X

XX% was cost increase per and of better resulting rains The at realized despite mines ton production, the in to $XXX adjusted were volumes lower delivered conditions. thermal expected adjusted to adjusted quarter-over-quarter, lower XX%. market EBITDA EBITDA. challenging Queensland The As of quarter, of in the prior Shoal flat mines conditions prior due while million than $XXX than quarter U.S. generated due The PRB average to price challenging million margins heavy a XX.X the Creek. EBITDA.

Revenue repair per the ton benefit costs tons ton off was certain quarter. we we a as were XX pulled per the costs lower opportunistically of $XX.XX to expectations as shipped contracts. record first price forward were million continue from of into on equipment above $XX.XX roll forecast, while

line expectations million of The in margins mines adjusted XX%. adjusted EBITDA both in EBITDA. costs resulting delivered thermal XX.X of other with Production were and U.S.

had million turning $XXX of cash. Now the to XX, March balance we sheet. At

and requirements. and increased port credit with performance the elimination of compensation, During million, and connection such the we as XXX rail facility, letter mine black lung cash to million and obligations amendment the surety in pension long-term including million bank for of closure other legacy and restricted XXX workers’ XXX reclamation quarter collateral for and commitments,

revised to credit through collateral Combined, a to positioned believe in December amount Importantly, XX, XXXX. bonded surety cap market we with best XX% markets and we substantial liquidity the industry, bonding from have agreement and risk by free built of establishing cycles. the eliminates of Peabody the withstand third-party the balance Peabody’s access sheet uncertain guarantees a

Looking will receive to least shareholders free never capital maintain to discipline of available financial resiliency. cash XX% return will company’s forward, expecting the flow allocation, at we to rigorous

Lastly, let’s outlook. turn to our

unchanged only Our guidance updates priced limited positions. full remains year to with

production XXXX production the transitioning with lost Creek production ramped was later Shoal anticipated offsetting from reminder, up conditions. Creek. Metropolitan partially a better in than from Shoal As year Currently higher until in is

For segments. and the Seaborne quarter XXX,XXX export segment’s our higher as tons from improvements Wambo Thermal thermal move are heightened a to to first Wilpinjong we consistent performance Seaborne levels. reliable the produce another completed U.S. first Underground in and expecting quarter longwall second volumes the be at quarter, quarter’s are expected in continues

first CMJV are from tons the million expected average shipments on product that $XX remain XX% priced expected XX% hard to during impacted priced at coking are to impacts Seaborne are metallurgical average of are X.X and decline to and XXX,XXX per $XXX are quarter. to in product of XXX,XXX projected unpriced. to XXX of Approximately tons ton. be Newcastle higher XXX,XXX high heavy Costs of Queensland XXX at tons to ton. prevailing tons Above at logistics on prices. as to volumes achieve expected tons rains Costs coal and ash tons $XXX to X recover per remaining are $XX are million the

at XX $XX.XX. are of X price given on to tons expectations conditions. volumes Full priced than PRB, tons are ton. be projecting average reflecting minimums previous $XX of per are now the we And tons XX million market costs million million In less shipments year better contract expected

a be X.X at to year. anticipate previously in tons tons million anticipated treasury restricted and We XX of of of an no cost the priced with collateral per million yield. average less. XX payments tons net also interest U.S. $XX.XX interest volumes ton. cash significant conservative volumes cash inclusive annual increase Other are thermal a of year Full bond longer cash substantial for like surety now of XXX,XXX expected price We $XX fees and million are U.S. generating

balance and robust in company free the generate at with positioned long-term agreement. In surety extended to Goonyella. continued growth in Peabody summary, cash industry. We We most shareholder a continued the return North initiated invest resilient amended the to the sheet flow. and We program substantial

like for Operator? call turn the to over I’d questions. now

with [Operator Please from go Instructions] The Lucas ahead. first comes question Pipes Riley. today B

of the and congratulations cadence you met course [ph] well Good morning, everyone. the And shipments of job regards your over coal year, coal really much, met done. the to the the also first on commencement program costs. of cadence Thank this return that very is then of question capital in My operator.

a I you much very And bit for ramp if color there, you to the up that. ramp volumes could I versus is your and kind So a pretty for meaningful the looking cost. full and QX concurrent into we’re what at of volumes QX, where when in portfolio. color expect key your in guidance you more wondered you’ve Thank drivers year to done little would provide your in what just decline up outlook as back within on

Lucas. morning, thanks Good on program. shareholder comments the return And for the

finally excited that We’re off. to kick

right. You’re

As for the lowest the a first the was well year. be less improve at in given than the Wambo that going production to quarter. largely CMJV move as the undergoing consistently expect of at was the we We improved quarter to do announced in beginning year, first Underground longwall performance our as quarter the rateable

really drove lower. that volumes quarter first So

still to year. clearly potential of a We’re the out uncertainty with seaborne on of the There’s end some met for around remainder in plays our the see range. how lower target be But range that we’ll at that Shoal through Creek.

start it get this I’m for section that. Shoal for it? affected temporarily later for I mean it. the the that would existing just Creek, one? are know better this year. second sealed or your Any trying have rounding, that course Creek, that of the Thank where the adjacent production color the you at operating on you of longwall be longwall areas year. comments to on over could very sense to for a for much and the regarding Thank Shoal a And schedule is what you on

And very that step saying to that’s priority, if path I’ll but Yes. It’s have about we about talk safety because again. start at react from MSHA good every And reset take here to I’ll way just mine. of closely will conditions lot out And this in our we Hi, then you to the the Shoal the we as needed, that with safest Creek. our dictates forward in working hear a that other to we’re ceiling proceed. by variability the and talk And can forward path regard. the I Lucas. longwall, to top want

conditions that the great. stable, But say I relatively has that been will mine been have the which

be in put And so temporary of as we’re as a which can in seals, more substantial current mind there’s set for seals. construction put though, not path with the they in as that potential right forward now our variability, to you and going and very said, is, quickly, process extensive

out area mined them JX you of the because that’s JX do quickly said, can will the the that, to the a pick we Lucas, also panel, as mine and with And cut already in panel of off JX putting the panel area. which seals that localized and just

the attended And MSHA now. personnel. by in so will are and say right mine that actively we that apparatus undermined rescue rescue I mine doing

in since incident been numerous times occurred. the mine have We the has

going to I’m the conditions mine. again, the So back relatively in get to stable

we’re and So well, – seals putting we in temporary seals those finalized to continues today. area go put be if the in in localized this expect to all today

potential of area that nitrogen forward, And with the with of the to plan after then any flood then to sources the goal eliminating going ignition. existing is

have, the importantly is is putting should in, the coming goes conditions longwall this with of into the JX again, getting After to with have take that new MSHA’s panel that how process of as the if whole mine. you’ve area. in just MSHA all in L the the the going in we’re best getting well, and seals rest the mine, which the and getting access Lucas, the temporary to MSHA, to this mine, with seals the isolates the and So are but situation to still and we plan JX But we in, part us MSHA mine, hopefully mine. key seals to proceed to working both few nitrogen the most weeks the the the safely assess comfortable with a work This could area. guidance, noted,

the same better and J arrive much already we’ve QX the are in in panel. panel for And mining complete on into So to the we L the longwall. schedule area, been the already is – as we new schedule development get sometime conditions have

access new of of and development importantly, where JX rest JX So the still to panels again, right at will a of that’s to the lot variability, now. the plan we’re it the the is most at course, as third the done. come mine, outlook to moment. change, L And longwall Well, have but the contain isolated the but is Lucas, in then where that’s quarter. stands the subject

now. That color. appreciate is lot very you of it for a Thank I that. turn I’ll much. over

please. question, Next

ahead. Company. from comes with question next The Martin The Nathan Benchmark Please go

comments. then everyone. pivoting getting Congrats morning good Hey, returns. the shareholder And surety I’ll and agreements echo completed, to Lucas’ on

Nathan. Thanks,

about Maybe out interest Mark be flow expectation regards or that they be lumpy, Thanks. be the would forward line guidance in free they for available going how very is me, any you to cash, cash we and morning, helpful? excuse could this the calculation that there non-controlling you fairly think might – consistent laid restricted should lumping modeling item guys

Sure. Two things.

First in non-controlling complex on interest to the That’s a XX%. distributions interest. minority the Wambo

made from But right We’ll results law. variable progress manage with then variability. in collateral, we’ve fairly certainly expect that significant So first we number. some and in the And cash outside on the Wambo restricted with based we’re the a is it. comfortable don’t There change now changes on of that’ll be mine. quarter,

are New that. a also the significant that cash bonding possibility and don’t would collateral in But that requirements expect future. restricted here changes immediate in increase

it. Got

million to $XX is rate, that way minus about then? a that good So think or run plus

And amount the manage [ph] year. we changes the biggest be to increase the Yes, And laws is risk to regulations. Nathan, throughout But no, not balance quarters. over to that clear the an just and next – here look continue I’m to the couple we’ll on sheet now the good. expecting have is

it. Got Okay.

– expect the clear calculation of that free number. your to that closer flow, goes be is cash in you in probably change to $XX Mark, because zero cash a that don’t million available So overall

That’s right. change a next I significant couple the don’t over expect of quarters.

it. Got

looks couple about that back a Appreciate can you the operating clarification. I’ve line we Okay. running again know item? I the Makes also touch was actually year, guys million quarter-over-quarter last could be that out. asked the maybe next few on of you quarter, to – you of look quarter. million think you driven it’d the how another sales logistics I last it have called it $XX been up some great by half capacity of get your thoughts line at had decent mentioned sense. I other expect quarters. $XX And had cost Again, the on quarters can like over But

Sure.

a first million You’re wouldn’t one-time right. gain in was the operations. The that excess sale was And capacity in $XX big about of or port the trading and quarter, $XX that expect then other to item repeat. million rail of assignment

that in tons that tons there. the the prices referenced and and of the delay the environment, actually the of previous delivery two we gains quarters improving had hedged basically higher an with it was You price realizing some in physical

at than our they a second purchased to quarter here a that gain Those is realize of those trade environment we’ve that at. purchases operations. That’s year – real and sell timing made operations. were to that able experienced were coal reverse In largely consistent blending with prices first our some expect we They price first that And the as quarter. part quarter, declining thing. with prices of what higher this based the in $XX whole on million in here coals the

in kind of that’s a two. So next out quarter that’ll the one-time thing reverse or

of indication $XX zero to on maybe to that So to any this absolute million, closer an quarter million-ish value. wrap $X kind up, plus that gets just that

Yes, that’s right.

I before. operations, that’s there. but other a items, and number corporate of that there, We the modest right. like million include some from that cold in $X There’s two we’ve obligations is some think trading targeted and blending those something pretty in mining normalize stuff you If our past

deferral point? some us thermal additional and maybe And are this PRB as that guys, your you maybe think the some And get and other color. on finally, you at XXXX, having specifically could there update an your Appreciate market we you any how here? thermal we customer’s Are any discussions were there coal commitments. on in Could get gave pricing? numbers remarks, that, thoughts maybe domestic it. previously some look into comments around thoughts Appreciate I we prepared but then Great. stockpiles? seeing

Yes. Hi morning. good Nate,

that the results So discussions the the reflects customers current dynamics put of and out now. we’ve current with our guidance right market

XXXX is our as for you position So probably sold out. know,

have our with different So the customers still value to we as or responsive while our we retain that full to work be needs, them demands different of contracts.

all changes, and expected our again, with But any that said, guidance. in current all that’s reflected

As far sold PRB, as XXXX our we’re the on position XX% XX% in about and sold position. other about

very price a already for on guidance positions. don’t of up in we strong any got year sales haven’t we So next those given And we book place. – yet

And of describe, maybe, how now, you rail service in shipments, the in it. seeing any the the that or that or is quarter-to-quarter right then Got Jim, any is would expected there? driving market thoughts more thermal U.S. decline U.S. you’re driven

far Nate, were challenging really along that was had the of same February for for this I with they and The made some so and so year, for tough weather improvement, say a challenges rough March us. numbers January seen we’ve railroads. But would service April. some level far significant operations in service pretty for

feeling the the forward. about a going lot customer ability demands better rail meet out service west and So their to we’re

there. improvement big So

poll the more dictating going my forward of it is fluctuation and the is flow customer view coal of to versus the rail going now market of So be demand performance. on

year. Jim, of as and your Appreciate of Best Mark there. comments Great. and and Leave luck the the well. remainder it thoughts,

you. Thank

Nate. Thanks,

Next question.

comes Please with go Next BMO. ahead. Katja question from Jancic

capital Maybe used later the framework, of of in you be buybacks sheet. I balance taking maybe year? thank special for on Hi, return any that assume for million unrestricted you nearly question. is cash, the back potentially Could which have to my or the $XXX going dividends

the maintain Katja liquidity and mentioned congratulations we’re the sheet in The as industry. challenged option the call balance substantial represents volatile to Hi way and look flow credit we cost the I a to the cash premium opportunity cycle. yield going regard sheet, this cycles in for current you. that free With pricing generates or cash price Peabody previously, balance the the at weather to and to the

We’ve XX% there’ll be always shareholder free minimum of basis. but a available flow, mentioned of that cash forward-looking it on a is returns the

to current conditions the in We’re we’re real comfortable $XXX range. liquidity a billion given $X where at from marking that million standpoint

be of balanced to you’re think XX% just applying year or more XX% you dividend, we that? capital buybacks how return about should over framework, Maybe second half the have talk the this is Okay. on can to when share variable a going

Yes.

at it’s certainly the discretion. think Board’s I

We’re flow going approach yield. share heavy given XX/XX on to but to point. we be and a discretion, current at achieve transition a some something we buybacks that very the Board’s the It’s starting balanced But dividends going buybacks with more free do focus between look split cash is probably may to at forward.

very Okay. much. Thank you

Thank you.

you. Thank

Next question.

Vertical Please The ahead. go next with comes Partners. question from Michael Research Dudas

Hi, good morning, everyone.

Good morning.

especially Jim, there’s the – and been to in your you make space, global activity the little elsewhere. in I [ph] wee consolidation sector mining could Australia in if share coal views, bit wanted the and of

want So is play seeing balance going thoughts a terrific those maybe or you’ve views Peabody your into thoughts on that what on you’re how I may to it your it. may And reiterate types your where out, company’s job opportunities in getting forward. of how is, sheet fit recapitalized on the not about just as share

out what Yes. play still we where well, as look markets is It’s we’re potential but the the at assets – it, case metallurgical markets, is that focus a seaborne seaborne and focus you and off, to on first there we’ve a serve before, metallurgical. that know, hear our thanks as main heavily look seaborne at for on as a the we good from more and you if call. seaborne far Peabody as great focused far But getting there’s looking. take Michael, on stated it’s The thermal our is M&A, again.

the discussions me, is uptick – hasn’t though, it what me ever some cash activity going use it of the changed on the be you’re cash to there. to right? seems A on. attractive really of in financing to to deals, It seemed do because Michael availability – lot has or scenarios looking financing there at isn’t of and there. M&A hasn’t Yes, generate where To or have equity they that financing people hand out or

still people going So again, there… the that have did are is how these while challenge asked I some is the activity, is, to that the there think an questions Michael, uptick financing do answer for assets. I all you or in of

That of for that’s capital, makes helpful No, met coals because lead very and the sense, quite a course though. on thermal to bit a market of there much are going those probably future. to which global dynamics in is tighter

reacting, So at you market? forward question more this as assess look as but guys my demand maybe, obviously, Jim, you Are into would met encouraged markets quality thermal ship very it’s second that direction for of your part are cautious and into or later the of maybe you a – be customers volatile how year things my into looking pricing the about you in next. of the and maybe the market,

hiring that next thermal a employees. rest access to the fact going We the on demand. and but new demand lack just to being, Yes, we’re in the seaborne of oversimplify there year, of global metallurgical there growth are supply say I’d see still That’s and capital both been year, it, permitting ESG and this constraints growing more markets I’ll pressures, have on to scale, just supply later Michael, not just say encouraged decade. of through a the

some going right decade, that to next demand, there really going you the time growing fundamentals downtick in supply responding volatility is are hard the while gas maybe year, pricing, market. to the be or a in be think there’s fact we So is some demand underlying in now, excess is strong The weather the and through because still of see the it. going have year this as to on to

sense, Thanks your Makes thoughts. for Jim.

Thanks the again, Michael, call. for getting on

question? Next

The Pipes a question is Riley. next ahead. follow-up Instructions] B. from Please go [Operator with Lucas

wondered And my Jim, coal you bit, you one historical bit to a is geographies first by very operator. much. follow-up and taking what wanted much causing today. for the It’s the Thank your customers market the of from but back. a light is on very if I think acute shed met of standards, I strong various you and price softened of questions. on just much, this could still little is you’re very kind what you Thank touch the state you Thank seeing

it. significantly you’re And – of domestic the we’ve now, and China exports growth already in into of going the longer of seen seeing that year. term steel pull of we’re saw the in few and was break steel out as exports the back two from that term, parts into a market getting consumption the I’ll term. Yes. flooding and the of first answer, there’s less of that use lot months for sort In on steel shorter of China, here really demand the we shorter what China as more for of internal

pushing a countries imports out that market other being way for there. coal on be So the now China from for out and the into opens their product need more steel China with goes less to

price So around at at healthy $XXX. very the the seen dip in the prices a still we’ve

with on other in its the countries we and what’s fill now are to for production China see the with think production there conditions we But international that steel void market.

there’s equilibrium the that. with that longer demand and just potential – that go dynamic I term, that same for then again, supply to the So long And and back there Michael not seeing strength I’ll with having all, balance on international and out as again, side at the supply quick if of the in increases, from supply met and markets. demand very side demand response mentioned

switching minimum your the with provide, reclamation bit that. When the restricted bonding comes as you I of detail a then complicated a about that. the topics, could requirement you. liquidity little cash as Thank that defusing effectively, liability question, but at would I then also much appreciate And appreciate. but requirement I larger think

you So time, first, bonding of this But can on of I over the kind a And requirement expect of both NPV unlock bit down. should comment kind sort fair come capital. return areas would what state. reclaim and the reclamation associated their the on expected original of it costs land you as pace of declines. and then of other to the side mind And would to be those

that a unlocked you it So your on might this. just the very for of trying color NPV in sense how also again, there. liability, capital requirement, for to get the how Thank much may bonding change be

program the XX%. I the by question. first I’ll on bonded. and surety percentage Lucas. by cap characteristics The with bonds what is It’s bit a a of collateral Certainly, they’ve little guess market start currently different it’s individual but of the written, is

after are as work are down. released bonds would is naturally completed You come correct, that

that’ll be new bonding So dependent completely operations. new and requirements upon

have amount significant we don’t last expect that The a see from years. total to be several the come as to consistent has of a and several to down far goes So the it GAAP over I forward And the several years, on, to as pretty expense over to of pretty I’d going stable forward. we been the but either. I last And That’s continue. million expect million $XX that have that $XX then guided cash kind spend. next ARO recently, change bonding perspective liability for going one seen in years not expect

Got it.

value bonding that nutshell, present we collateralized have So Is on either amount. in next of requirement years cash a shouldn’t that the expect the you over the changes that meaningful few right? or

have get in then for laws But there’s That’s do that we’ll offset completing If by that up. go total expecting Again, see our and could changes to we requirements, bond $XXX new work to restricted significant bonding sheet that going collateral releases. reclamation not some continuing correct, Lucas. or number cash changes additional and best plus balance to million forward. the in

to go I color. And one to for Shoal that, time. helpful. very Creek just That’s it. then more appreciate Mark, thank you back Got the

With there been due an example, of abundance caution being the be of to have hotspots, underground program – seal initiated, much. for or cost temporary that very that signs measure you lingering this thank to

The while or zero stable hydrogen very to levels – have mine have like, comes the readings when been it Yes. been CO. I of not at

hopefully the a putting rest back the environment is here. seals us make So MSHA this is in – and area the of to so this to that sure with to it temporary and get into we’re safe again for mine access

and we’re So caution, know of I an don’t it MSHA it. I on with comfortable approach with Lucas, if call working this abundance

the and get seals to area, the get at. where a think So indication, good I we there quickly in are that localize temporary yes, it’s

it So I’d leave that. I guess at

helpful. that’s best all luck. the for Thanks and no, No, Okay. color again of

Thank you, Lucas.

more have We questions? any

are further at questions this time. There no

I conference like Jim to Mr. or So remarks. any for the turn to additional would back closing over Grech

to support. for thank execute focused customers, I’d our and thank all on like remaining joining and your for for like Operator, you insurance and initiatives. to to I’d I’d our especially safety that our for on call. vendors our to thank us also investors, providers today, employees continuing continued like various Well, concludes

Thank participation. you. teleconference. today’s We your That does do conclude appreciate

You now disconnect. may