Ramaco Resources (METC) 8 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the Ramaco Resources Second Quarter 2024 Results Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Jeremy Sussman, Chief Financial Officer. Please go ahead.

Thank you. Resources, second to call. quarter Ramaco you all of our to XXXX behalf I'd welcome like of On earnings conference me for Randy Chris is Chief Commercial and this Chairman our With CEO; and Jason Atkins, Fanning, Blanchard, Planning Mine our EVP Officer. and Development; our morning

events. statements other in discussed could materially are Ramaco's forward-looking future cautionary These risks, of Private constitute differ are uncertainties represent results which factors, we within outside forward-looking the statements subject Before and normal the I'd XXXX. forward-looking control, Securities cause to discussed items meaning to the to like Certain any which start, the which actual speaks statements. Litigation otherwise. statements is update Ramaco not Act date undertake it any by events can results website, you in Reform can a press many information, made, Any of future on which These our of from of concerning and statement revise statements, expectations share statement. today's a Ramaco's reconciliation call of only discuss the on viewed to measures that law, as non-GAAP as required result plan our remind I'd financial like find of does the today forward-looking of obligation that release, you www.ramacoresources.com. we new or whether as on except our be to or to forward-looking

me go our on to presentation. and this on everyone Randy that today's encourage call CEO, Atkins. Chairman With introduce our I'd let to investor Lastly, download and said, website

for thanks Thanks, call. everyone, Jimmy. Good and to the morning joining

U.S. than in global coal XX% on and second indices down by the softness spite our and financially. year. Last saw had This XX%, dropped met the better we hoped, of results both the came now quarter operations pricing. we in the were they're of since continued quarter, improvement start coal first, As our much

project solid in our progress mention this Wyoming, which quarter made will RE later. on I also some We

Turning operations. met first our to coal

XXX,XXX geology tons increase due and we This Importantly, productivity, record second this production. to had the largely of in about X% a better combination labor availability. quarter. to And was up was

of result cost stronger in roughly more $XXX by X% to $XX the cash tons, declined ton or our per second a As and the quarter. production

or both X forward, financial per to and ramp operational improve nutshell, ton we're the online. sales rate continue $XXX a cash growth and as million hopefully throughout projects both Looking on our to should the results tons production run at excess with below a In of cost to range. in expecting year-end year come costs

take me through our Let a year. moment growth and X this for walk production current projects

At remain Maben. on Creek and Coal of a Elk third Two and Steam track to low-vol and our growth Mine. production we this Combined, Elk an X tons third add production at highwall adding will basis. are adding an June. our our at Main roughly section these in low-vol we tons of Alma increase of up All XX Creek, they budget. already and This of the RAM Berwind high-vol X these at the roughly annualized quarter. section production XXX,XXX mines begun on basis. ramp At high-vol are production overall XXX,XXX annualized by should on had starting fourth a as to Both the Berwind's to relate relate surface initiatives on mine mine,

Importantly, a to $XX be are on anticipated costs new ton $XX roughly X to all mines X basis. per these at combined of

fall. fully Finally, operational Maben complex the this to prep be at we plant our expect

per our this production, add at ton. by While meaningfully Maben our cost reduce should won't overall current it $XX XX to trucking approximately

first, was half projects, at production ton year the second essentially X parallels than was a and last. XXXX, went these year to overproduction the to between of fall pricing overall If X with economic the being of steel million again, coupled highest the million impacted global in impact company. see Unfortunately, across growth the level indices In a board. you coal this traditional operating price met number biggest expect our It's to awash from of a we step is we world lot remained realizations of tough per where in much steel at look simply million both back corresponding Again, stronger when our world and half our X of run both the growth year ton in global in and European the to a drop XXXX, run This exports met and and years. have we ton steel first we've the to production This the Chinese I U.S. This pricing hurt both continuing this should In at And seen coal also course, the rate, X and steel markets. and exit initiatives the a mentioned. steel. The we of turning demand. dumping the strong year. invested markets. and growth continued meaningfully rate coal million is markets, was but met of demand in China's on sales. and negatively internal we throughout reason of the has, muted slower cheap U.S.

will year, half markets second of hope Looking higher. to the move we the these

supply and at recently incidents and unfortunately elections lead has behind impacted global season this almost seen should Indian us. second of point, the production their this a muted more monsoon to mine half. is both have year. in high-profile number We This Also,

from sales will year somewhat exports. types it's this see. on too out, I unique demand but of first we the point on could markets, political sale tariffs steel given nature XXXX restrictions any domestic anticipate a will ahead, and These wait handicap of China. lastly, traditional negotiations. positive Chinese month, would and to curtailments should to tariff like we see that possibly our steel the Next accelerate. the boost of we morning impose And some became a looking early see really have this Indian start Chile to other And the however, to tariffs Indeed, we placed entered to position. worldwide

for environment. have this add fourth committed in place quarter, these and multiyear netback low-vol decide X.XX average front. how position prices an are, XXXX might higher would to already million Before indexes. of contracts. as against I minerals we to engaged from and our a contracts have hopefully Most Currently, tenders, critical index-linked move tons quality have domestic roughly we tons mid-vol That next pricing export price gears is curve into current even our strategic ton to nice $XXX fixed us a forward. left blends less than calendar have in year we primarily the to per today, XXX,XXX the we that puts of sell for 'XX. that shepherding frankly, Switching we in healthier

We terms continue the progress the of development Wyoming. in make strong of Brook Mine to in

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in which the artificial is We night Sheridan, one research, be year a exploration, an in begin fourth well preparing and space. technologies senior Last will RX even technoeconomic We counterintelligence be coal annual from conference. testing speak keep the energy I Sheridan the the research while leading products assist Department all rare demonstration to commercial brought our carbon rodeo on engineering new hold board the that Energy of Corporation of call agency our we'll We on again position well on As rare RX. we focused the with hosted intelligence in research Fluor by our from an operation. be in of critical course, coal-based the activity in we analysis. it Fluor and starting optimistic affiliate developments leading earth was gives progresses. recently each It RX congressional out every Ramaco continue the Also, edge Wyoming, demonstration We rare scientists to complete, earth. is immense to design what minerals. we're but the fronts as leading FBI that together the of We'll year the international an updates facility, some year. newest opportunity that We us month leadership granular highlight of as have development brought space, me on our to still adviser later products facility we these start real to construction a hope as also our goes element planning rodeo our conferences to to believe as hosting it earth mentioned, Wyoming, amount may in had week. for energy the world. And the this help with around on Research of one partnership of Paris. several on personal the XXXX. technical of as in in leaders and provide as discussing we the which coordinate on and with hope this Frankly, midyear

growing environment. stronger combination development despite both can't twin but met reducing we with production our and continue cash weak, try In lower control to agility operationally we And of of our and operate our costs. our we'll also summary, So with price, much know had forward on continue coal control of as commercial production look remain we'll and second we in executing to the dealing to we quarter, And our try generally advance continue mine fronts second much Mine. a aggression, and Brook and to half, to financially, the a prudence. markets pricing a costs. the We

our discuss Jeremy with start metrics. finance's on to to So give with of that, team turn a I'd to and financial operations over the we'll the us markets, floor rundown like to rest on

Thank you, Randy.

first the $XX XXXX To operationally and than in As were $XX million results, declining despite XX% EBITDA you quarter roughly XXXX second indices QX noted, better adjusted million was specifics, QX. to into compared quarter results meaningfully U.S. financially. This both was sequentially. get

of $X.X the Class Second per the back for quarter QX. levels, million EPS was production. quarter-over-quarter increase The net X costs cash $X.XX $XX of both and double more to reason income to of diluted was EPS in in amounted EBITDA $XXX the per first than on primary for which stronger improvement quarter tonne

in have constraints availability. quarter price less XXX,XXX The was ton conditions was out slightly fixed book and in quarter realized pricing. volume to quarter, $XXX due in I'd was was tons price productivity, reflecting transportation with point up from in that QX. since the our pricing from both XXX,XXX which per of domestic X% ton first strong to indices, modest record per lower down dramatic Second of a X% was $XXX tons XXX,XXX production alleviated. combination realized Quarterly to June, The market first during business. and decline of labor due been a than tons, decline better decline the index the in down weaker largely our compared QX of geology sales thanks

anticipate third Looking X.XX of shipments tons. ahead, quarter million we XXX,XXX to

year increase per also the above run X we'll sales and in that sales QX million exit We will tonne rate. a annum expect

X the quarter. almost second we the additional the year-end. before mine year rates compared million per first or coming quarter cash tonnage XXXX below Randy the expect expected of $XXX run to exit annualized remain at noted, to to production half are online, to range. cost in of As in the tons same adding tonne anticipate we compared the range as to will Due the third costs Overall

tons between and maintaining X.X and respectively. sales guidance X.X the are X.X We In with production to environment, all year million to million XXXX million tons XXX,XXX at X.X production sales. the guidance of being full current tonnes, midpoint reduced pricing million is by the and exception to

exception higher our complexes of the Specifically, Maben. we are proactively of each with at reducing production cost

Importantly, environment. impact I'll overall brief current earnings in other make to the this should guidance. X regarding minimal move have XXXX comments pricing

notice our customers defer level tonnage thousand some to QX may you hundred couple earnings our early due to a our that is compared working with This tons First, release. committed and fell into XXXX. off business agreeing to proactively of

the Second, tax to current book the in should towards likely taxes of be high though range, the XX% environment, XX% rate our our will end be minimal. cash

to the Moving sheet. balance

$XX Our liquidity the July, coal is acquisition acquisition million today, only to million, unsecured $XX of June and X% LLC. any proud all $X say Coal XX million since remaining million Ramaco the debt purchase million and we on notes acquisitions. of year-on-year. due the in revolver Maben XX% debt of XXXX $XX in paid as up We've the amounts on of material working off the are was that retired to that related I'm Furthermore, used now related both in capital for debt XXXX drawn remaining purposes. our term to Maben $XX

As less X.Xx, was continued EBITDA than QX, our sheet. a trailing commitment conservative balance debt our maintaining illustrates to XX-month of to net which

stock call addition, said, our of to mostly which, of over per sales quarter our for also our cash With to dividend cash share the volume EVP the Board Planning by The now the realized I to extent, third $X.XXXX share, XXXX. declared quarterly of price. Development, B Board would for of like per common $X.XXXX has In a course, Blanchard. maintained A is our turn Class Class quarterly the and Mine driven that and Chris lesser dividend

joined us Thank who you, morning. this Jeremy and everyone to

a to our culminated the Virginia combination of at saw months. which workforce Eagle mining per cash to of the we other all quarter to first several to mine the lagged managed had in the to the operations, Southern time seen underground underground quarter-over-quarter West the last section Overall, return at as XX modest of threshold $XXX directly all improvements bulk expectations of also lower coal in mine As mine conditions quarter normalized more our hiring labor led ton of had and more allowed of also the for helped late our we turnaround in production improvement during tons was This foot in during the of Randy The shifts the slightly second us coal positive summarized, costs achieving clean the market sections a second We've compared to our overall in stone the third significant fill operations This June the the start mines. through area. stabilization factors our number of XXXX. vacancies stone coal below and first. frankly in these in per X% The some improvements and and the over one of conditions. quarter.

available to both it tight. Southern insufficient those Southwest our and open very and the fill our There market, miners West labor Virginia experienced the positions Virginia coal mines in are competitors. of Regarding all remains of

moderated daily turnover miners above the the Although a retaining want and have than operations. historical the averages. remains levels throughout they Hiring, higher the year, rates focus skilled is we training our and highly and of challenging are

period July, vacation the June around following has the continued. momentum traditional the into third quarter Moving the Xth of

and At X the and in the ramp-up projections ahead surface Coal optimization in at period shifts mines period X the of schedule. our per July operational the Coal metrics quarter Elk the third our due the plants due May mine. quarter of to seen expectations. discussed in to modest we X X for our Steam feed the average RAM X at growth is flattish are obviously and quarter in Steam in are the section started at and to available heights in to made according guiding legacy Creek, versus less our strides and improvements and While start projects We're continued costs section mine quarter. coal other there periods, the to and ahead have ramping third idle vacation to second work shift third now of

by Creek. surface costs section June. in Elk mine add This we geology its staffed at sections cash section additional have annual should be We XXX,XXX end fully of at X to the expect expect to projected to operating a and the an due compared the other this cost our advantaged RAM summer clean will what be tons Similarly, $XXX ton. started below to

with ratio RAM than almost cut particularly last to able mine. in lower fully XXX,XXX earlier Highwall mine We're though, with importantly, as the months Miner per and to per Once the operational, the produced at $XX we first been ton. geology is Miner week. RAM clean tons spread better spread the production approximately cost surface Highwall excited from #X or surface projected #X our about than have near X projects have start the coal coal rate RAM the X year be combined More we it will

labor miners highly has the qualified as for side. been surface the challenging not as market underground Finally, on

the the will will So third and month normalized quarter. much the this cash be end cost of for period before be the shorter ramp-up

the Maben the new geotechnical All plant and second underway. of On the during construction is well foundations work level quarter. the were side, completed

The first Plant few full days well. of of in June as in steel last swing. were reerection is set pieces the

of high-quality reduction. last that coal year the at year plant in attendant In fourth discuss. Maben. transportation immediate rather early the additional possibilities the term in will Creek savings now and underground in the plant more are quarter our than the intermediate having cost We benefit cost at the further the days production of the I'll The with Beckley, Fire projecting completion of site reserves raw the the Maben, fundamental is Sel, low-vol up Pocahontas on open production of

can is Maben before shipment. cost for transport $XX Ramaco's final cost of or actual recoveries coal the see on of of to to mine raw the production up surface Depending we their and currently costs up that cash clean mine, costs. burden Miner lowest Highwall ton our per Our to and amongst cash make hauling the Berwind facilities this exceeding coal Washington the XX% produced for the total XX% of their

more it becomes stockpiling these on closer we property to the not plant start savings some that completion. date we so Berwind prior to Maben on transporting has can start-up As class even the and the the of will and become Maben certain, back trucking coal plant's tons of produced

final the Our continue on start-up the infrastructure fourth section will third expansion operating starting underway quarter third projects with is PX for throughout the at surface mine. of anticipated an period ramp and work section. Berwind and in This advance the and underground work Ventilation quarter. in the super the

XXX,XXX approximately Our volume tons an Maben have low-vol the will section being start-up completion similar providing of into of plant be incremental coal projections of clean will this and elimination the section year trucked processed with of coincide per low-cost, this and a coal. the of Berwind coal complex. The raw the

during we its mine capacity ultimate expect super further sections. to Additionally, operating X ramp to the Berwind XXXX, of

see mines of declined where couple focused we elevated these costs do cash not are other equipment overall currently to better costs which including improvement. sections on we couple with our and while geology remain of and are redeploying if continued Finally, All extremely cash table, significantly, have the sections market manpower the mines, options in at conditions. not on are compatible a have a

to they level agile will the be market as financial we aggressively respond conditions always, operations As exist. the to and at

Jason sales Chief some and call I'd now detail Officer, For position, to Jason? discussion the to and the Fannin. markets Commercial like additional over our turn on

everyone. and are in and share Chris, I sales will the outlook. forward seeing markets good what current Thanks, morning, and our we

weakened Although from have standpoint, global still coking pricing volumes are supported. coal markets a well

overall various global Let of the where sell. with we me an start markets recap macro

future. Integrated Basin U.S. strong for to now electricity robust believe are relative though coking for U.S. batteries continue coals. These as we in despite positive We, from due heat profit think usual prices to coking region. to for and to coke increased as to positive deliveries the to to Pacific a momentum finished likely as continuing advantages for remain are therefore, well the continued furnaces remains the and over grow in advantages see Atlantic into margins for run electric are coal profitability. steel cost cost strong mills inquiries demand We demand blast starting spot the time EAF power arc decline We higher prices. this foreseeable in furnaces. is is see U.S. their likely demand muted, the

Longview. were bullish. tend view see continues to recent coking Indian back to anticipate steel look increase year. demand from Pacific, The a for From in and backdrop as moderate a outlook standpoint, coal We the more with decarbonization. demand. fragile are supply, a Europe the a materially surprises steel and production steel half chains long-term comes and also continue with post-war China higher Western seaborne In with at a to demand supply carbon result clearly Brazil supply the when of we and we increase in in in intrigued demand in how so potential coal 'XX as in reminded to to market expect the likely provide and result. relentless also pursuit materials mature and Eastern we There the fires growth a impetus By Situation Grosvenor XXXX. the rebound months. as upside for in be in supply back production long-term scenario it import very by is and versus we to Europe rebuild half in coking seasonal increases Europe rebound will the of pricing the India the situation coming in really tariffs follow-on in raw are of no this, the looks favorable, are demand we and continuing promising

amounting As tons. Randy only mentioned, we to around have remaining XXXX, a position small XXX,XXX for open

correction. volumes will in these the seasonal market align unsold price weak expected the with opportunistically the environment, Given we to time and place near-term pricing

already volume were sales Looking point to our when long-term a coals place on begin compared domestic producers position years this largest fully specific we committed in book year low-vol, next tons million negotiations, puts now for is as the one Ramaco's high-vol. sales at we uncommitted mid-vol unique in X.XX as XXXX, of us XXXX previous incremental the low-ash, partners ahead of the time. Ramaco's with coking in U.S. across well the low-sulfur premium all sales who position positioned of grades, and to

the increased As coal more in years, recent perhaps a terms been production in have industry volumes of lot of ash has content. U.S. on content the end importantly, incremental new in and higher the sulfur and

also first current grow on of for Indian have annual to a prices pricing continue seaborne to profitably standpoint. this China material year-over-year, coal fallen, India impact feedstocks Chinese meltable values like Turning demand fallen, annual coking mostly to coal. volume the and index as year-over-year. to imports seasonal steel. China's imports and prices exports higher increased continued an influences markets of There's as from XX% basis. steel due environment. margins still profit pay soften however, make raw Asian have global deterioration and at global Import users to end half while due Metallurgical ability increased Prices time year. seaborne XX% have an robust remains Meanwhile, to increased from been demand

for B, high-vol low-vol Coast East at U.S. Australian the X, premium and $XXX while $XXX ton per August tonne per of ton. per A values $XXX were per for about ton low-vol, index $XXX for sits high-vol As

historical compared have a to U.S. Australian are premium relativities low-vol in declined, floor we coals. back nearing Asia This U.S. suggests near-term coking price for have averages. prices As to rebounded

the cannot for also below to is mid-vol low-vol believe Clearly, is coal currently suggesting. to today. from the pricing demand marginal mentioned continued in Berwind peers low-sulfur or in of tighter coking our growth Elk U.S. and much in index buckets current low-ash market less we low-vol future situation continue outpace segments continue. U.S. production has higher ash are In as for both. earlier, and sustained supply quality, either ramp see high-vol We operations growth Ramaco sulfur where most at fully U.S. as higher higher desirable the costs and for pricing U.S. is at demand loaded growth been segment, U.S. from than positioned the Ramaco's index netbacks that or ensures many We continuing incremental quality Creek. hig-vol these Maben. Production

Looking and forward order ahead, are our very book production with we comfortable expectations. current

place We the be XXXX our well remaining coming be as for the Operator? value highest XXXX negotiations low look achieve and I'd volumes return in those ash who our Q&A selective contract in very portion like to where possible. for opportunities in selective will to few as see low volumes we netbacks domestic to order the We call of in supply. operator now incremental placing the the customers to call. sulfur the to the forward

[Operator question Instructions] The Company. Benchmark first comes from with Nathan Martin

your maybe details production an the where looks get more on you X, in medium-term outlook, we versus production guys like outlook on your update? Can expectations regarding noticed for I improvement addition out the presentation, break quarter. production last something just maybe Slide First, that low-vol it

and then start Chris. I'll to turn maybe it

is extremely tight. in So think Jason think the we noted, low-vol environment, as current I obviously,

we've medium-term what expansion underground effectively we've put the into outlook. is So our official Maben done

we're the what to than in So of tonnes us of addition day, in low-vol at X more producing end that's now, of which million to underground versus high-vol. XX-XX effectively the terms over production, takes

section of the correct? fourth also, that Berwind includes And

be That we putting would on, yes.

remind underground an guess? When I that would moving me that pension to forward, maybe get likely guys

The sometime will gating we issue that Maben and up the course, it have next got last We've summer I mentioned, that installed of moved forward prep hopefully to, plant prep purchase was plant. And to a frankly, with for idled move it. start fall. as the we year. late frankly, the that optionality summer of Yes. opportunistically main or this start And operations

move look in mine. our really what ultimately and year And for probably start putting at that's accordingly, us. but we budgeting section, a of can certainly So will X-section gated course, we'll be then, by next section it

dictate is conditions market much X.X tons, but obviously, that. Maybe will million

prep with And maybe for plant Maben second. sticking just the a

broke for that And just separate excludes then in the a it CapEx noticed plant. purchase statement, footnote prep I your I prep guidance saw something out Just cash that plant item else of also a that for expense. in line million $X is your flow

I So full number just year for all-in sure about CapEx 'XX. we want to should how make think for the

So very question. good

we we're transparency, purchase flow the Maben. spending for is see cash So out $X within break statement did the what million that price. for on

So it a the of the when for on our $XX that spend but already it bit which half place. million $XX purchase includes more excludes million than little look Maben, guidance full you of price, effectively of year million, has the at $X taken to rest

So year it, full $X the call of the About about or that at price. growth. think about you $XX excluding of so is million for million the maintenance, is million range, that CapEx million $XX if outlook, $XX our purchase

it, growth the million X when million, look obviously, so or a X reality call half place. that half. at first the spend the projects at you that's you our majority already million, $XX second taken So major spend this frankly, of that implies lot in the look lower the year, when of, because $XX less spend vast $X is And has

quarter. year, look fourth can to half of I that's especially you forward guys the do in the So think second the something in

little Mine, you on ago, And CapEx be build processing X guess, in guess be couple kind shifting all expect a be sticking of Will bit responsibility. to release, plant of of hopefully, new doing and that design Flour? Obviously, to and but guys the to in spending involved your going refining down to come days back a that saw that fourth you're over bringing the with the I you do saw the What I that CapEx, mention things in release I with Brook quarter. partners.

that you think in build of the How year. well? I possibly next could started mentioned long the middle target as take

Yes.

Our the been modest. out spend, Mine frankly, of has Brook really very

their I facility various essentially processing down, think going we're position. we out spent variables essentially deal testing through involved minerals the which specific and trying to design how would inform the in nailed to with chemistry. moved the the as get design to will inception there of couple said, we've just everything million since I a And as far build, really get as into bucks

in I of that number. And dollars. will think terms our design to facility. a an spend demonstration intend the not think hundred cost terms be. it don't the can of as about pure it you giving in I frankly, terms the be, selling I of design It's But of going of is that, for products the would from want demonstration soon the sense We'll start what skis to, facility remember, so we've we're certainly facility for we really several around in That's metrics give informed concept. for terms now really get where a provide of over in thousand planning it overall to plant an like advanced you got we as pilot demonstration the pilot. in the the

X issues months earmark construction, and timing, of weather-related we'll the time normal plant out once we And around will year there, start that soon revenue-producing probably this sometime as the year weather construction, of in doing work open that's be to the certainly a of expect frame. as the part it. So probably a I of middle And out assuming no to on permits terms site Wyoming. next

So it's 'XX probably a 'XX a and completion. start

just your thoughts, domestic deferred you And With into from that to, this getting call tons demand X.X again maybe year 'XX? price on noticed one the I season maybe for in I tonnage met now. appreciate down you crept that there. 'XX next in specifics think has million what is like least domestic that, guys what prepared think, 'XX was contracting domestic early Jeremy, on referenced steel Then as we're want still But on your versus any look year? this producers could coal for to at some to of don't really more. maybe you I directionally also remarks what committed initial

I'm margins to turn the demand going But fact over The despite pretty that the seen are tee producers brief really one falloff haven't the good and to the side, are a then Jason. real comment just on still up it prices steel down. U.S. enjoying demand. we

low been, virtually frankly ability coking side that to to really my mentioned prices, unfortunately this of the steel steel going Chinese their got and in you've problem. low of The flood prices. prices. not problem impacted has So has every coal steel that remarks hitting And been as raise demand market, has really companies' the we've when sort I seen you're have

the a situation call peculiarities, it really it's you that. supply on derived peculiar more of So based if Chinese

our with here a the outsized Nate, world. in prices still point points inventory which ongoing we Still so globally. compared odd. still are seaborne obviously, spot service discussions the market, in yes, highest a at customers to obviously, we're low now The certainly, some the But yes, as customers, would centers, in in the seem into they're specifics. won't low down get are margins Randy hot-rolled U.S., mentioned,

and Chinese deferred the anybody see back work move had a there is you that slow the out It's come majeure frankly, exports, about haven't year, then years. you more going for that and of I rolls the tonnage earlier, of you prices level North in XXXX, they North best aspect had commented which in here. our in, I Jeremy where we of, flood rather mentioned customer areas says to could But this and even committed that. versus think force which back those And you're that down, has spot and on working in customer, terms Randy It's steel working probably probably America those are not year up. with But And one of working. for which into extended at, of almost key there. American volumes, protectionism's one cooking and this worked them status referenced in we us than given XX that other both change you're seen As think in we some asked they see next an seeing terms lose lot. coal hot demand, steel

next The from Lucas Riley Pipes Securities. is question B. with

on maybe little an I QX, the for And to remember, on Good of QX. wanted always you ask I color QX the if cadence second impact. and side. the have a provide bit cost could for half, job minor vacations can

What So your today. manpower remarks I we tonnes? is you that some are tonnage another quickly the you could an that. about? if mines side around? decided more? to move talking if things XXX,XXX And maybe Is cetera, And sort level how unacceptable you it Chris, redeploy et in that prepared of to wondered equipment, have cost could on speak you mentioned

we I'll cadence in roughly and QX the Lucas, first Stonecoal X bit have try on be cost. the half, I'll right to tackle And versus expecting the the QX and X cash the of RAM in a costs the same now, first process. we're second still as ramp in one little

So operational, also are perhaps, fully or to pushing XXX cost bit low get XXXs little but then we the Maben savings. and a those QX as below mines

on the it at as side, the tons significantly guidance, unacceptable, quarter, where the number to to probably the within then the We'll that's are would in could low XXX,XXX costs. range. of the And redeployed the be move as of ton continue say. down annual monitor. that it's XXX,XXX quickly those of relatively sort third end but we're to far I So see cost And could we guiding on

to that's day We continuing July, day. what but some have we change and and June had in improvement, coal costs mining into can saw

costs we have places need closely, to monitoring we to. are our move couple continuing that move of a as them to can they get extremely to, and we So lower

in and as maybe expand a tons you view across have say how Chris, you would industry, in well? are you U.S. this if many the the that bucket global

to U.S., the exclude at my big it's globally. long-haul that, probably an but probably Jeremy on if these Jason out and or prices unsustainable that a remaining I questionable operators, little maybe range is would of That's tips guess opinion. you production of the ski in opine in has XX% the

global side. quick the Yes. comment on My

actually where suggest folks think to curve know don't starts always off this think are and where on that there. 'XX I marginal think right Obviously, can always focused You it look indicator. at. are where that to ton is tends that trail point But cost lays, edge since most at that 'XX, folks I I on And that see a 'XX that's at the we're now. forward above the good

been up delighted by bad good and of the we the some Southern deploy for say our to labor. have impacted to because And down us And operate to peers, tight in some these that hindered where, some extent we've action labor we that producers I opens as pick the news, we're new the opportunities them we labor always think and to breaks full and from up on market. has where to an of got contract is our area because obtain the see people side situations a needless in Appalachian frankly, the see ability production

So a sword. it's double-edged kind of

Randy, product your that targeting Would facility? terms you what appreciate that. facility, in currently processing of the thoughts are of demonstration out on

Sure.

gallium. recall And call are medium of probably germanium you critical ROEs aren't overall minerals, earlier which and various as critical X from as blend we've earth the earths, So disclosures very got, our on then and magnetic rares. valuable and the categorized which got rare rare minerals. our it, product X heavy really rare We've

those create individual which able frankly, so and would sold separated to, be be the on oxides basis. And to would ultimately be we for, end products an be aiming that would

then will obviously, will, food And the further the of demonstration you sell deal being a in most, processing, refined concentrate. with probably for up terms in you start if we as to those of go chain, combined farther not facility, probably which As go the out, we'll we'll have chain, all a separate the you one concentrate, if the then elements. value those up food is which separated higher receive able we

in there benchmark? of location is would either step Is first today for or to that concentrate a a concentrate. be market terms Where for the price So here demonstrate bucket?

try frankly, both rare China. eliminate engineers in prices, opaque basket by earth to the and/or Yes. of mute because to process. pricing China in are there's dominance production general of the course, in outside And say other manner business China any I would and such a in production the

basket if take a and element would believe apply the individual necessarily always be into of of So breakout to you would easy But prices it each prices the you percentage benchmarks. our can't perhaps you that as far our get normal some want at think, the about in that last on we an each I least way of concerned. start analyst notion of the on thinking have to off target provided you earth, we, a exploration slides you mix, these some which presentations concentrate, earlier as as is overall in which of of gives our one what rare simply

of XX. Slide that add data additional be on when that probably had into revision. update because I this around And change will fall numbers we've You those significant might new got do further our amounts that this will pretty going we

around. numbers to actually collected. of those So move all expect won't comment until But get we they'll positive the on data And for we direction. move course, a hope in that we

our to like question-and-answer turn over to back and concludes Randall session. Atkins, I Chairman CEO. conference would the This

on just day. several to up in like everybody and I'd thank have a call Again, forward everybody for the to great we Take months. being with and catching today, look care,

The now for conference today's presentation. you has attending Thank concluded.

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