Warrior Met Coal (HCC) 25 Feb 212020 Q4 Earnings call transcript

Good afternoon. My name is Vaishnavi and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Fourth Quarter and Full Year 2020 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. is the and Company's call for be This on replay website. Instructions] being will recorded available [Operator

Before we actual begin, that materially today's I those have been may from forward-looking asked contain statements, and discussed. results differ discussion may to note

accompanying measures refer in has regarding and Company's press the the posted the I also reconciliations please filings. the note to financial the been Company's of www.warriormetcoal.com. For more the asked release statements, discussed that press to call located information section have forward-looking Investors tables during Company's release this SEC at the website earnings non-GAAP Company on of

In the to Investors posted to Company has the a brief section of addition at release, slide website presentation earnings supplemental its the www.warriormetcoal.com.

are and Scheller, Executive Scheller, results Here remarks. Mr. begin Walt Mr. Boyles, Mr. Officer. today Officer; to you Financial may Chief your Chief the Dale discuss Company's

and Thanks, remarks, in join discuss today global to to operator. evident detail the opportunity for from XXXX additional Hello, After time questions. continued quarter quarter year the fourth everyone, taking our the results us will disruptive challenging full to pandemic as review results. present fourth thank the our a you and COVID-XX remained then Dale The to market and impact ask U.S. environment you'll economies. have a throughout my

liquidity a on can positive quarter were business aspects increase volumes to steel the continue existing free with stabilize flow customers the headwinds, for saw third preserving operating normal while row. and to as control. especially of in the these remain in we we be the producers We challenging Although met key met we pricing, levels, managing coal that their focused pleased cash industries rates. below yearly on and coal consecutive our cash markets Despite operated their

positioned pricing. lowest keep same on to At cash well balanced cost investments us Importantly, long-term CapEx to going we production, our we time, in met eventual the short spending ton recovery the demand since uniquely achieved steel per and benefit carefully from annual public. our coal

the comply employees with social to We our various our organizations safety and forth of maintaining to hygiene operations. measures health by workplace our take health adjust the continue while necessary to distancing personal set protect guidelines and environment to

the to continue their business to of this resilience like Alabama, the operate idle and furlough our employees unprecedented challenging critical had a their We hard our to in to others in work employed for infrastructure times. I have mines all as keep during and of period, industry during people state operations our been and thank fortunate We've these would whereas employees.

quarter fourth the opportunities largely taking of played volume into Our out spot advantage expected, China. with of additional as exception

fourth a markets. inventories. including Chinese Chinese commodities, quarter able the on index Chinese As new some partially market beginning to met coal. the fourth coals ban were in of offset the our we during customers higher were monetize We on the to played attract of able than pricing experienced quarter, environment Australian our normal the fourth depressed successfully to the in out ban which impact quarter, perspective, select early without as quarter just Unfortunately, of doubt, cargoes sold From some most the the Chinese were of CFR fourth rise. in natural Australian theme was the a consequential these was, the

number up building apparent the a in large of early of we were into vessels along quarter, the coast Chinese being November allowed the as cognizant ban impact coming While the of to were situation without this unload. became

importation have Mongolia a distortion met their slowdown scrambled created coal in with met buyers such initiate to markets, domestic reality in land settled discussions per premium to indices ton and based two supply. complications over significant China with of sourcing borne $XXX low-vol increasing additional CFR to including per in, Chinese primarily their Australian the options, of $XX.XX a low-vol indices; FOB $X.XX differential increasing alternative was Russia from quarter. ton forces. transact, Premium today. new U.S.-based coal the by decoupled opposing metric driven from The spread metric persists this the As in from coupled tightness the as at which indices, The normal fourth of coal end

with to limited being as rush supply demand record-breaking customers The conditions, economy. year. offered reserved the of was Chinese is equivalent China, markets, of result outside iron such of another First, world's steel production period. steel less reported is increase pricing as which Global well pleased than Despite ongoing by coals; supply year, regions of is of fundamentals. was to secure recovery China given show the iron, China global the Europe iron X.X% the premium were largely a an South rest of non-Australian we the for America. second, to achieved remarkable was distorted normally production, Steel down XXX world The while global the continued for to pig due production year-over-year to global severity same most that supplied Australian met China's impact the quite tons COVID-XX down coal the in and and pig million X.X%, full for of while on the the World generally pig of metric impressive Association, X%,

earnings import a the a Australian the quarter ton to tightly reservations $XXX entire a The short to about million during major $XX short quarter fourth The tons most per metric our quarter last Australian per concerning and were for the in range Premium volumes, call of FOB year. of entered for ton tons. high per out ton the be the third was on metric Platts the volumes million to pricing, compared perception short ahead early quarter low for Chinese absence which and million were indices our all fourth of around quarter; quarter. price of averaging fell X.X the Low in Vol decrease. which of quarter of of last $XXX well Sales rapid midpoint out same X.X metric at coals at true. bound after expectations volumes the These tons index the supplied market second fourth with the also the kept ban and We quotas, Chinese clarity quarter turned on results set began X.X

the XXXX were geography the expected thinking same second the short in quarter volumes in profitability quarters. advantage opportunities by quarter call, were volume volumes of Europe, match These third sales XX% our from tons quarter This into previous in with our into aligns and higher sales and fourth XX% production compared better X.X nice in if into and to the quarter rebound Our fourth million amount Production America South of was the of Asia. a on XX% lower volumes similar XXXX our where thresholds. earnings last of half in said we met to year. take they we a

remained of tons to and the compared due fourth elevated the inventory previously levels, inventories quarter; fourth at to tons of volume at quarter planned the the spot short monetization communicated, the levels total million China. pre-pandemic into XXX,XXX one end short primarily decreased end As to opportunities of

than levels COVID-XX mitigate will market us inventory We our temporarily us down elevated, a or higher outbreak shut widespread our the among which be will The remain disrupted that opportunities. capitalize expect allow to normal inventory workforce. to may our on risk by levels mines help spot

index the achieved Premium Platts fourth period. and was XXX% than for Low realization Australian was price of of the prior the gross XXXX quarter price FOB year the in Vol Our higher XX%

a due primarily Our sales to gross due percentage with better higher realization relativities spot was exposed to our lower the a in of fundamental price to marketplace. sales being oversupply

quarter-over-quarter. the volumes costs compared Our million on spot $XX XX%. normal the decrease in were the quarter expectation compared spent The in period to total million development approximately mine in to capital the and fourth Company a of volume XX% a during same This last sales, is fourth year. of XX% expenditures approximately quarter $XX spending

and will maintenance continue ask preservation cash against to quarter we of as free effects balance We will to the results I flow pandemic. capital Dale our now spending address discretionary detail. navigate fourth greater our COVID-XX in the and liquidity

Thanks, Walt.

while priorities had our extremely and as to same throughout development and we make low it be At continued CapEx Our significant fourth the most been continued employees, challenging of balancing in mines idling an the quarter mine We XXXX. depressed off time, keeping to environment. about price investments. ran laying without or costs competing

an Our ability quarter testament to to act. generate was success positive important the of fourth this balancing free cash in flow the

diluted of loss last quarter The to income $X.XX prices; the million share compared in net million of per average diluted in fourth to was For compared fourth $X.XX approximately income net XXXX. per million EBITDA fourth Non-GAAP net the quarter by selling partially as decrease loss per per year. decrease of same of the in sales year. last recorded on Company $X.XX volumes. $X driven share quarter the a of by in share Adjusted to a basis million the quarter loss $X.XX same of the diluted offset the same a quarter net primarily quarter adjusted or in or for $XX higher XX% of a was XXXX share diluted $XX quarterly was XXXX, GAAP $XX compared

X% remained of XX% increase ton XX% compared to XXXX. metric Total fourth the $XXX averaged cash selling point charges same mining metric of same the quarter in the increase decrease ton of average year. in to fourth ton. price in $XXX partially to per sales million net ton in year. per was $XXX compared million million or environment were of and The last average attributable Platts cash increase were to Demurrage XX% of two, of partially an offset XXXX XX% most prices price a Cash sales fourth fourth decrease year. $XX Our by hitting quarter one, down same was in to XXXX net of quarter the mining last quarter, reduced revenues the in to quarter, approximately and, fourth short to year. $XX the volumes short factors; index quarter price for a approximately the Low in volumes, and quarter and was adjusted the Australian revenues After the cost the the selling This the or of port, the by COVID-XX. gross in $XX price in the XXXX; beginning compared per of Vol ton, XXXX per weaker averaging bound fourth quarter the last offset $XXX in tighter prices. increase early The the same lower million our of sales same quarter a ton amount $XX of metric sales due of quarter $XXX $XXX decrease last realization EBITDA market of at same in $XX in the net the the of index same the quarter cost FOB and due margin XX% in in selling impact or of a compared Premium was fourth primarily to primarily Mining approximately revenues XX% of range in low cost compared or per the in FOB and quarter per management short average cost million period other XXXX XXXX. of two sales quarter XX% XX% to XX%

in coal were per quarter cost wages, costs, pricing in royalties price-sensitive XXXX. transportation XX% of the fourth and lower was that prices and same, coal met as the ton fourth costs lower were the both in quarter. Cash such vary met While the with quarters

partially million the the However, interest compared and were expense depletion service quarter a last same in benefit of higher of this The year, of facilities returns primarily outstanding preserve recorded to lower and expenses noncash cash benefit same during facility on the X% and fourth fourth XXXX fourth XXXX Net employee-related slow levels. total and the quarter of higher fees year, balances. in interest amortization ton. compared income. our year our ABL quarter. plus to the higher quarter-over-quarter per higher increase were by included placed on a they quarter to of and amount tax million lower due due the SG&A were a $X our $X quarter decision due quarter for were period of per debt in revenues our assets same cost last expenses. year. primarily was primarily in fourth and issuance interest credit than $X debt was This professional associated borrowings due We the Depreciation to ton $XX in to million million production million. higher lower or of offset costs quarter of last to to costs was spending cash by $X the to order Production income XXXX in incremental with $XX X.X% about were about million production approximately offset on our fourth expenses

tax This pretax businesses. gas loss additional our is from benefit attributed quarter's the credits and marginal to well gas

Turning to cash flow.

development During cost cash of over to by the positive higher activities due volumes. to decrease and working quarter flows to XXXX by in quarter the used due generated mine the compared operating used from fourth million impacted year. of less in to million, mine quarter last activities flow, XXXX which and our and The $X cash last a to inventory were we $XX flow expenditures $XX the fourth million. $XX was the decrease quarter quarter. in of capital slow costs quarter capital. same year, production million working positively Free primarily in of investing net Cash compared higher free of volume million fourth higher primarily net cash fourth XXXX, million in for expenditures in in this same capital decrease Operating cash a sales $XX was for XXXX cash sales the in flows provided resulted during on was capital quarter development decision $XX of

versus continue benefit in We spending future. in the rationalize projects to that will the Company investing long-term

was compared partially quarter Specifically, the higher last $XX on spending costs. period XX% which development less million of spent by the year, Company XXXX mine in offset CapEx the same or on fourth to

CapEx full environments. capitalized approximately million CapEx the sustaining much activities we investments were financing quarterly for in $XX For million of was generate significant cash $XX the primarily consisted discretionary CapEx. fourth approximately in well spending year million could XXXX, spent leases even suspend and prior which that capital payments dividend was than or the we of full chosen Free have and $XX flows Because Cash year. been price our of XXXX and year mines on of our continue in those the $X $X business million, flows, of to the pandemic. by the million. cash flow to XX% of less higher $X quarter challenging our discretionary had can payment invest during million for We are the in total XXXX used of

focus our of balance to total liquidity and on with strong leverage adjusted remains We quarter, preservation continued during and sheet a cash X.Xx the ratio EBITDA.

we today and In and addition, maturities. shed we fixed have liabilities have our legacy adequate low a variable liquidity with debt have structure as cost near-term cost no

total consisting $XX $XXX of equivalents the of ABL of $XX credit million million. cash of cash end at borrowings facility, quarter of of net the fourth liquidity outstanding and million, under and available million Our of million letters $X was and approximately available our $XXX

and on outlook. at our COVID-XX to Australian turning to ban not time. the guidance Now coal factors, Chinese we year will the this be uncertainty full ongoing potentially Due XXXX other providing related pandemic, the to disruptive

to clarity once We providing further on guidance issues. return expect is there these to

return disruptive on to on is business, We of basis our to countries lead and evaluate although impact of coal. continue reopen and to these potentially the will believe speculate demand premature a on located, the COVID-XX it factors which a when met that for our economies we are customers in the sustained of other normalized

adjust needs, capital capital, expenditures, our operational flows and We liquidity. continue cash to working appropriately managing expenses, including

liquidity. Blue XXXX. but preserving on was summer We of the on of the changes cash in our project have and of This value least decision development delayed not until focus at short-term rather Creek of the project, the perceived based the

also to repurchase it remains now back stock Walt his suspended. program for temporarily I'll comments. turn final Our

Dale. Thanks,

we to Before to would Q&A, on move like some I make final comments.

adjusted While efficient met the conditions. return coals these of immediate Chinese we've have seaborne clear operations still circumstances. consequences on market understand will the of of normal do ban we coal, the on under not trade Australian to our We a view

will China be when imported and coals rather of in We we some China act. cautious than how will allow remain Australian level premium later, expect to predicting that but sooner

prudent distortions producers volumes the placing recognition it's to now, idle our customers Europe into China benefits for while the strategically coals temporary to China. our in continuing to and South premium capture in stay For spot to and Most brand build increased pricing some close restarted furnaces. of blast have long-term and America steel production

do due COVID-XX in and economies some However, recent a rise countries in new virus. we have their shut temporarily down again cases variants new of the which business to

also greatest our we volatility short While for remain price the products will that that for quarters, demand few for term. portfolio should we believe believe stable the next the throughout our uncertainty present

previously due levels current XX. potential production we in we we will remain to and demand adjust mentioned, risks inventory intend manage disruption expect COVID As that to as with as our accordance elevated rates

Of additional threshold to balance materializes, see volume decrease rapid commitments a spot expect profitability our plan opportunities levels. to in course, more our if volume, Chinese with the sell We our we opportunity to inventory to customers. would while meeting long-term existing

point Just disclosed, have right union that believe by as to workforce of, good expire have everyone would we've We one relationship I our previously best do like April a our contract them. with done is on and union our set we X. remind to last to

we cannot with negotiations a a in comment on new new any contract. contract. terms this the are We for any union At time, of potential further

adequate we world's our significant enables maintain a customer structure disruptive us to is needed is coal our challenge. to operations cost without free And or quality both repeating and across allowing results. margins again. sheet for met prolonged have reasons this Four, low the safely Two, as committed relationships. Finally, business cash significantly operations. driving and positioned a high simple and have economic strong our enduring expenditures our before one to impacting and times, One, worth years, and highest workforce us business it's Three, I many five five, we The past over long-term the variable to repeated have capital well most in balance flow efficiently our portfolios environments. made now investments drive reduce talented liquidity. important we've mantra highly pandemic, of strong any weather few

for to As we'd we ongoing these to factors, ready that With long-term a the from Operator? open I'm call uncertainties these confident potential. like of will achieve our result growth emerge that, questions.

Instructions] Please Capital David Gagliano comes The Markets. go from question with ahead. [Operator BMO first

my appreciate wondering, quarter? Can I associated some halfway us pricing on volumes I'm give you us a this just the and for with question. through first color full-year the taking challenges costs? the Thanks on can providing in more color give past environment. get quarter, you and though, first sense

of running as discussed priced priced coal frequently out are are things is much kind that's operations we it's for and And being clarity I as that expected, give going the So way standard our as expected. how customers. can as about but our still We've you.

drill to the what when expecting as quarter expected just a the first you you are for in expected, little what first volumes? And you down quarter in bit on Okay. more say

can look we You at expect kind of how operate. or that's see we've our how last and and year two to run,

spot times this into And the sales, in quarter terms the sold have for in first then first how quarter China? market point, spot the or Okay. in in you many delivery of at

detail, of into level I'm David. not getting that

ahead. with next Please Securities. The B. Pipes Riley Lucas from comes go question

you that stand side, basis also a that don't and on to be you put a then America, on year, to you committed of helpful. you commitments number for get typically the I capacity typically South very XXXX. Europe, would want full in into of committed percentage could I kind versus out etc., for where add a if wanted appreciate but sense layer volumes the

occurred. the guess, spot Lucas, previous have been quarterly I and of our XX% Well, shutdowns of about few running that sales the of most because pandemic our in quarters, volumes the

those well of the also of new with as new and the countries those cases some stepped As geographies this are kind have improving, variants virus. of back

China more forward on market to say with to expect this advantage sure we the still the volume XX-XX exactly as disruption can on and ban, can, that But it's want to with of with committed of that going when to volume whole take ratio hard as we but year. make there above our customers. we everything improve move we those what's well. that we fulfill The we spot because So try opportunities

right want So committed And into I this can because very over don't point change get our do roll quickly. year-to-year. from the to that contracts at

until next I think pretty pandemic, XXXX, of somewhere we're I on these that fact, some positive. So see being just improvement, you on as going And think as would last I just been the And to improving cautious. that the after very it numbers. we three that the those I year-over-year; year, XX-XX to want to always were a back goes be this we was the quarters, quickly about sales in of And is. XXXX, say we've both or But and in off how to ratio believe just for it total, look, tend you result good of be that, things and looks to depends given just X% say year David's our And I terms about volumes. start very and think would kind think those about resolved. question, production X% volumes get off in everything

every of out hold logistical of not kind you transportation positive on flow Latin I I question share And if Dale. yes. for prices environment, shut like time why you today, are America, Australia in a where you, would Thank mean run contribution kind someone continue of you of isn't Europe, Yes, based that's have marketing is time running margin in question, Higher-level sell. on this the the appreciated. Chinese big picture, market, market? to into to kind this No, a follow-up gain out? you advantages

big why out picture full here? philosophically, not So kind run of just

supply not Australia is off coal in And seen millions pretty you've doesn't we've its the produced that Well, coals China coal Australian demand. of coal Australian is a fact you America. both the really letting got sitting make way between close of some Australia. cargoes remember, not balance tons from and of This coast in into The mean of Europe being the South and still China.

As recognition opportunities mine allows and it move in with China, us the our four sold out best our been China Warrior of coal us mine seven we into had get China because for to -- we've has and haven't to into thing as brand coals previously.

So at that is significantly really the undersupplied market this not point.

think sitting as of couple a I about you off tons coal China. of ago, had million Australian weeks coast of of the still four

representative That's helpful. I'll end are I'm for pricing FOB not Australia, given -- these are with with of say China, know one in final follow-up all -- outside and East then coal Would prices the go globe, that at of would looking that prices those deliver or FOB back the Coast. into look, that queue. various fully We're you representative you? representative. Or China inventories Australian Australia you maybe you the sorry, say, some around

there we Just at for look quite index profitable so just be of number be help much a color. little to even it'd more I'm -- now improving -- confused provide that an when It volume seems like to prices. at me I'm a these frank, be would weeks understand hesitation

So I today's pricing would additional the on environment. in appreciate color

while three is CFR CFR, And in China, whether small know, may previously. weeks, going contract again, we into it's Australian the as pricing is sold those that customer, volumes. achieve able ability, the coal when active fully and into two of with our for Europe the FOB particular particular to what's average to both weeks, and be China America, on based And weeks it's price. we it, in our customers always I four be prices on look very fully based on prices very, Well, South not at these market a sell expect whatever we don't is

I Right? think as same Coast the East thing well. price the happened with

Yes.

That price has several last under ramped there's virtually up weeks, volume index. been traded that over no the and

with from Please Bank. comes go ahead. question Chris next The Terry Deutsche

if of could The on for than the sold inventory. Appreciate little $X.XX just out quarter. the I bit you we had. what was wondered or costs $X.XX I XX higher a ask

just if main was you inventory some guess wondered I I wondered could contributor details. how much just the about that talk in if you but you know give parts. XXXX, could the to some the the Just quarter? that. you're to was it moving talk see about maybe I reluctant of that higher costs too

Well, if for the our years, five at you $XX… look $XX cost last we've and average between sales of been

Metric ton.

where exceptional able kind -- Last expect year was we QX. year be quarter quarter And in ton. after to Metric to metric per continue and quarter. in be. to operate that And of we after level that's same

with mines. Now blips. the number tons. to in any operate fixed we cost fixed of the particular an quarter, gets days there's have produce, we we're number in for awful quarter, when costs fourth instance, the lot tons some the intentionally And back of going associated these spread of And we drop and across fewer

So we're going to see a higher cost per ton number.

third was to unusually just third quarter, mean, That's low. unusual the just were basing so low. ton. think, was third that quarter, be number that a being outstanding the in off an highly quarter other there, it $XX I about you anecdote one And if down the, I

harder, other are different the big of makes So mined And so little that back our one of that's -- you all we what that factor in a sold is levels of in bit was lot inventory a there third kind because quarter, quarter. us too, the snap the things. got high, a fourth since

other on some got inventory So some layering. quarters rollover the you affected

at. So it little historically running But we've just is yes, mean, $XX range I to a convoluted. makes low been more mid what bit it

Yes.

CapEx of many talk you on moves you could due? do Okay. in XXXX, expectations terms your how range? then That's just a maybe And have longwall clear. about And a little bit

fourth three, a have possibly No, move. longwall we

in probably see, In budgeted us should is CapEx, in $XXX years been terms million. where we've we've of again, my $XXX and you million expectation levels similar to between previous

you in just got you anything ready level the COVID. I inventory still can million little just in come it spot the you've half could opportunities then now a back you that got and if market? that around And to take wondered understand that, million in level happen to have in coming what's like, talk the Okay. just do up I'm versus Or and comfortable? tons, case to tons million opportunity to keeping what trying about you've that be keep a was down to bit that inventory?

I range. really the tons, for somewhere to Optimum, I we get when XXX,XXX be. inventory we where the are say, in would want XXX levels XXX to is think below us, below that's low really

The next Capital. Matt ahead. with Roth Farwell Please question comes go from

for there versus question think a How I'm and logistics think is high we higher way the obviously, we just just China would comment low-vol, about Just -- about And how about of can in seems your a should a wonder the commentary potentially secondly, would estimate. given on ton also China. estimate. reach less rough I And year. on Like that way per feel prices $XXX costs. unique. this the the CFR but premium X% looking mine China fairly to volumes like just -- I China, to that if then Australia to your than realizations exports you

the first handle one I'll there.

can. volumes. realizations, take foremost, long-term predict having look, advantage to it's our actual we But the we're going said in customers. without and of the that opportunities, as if far our as I first we comments, But As can't prepared to obviously, try

us customer gone that service we today to with tomorrow. customers Chinese and sure today here and We long-term been XX-plus years, and our are that a make have for comes

that sure So we to meet demand. that balance we and have make

than other China, those take some might any of the we'll this I really of that. opportunities at transactions just year predict spot volume CFR if say, actual look, to into try So advantage that do we can prices occur can't

our care go captures far first think opportunities going opportunities, at to as are long-term that look as the of that and customers, of really where the Dale's determine take realization. we'll that our then second I And as best question, part and well answer spot we're after and

Okay. And one question Great. other just then CapEx. on

you clarity If any on year. provide are could just this discretionary projects planned more that

CapEx can I deeper bit into a So think little the plan.

and seen and out you've construction. continued we on building talked the under as X that's previous we've are to in materials, calls, Well, that be facility, portal as our North about and

primary expect do that's project. I So our

project Creek of start the development the this at comments, As we now, Blue our did summer say until in least of year. are prepared we right of postponing the

go. prior spending, things see as what be everybody But take pretty $XXX So again, as into the start how so is of million what incurred could budget we to year's, this good money. said fast to Walt that as we If don't would on to as similar from not things if we could But that's be kind This with. off $XXX it be us exuberant discretionary you earlier, then get million year. spending as seems anywhere to in pick off things about; it depending year, probably that, a target.

next from Martin the comes The with question Co. Benchmark Nathan

guys was that looking that you in a into of to Maybe Obviously, dig CapEx to to XXXX Most touched great I level. the real $XX question. CapEx follow-up did quick million on bringing topics have sustaining been on. just down job

sustain if something think, capitalized be I well, few XXXX, would necessary? comment that that, and well feel Do been question. the going Dale, you into that could my Walt as have last number you the made over is first the that forward mines like That years. you

in a do in yes. number, not yes, Yes, that XXXX. we sustainable long-term XXXX, could but It's

quickly, of you're Okay. right then ocean a out number I'm curious, to now mobile going freight for there kind guys, maybe seeing story. back to Great. that China? the from And reasonable China is what just CFR

$XX the it let I $XX me ton. $XX Yes, think range, to range, a was in check.

think, you the a perspective I the roughly on getting you're then appreciate roughly a XXXX the mean And as a comment will Did And about, from basis, were finally, be XXXX, what it. numbers you down were too. an at? Dale, absolute same little sales made the volumes XXXX, think, mentioning is question. that I that, Got housekeeping you year-over-year. X% in and I then said just you maybe same. Okay. roughly

say, would talk depends on to amount could up. are be I able to need volume Yes. of how to lot it. there our fast a similar Again, see there's XXXX. ramp of customers a back just all that. about We that And again, of amount

their a But is again, get from -- year. customers rates think, So little more reasonable that it's for the our I a actual to need we range. range, on run just clarity

left spend And expect obviously out etc., year. where this Got one, Any would to project, X just is CapEx. to much you the or then know dollars back North going those quick, just to most discretionary your on I you on it. you how portal color provide real projects? final one spend pointed of the can

that of also halfway development. the for needed about will some capitalizing we're think four I It the capital be bunker that through mine project. We're includes a built underground.

So putting bigger portal just than in. it's a sizable It's project. a

about we're halfway. it's So

what would as be halfway, You're -- original the

XX-ish. I think was it

the mid- yes, -- XXs about XX total. for

I time. guys. Thanks it. appreciate your of the reminder, Best luck. for Got Okay.

from with comes Hen] [HITE]. question Next [Len

for What thinking you Creek to from you time? I so [indiscernible] summer, What you Blue at are just supply ask project what want want inventory, make to now the that price, to to you want see? comfortable want to demand? pure you to see, be do do project,

think we clearly would little more pricing And more We stable. see you're -- defined little we for clarity about think starting that a about see that little around COVID -- the a -- have I assume we asking just demand. like I minute the a want that about talking talked that Creek? we pretty have just negotiation. to us a -- can bit talked contract to to about stay so I we better, I the had issues, Blue fact we would see

clarity And so of money going some project. commit of issues the we we're to just lot into those need before a around

also, from administration. Got kind like, it. coal of of And of kind a this we lot [indiscernible] new heard the

bit thermal seeing maybe little do of or demand. their, any more for less like you are cost more overhang I guess I profit like business, for you what administration? kind a talk guess, operation, of coal. it's like know I But kind either for from you for guess, feel about can I your about business, your the your So potential negatively

early a moratoriums excluded on coal specifically but of all to it's coal they the coal, Well, land actually. tell, some little metallurgical -- the federal leasing,

than which at we this don't us. just -- know. at of what this say kind We predict can't expect to that point, one, other that impact doesn't It's they hard it's So time.

And do you? then just for clarify, you don't have any lands federal

we federal Well, some land. lease, do yes, Yes.

lease do federal lands?. You

existing for is your projects? or new your So for

both. be It would

Next follow-up Capital question with BMO Markets. David is Gagliano from a

my I guess I think a lot quick questions follow-ups. But had just asked. have been two I now of

longwall any quarter particular there where First the quarters? is of other on chunkier they're moves, just than all,

pretty they're much no, No, throughout year. spread the

just was on union us just can give the that some and you negotiations contract context? Okay. last when So on And contract, then negotiated?

Five years ago from this coming April X.

Okay.

then. obviously, were things So different quite

of structure to One part moving the were in is that forward? pieces of is tied negotiation? And respect. I that the some of that likely wages prior be was contract, the Or to the still prices believe,

be enough of But stayed will interestingly, robust wages contract. throughout the the That standpoint part negotiation. a We constant stayed trigger. prices that hit that from never

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

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

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

now You may disconnect.