Warrior Met Coal (HCC) 3 Nov 212021 Q3 Earnings call transcript

Good afternoon. My name is Chad, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Third Quarter 2021 Financial Results Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session [Operator Instructions] This call is being recorded and will be available for replay on the company's website.

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

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

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

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

additional operator. Dale and everyone join After today to the you XXXX to ask review our taking will my have our and us questions. for results. Hello Thanks quarter in then third you'll detail discuss the remarks, opportunity time to thank results

third quarter, we the operational our since our results COVID-XX efficiency the of and to pleased the resiliency profitable driven onset most pandemic, base. deliver of by were the During

headwinds, see how over XX our during factors delivering been control become priority have that now months macro company work maximizing for our focus success its the having can the several results we to during This up that tough us our market has base, creating been potential just improved. set can of period. instead past work have fruitful stakeholders. As company and with operations despite value has from But the our strong outside last control, for on quarters, conditions for over pandemic we the our COVID-XX generally in already things our of discussed to the meaningful been and tailwinds conditions with cost we

quarter, our for translated tensions crossing and market have fundamentals for Australian to elevated levels the policy premium lost the COVID-XX pricing strong largest limited output between Mongolian seen in have largest of due coals, self-imposed consumer before. products world's experience and to on to continued demand world's which constraint included protocols across China and met met border coal the our supply to our strong for recovery ongoing import coal to ban global the never due a the we our to an increase, to when volatility. the on we for Even in in selling net our which, environment increase focus coal selling leverage customers' prices. cash record combined with the commitments on our continue resiliency. environment, us met the enhancing of Chinese our liquidity increasing created Steel future to however, economic upswing managing market macro long-term pricing, current high well-positioned flows the to remaining enabling objective continued saw any potential third has products, combination The of into coal. coal and the the ideal and customers met enterprise world, ban average imports, quality with meet to expenses, demonstrate the the quarter, This geopolitical strong solid has operational demand the coal steel Australian producer, production. continued face and of of Throughout we at demand have domestic measures, remains with

X% to has Chinese steel growth in keep to steel at cuts compared to led the production. addition, mandate government's production In XXXX drastic

steel costs, prices short-term, In mandated higher of these absorb prices have aggressive met margins see both the government. lower As remained and healthy production such, continuing. to been consequences Chinese the coal able quite have trends steel the ore due by to we as producers cost higher direct the iron

by increased the by reported year, production first nine for with X.X% China pig Association, iron X.X%. of recently decreasing As the World months the Steel global

were rest world's rate the grew Excluding China, We they of XX.X%. markets an impressive quarter. the production to at our did remain expecting during of third the strong as

pricing surprised achieved by by However, we indices. main our levels were

quarter, experienced the of $XXX a price the Platts of metric per third of the metric on rise ton. ton, $XXX ton by FOB China PLD, metric Australia from from $XXX one metric CFR indices September. per the to per $XXX to ton July During per a high Index of $XXX a rising high $XXX increased end meteoric Likewise, at PLD

in CFR rising of final volume last weeks, the However, the metric by for ton XX% total PLD also million in quarter short ton, Australian final $XXX rose total the of the equivalent the with the Sales quarter, million occurred $XXX tons to third six six was quarter. in the which PLD XX% of year. indices to in quarter per rise metric the occurred indices the for to pricing majority compared FOB quarter. equivalent This per in during tons X.X increase in weeks third X.X same by rapid the the increase the the short third of

price was geography XXX% were by The Asia. and of future. strike to years. four of The the demand XX% X.X still Chinese third compared Europe, Our million primarily in quarter X the short the several of in into in that in XXXX continuous into X% times, third the higher not units, sales at capturing euro day driven quarter year. from out produced longwalls while Mine months into our miner sale. By idle since four float or tons resulted April XX% in same quarter materially the X by running X.X third CFR last both lead sales volume during America, tons running the the short third commenced and changed the we the capitalized to Asia index the remained of the into have continuous mining quarter South upon on are days, quarter. tons Mine plus the Production million quarter were third during China

third XX% prior realization the Platts XXXX of price, gross in indices. of year XX% the previously Chinese and late was index period. the was primarily realization The price Low in quarter rise lower Our Australian Premium to the gross due quarter FOB the lower price achieved Vol for rapid than of the mentioned Australian was both and price the

Our in the XX% quarter spot and volumes XX% third volume was approximately year-to-date. of total

volume will Our quarter detail. our volume of in to I address is spot ask spot results highest sales to XX%. normal expectation approximately third The greater to China. primarily Dale the attributed now is

company, last continue to and and reduced steel including In the In mines quarter results as Walt. COVID-XX third year, Thanks we operations downward the and even impact UMWA we the its on coal impact both industries our strike of third ongoing Mine saw capacity. this X. we our Mine contrast, significantly the impacted near run by year, idled which quarter at were X at negatively in met

plans third commitments over free same The and largest took our basis $X.XX the over nonrecurring decrease income share to selling We compared was prices, the nonrecurring per XXXX, our to net sales $X.XX recorded net market adjusted last two was driven execute diluted of continuity diluted diluted of quarter per quarter cash the company results the meet volume. on year. $X.XX per mine as to customers. we in to of by the excluding third a quarter, approximately quarter business of million in in $XX million interruption loss the primarily expenses, flow. the a idle to a other for strong compared in $XX income per its two $X.XX million in year. diluted or expenses increase partially business by in or share our of same conditions increase strong EBITDA in quarter income a average $XXX advantage the compared share generate XXX% EBITDA a loss year. quarterly third adjusted last million $XX share In of was and same net last GAAP Non-GAAP XXXX, to contractual offset in the quarter years As of largest XX% net years Adjusted

same compared to the year. X% lower last quarter were selling versus sales prices, Total was the XX% partially in to third the $XXX year. from million last period the same third in this Our in EBITDA in to quarter the quarter third by margin approximately increase was volume average year. year This offset the adjusted XX% quarter quarter in million compared increase $XXX net same primarily due the XXX% revenues last

$X higher, an $X ton, lower in items due royalty same this quarter. pricing per of year. index the metric where in dollars mark-to-market and quarter third quarter the same partially quarter net hedges reduced the depletion volume, sales gross last In and Demurrage sales other last associated Platts cost to realization quarter of ton the was year's price charges averaged The primarily deficits. to metric met short offset FOB the costs $XX as season year. quarter The in compared quarter third the selling costs. $X quarter our Low year approximately up per Depreciation of averaged mining Premium and royalties in quarter this $XX total $XXX to of last Cash before XX% a price average were third per XX% or The Australian in the were revenues to due addition, the impacted sales things. $XXX $XXX of short of transportation revenues was revenues higher year. were this The in were wages, our increase price $XX to to for year. million in Index vary and ton primarily price the mining compared transportation and in gas of million negatively this which quarter FOB costs short Cash by price-sensitive compared same entered quarter. million $XXX net ton ton in higher to of the gas with to million the XXX% of to coal million same or last $XX last Vol per third quarter $XX year per $XX million compared supply same impact third a compared was decrease variable price-sensitive the year two million $XX year. other million that into Cash in third expenses of the in last third cost third year were and approximately compared loss quarter hurricane quarter year by port, this was on for noncash earlier such

X First, been the related of $X depreciation as inventory expense immediate Mine have normally produced. was million would it that of as to recognition capitalized

is X it was idled, expensed. since However, instead currently Mine directly

last quarter SG&A total of and revenues are X.X% primarily Second, due in to sales by related these lower and XX% volume. third than professional the to were expenses million same of expenses fees. in were lower lower decrease or the $X year, XXXX million $X the expenses quarter due employee lower about

quarter, During ongoing of the and safety to incremental interruption third we UMWA nonrecurring other primarily labor were These $X million expenses business strike. the incurred for expenses negotiations security, nonrecurring and legal expenses. and related incremental directly

insurance, offset X in ongoing expenses labor, reduced associated about the the increase with Mine began partially incurred quarter. in As the and to a are result Net proceeds equipment million April compared this Xst, We was expenses interest electricity, primarily strike Other third in for $X Mine of The our of settlement operations financing leases, quarter costs the financing at million of and a million related tax credit year. $X our idled of expense includes new on quarter leases. outstanding result quarter Mine the plus in income equipment nature. primarily interest issuance was the a fixed interest same X. we on to a of during lawsuit. million of quarter third slight received interest facilities, These amortization expense taxes, represents in income benefit last second debt, $X debt of maintenance, year of island the third recorded associated of that as UMWA the with X quarter-over-quarter by $X our We income.

depletion for primarily well quarter tax income, expense marginal additional and partially by offset third to was gas pretax The credits. benefits due

Turning to cash flow.

third this primarily year for generated investing during net third same $XX negatively due of in impacted in in capital. of provided of costs million quarter Increase was flow and lower $XX the working capital to million. of coal an million $XX in due capital were free increase of the working compared cash last the expenditures million expenditures the increase operating third net sales activities Cash Free by XXXX, cost which capital and the During volume. an was we used from $XX in used year. was cash to $XX development to for by development mine quarter activities flow, resulted inventory cash in this year million mine $XX million quarter flows quarter cash less

to consisted million, in the of $XX did However, keep the million mines spend we for to third activities of were fourth the well of expect and more the and flows $XX third the on Cash $X do primarily capitalized. in financing we quarter million, quarter than quarter facility used in of ABL dividend our XXXX payments of quarterly $X capital leases payment of million. the payments by

outstanding available million. $XXX of end letters million $X available cash cash ABL and quarter over total million, our the of is was Our million representing of a increase liquidity of the under third XX% $XX of approximately of This at second equivalents facility. and the credit quarter and net consisted $XXX

adjusted a our Our and continued liquidity enabled has And to a variable has combined balance have we the maturities. We give near-term sheet, and of continue EBITDA. times We manage cost through believe global sheet strong us this position structure, flexibility to notably, period with uncertainty. our X.X to us low no debt marketplace. of volatile ratio balance leverage weather

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

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

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

the temporarily have addition, remains the for delayed back development it his comments. In repurchase Blue to and stock program suspended. our I'll of Creek now also turn project final we Walt

Dale. Thanks

some outlook strike. ongoing for Before well final the next we move on on quarter to comments Q&A, fourth our and year UMWA make the I'd to as like as

our continuity the April We customers. on us business on strike, plans our which continue the of Xst, valued to UMWA continue allowing to to meet to response execute in began successfully needs

strike, good in While a we contract, costs strong deliver new the incurring to continue been to in market. Despite UMWA able working we've on and to incremental reach negotiate remains unfortunately, faith results our capital with to this strike. manage spending associated

of outcomes for about time those status the cannot ahead, potential various are reasons. we there understand Unfortunately, negotiations, questions time possible at Looking on this we speculate the topics UMWA and estimates lines. of of any

and value Let our hard me just the work say, of we appreciate employees.

keeping careers remains financially safely always long-lasting company and a have and ensuring Our been working priorities bolo the people employed market. particularly stable and with coal

While the we we reach to to good are disappointed resolution. that strike, union continue negotiate a continues with the faith in

the market current we expect with supportive orders year, favorable anticipate ongoing strength our to remain markets next by and supported customers. to into quarter forecasted Likewise, continue We in early discussions fourth and of sales the in steel tight conditions. in our supply the valued

We the that products but and expect to is our pricing high. remain recognize strong supply dynamics for to the due of pricing reset positive likelihood demand

above XXXX the customer strong existing fundamentals. averages tons remain expect of to commitments a million X.X fulfill of X.X the pricing due during historical to reset well-positioned million believe volume we market are short We inventory a quarter. production we coal to for combination and fourth for occur, However, expected when approximately does to

of planning continuity our the to may While million that to business agreement XXXX, plans results budget the four a in early plans. production we continuity our market purchase strike months. our the with are pricing place, may customers we strength next unable exhibit and year of believe cause out and to soon and we demand reach coal stages to coal Currently, a union, of approximately environment union longwall to in will short that production met schedule. on of including activities, number depending a can still sales our capitalize run working various production scenarios in in about have We're near-term, short could shipment the for updating significantly. and in of disruption union. vary believe that we remainder further of tons. rate like we the would million tons of the include be our may play the for that and X.X possibly mine and and business we as supply. as If the limited current an early on to upon we X.X volume three the We contract able This reach If to for X.X believe small with January steel ton we're million negotiations with could ramp There are produce this between restarting that tight year. strong crews every shift support with

in the Mine in quarter We started have recently mining fourth at X. continuous on it

up further questions. outlined. expectations, XXXX volumes to quarter results, With As clarity fourth I've we'd that open that, Operator? call just could and in which the change have finish the those to we we like expect for from the

Thank you.

session. We question-and-answer first will Instructions] from ahead. Gagliano Please with come [Operator will the go And Capital now begin the BMO David Markets. question

cut questions. Okay. going volume to Great. minute. XX-month the my for for Thanks to a taking I'm insights

around questions strike what, first any, And to question. million if the some much that of associated The restarting Mine in embedded -- insights. with Just How My the X.X assumption? are X.X Mine those restart? million, that or if would X includes continues. X costs include two

million of a -- This run said, maybe, year, getting starting No, Mine level that we year, to up as QX running up throughout back how up quarter new X wall seeing it we'll set I in just know, ramped X.X XX% year. But included includes and I and from XX% at last or full it we long do full end not don't speed. there. that the

we're now, early look Mine where to with X ramping year. and production right our headed but where happy we begin next pretty we're So, are rates

ramping It start-up our just slowly. be would just there's up costs Dave, there. basically normal no incremental

not buck you're bang units getting that's the the cost, higher for the miner than continuous longwall. So, and rather the

-- there's special no So but start-up.

out scenario, to overall specific just Okay. thanks giving million you we without cost, for like And But terms that costs sort of cash Mine in cash But the X.X overall cash part. than million we tons, frame including were that there. general, X? in current and -- to that just X.X higher cost information in if try should assume cost in

of about should As we've we royalties see the have going because pretty production with in cost and cash we where variable the cost part steady, prices sales of talked includes lag potentially costs. of which to are of transportation quarter increase with we're -- transportation remained have that, that

see to going You're transportation royalties up. and go

any correct, including X.X And ton that's in other million scenario, the scenario?

Yes.

addition Okay. And can resolution, costs then if incremental any, should meaningful we you we if changes start-up scenario, about if of capital there sort to that costs mentioned? you that if a cash And side switch or scenario? in frame could is any there's just to cost the be on what what, out over meaningful thinking in

should real cost the contract not know. would three there's of start-up ramped And back there's There any to that any we started I incremental back up union, doing -- -- That at to get months with be. take no what think unknown costs production now costs. capital The not to this That's the it or additional point. would an levels be us said I getting four expected we've up. don't additional to cost

course. of Right,

of million, quick X.X million reaffirm -- commitments, Obviously, couple plan and hit now. the the million X.X commitments million then the fourth of Understood. customer of X.X a X.X quarter, for questions And just the just Okay. there. tons near-term, in you're customer to

XQ send of your expectation. the do expect little don't us -- on And that, in much shipments into not, what's that's give you be volume you color -- to the to overall you a I any, expect China? Can directly more fourth if So, quarter? how a think, obviously what

answer Well, that I'll one, Yes. Dave.

the yes, now inventory be really they're I of went end what volume bit China. tremendous we our so a into But of expect our contractual the X.X of And to the the in we So levels down of on QX. wouldn't happens exceed to most higher should and depending could quarter, We million. amount our China. a guidance, the be side. sold second at in There, majority that little

about So, than don't third in I sold quarter, XXX,XXX think that fourth nothing I we've different tons expect and the quarter. probably the short in significantly to China

Okay.

Sorry.

was the you the last said? about XXX,XXX you in quarter. the said So, China same Is what into fourth point that

that in range, somewhere yes. Yes,

over Thank right. you. somebody all turn it to I'll Okay, Thanks. else.

next Pipes B. The Instructions] Lucas with ahead. question will from Please go [Operator Riley be Securities.

Hey, thanks good for question. afternoon and everybody taking my

bit I the little ramping because a assume kind to get better between both million to up million the X.X is environment include difference wanted X.X million X.X of would I the and environment of understanding So, Mine X. what

bit months would you a would of XX if kind Thank more share a So, could labor now, as that. to of appreciate what little color difference very you. on could from perspective front from you the much your make if resolution kind I

running to If throughout have Well, get union a X not would a are or we've day that -- And it be running go year to contract a we're this said, had talked we're million hours like a year, we of next how Mine allows occurs. that contract don't X depends I had the quickly resolution at on X.X when early the throughout that started. If we very our Mine expectation we we year. us XX been. the resolution end we million at hours or in year day the early a year, a resolution X.X XX resolution as not about and

ramp basically production you once to be back So, would full levels. it

from Understood. your like And be more it raw there's commented peers broadly, et cetera. -- of materials, kind of have inflationary in labor, on terms then of costs, And many pressures, to wondered what rates I bit you're it in are perspective. your Thank going I could you extent appreciate would you. operations, up. a if labor on our where seeing comment new

inflation, bit well degree the but not running this significant to mines a point. expecting are little we're at overall, Lucas, a efficiently. of and And

roof going up. Obviously, equipment every are us, expectations do So, And year. but we about we're lot we increases. around of prices really telling up cost price steel of not and that's from use year. well seeing that we yet we a a suppliers next inflation lot bolts, machining have any for and hear net buy

-- that we're we're significant But be the not as next early this going quarter in facing as at total. probably going into experiencing fourth well any So, year. point, inflation

diesel unlike We impact a And fuel little competitors expect of relatively don't maturity big from fuel. the our cost. who use

Got it.

Well, I much. Thank you for Okay. now. appreciate it. turn I'll very it over

you. Thank

is Instructions] Our question [Operator follow-up next Please David with Capital go from ahead. Gagliano Markets. a BMO

Okay.

volatility really difficult I'm XXX,XXX got like now Just Basin bit that's going little quite the China. the end the place, more have we've know -- of tons if a into down question. the is I color. wondering one But all sitting given rallied in at the a you pricing, been but all a of challenges over you the give very directly a price. us quarter. near-term benchmark said realized just Pacific And can

So, how you. should a a Thank like something us out the there bit is way about realization? that, thinking percentages fourth to a we more give be frame just or it quarter sense,

don't going in to Well, know quarter. the down significantly David, drive I what's fourth the price

don't think I some. it to a know to I significant adjustment. price in what the happen settle really have could order for that have would But easily

but thinking quarter we're remains relative. strong fourth is the strong, So,

year strong Now, is probably next be we up I'm look going has we quite year, of stay it's next where pricing. not And into strong we relatively real that a sure, let's think still as the first is. to think it half pricing. but

like the would forecast, half have start looks will to If settle year just don't at it out. the clue of the back any look you when that We occur. all

Okay, that's understood. fair. I

Is higher a assumption XX% Basin of benchmark Warriors realized the kind Just very environment, make to the still specific was right? historically, to price that, price, reasonable in close a in XX terms quarter? well, average of Pacific than relationship for price. of reference this actually an -- in that

stable environment, it Well, price Dave. normal a is

we of comments, in weeks. that last As the came rise look, quarter, the increase our in six XX% noted in the third

sold entire already we're to We've last of So, much that pretty in quarter. six the little weeks. very going the capture

So, you well think way rapid it just about as was got because to that that increase. a

in somewhere telling be going right price XX%. across range, too, across now, in be But a there skewed just if pricing the not story. dramatically to just Because XX% it. how went in think stable environment, So, it the very could you're That's really you yes, quarter, XX%, we're true cycle, up. looking about at and that --

last about the to before pricing the And pricing. follows days, how vessel we've our XX XX for a spot talked

kind it. of starts the end up settle, price see see above you'll some. starting chasing period that us and we're you'll So, price if And settle to while -- for is to XX% the when well

see of while It's XX%, that roof. that really the price we'd So, indicator like XX% has to prices. these an through gone the that

XX%. includes trailing good another and And at point that And XXX% COVID, we're the down low Yes. we here is -- basis, on XX-month XX%. were in the XXs. over We're

of So, volatility the over year. that's got the lot last a

the That XX%. reference quarter, the on all commentary was the to clarify third in correct? to just And

Correct, yes.

prices after kind fourth have the up. they in stabilized So, shot of quarter,

we zoned pricing? should kind Asian benchmark to So XX%-ish be to Pacific for of closer realizations expecting relative

question. that answer I'll

going day. is So, days by XX as you next over pricing tell to me the what be

to is price. add in on the I want A other lag a XX-day XX-day lag. thing That's

yes. And view days. that way much, look price the average to same well. is it That's Pretty best back pretty quarter, if for XX stays be you we going the should the fourth

Okay.

over mean I if at just ever We're a six of mean, hard ton. pricing to I It's question. an Australian unheard trying $XXX the it. happen. thought, would I have basis mean, if of the to your you who weeks not that quarter, look would right, on predict just avoid last so

helpful. Right. No, is absolutely. And it actually actually quite is information very It providing. helpful

again. Thanks appreciate So, I it.

Thank you.

come will ahead. from Martin go with Company. Please question Nathan Next Benchmark The

likely up you as were guys is prices on Congrats as just portion in what real discussing, cost my afternoon you quick just idea here the ton the heading of per good sales us sequentially guys. taking maybe give questions. price quarter fourth Can we Thanks maybe that And Hey an side quarter. on see of the then sensitive? thing. of cash for kind

there, a variability that's cost small That's little and portion, two-thirds royalty the is about all variable. you but other and some are variable. bit and transportation costs, have Well, of a mine two-thirds do

Okay.

-- two-thirds So, that was is and royalty? transportation,

XXs one-third to call -- cost that lag a No. you is up, what of range, cost No. the we like said is the The or at years, is remains it few see look this, they of average to going a other transportation sales prices to if price you're in to mid-XXs. are is, you're averaged way prices at royalty. price. of production. about of going that ton that the within -- third has And $XX transportation what two-thirds relatively It's of going prices constant well a last our is They're quarter. we've variable to coal sales they that is look the five of cost bucks. because a as production And us at percentage of will cost And up a see sales with royalty costs go because and spike though over

or you Got transportation give just it, a then Can mentioned, I on little that. transportation, again how right has are guys helpful. whether mean what and color barge now you ocean kind it's of any rail service even seeing carriers. or you the on maybe that? Walt. appreciate Did comment makes been? sense. rail Very Thanks. barge, And difficulties rates, costs, more procuring rates I even

of a managing our through And port the there's the weeks you of in that is happy the But loaded never gone how We couple matter the well. had that -- transportation that move fashion. two and continues with is or lands and storms. course, vessels. We're always our good them coal get on fairly system stranded move We're though. and has to timely do on down here been delay coal, they're doing. couple complaining and by getting to no in cost weather it's us what, a a well. a of to barge large, And due know to continue by there But some get transportation. coal of to Part of it working we're well. moving vessels We're

fourth that’s quarter. and about Again, had luck I of I you Well, the the time think it. guys all best thank for in Got left.

you. Thank

the follow-up Lucas question a Please next Riley is ahead. with Pipes from go Securities. And B.

I position how do much spot wanted but Yes, look can very as contracting XXXX, choose taking Europe, much. thank to you very to yourself? you're America, out obviously, between South about Thank your Asia you my to for you exposed ask strategy, you look to question. follow-up you prices,

make of to as better us we for both have sure and contracted into much that same need and in approach getting coal we we'll next the spot XX% about to the coal I typically, for think go just and us market. out our it customers year, Well, to And move both us that more at And works achieve. the volumes. our try the customers markets that way, we production our are it seen, can prices we've the they

targeting-- you Are

I tell know than you XX/XX. be don't can't will depends XX/XX, other what all market. I it It just on aside from the

that There's Asia specific you're for for or looking percentage to earmark not a China, example.

No.

any talk about they they're been spot have all long-term unwilling Because contracts. to volume,

natural we on indices. going our doesn't the sense because two we're with it do China contracts more And those make net a for us the a we to prices to between stick correlate have start of to get freight, correction, to to have market loss have if And we the pay kind to transaction. look, becoming customers. ship and So if

ban really why China So, this until sold of that's started. Chinese to we've never all

what depend is, index. going market are So, where prices Australian it's the all to the and relative on to

the sharing much is second for have once on strike very dollars? of is Thank your in it. still follow-up in thoughts precious your are very terms resolved, of your And perspective. this Got Thank your allocating what you hold, you capital much. priorities, Creek then been returns, investors space kind question on capital

Creek over we Blue ban. mean, been we've Well, while Chinese last to preserve point, at the this try the obviously pandemic issues been some evolved working through to the and into We've suspended the strike, I year, and capital.

the start a up, have and we Blue have ramp revisit yet, as we've we try look, come start excess But the and over Blue cash project. haven't to will coming forward that but contract move priority now, doing to be our we build imagine do address a back that we as do to to that? as get we operations the gross how make we said, back Creek Creek. we cash Right And just return and at what months. to As we're look when if I shareholders going project we'll to well and

best very you of and much Thank luck.

from will proceed. muted Thank Luther Please you. end. on is Lu Luther, your from is be question next the go ahead. And Millennium [ph]. Please your line Perhaps open. your

for like remind for full and Walt. miner X? question. Mine you operation need you us many Hi how Thanks taking continuous my Can

the X, continuous along At with units Mine run typically we miner three longwall.

how many Okay. And people? that's

-- run or That can per it miner can with depends, seven as you with I mean little unit Luther. continuous you as a shift. run eight

you're that, run pretty lean. line. If to We than but more can at running you that have prefer

Okay.

that you're Or X? is this unit the new? operating, crew now So, is from it Mine right one

were We from over Mine working folks of are well Mine people most that currently believe experienced have hourly And for XXX I out people mine working. X the X.

Okay.

line. essentially, it is? So, they picket what Is the that cross

Yes.

Okay.

Okay.

So, that's an interesting development.

schedule a And so can you of the give change is? reminder what us longwall

Luther, longwall What? The -- new what longwall schedule?

longwall Yes, change. Longwall change.

of Let's this if Mine more X we'll one at a expectation couple it's X I my moves year, move believe day and a And X. see, one will at think, of I be zero believe Mine -- we probably year. would next at Mine at I move longwall though. least have have,

Great. my Thank all you. That’s questions.

you. Thank

to turn Scheller at gentlemen, over would and Ladies questions. no call now further any back this Mr. to there are I comments. the time, for like

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

attending And thank conference today's Thank presentation. has concluded. you, you sir. now for The

disconnect. may You now