Alpha Metallurgical Resources (AMR) 15 Mar 212020 Q4 Earnings call transcript

Good day. And welcome to the Alpha Metallurgical Resources Fourth Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to President conference of like O'Quinn, to now Vice Senior Corporate would turn over the Emily I Communications. Please go ahead.

Thanks, morning, everyone. good Tom, and

our results expected business Before you financial performance Q&A let started, statements and materially our prepared and from forward-looking during discussed. actual period, to we the differ remarks relating me comments contain and may get that remind those

measures. earnings affect company’s statements information call information some non-GAAP With that, of those Chief XXXX David. can regarding Andy fourth our Financial that Alpha’s GAAP reconciliation Officer, the Officer. to to David is call forward-looking Chief see and and Also Operating and on Chairman and Executive on measures SEC them, more participating over about associated Jason Chief refer For factors please also today Eidson. and of call to Whitehead, the are Stetson; the filings. release Participating quarter the I’ll the their Officer, and the our turn Please use for documents President

forward. in uncertainty strong and record pandemic. book, improve Good sales morning a was to the difficult us industry our due uncertainty, with business in quarter that and extremely us and and our as a the The was for Despite joining is year circumstances experienced months XXXX from year path low fourth learned headwinds, for tremendous a and disruption, the prior and anything ended global adversity. the and the for consider many Emily. Part what to process the on be help performance foundation also of reporting you year normal, a the today. thank company the we typical results challenges ahead. call presented, clear year the and whole. leadership the opportunities by and leading everyone unfortunately, how the marked might new responded XX team the the to Thanks, but to cases, weathered Both cost past a

being We and up XXXX, ended accomplished the on is pandemic. during put our big XXXX to Alpha. goals. our end extremely heads to them, fact, goals year truly for proud work of a transformational global all I’m even some we productive deliver say, and In This situation where stated a nearly for ourselves did of at down, set the we

also out we to last of new dive include some details and the Before presentation to have that the number the on presentation to website of the be additional a investor our achievements we a details, contains new it to fourth into put I morning. that touch year points quarter, we point which of I’m going the investors want accomplishments view discussing this of to perspective. invite I these as want our in on

As to a me metallurgical the property, River before, middle and thermal December, our most bonding divested many eliminating requirements Mine, pure-play exit completed reducing collateral you Delbarton from Cumberland in year, Mine In production Thermal idled Plant. portfolio. last the our heard adjacent the Basin, say producer. the Preparation we Kielty Powder our become times thereby largest from we our we of are the working the In thermal

while away roots our our strategic moves result a rich a Alpha for in our returning reflect As rebranding vision execute these production, also effort better heritage. of brand’s future, to from thermal to we the

the capitalize and as better and market most believe the Lynn dividends, pay largest largely XX have made our ton out Black we’re call first Jason, low We and on were building complete of producing. In we name Fork hosting diverse We’re $XX are Metallurgical mines turnaround. United under Alpha a company will now Road mines now proudly cost of provide a investments already in in will our the to Branch or positioned to but beginning coal are In metallurgical these less. I already our even actions, our update few mines States new Resources. The before per Eagle, an capital cost profile are on now mines. development minutes, a these expectations expenditures these earnings

last reduced the base more that the than asset even setting the This tuning, success. the more but a relative we decision we’ve and last yielded $XX was organizational nimble enjoyed Our quarters we setting that years foundational for flatter, year, favorably positioned are peers, XXXX, already to making. made we built overhead performance In and positioned million. fine believe our also past structure better with facilitates in record cost several over our velocity on by the changes I SG&A

We his executive alongside was also promoted Administrative end process Chief and planning Dan of Executive and as Nicholson to year, CFO; Sales. was succession Eidson to Horn important completed with among Officer the team, announced a existing toward result, promotions of and the being elevated named a President Roger routine three duties; the VP Andy

company’s Courtis; Smith; and and Quillen. Mike leadership with Fessenden; Board four Liz have level, at new Danny diversify the the we Additionally, strengthened directors, Ken

in proud of many you company. highly qualified experience of breadth individuals with to guide of place and have prior Together Natural As Resources vast our the to Mike in directors, know, back the group such of founded help and XXXX. knowledge their I’m a

Andy quarter. environmental about tenants, results core safely some minutes, In to a our one improvement of performance we the of on Jason our the and we for a addition the solidifying and few execute safety company, vision In us pure-play the our company leadership fourth working financial in in responsibly. details through and of and take also made metallurgical will share strive will to coal transitioning

the the I call market several to moment hand months. take a fluctuations Before want last I over in the to we’ve seen address

poised around global higher economic the element the flowing increased country, We have our will hold, important we accounts play spending to look we demand pricing of on sales largest the critical for looking consensus that With provide I we see for and met in while into with these along I pricing, significant a impacts the role and but focus as been continue our products, will for to preservation, an recoveries. improved pleased to through what Jason several coal coal to in so. about are likelihood cash that, infrastructure, an national producer doing us. With work await efforts. years optimistic of am in coal the metallurgical our growing to operational will need ultimately, of for And a contracts, ahead, the be update and next ask receivable. forward building In the

morning, and everyone. David, you, Thank good

the West that and quality heard and Training co-excellence compliance XX.X% busy award Safety West all while lot within we’ve this Coal our for Virginia of Mountaineer with are several already maintaining over a Miners’ was rates Each national than Guardian standards. morning, along a you’ve able Health us the this XXXX year, enduring last lower were safety compliance compliance performance. and As average, Awards employees as and and to Association with markets, and global focused water pandemic Virginia the Office operations year Despite our regulatory and stay safety accomplished challenges quarters. achieve a

share that to that award. For XXXX, pleased six operations recipients we’re were Alpha of

decree, you report they’ve everyone standards, out to Coal side, was two of at by been which the they like done environmental awards this. and Virginia Association, to I’m jointly our West to I’m proud within that point Republic that’s operations to at by outstanding just I consent quality January. what very our given West won with water our and congratulate terminated pleased met these contribute commitments successfully the awards work Referencing DEP the that team, recognized, for to of On Virginia the XX.X% EPA officially compliance the our end and we’ve shown

calls work You received back earnings may partial in and we the February our fully of those environmental continued and crews, a thanks that XXXX recall, ops termination on satisfied diligent prior commitments. now to of we

to operating performance another and day and successful continue into each focus on We year. daily on safely that build responsibly

portfolio we’re to on provide update mentioned, David efforts. going As an our optimization

out our we’ve million structure Over cost with XX we’ve nearly of projects capital $XX operation and redeployed costs lower profiles. of the months, to last worth taken

bulk been met low us our We’re for important the of we investments providing are now for our new optionality a as capital have those planned cost point where and future. the at mines spent expenditures for

will serving addition mines run to of for to each in XX as had take and CAPP In growth there’s operate million our deep XXXX across mines for XX replacement rate quarter the annual continue deep throughout offline, at tons. mines room projects. have portfolio. fourth and that In mines XXXX we higher approximately an of these Those we cost of

have structures dual in million year, speed of with XX Central we’ll level, operating run in miner with As they deep discussed XX of rate the sections. initiatives Road efforts low shortly. the past, yielded tons. of XX significant pleased improvement up deep while will is the spread coupled operating at approximately speak XX/XX/XXXX, mines now streamlined complete to announce record to mines, XX to that that were operating QX maintaining fully on These and continuous of we’ve be Andy you this CapEx that or annual the development the continuous Bringing end projects section are and three cost three and App, I’m we Fork our ongoing by

saying in now With The of cost preliminary in third together, production of late a and we’re January. final section February $XX the sections came ton. for time, online all first three south operating

[ph] three around three transformation As enjoyed equipment tool sections. to operating our and back the the our of final them the Eagle thickness two of Two miner This Erica dual step Alma with thickness is will operating mine miner section. as part we improving and dual a continuous mine complete on crews from year. planned will at reserves mill This third and and Marfork, have Black of is -- dual will bolted Branch in half sections of and all the continuous this in of our BAM these coal last plant declare with Lynn be complex. continuous Branch steadily today, reserve the Alma depletion week redeployed our miner and Lynn now mine at sections

mine there area. the all will ventilation to two sections. clean-​tons-per-foot expected other throughout highest to section long-term continue other The XXXX, the in for development XXXX sections three are sustain In

cost. to detail that our projects, and with I’ll for turn Andy over operations additional on on the So update call capital

By from many XXXX standards also and and our SG&A But any operating year. performance, shift environmental as costs, worthy uniquely thermal safety for of Alpha, was mentioned, divesting as Jason. achieving high we measure, goals, very properties production, productive away was as year our David strategic and a Board overhead Cumberland challenging of enhancing Thanks, it the reducing part composition. accomplish

permits to Pennsylvania and Alpha and closed lead associated That basis. be is we transaction from addition mine, divest undiscounted closing, Going in to also all in on The provider. million to December the cash the obligations Iron reserves, of they Senergy infrastructure. million past transferring bond and $XXX number provided this back to of and acquired reclamation Alpha to assets, Cumberland surety released $XX closing coal ownership transferred transaction this estimate around related and cash collateral existing in those Iron $XX entities. million Senergy an At with

we three there reasons extremely about real Now excited were are this transaction.

closer our us Again, a that strategy dramatically strategy Cumberland came stated move back a with particularly back real pure-play key when of XXXX on it to forward this been First, to for to the met ability really company. on and goes becoming us. Board change David has goal in back got

at a from the as bonds. have with reclamation had allow as avoid then dollars. -- very, the us the undiscounted could about real barring thermal been potential having challenging, increases tens have Cumberland of would of avoiding of of millions situation transaction begin and very multiple area. are finally, And mentioned been mine close any weight million that the we’ve to generally App $XXX saves how collateral divesting spin speaking, we our claiming the is did markets significant we of announced mine would we mine to the impoundments, have it end which benefit Northern a earlier, but past we markets company. in talked to Naturally, tough was this been would Second, ‘XX, on the to the so us increases Those surety the

the no the cash in accelerated provided on cash operations sheet by we quarter Moving our include million was for and cash of ended on million. the balance million. That availability with $XX $XXX refund year flows, and $XX to tax unrestricted ABL. approximately additional the AMT does

to the our million, by we During also quarter, long-term reduced debt $XX $XXX down million.

the to manage provided continue cash working We $XX of in in our which million fourth a capital, quarter. total

no associated outflows down roughly had to did facility and previously remaining the was The of million year-end to the we and lower of sales rolling a have million in million. million through the cash of Also on cash the as post $X.X January, $X.X requires under As principal was balances, the of saw mentioned, and of we borrowings repaid impact with currently year-end, to of note availability outstanding. have the ABL. requirements. LC total realizations Cumberland outstanding Subsequent million AR the outstanding our minimum continued borrowings ABL $XX QX which from $XXX deal, we meet ABL, which $XX the

was outstanding this our $XX used borrowings. $X.X posted, We as which to have but the that last of million reported includes we off million cash pay

back, normal more is normalized so under we borrowing end levels the received and support inventory. and to $XX cash of ABL with the million that of As February, our of has just back AR back grown base to

AR while export by from last are we days fourth in of to XX on recovering saw day terms. time environment lag do very tend on year, balances the customer receipts quarter real XX pricing However, cash to tough sales depending

low-vol in a expect note, around tied So experienced lower the that in more Aussie disconnected cash throughout receipts seen premium fourth our U.S. also important quarter. much has item of the One XXXX some pricing, reflected quarter, pressure balance pricing still the tax that East the the additional refund, the processing to India million. with Australian Coast cash from trough and our we carryback being we of We’ve first that NOL index. sales receive $XX related to

the part Difficulty] completed. of the the [Technical of in year, seems it the approval process first like has Sometime latter been stage

simply of put waiting us up the that. So conservatively now the that, wrap early quarter, but we’re on could to probably Congress shift issuing again, I which fourth with timing would on

million, to sales in financial results, due third solid down fourth our $XX.X of Alpha Met million volumes coal segment. cost lower reported EBITDA $X.X -- and the increased quarter, lower in As from quarter primarily of

our met which pull vacation increased performance and in productivity business every holidays but Our levels, costs costs, both But slightly was planned. so quarter Fourth segments. that, that quarter that were from we spite low cost includes back to in third wasn’t unexpected. record up of continued tend as the of year and time, does excellent

ton, year-over-year, a consecutive Met coal Our segment reported quarter full a cost to $XX previously year of simply segment, impact $XX.XX CAPP Met while called $XX cost with That the down month quarter in including - is from the of of nearly cost $XX.XX, as sales known of XXXX. the XXXX and long segment, under in now second a even nearly a returning the April. furlough XX% the reduction fourth

solid question segment, cost incredible operations the with paying that deliver cost and phenomenal we’ve experienced they while just, how got but full $XX.XX, and CAPP get the the of team again, also we I performance cost not $XX.XX. often XXXX results the so continue In $X year these there. in are So from more twinning, comparison, at to - to - four-year Thermal will quarter CAPP reductions fourth possible. year-over-year declined Thermal cost do the the performance approximately coming now

So that. little here’s on more a bit color

the First, pretty more met mine focus our think, when investor out to solid laying of we increasing and But I average to productive a it. our have at on in pruned production do portfolio a we X%. look you our job per mines, chance this by deck

a of increase. exclude you impact furlough If April, on the the that’s XX%

to operations without reductions lower to affecting labor count our and and rationalize workforce implement were result counts. able and in our the both We needs levels. mine of these reduced able we Second, workforce a production count, were and mine as our overhead

activities, simple, math execution there’s for Jason So operations be difficult all heavily and portfolio fact, improvements on of really think of a is the on such implementation. those the cleaning some rely the is plan approach but still further to this not spite the of made. that -- very the In of and the up in optimization continued gains VPs and the of leadership up and the cleaning we

can. the continue to that all will naturally, pursue So improvements we we

As quarter, for CAPP flat quarter. margin, during million while roughly segment Thermal million which - quarter, the segment million in generated contribution, $XX coal $X with segment the contributed of $XX the prior of down from Met overall, margin is third the

our the strong Q-over-Q. total Met remain million front, about shipments tons revenue On quarter the in shipped, with of X.X down times fourth volume XXX,XXX

SG&A, per improved On $X.X, in the average approximately volumes - Met to $XX. quarter in around the prior quarter, CAPP processing $XX $XX.X fourth Thermal $X was XXX,XXX excluding ton. the we compared with third quarter. items the million one-time pricing quarter. met with were XXX,XXX million positive $XX.X for stock-comp the ton CapEx fourth down of improved approximately quarter, $XX.X also in versus non-cash ton the while our side, about early tons in a and realizations $XX.X was And

year-over-year year additional guidance, show our initiatives. Shifting we XXXX declined million in For XXth. SG&A $XX we that guidance, in was reduction operating as to updated the $XX the And on expect highlighting full December million. effectiveness reduction cost by further XXXX, we reiterating guidance to XXXX, are cost our of nearly issued our our

and XX.X Met million thermal in to X byproduct We of tons of expect XX X.X in pure XX.X within million to millions to XX.X a million tons ‘XX, tons total million consisting to our segment. ship the million of Met met of segment

segment, X.X million all to of For X.X the to sales. we’re coal tons guiding tons other thermal million

met as magnitude additional XXXX, ship shipments nearly we give tons in furthermore, expect from million XXXX. XX of thermal starting to away in some We the have byproduct of thermal. only thermal and to perspective on shift Just our strategic

the expected CAPP, remaining of end last standalone slab XXXX. mine to we near thermal deplete Our

thermal the guidance, more committed Met the to price committed production. there without additional midpoint on pricing. our XX% So XX% going of Met-only with in ‘XX will be Based into portion is standalone an $XX.XX, no firm

on is some on portion it thermal byproduct but The at XX%. $XX.XX. of priced price without to and priced a true regardless the that still for average an it’s Met attached is we’re is that all Some committed it, of committed ‘XX The of pricing of priced fluctuating priced index, fully based an XX% of segment segment average at and price other $XX.XX. price

segment one-time with On range ton. per per $XX net to $XX, cost our the $XX tock-comp representing being ton in non-cash $XX to million, of is million other and ‘XX side, our is per anticipated of items as the $XX excluding be SG&A to cost decline range and ton come all $X our in from Cumberland expected guidance $XX forecast divestiture. from initial the to of million the result a a

to ‘XX. DD&A lastly, $XXX the should tax expected and is million, And reduction that near earlier. range spent $XX CapEx expense $XXX expect this million $X about for the come our most to growth project lower now roughly guidance, to than be ‘XX between rate Idle Cash Jason million a expect $XX from and be the million year, in as guidance the to past million of guidance in interest be The be highlighted reduction cash again, our $X in numbers years We due $XX in initial of the operations -- our $XX level while maintenance million, expected we now the expenses initial between represents ‘XX to $XXX reflecting zero. are CapEx to was CapEx near million divestiture. for Cumberland million. to million million $XX two on of

So open the for believe ready with line questions. that, Operator, to we’re I

from the Riley Lucas ahead. go first Please [Operator Pipes Instructions] comes question with Securities. And B.

sell of bit met very detail. thus We’ve I incredibly so bit few on the to a on of in, pricing, coal obviously, market. frankly, more first And year results side? report seeing, today. to color And your is at provide very little your the morning, time be able a on from assessments the met Platts, the expect everyone, look far, thanks really as product to is But then the we what This versus you My all you this Hey. on you SAS you’re on there’s can cetera. here, congratulations and of very Good much. can wondered a message to well. be to there et pricing in for a market would assessments peers helpful mixed discounts what and as then been uncertain strength those would are kind a if had question coming all of and be where managing netback this basis, the today’s Thank and also much coal really environment? great

This below mixed are surprisingly products and U.S. is the Horn. is and a Hi, economic good. I’ll for plants for demand really good, the levels. message seeing The The is we year’s coal Steel is, well East referring North both yeah, low-vol you’re demand markets here lot for in is unpack really start. disconnect guess have last we’re Lucas. the coking to There’s coke a there, there from and our Dan but rebounded to between -- American indices Aussie that is I indices. the abroad. Coast

ship, as our that into coal the strong. based indices. we India far to ship to indices But dealing We quite demand, on at time India. same counteract numbers. been We’re as expect as have U.S. that And in we’ve the indicated, hit those with we

down business we even able to some now we shipping we’re we’re In right can we’re that chase not fact, here, turning see and all that. opportunity every

any for be what able very blended helpful. color today’s on Very, tons? expect to basis provide your we kind And unpriced you’d could a environment of Okay. in

say that… just I will

ton… coal Met

slightly just that, at the indices. In or seeing tend above but to we’re Yeah. see generally to strong a say much of this discounts if selling environment, speaking. weaker the we’re that in some all not late, here index, index, I’ll to out market cases you in discounting the

the My cash is of sizable your look appreciate think kind balance ways of what liquidity liquidity quite that’s market unrestricted more there when to an question, more for Dan. maybe you, enhance Really and take kind color, there, helpful. but if comment there maybe how And and on investors sheet, that of recovering other cash? at may course, Thank Andy, could outside, and about broadly second you to generating balance Very should that? be that I

Sure. Andy. Yeah. Hi, Lucas. It’s

our balance to surety. is, the in is cash surety support for So It’s unrestricted that’s sheet money say, cash balance vast lion’s share of being different I collateral really, of held $XXX some combined as the would that on the LCs or with asking million well ABL you our and that the instances or for goes unrestricted this the unrestricted cash? -- about restricted and are

was asking sorry. I about unrestricted,

sorry. sorry. I’m Unrestricted. I’m

then I restricted. think unrestricted I said and

Sorry about that.

thinking. That’s I Okay. what was

So with the I’ll stick restricted cash discussion.

So between bonding restricted insurance cash In some is for [ph]. on But and majority the SBL restricted collateral surety we’ve surety the regular the for ABL collateral. collateral LCs, instances, that actual as got covers collateral. cash comp, collateral workers property of vast

tied end different up So that end reclamation of basically release is regulatory and the agencies. from cash life, complete of phase mine until

while. cash again workers seen that’s, collateral that and So arrangements. lung, quite Similar story black comp of be life a are won’t for type basically on those end

trough availability that’s of the as just anecdotally is back of week. ABL today, QX, point, the on our we’re have trending looking million $XX and after our probably debt ABL $XX at as upward other whole we in We don’t of raise basket cash through again, of flexibility. data we million a which, to today under a have you have we do As lot of period suit do additional could documents, million liquidity, if to. debt, getting $XX after But is wanted sources receiving far our we one crossing around last that

still the tough. That in said, it’s trending right being direction. pretty we’re So

how I in impact having our the that dealing also low working on earlier, of mentioned imagine, something the our as of we’re of is I amount to sales just create are QX relatively would some malaise peers call through, to As the pricing manage a and to capital the significant continues all into links it it with on going us. India, low-vol impacts for pricing Aussie and we’ll this, pressure

in quarters. couple So, and we pushing doing ABL our liquidity. -- liquidity than it now see pretty direction could want managing is to right more back always giving it think But -- the us more good we has and a we’re it’s always past things helpful the right lot of I

color. continued luck. really helpful Very and you. team, appreciate the Thank everyone, update of best Andy,

Lucas. Thanks,

Lucas. Thanks,

Company. with The ahead. Instructions] Nathan [Operator Martin from next go Please Benchmark comes question

Hey, on guys. Good cost another morning and quarter. great congrats

Nathan. Hi,

Thanks. business. kind to Yeah. the your related within quick of mix Two questions Met

from a you Any you sales domestic the with First, tons market there? market what looking of the maybe additional give I those to seen guess, pricing might in like of standpoint. if and steel might any look so, guys idea if producers what have domestic this of idea can us tons? you expect back come for percentage year an And

Sure, Nathan. This is Hey. Dan.

it’s our look go when million minus at X you two-third, domestic other plus market, one-third, think million I split, domestic to million seaborne about the the X seaboard. or into X

move are at the price we the far tons they question, essentially answer did a and see people tons the some your reflective of answer as would As domestic to those in indices. market? The is spot And yes.

for that XXX So times. was if that ballpark where back would we you’d be so we move selling be -- the those or be high-vol

guys Dan, ban but I the trade -- And traditionally important still Got China customer made coal don’t know they changes guess, then, on obviously, you Thanks. of as kind I in but side, on Thanks, have know on typical coals. the base are to Australian sell guys, Dan. flows with the customer with comment specifically any the and it. altered? China, your I you you export any guys India, have you for global seen the

the -- if this along. We we to the we did they the a strategy they core something price, us opportunities we we them, with just certainly -- in continue our arise, the So, markets -- think new everything, that our last for us there that stayed we we will Basin in to last Yeah. you’ve -- and cargo did look if opportunities into certainly move are That’s the do is to China will and the actually the a right like in loaded that but seen year that, they last But months. when two That’s in were all you we No. week here customers that. India. will with which ship comes customers if follow Atlantic now stayed with are participating they

What Got priced would Dan. index, seeing, off that it. Cargo quality Thanks, I’m to obviously, correct? China. be our if China

Yes. actually. And mix was a few different a of it products

ramping kind production, Branch, quality going Got obviously, think guys Met this it. mix got you mines Fork about and mix just productive forward? up. your some look at towards Black have the shifting, if Lynn we’ve had of we’ve then shifts Road even Eagle moved it. we side, you XX, guys when year Got and on How more around And should

Yeah. Nathan, morning. of an deck mix XX Stetson. you’ll is going of quality On is out David investor where see, put this We that our page our view forward. this

Yeah.

primarily Which the… at is

I Yeah. saw that, in David.

Yeah.

high-vol B be then and XX, around and low-vol both So it’s XX XX. to mid-vol is right A

XXXX. are was change Got going was the mines? to in due on was it. saw that Yeah. there, bringing Okay. that much to fact guys wondering I that three it I just you if those

I more the think, I’m year. market Fork continue ramp into put to not this Road Nathan, as we XX, low-vol up

Perfect.

sure. for That’s

just… Thank it. you, Got guys. And Yeah.

Sorry, Nathan.

Yeah.

This Andy. is

that this spend Dan production having million of just XX that kind coal. mentioned, Just to met we’re good growth deck you investor as an of mix, or some puzzle. million in with We decade can rate maintain to the XX quality profile. add for shape actually one out capital far of to when as production to what that add illustrative to did to shows XX-year concert kind ton really run more see the you next numbers And lay any and really in piece the material compared without basically to

into and where -- to really we’re -- place we’ve implement all happy the strategy where the again, So to David be gotten into. fallen have we’re pieces

Got million, And Thanks. you you even Andy, I mean, and or thoughts totals of you’ve puts recap, Andy. got color, it. And just much us final then, paid industry. I borrowing, think closed guys wanted the of I future give guess, for just to you Cumberland satellites through million your your for $XX on of your back the more, maybe and said could you just Thanks one the [ph], Appreciate get takes just that sale? the to week. update X.X that towards your $XX business an Thanks. back kind you it. had on kind bonding million went to post, I maybe the requirements already the last

kind Board. coal Yeah. market Sure. across bonding tough the of the mean for Sure. still I

I As really thermal is tough. mentioned,

broader everything I flows the and of the just think market because with ebbs coal market.

So went Met and markets extra the more collateral. the got looking for as bit a nervous a into surety little providers trough, we’re

relationships other our place. it Now things surety good to in that -- trending the really even we’re good like comps, provider. the are in tough feels We maintain we with continue direction, a

ARO our perspective, to really I exposure So that needle some I us just year-over-year. equivalent call bonding headroom again, for our more, shape case smaller now transactionally post-Cumberland pursue even in pretty we’re amount guess, a items can almost get down bonding. hopper, headroom do undiscounted with in $XXX basically I that right capacity extra we bond some think to bond our you’d nothing million or extra some in the and the on million one-offs couple from moves continue exposure, the to us $XXX solid of gives reclamation of is of transaction about exit kind potential But think law, but it transactions the

All Perfect. time take for thank information guys care. Well, the and right. the all and you

Thanks, Nathan.

Nathan. you, Thank

the over remarks. closing any session. concludes now to back for like I David This our conference question-and-answer Stetson would to turn

website to for that to our I our getting just everyone on stockholders on review this and encourage we the want call I investor others today. presentation thank morning. our put

much you and thank very have all wonderful day. So a

is conference Thank now for you presentation. concluded. today’s The attending

You may disconnect. now