Alpha Metallurgical Resources (AMR) 5 Nov 212021 Q3 Earnings call transcript

Hello and welcome to the Alpha Metallurgical Resources' Third Quarter 2021 Results Conference Call. My name is Alex and I will be coordinating the call today. [Operator Instructions] I will now hand over to your host, Emily O'Quinn, SVP of Corporate Communications, to begin. Over to you, Emily.

Thank you, Alex, and good morning, everyone.

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

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

Thanks, third morning to about us. details joining discuss you additional thank We're Alpha's and Emily. you to performance excited with today. Good quarter for everyone

points but As are their detailed results, let team a the provide context. usual, on highlight the couple the I'll thoughts with to rest of I of additional want there

The tied first quarter-over-quarter to is realizations the business XXX% increase Australian our on in sales indices.

both because customers figure Beyond on more year being customers much an times like make also value good we a is entire this unique of commitments. outstanding deeply our and reminder commitment challenging. when team, Dan were earlier accomplishment our our in good by and sales circumstances Alpha's to That's and his this those

prior the especially about talked this to I'm we've call, positive pleased shift. as Australian indices report much on As

I'm a gross attractive in coal on highlight our testament progress our that where Another diligence further especially team's and An is sales. is revenues reduction. to mining is and This the price. tripled our our for and fact important on an robust proud the dynamics our of debt detail market met quarter-over-quarter area nearly legacy we to selling

obligations over in legacy and debt by were long-term million. third total quarter the reduced Our $XX

continue to Alpha's our also know steadfast If should we our Company quarter ended our roughly this various therefore, this momentum expensive dependent the repurchase, cash. to that in is represents important longevity listened in excess the debt. you first earnings I've it priority $XXX increasingly work calls, reduction to the Andy's months in deleveraging markets. these and not to be capital in in and that and exclusive shareholders, autonomy executing to but We more the for million my upon critically for be Thanks debt large less for been prior Company value with creates long-term coming prepayments us because assertion our excellent intend forward you only part allowing

debt our serves as Alpha near weathered decrease we stronger better believe cycles This and well the we load, industry. years I have we capable and term ahead. becomes to several in this As a ahead in look self-sufficient and and both us more the

year guidance the plans 'XX light some providing to for looking on we're of Speaking shed our and in today invest expectations next future. ahead, additional Alpha's to our

return outline investments streamline maintenance facilities. fourth or Similar expand, broadly provide will but of individually, about these spending can includes million projects to $XX project on operations improve, portfolio excited long-term on and range that our midpoint leverage figure for were of the and for a with roughly this specific capital CapEx $XXX projects the capital to benefit flexibility section these strategically projects $XXX a their our quick But Fork of You'll our last existing detail. to at Jason to at expenditures. million see more announced we depth guidance rigorously I'm anticipated and in 'XX Company. years million in expected to each investment will that Road at together the come. based additional XX taken modest portfolio these believe of $XXX we a quarter, I million selected coupled anticipated

watched As a decades anyone business coal and industry lows. who experience over couple can that has the attest, can last this so the highs or is of cyclical dramatic

now, of undoubtedly market we experiencing While can change are a conditions period strength rapidly. right

improved be informs pricing Just to use plan market to from clear is our ready details conditions. our we to the as turn the positive down of allocation adjust call capital the to of responsible generate similarly we want want today's of advantage take of poor, to planned the mining market prepared With and quickly liabilities free be long-term headed operational making our and and paying drop any operations. in continue the will to why very when and we that, is flow act to to and kind future strategies and our This the debt we investing to that enhancements prudent potential of thinking to portfolio. I our discuss results legacy Jason cash it's over and

Thanks, David. Good morning, everyone.

for sales turned the Our quarter. with costs cost challenges labor of in and taxes and solid several materials. quarter another performance of in overcoming sales the prices higher that This inflationary a period, elevated higher together had to increased continued resulted unique result royalties in operations as certain coal pressure increased due cost including team for

XX range also reflects per proud the With guidance Met sales increasing term, to the focused committed of segment $XX factors today least ton. these I'm of of for for mine that in per remaining low coal decision to Fork quarter, cost a expected organization we and us these control, allowed Road the containment expected to at ton and increase an quarter $XX six of our Last met of Development I at the to our payback schedule in add section begin or about $XX our our with at factors a coal producing operation managing on has outside influence. XXXX to we're $XX section output matter Despite spoke cost. a of progressed for additional across team XXXX fourth range less. modest to cost continue this directly to which near go-forward months during to our mid-October. cost cost expectations ahead guidance a can of of vol The our issued capital the

and connection planned both for David earlier with several and issuance guidance, in efficiency provide CapEx Alpha come. years we the increased announcing for near in As designed mentioned of XXXX our projects optionality to to term are many

Glen X our immediate and expectations two This well invested to on Cedar attractive section also currently return in having will each from projects value of longer-term is until No. benefits begin the mine not expected organization. fourth X. completion as list yielding includes mines a which new coal as to mine to new adding Alum upon addition development our Grove capital, Lynn Branch XXXX, serve at X, Cedar mine, these project Grove No. mine. production the for Grove Virginia, the for we're should replacement In mining provide West a as No. vol Cedar of high

first Fork section at fourth a on section. depleting affords bringing to new Alum today's in environment payback Creek the and development our vol finally, with very This in first cost us quarters. BAM holds to once mine mill We done quickly. XX and XXXX complete our our high core the higher the per Horse Glen to and latter mine the within rank is and of quarter a Glenn This section XXXX. Eagle tonnage of calculation similar performance than I for Lynn If low of coming production to be Glen XXX,XXX is expect additional currently year of less And Road Alum from planned complex. market project's commissioned, plant. Alum an part online will an expansion in continue can Marfork ability mine. report excellent bring preparation mid-vol expect to as start the economically is is fourth of replacement the transition coking efficient a two anticipated year into coal coal. the tons expected the We're XXXX. Branch it successful this this the

focused these prep In our a of addition CapEx on XXXX and to facilities. projects, is also upgrading couple mine plant modernizing our

handle construction the also XXXX, a update infrastructure plants through these ago high to cases the currently modest already to different to than important yet installed handle for coal These anticipated made what our the at years Marfork the transportation which in the on upgrades realize and XX efficiencies, qualities many XX and be more that existing circuitry on will with that setup upgrades move the in Fork plants, in many aging accommodate we've built example, Road able expect we're fine in to quality loading sending we positive years Kepler productive, truck higher return to we're reserve was on very While we'll the coals providing Plans coal yield greater better equipment operation. some low life enhancements cost site. and handling. are include invested By facility. Kepler of we was in nicely which At recovery capital. facility organic quickly for the investment to complementary levels of investing

purchases was moving coal our capacity the Plants in and invest increasing safe which to financials preparation in to 'XXs, special to with over sharing quality we're upgrades Marfork facility. of additional lengthen the plant. calls. built to planned Turning year, will quarter. coals equipment future. well details we also circuitry. that upgrades We strategic possible mid-vol These coal mid on Andy the on progress accommodate forward Marfork, similarly for that segregation plan handle will Marfork the will production better the to now to afford and next the look better higher distribute plant and Together for the our these appropriate clean quality include we coal runway earning to coal turn the upgrades I preparation call and the fine Alpha's and optimize of into are to future planned loadout. side as for for efficient Upgrades to on make some along some it shipments believe projects to us

Jason. Thanks,

an of of As representing this of our the adjusted quarter third we tons release third was second a increase quarter for volume nearly quarter our tons EBITDA quarter-over-quarter. with total adjusted $XXX.X million $XX.X our EBITDA quadrupling XX% million X.X morning, segment nearly our reported Alpha X.X Met million. million sold of in

Our most quarter-over-quarter. - which or increased tripled which Met in area nearly our significant drove margins results of gross tripled $XX.XX nearly of realizations, is

on indices mechanisms. for linked and export yielded pricing Australian other ton export the just Our business $XXX under the while per we indices our businesses realizations Atlantic quarter to $XXX.XX realized of on based the

other whole, XX% while ton. category to is an second which as ton, $XXX.XX a For of realizations realizations the all Met quarter within our increased increase slightly per the in per at $XX.XX segment the came from

that As items, current good $XX.XX market holds. of and other you we the increased higher due our prices to cost materials sales third pricing cost would comp SG&A, QX Met quarterly our taxes, increased stock $XX.X at coal the in of sales severance have long non-cash expect to with on equation like categories environment million a to and royalties coal for That's part million excluding the inflationary in cost a combined non-recurring segment expect discussed ton rose cost to require of to $XX.XX the this higher per quarter. be problem call last one, in all pressures as this in larger from With we point increased to market. cost our $XX.X QX. as increased labor sales and and

was up guidance - range million million, second but from with in of level the quarter increased $XX.X our Our a $XX.X year. range line QX for guide CapEx still

this so in ABL $XX is net availability and the provided the million during third everyone Cash the to ended total million. to sheet quarter mind for our like debt the cash sales unrestricted closed also million. quarter-over-quarter balance cash $XXX approximately activities worth Alpha more on compared $XXX by increased terms million $XX that we our with million had It's we're utilized days long-term XX% end in receipts cash and and reduce of are balance not of total second the our the as keep receivable also that accounts QX quarter. obligations. completely our And with payment remind And I'd at have export and operating of a in the lot $XXX liquidity to third million. of the flows. nearly approximately revenue Looking legacy XX quarter was XX for liquidity quarter $XX We in unused third increased noting between of by quarter, reporting. the the our reflective of

being quarter, currently $XXX is future. and no ABL value At facility that of outstanding third million of in borrowings. the and lot captured the a converted where that's So, LCs had end cash near the to of

With coming process the amended year, we've expect nearing ABL the final maturity refi in coming pursuing refinance that and next weeks. a finalize that in or an of date been up we'll on the early stages We're the actively the I extend.

We facility our with new also capacity right expect requirements new to total the existing cover the capacity. LC million. to estimated be The around than and undrawn more $XXX will be of size reduced probably provide borrowing some facility

price committed thermal our at midpoint segment committed of for 'XX $XX.XX. XX% is portion other committed average $XX.XX. at The of some an year also byproduct Met priced It's priced our the the category and almost be average Over current sales worth year Looking committed our average and - noting at an for an the segment the priced guidance fully guidance, Met price Met business for product at segment our in XX% $XXX.XX. or and at Met and at against that sales, Met of all upside. priced is for could looking there of and XX% of least

you year, when lookout might cargoes the again could that. we into timing on on schedules shipping the get be for so there some end QX could that where of be some QX Just slip close have the for scheduled to

release As our you our morning, XXXX saw issued in guidance with expectations. this we

met to Met tons million tons of and total XX.X tons expect of to pure tons million XX We XX XXX,XXX million in incidental the tons X.X million XXXX segment. a within consisting to of of million to tons XX thermal ship

average met the category, an of with and XX% to XXX,XXX portion midpoint For to only tons an committed $XXX.XX all guiding other tons. of the is on at priced segment Based we're the XXX,XXX guidance, the Met average committed and $XX.XX. and additional Met in committed firm priced And priced pricing. at of all-other XX% $XX.XX. committed is XX% portion XX% an category, thermal we're of the without committed The segment at -

to comp cost side, due the $XX range and million cost Met the Nearly should in $XX one-time - SG&A, expected in ton. and does higher 'XX per be we per half that while between of segment ton cost increase sales $XX expect the $XX ton of our On to severance while of other supplies in inflation per XX% million all higher come range the increase. for is to 'XX. be excluding is $XX items, account of non-cash and royalties taxes for approximately labor stock to $XX each the of and forecast to in coal

expenses the As capabilities to year to year. between in is $XX are expense interest is of to and million $XXX Branch. for million of Grove operations million includes breaks Jason special At midpoint, mentioned designed million. $XX augment maintenance issuing important the broad increase to in also down for to Idle to $XX Cedar million new And section earlier, X, million for we're approximately to range our range roughly million to XXXX the for Alum, of cash while at and that CapEx $XXX expected a be projects our million the fourth guidance expected at $XXX of projected $XXX $XX CapEx range Glen to be modernize Lynn a group an and and next operational at $XX million No. this of the DD&A $XX million. mines be and

and certain NOLs utilization I additional attention cash is on tax on their the XX%. between as presentation outlines a rate new slide to detail expected investor draw well that our available limitations usage. be to X% want to for your in our as Finally, do some

being ownership tied limitations change issues. those to of XXX Some

give really our the where to tax important are, as to granularity around much cash rate. pieces expected as market possible markets our think I and it's the potential exposure up they tax that the With make

$XX the discussion As reduced strategy. cash the of you Alpha's quarter we the principal on in $X.X term third obligations and In pretty million can the principal scheduled prepayment start we've reduction as This previously see over payments from included allocation our on David's million. as been the call, quarter, long-term loan. million outlined guidance and debt long-term at of $XX resolute well steadfast and debt voluntary of the of our legacy for by

million a $XX.X discount at outstanding roughly principal repurchased we borrowings. in Additionally,

As the one to previously schedule July announced, we with in ahead million of funding West payment Virginia the Protection. extinguish $XX Environmental of a made obligations year reclamation Department

previously obligations a We also which negotiated the we us lower outflow payment than collateral, means expected. extinguish also current $XX million liability of cash related at the subsequent legacy surety Virginia of eliminate treatment. this early allowed is net West $X Along the to early lines similar to to water the an Alpha of to the related quarter, DEP end third million payment made

to Virginia, eliminate estate treatment liens and all reclamation were well. small our other the obligations assets against West million Kentucky $X.X funding remaining to revenue made this released. we've Alpha and another to certain of reducing addition legacy as payment of and rights that contingent those water obligations In repurchased legacy also amount real obligation payment securing a the legacy

So $XX past $XX in and the we've cash payments. extinguished debt total legacy over around approximately of for million obligations in months, four million

So, a discount about face that's XX% over amount.

in XX% year-over-year year-to-date So, $XX achieved figures from associated those a worked bond bonding reduction do liabilities, in million our outstanding our continue But organization. we've excluded and of our to excited Jason Alpha's than to of success. key the that. bonds our will reduction period. also efficiency Year-to-date Horn market had we and improve The the earlier are these Alongside of even include an which translate for analysis Cumberland debt exert long-term do reduces company our that it bonds more the over reliance which future. is XXXX we're reduction legacy $XXX for a over exposure investments allows total, negotiations. call still because Alpha pretty the this reduce across the to more if over built driver plan With we've efforts for update million, that, divestiture. that our outlined like actions stronger of We even infrastructure, net actively the longevity to about represents third Dan and through into on and parties believe on to control capital an turn enterprise us I'll the domestic that's it sales and deleveraging external a

The start crude for dynamics September was X.X% Association production and total year-over-year latest lower September. morning. off most recent an Steel production look in at To good Andy, September globally. in statistics the World with Thanks, show China's the decline a market than XX.X% steel of XXXX. production

through as a recently something metric mid-October encouraging the production aware XX.X% we and Regionally, The an landscape. However, against steel multi-year survey high of quarter. North on XX.X% with American capacity production that year-to-date in Brazil coal here showed indices increase for over increased we the the an keep This crude XX%. XX.X% steel period. the third reaching rate and India the year-over-year the and of eye increased U.S. course and have We're European is increased all utilization XX.X% X.X% market period. at year-ago is mill significantly respectively

quarter seaborne This The much further For East index on from lower $XXX the was metric market vol period XX. on quarter ton July per quarter up began our equilibrium rose on higher brief the importance $XXX our Aussie The and September metric low Coast example the start coal the confirming Vol moving doubled with continued continuing $XXX Despite metric path more metric indices at U.S. in Coast ban metric a XX. between China's into traditional delivering on on early the ton commitments September Low Australian volatility $XXX pricing. similar subside second to customer tons metric on ton of ton of to index a and realizations for X, to Vol of per throughout more in the third $XXX ton Atlantic continue a third quarter X metallurgical coal the A linked imports, index ton U.S. per close. yielded followed East a than quarter our July from at in Australian to High $XXX the at premium the year to this the Australian during quarter. per decision

While been Australia has producers and coking and coal opportunities for this for created the fulfill not quality have between yet trade to Alpha's need products resolved, have China high China's tensions other been coal been sold X.X business has agreed there. shipped, the but into calendar Alpha of well yet received Year-to-date not metallurgical including million upon year. has tons approximately XXXX China that for

know cultivating Australia, to into continue relationships China between our While may the hope that been expand long-term and customer have this there's develop we way to base we could when pleased year to change no circumstances contracts in future. and

our Europe strategically metallurgical agreement Asia. regions We sales - are of Asia expanding several into grow through third-party a efforts marketing order marketing into Alpha's to also into in coal

Now XXXX for a our commitments. word about

work you I'm busy As of the my team this the months. of for year three last a is all sales proud of time and from over outstanding know, the members team

year with fixed it our opportunities, us result additional price. levels. the export work have was conversations increased business period even lucrative ongoing a and XXXX. quarter to and remain secured of for success for Alpha of the for million The domestic have I'm tremendous XXX,XXX another fixed in further that next commitments tons at that which still solid customers few up that at on annual us another affords export sales to where for for tons report pleased are There position capitalize third roughly also not we at flexibility with customers committed the in for with market price potential we year. are nearly to terms amount with next we coal set But alongside - X.X to realizations like a quarter on in have today,

the million do XXXX so the committed an our year our next X we know Though we to the signals, continue ready of and excellent none This remarks have home our truly Therefore an prepared our found know Operator, at price tons over operations are of concludes now industry, for customers. this $XXX.XX. stay can lies safely and just coal responsibly, around in However, for us we for coking quarter. we priced market run work analyze considered hard, to given can a average take we what volatility hedge to questions. and close bend. of our tons to be best our for

first Lucas comes B Lucas, from your Riley is open. Securities. today Pipes question Our from line now Instructions] [Operator

Thank much good morning, you very and everyone.

First Dan, asked to me ask season the to selling contracts time? it layer here you But somebody coal these very concluded you all book-to-date, or - to say when be joking how we XXXX, price out price strong levels. sales to look feels aside at at fixed fixed expect additional lever do in this would is you

there Thanks, several absolutely and India, - still I months our we're the seeing other in there The is not next domestic Brazil, whether for settled are still some question. out markets yet appreciate Lucas. from market do Europe. demand opportunities XXX% pricing. fixed the I it's

a or spot opportunities in layer term, it's there's fixed So whether just short opportunities. of term pricing there's more medium absolutely lot to

the kind where expect XX%, Okay. fixed Do guess? you have XXXX it you of price share would for - to this a at a be basis call can you what year? of XX%, on end your up end

Lucas. Yes. don't have handy, that I number

the You book? on overall mean

Yes.

book, yes. the On met coal

from the front we fixed is of the domestic If David. the We're This a we price We're domestic front, it. opportunities very fixed we'll If high seize stand where comfortable we're not, mix see Lucas. international. on today Yes, versus or on we that opportunistic. XX%s. like in

with comfortable are very feel right we now. where we So,

capital that. much my is side. And structure, second then you for Thank you. Thank on balance very sheet question the

have when you reduction, share with a is you to would you that of that You with when is strong a in very you a liability the working priority? there? perspective times your you your again Thank highlighted prepared on zero? like where have goal debt Is today, get today you towards expect comments and market to for much net sales reduction the be book how that. would you're expect target? Is a number can visibility pricing debt do - Given

I fact to a that we going takes Well, made. is I'm free not will specific in we us you our where comments timeline tell my that are. use priorities flow I stand my indebtedness the beyond and on give cash normally because steadfast I by that can that I'm disclose. what to reduce that

if run We're But and robust can able any to of my of my focus figure market, the in future. occurs XXX% out their everybody take projects kind That's at paying care models balance goal our future, in being time, own has our a altered ourselves point building to all. down the cash Lucas. that not capital downturn our fund their focus invest So, in on own. this in at debt, -

That's Thank for very queue helpful. now. have luck. in jump and I'll of you. back I but more, you do Thank best

Lucas. Thanks,

you, Thank Lucas.

from Martin Benchmark Our next Nathan from line comes Nathan, question Company. The your is open. now

those debt guys. morning, Good continuing levels work Congrats on the to down. quarter and

Nate. Thanks,

I guess what that Also related 'XX understand calls everyone's from increase problem I XX% slide have. guys of most was think to deck inflationary side I've good kind guidance to seeing implied bit the bridging in this maybe on really quarter. investors probably higher the a than expecting. hoping the or obviously so on Totally put is you could dissect most to more. I this But in been costs, the cost your doing because that's obviously a 'XX as start wanted Sales pressures appreciate you I market. were little

and in well? about the then $X on this and with as how sales you levels price those kind with rates is of the rail high With guys And related labor maybe are said you in is increase that costs, some environment. met are of have that or in increase what it that expected slide $X price assuming maybe the temporary I to think benefits, more Andy, structural? remain you

color any guys. there. on just Thanks, So,

question you the by We're the to either I couple informed are this asked typically and try Nate, we Lucas years pricing. do of what for what it's, for think the a every pretty Andy. Yes, same want I think the time. or and well futures I answer - maintain met try to has to

numbers, same do with exact but are we a right the we're to conservative. futures pretty to bit now. kind looking adopt backward try same tend - close curve, course of adopt the be what not a and and We may dated we So indicating little of at or more something tend we trading always to curve as do

like we'd for terribly far than and yes, bit. a is way pull curve concern price delusional On side, and like We least as our internal sales that little the I a to we don't labor for those back a So, Appalachian. futures But and it at that want Jason there isn't related from labor can, exist. purposes, but the drives in numbers pretend - that as - cost dissimilar real be curve pricing the look, better answer can labor doesn't issue this Central to

to to the very for to folks be a will all and for transparent pool we and market all a and do. in other that So, shrinking having industry with want generally whether labor it we're I labor finding it leaving continued mean exists we competition cost - whether hot just it's pressure are be it's deal things it or this

bump we some to in times very and spend We miners; invest just and got to feel recognize We to in well to we they to want recognize and we important too to the to. appreciation So happy these, afford invest don't job. compensated us. this want sure in really support fantastic like them a our can our we we're to there money recognize CapEx, is make our do and to and actually that them give want people they're employees, a we just let where here

is time to because for to things has the costs - us we and one the those controllable keep to aren't cost cost in on likes coal these everyone sure make to So, these of points it's crept most are that mined. part this be necessarily But where low. do have continues

related Thanks for assume? on rail $X that comment the that then sales of color, just increase is rates, Andy. And cost any you all that that part

number and in that's cost sales. captured not cost in happens No, that of netback the realization our

Okay.

We definitely anyway. much about stuff too rail worry don't

structure cost replacement, production well. mines to they're Are at guess Grove as going and Alum mix kind running expected really maybe kind then how And the there Glen I we over see expect and X that all? the projects Thanks. have does much? maybe perfect. from tons change announced. of the up you Okay, if new tons Cedar table those of guys from How could many your they I to replacement overall of once change

Hey, - geology, expected Nate. it's guess we I mine same XXX% the I'll same basically quality, basically Grove sustaining This is have Jason. just a which depleting output. so with same with start X, Cedar the the is

last to you fourth should which improvement mine, replacement tons where kind with the the then overall fourth at to cost incremental Alum are end kind push. if for And expect incremental XXX,XXX production look full just you is production Lynn until a as because Branch structure replacement normally top also it would tons but Marfork which won't section. Glen that's year But So, of of there branch incremental very tonnage maybe the very on. Lynn on It's it's a quality next of come mine, significant up increase, just the into decreased The of be bolt a mine we complex. to a slightly year. of it section at of similar them today plus

client had look you we we end guidance about at little of if can bit? Perfect. third fourth Appreciate sales a just some down. maybe Strong even definitely Is congrats be me then well I obviously Thanks. that talk maybe like one production. will already then Maybe the initial the there by above expectation any purchases? that guys ask just in that. that, a It's more for assume sales even the And now. kind of if Jason. shipments implication or high quarter, the driven And inventory the quarter, on

Nate. Yes,

let I'll leave in fill I here So, Dan addressing the if gaps the guidance question. out anything

So, that's to at happen of kind was you is have can talking get what chance direction. could the when anything I year-end, in fact there a kind - you it either that of about hinting some

market - QX it we'd of pull or being out ahead QX QX. versa cargoes some from higher think. there's is, a into slip where the probably vice I some or bit cargoes with into little some It QX have feels a in QX pull likelihood like could You that

shipping things doing how and But higher - and schedules chain port's up is our and to get at the that's actually could tied really the how above comfortably like guidance more and that. that's beyond we again So, supply end. holding

going but So end, go so higher to feels piece. to the as start like want far we're probably to that didn't closer guidance on we to change

Thanks XQ. for maybe to they those were tons XQ comments, said Andy. It's positive, from some that could I think that one of expecting your slip competitors

good. that's So,

you going might little Sounds guys. like for a better logistics be

Thank very as the you So, for and fourth luck the best in quarter. guys time of always helpful.

Nate. Thanks,

Nate. you, Thank

Riley your [Operator Lucas, from now Lucas Instructions] Our Securities. B. from question open. comes is line next Pipes

Lucas, are there? Can hear Sorry, you me? you

was I that, about Sorry on mute.

this ask you very the your about CapEx my and to you remarks, is thank have taking for on modernization may part of So, capital but in sustaining or I this growth prepared wanted follow-up touched much question. CapEx?

And plant today? preparation This that you're Lucas. talking mentioned is about Hi, Jason. upgrades the we

correct. is That

Yes.

So, it's both.

cases and replacing So, the raw equipment coal efficient recoveries Marfork, more equipment. coal. tired it's newer both Kepler at with But expecting about in higher are we from

incremental an of completing is gain projects. there So, by tonnage both these

it. for are of talking sort we what And - about Got the magnitude

both Order about XXX,XX of XXX,XXX combined a tons, tons magnitude, year.

And in - terms Okay. capital dollars? dollars of

Yes.

I indicated Jason projects CapEx, - of we $XX million $XXX that to capital outlining million $XX approximately have earlier. maintenance think was of million We

partnership for as have like second additional commercial to does May these I on so, Asia the comment coal have? No, what curious did fruit appreciate regards a my seems you in if third-party about partnerships Asia. low-hanging the is scope was then And marketing additional question but in this. that comments. it details, relates strategy to It missed so and follow-up

the to into to India you we announce it coal give what we'll not markets including that the any comment on relationships Asian excited prepared some moment. other I'm China. color sell where more into we're to Lucas. But the markets We're have we've to than really long-standing but have at on and Asia, of continue don't I confident our Yes, said. partnership, other a

then Dan. Thank follow-up appreciate I another that. And question. you, Okay.

production incremental adding the for to average with You're market would here. of you fit your Obviously cost wondered kind this environment. terrific I looking to this moving the to - it? pieces cost very So, the have additional are kind prep XXX,XXX from cost with these of cost average recoveries in there low lower side. see structure? And your should here in that tons few Are example that there of plants are on obviously

sales legacy the there, You're relative shake they tons, you structure? where to kind tease of pressures. you of the costs out out adding production, the the cost related would But if cost your incremental were inflationary to have

Lucas, this Jason again. is

a I to that So of to, ultra-low the efficiency CapEx are these spoke it's enough tons to yes, these material not point, are tons once in guidance $XX cost, your first, that guess tons. million yielding preparation commissioned projects not XX improvement XXX,XXX across XXX,XXX or David But million year. upgrades move of all are plant but the

a to indicated begin to various markets demands. And area, importantly taking be us fall Yes. those capital - markets. make time, that we're of advantage we we've they efficient and he's flexibility spending up markets only But an on projects the to we the Jason we'll as will as as and as give of as meet do a more maintained, But now model, efficient practices always we every these positive developed forth today us this as facilities. These we're down more and dictate. same facilities, not developed markets ramp to as more operational has advantage are, result brought to business at organization ramp our normalized they the the as take the much into us a

a we're but long-term So, at look those it. do about cost, in from our excited future meeting our here. of rather We not investment perspective

That's getting of kind Yes. was what I at.

and best of the really So, again I color appreciate luck.

Thank you, Lucas.

Russell open. Bay. is Matt Matt, Our Hudson line your now from next question comes from

the Thanks for question. taking

XXX,XXX for of cadence do or just export next you contracted a On that is that doing business like shipments are year, net there have business? actually customers normal that's the of term

of there's That's let's that call year there both - got it fixed cadence. and it call is a medium-term there actually that's full near in deals let's some some some some

little bit a of both. So,

of just that - that of should like deck it. from and bridge sales I then Got sales $XXX sales at of - royalty related. delta plus the I And realization the $X just slide price apply means plus year-over-year? if I historical If sort the cost it call deck, that's $XXX your look your has assume rate

new mean Black it, rates the a Road different way as are significantly that's do pretty have account doesn't over Well royalty Eagle, particularly to moving into Matt. it Branch. years and for they one XX, moved mines past Fork I to those Lynn and bit shifted - three we've

going and Like proxy, dial our decent I don't it's think terribly terribly conservatism. is the what try a not probably exact. then always that's we I it But curve with again crazy. be So we'll said, just bit little purpose, but a for start futures back you're for to to saying

Thank David I'll now Q&A you, to closing Stetson over session. That to David, for today's remarks. Matt. over you. concludes any hand back

future Alpha It's to quarters to a been entire an thank the the well. Thanks. excellent I we forward look team and time phenomenal for quarter. want as

As closing, pleased and the our page today. will everyone updated performance goals Alpha rest for your Have usual, find of vision great of our up will forward want web work to in full-year on We on your organization. a am accompany to your plan that QX. I'd call. performance presentation call day want look to next like our joined our an where an good outstanding the In us section on I update our providing investor and who to weekend. earnings team's to XXXX of during in Resources. executing I with truly this you thank Alpha's keep in today interest to Metallurgical direct to everyone's advance It's how call an the Investors attention quarter the reiterate I and

Thank you today's for joining call.

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