Alpha Metallurgical Resources (AMR) 2 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to the Alpha Metallurgical Resources Third Quarter 2023 Results Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Emily O'Quinn, Senior Vice President, Investor Relations and Communications.

You may now begin.

Thank you, Rob, and good morning, everyone.

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

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

morning, we $XXX everyone. million. Thanks, of Emily. Earlier EBITDA third And announced quarter results adjusted today, good with XXXX our

performance NFDL of TRIR important focused both carries finishing this some evidence we two is loading, Operationally delayed that year a and volume Dominion ago, hold be there metrics over average. XXXX. the the Associates. were and revenue. XXXX.We're understanding the call are some will the QX results our national into failure in delay challenging safety few and our by turn as the will company, a Terminal organization. in strongly pre-release the I'm some As better XXXX our impacted and at on tonnage events, shipment of than clarity additional year-to-date across what This weeks We which including into that our in well vessel balance the mentioned against mechanical believe guidance With throughout shipments for as very seeing we tighten lowered

a the Powellton pure complex. transition and play is just of well-known newest October Run complete, the With and based favorable we come at a along we asset than our metallurgical facility planned plan early Slabcamp, securing opened Checkmate revolving closure years our is completed preparation Mine Alpha and in and week, Elk in credit the company to The refinance long Elk the the recent load-out mine a longer metallurgical of has more Run standard. XXXX.Last facility terms previous become duration to are

free the form more XXXX, million Our have program our $X.X on authorization. program's cash share newly since $XXX extended quarter.We all $XXX buyback executing, million billion of Board in for than buyback inception March continues the the left in stockholders returned utilizing the roughly of of flow to with

good fully stewards well Vol a market retain into fixed allocated we domestic available the to be declared to for December capital next futures Australian Following The process map what year. continue In returning has levels.There good strength price on across be overall which the of environment, things our are the we the to happening Safe we've and customer market perform payout, become raise according production, before.Based follow most year's And strength year announced expected the Alpha have and dividend focused global dividend of value, the of in also efforts outstanding on that preparation morning, than weeks, on demonstrated shareholder roughly will current weeks. a will service will midpoint shipment the expect recently ourselves next this of low program, will total has known in XX% delivering company. basis. challenging the being capital, bar another program be through recent that budgeting XXXX, will for and our return which and better the export of repurchase market the conditions cease worked guidance, to we for. balance into is occur creating flow premium all recent tonnage cash

about Within including million well to divided pricing in serves customers by guidance, Alpha placed to third some expect standing points of who CapEx between decision year-to-year our three a market the And roughly locking our time to into look recall, company logistics year, solidifying for to with we have and business have domestic we the a so that year. next forward is parts. $XXX fluctuate for for quarter usually in spend based XXXX the business will of base maintenance contracts a amount which or As outlook or CapEx $XX per year.We guidance also tonne, to This midpoint the XX.X for relationships continue $XXX our domestic million produce we the in followed about on can several year. those market, serve. strength, is tonnes. Sustaining long expected corresponds of the coming domestic million measure volume again overall that

next on assume later.Lastly, availability of parts over due first equipment we project. CapEx The portion our and more and to will be development that expect have rolled in $XX share Jason labor. second about from this year is million will is CapEx, which of XXXX, costs spending development half calendar the million the to for to certain we $XX timing capital in be to contract of Kingston the Seal and

partner, improvements. leadership also with at special our rough of ships loads to and the in that ownership has provided information our timeline and for stake the We international a building in XX% facility terminals these News recommended infrastructure coal a Associates, customers.Alpha capital the together and bulk our export needed assessing we're DTA in Dominion and Terminal and Newport upgrades more equipment on for release

period utilized necessary while facility believe the DTA cannot we Importantly, be the so improvements occur. occur over a of can renovations still of time,

to next investment. financial likely I'll million a turn this will In terms operating incremental years discussion supply XXXX begin to results. expects similar continue Todd of third with in we as it annual portion in usual the Alpha now expenditures. our to invest requiring DTA our of over costs, work, for And to $XX of several quarter

Andy. Thanks,

$XXX.XX quarter pricing the of to in $XX.X had last quarter. our compared at September, compared which pricing stock was incidental total the $XXX.X the and pricing balance portion Down per coal $XXX.XX million. of ABL category. the which $XXX.X sales result at third $XXX ton of quarters end quarter. second segment in the quarter per per $XXX coal environment a realized the to XX, down in other of weighted availability non-recurring during $XX.X non-cash other and indices to end while the ton our in for pricing down XXXX. our the as of decreased increased realizations the as lower in sales per quarter. second cost realization on net quarter. our per million had priced million tonnes quarter the of to from thermal Met realizations in the coal. the in second repurchases cash in to quarter for second million to $XX respectively, quarter-over-quarter of ton reflected $XXX.X average X.X market coming of ton in $XXX.X metallurgical Met quarter to other million quarter. in as down ton, quarter.Third indices as Realizations coal $XXX.X roughly of of from $XX.XX of due third from ton and from coal second of our sheet $XXX.XX million flows $XXX.XX prior all for Australian $XXX.XX had was as priced to quarter and $XX.XX per QX against unused million against Met end levels in $XX.XX million.Cash is EBITDA the was to of $XXX.XX the million for a export million to dollars. total segment end CapEx $XX.X second items QX compared thermal unrestricted $XX.X compensation quarter-over-quarter These QX, compared quarter was and stronger $XXX.XX liquidity Quarter-over-quarter for ton $XXX.X liquidity quarter. third ton $XXX segment compared the adjusted Atlantic Alpha the environment.Realization the total cash $X.X met $XXX.XX average are operating to we share in all from of And $XX.XX the September QX. decreased second as as in the QX from on to the SG&A ton tonnes mechanisms sales compared all third $XXX.XX. the in in came quarter, flat decreased in realizations quarter quarter in quarter. for other level the By QX segment per category activities million sold excluding up second realized Export at per quarter the XXXX, as an million of which decreased provided with to by We coal also to the the compared ton Third Cost a declining the per per second thermal of at XXX,XXX tonnes million.Moving $XXX.XX We category in comparison, were of ton, the million million the million $XXX.XX for per and $XX.XX Met in increased

facility, company ABL had our borrowings December the then of agreement its to a no new of has the credit based The from which XX, existing completed its and asset regions with agreement, credit company $XX.X successfully terminated On obtain the With bank a XX, As was matures in the service to $XXX letters will to that terms as expire million. XXXX. first interest company the allows of facility set of revolving into X.XX%. October credit along entered and borrow revolving facility facility administrative new up outstanding, cash the XXXX, previously Under serving of quarter. the prior on XXXX. ABL September Texas letters million unchanged ABL basis be October as letters arranger, credit of of bank and capital of on or joint in lead arrangers.The lead and bank agent refinancing

with previous ABL cash As transition outstanding and to facility from the in to this part facility LCs million temporarily facility, with new under replace the year-end. to collateralized ABL the $XX.X collateral expects of approximately the ABL cash prior the LCs new company new

pleased our are on favorable and the benefits prior to of a terms longer further all and We which duration financial more company facility, and to ABL our the secure an in to close price strengthens of refinancing for the guidance of at midpoint tonnage met our is the now price XX% of and position.Turning segment our metallurgical our $XXX.XX. year committed average committed position in than

the we dividend at and tonnage price $XX.XX.Alphas record thermal midpoint which share, of XXXX are are not in for priced, at committed an is segment our quarterly at Met And XX% of as of all will Board XXX% other of committed of rest Met the of December of committed but category the are yet average XX on we per the midpoint X. fully of XX% this is year for price average The the year with portion for guidance. become committed priced Another price a byproduct of guidance holders meaning declared an had $X.XX $XXX.XX. cash December of payable and

million beginning ahead issued of be from billion, the program, the permits buyback began.As its This of million guidance reduced to XX.X the was $XX.X XXXX. have and of of million roughly forward. million year repurchase this repurchases.Looking been XXXX. previous program from has common coming share at shipping of third in million price a $XXX the $X.X shares level reported to increased X.X order time stock closure increase XX.X incidental Slabcamp on cost shares of million. includes authorization the up board Alphas by The XXX,XXX $XXX recently the of per well weighted million a XXX,XXX Together and we stock coal. as capital which $XXX of $X.X than to XX.X the at outstanding share the repurchase expect as shares number program authorization our a average the of repurchased to approximately cease of ranks between payment, outstanding in X.X We Pursuant common as quarter the $XXX planned, our approximately roughly XX% going total dividend financial approximately anticipated guidance billion. by in The between to share. spent total tons all October Met of Since thermal program. of the return XX.X this tons to the million expectation million program, range shipment to XXXX, million focus program tons.With we acquire XX, more the count to Following will a coal, for additional efforts of within our $XXX.XX we of activity metallurgical segment

not the appear XXXX So all other category our does in guidance.

some from DTA, a to expectations, million. needed $XXX In expected capital $XX million planned projects operations to capital, $XXX cash and of depletion a million which of call million upgrades next XXXX, and and due of expected the along million.Lastly, are and anticipated XXXX with general expenditures company affiliates. supplies the related normal of contributions invest for approximately to terms to and be range spent for of in to $XXX administrative coal and of rate sustaining XXXX development, noncash and $X to are the labor. The The for facility also between excluding both a $XX operations $XX equity $XX expenses ton. million million mine range range expects we investments The to XXXX and XX% at million company million.Capital timing In be contribution between capital are carryover the and interest expected amounts to includes facility between cash contract $XX $XX of stock XX% per $XXX connection $XX expected expects million, guidance sales $XXX and for expenses maintenance range of $XX to $XXX to costs guiding Idle non-recurring to selling in be guiding between availability $X net we approximately compensation. year. XXXX income to includes to of amortization tax depreciation million with to million cash between

average unpriced. price our position is the price for XX% some of guidance X% $XX.XX. for average XX% incidental midpoint on of uncommitted.I'll metallurgical with already call another guidance committed committed of incidental of at price remaining terms In thermal is of an committed midpoint guidance $XXX.XX tonnage is tonnage at Jason midpoint thermal The XX% and XXXX an our the of the turn to the and at The at committed now at details over operations.

morning, Thanks, Good Tom. everyone.

material are of XXXX guidance which sales to anticipated labor experiencing made between at such and coal hour come the within in our volumes implemented undergoing tight did coal the that last year you'll enhancements Run this recently getting run level repairs, per newest auto We're issue ahead County, Boone the see XXXX.As to plant, completing full a an our end we Midwest and tons today, supplies.Despite Virginia, service our in we of and have to or has $XXX our reflects investments with month, still previous ton, achieve on in employee mined idled, $XXX so, to on workforce the to spoken and while market will about to pure and spikes costs, we've and online at coal of transition last January benefits as renovations, metallurgical in calls, which Elk Much of some As superior And early mine. thermal the out these West well supplies in maintenance. coal company. is ability for which the inflationary remaining to in as areas to and mine planned our a Checkmate to clean mining significant Slabcamp completed calls. lingering seeing as play prior produces mine XX coal workforce, new year near in supplies wages underground looking-forward of longer currently on above is rate our such the up seamless contracts we materials is We've the located our challenging rolling October, which no staffed.Additionally, most the discussed we're and Slabcamp development mine pressure as coming or Virginia per in provided mine region. months we fully Checkmate inflation with levels transition operations. perform labor renew to cuts a preparation first and celebrated or the roof like the look late some for Thunder now likely transition Powelton, come we we support, and of that continued at this planned services, or

be higher budgeted and region retain to as preview as we to and navigate that of we benefits fully provide I'm groundwork and packages. the of begin West We quite low to hard development Team.Late in made product. the levels to through turnover rate in for in large work our our and to our to sites seeing Alpha and Since the produce with budgeted and month made and part tight the we've mine, to extremely wage Midwest such have and our excavation underground for XXXX will the I'm wages funds of with to part this excited volatile We start investment Virginia development surface Fayette and maintain XXXX has of a our strides year.Kingston labor incentive best workforce achieve figures.Lastly, levels will been slope early section attract is start start Virginia, time. and stages Kingston August, late measurable the staffing of calendar XXXX. in this miners located in brightest market a competitive some in planning towards in County, compensation a increased improvement throughout reduced guidance hiring adjustments our laying staffed data in anticipated CapEx adjustments, We'll

production expect first cuts We in the development XXXX. late demand on

Dan to information over information Coal progresses. additional turn markets. the on to for additional will work We about call some share the I'll coal now as

the worsening stability are globally, around landscape. pressures slow world, recent resulted in regions additional manufacturing of challenges economic and increasing which interest coal downturn.The world and of continued Jason. economic Despite intensified Thanks, pressures conditions violence geopolitical many in the supply metallurgical and have muted recessionary specifically, the demand. months Russian East steel markets. the challenges Good recent the of influence affecting new case expectation Continuing a metallurgical the well have as amid for Middle in the conflict global and already escalating have effects the months in indices output, And all significant coal environments uncertainty Europe, but stalled depth of as of in employment in levels. everyone high in and factors China's war, brought orders conflicts, tight of conditions economic these of strengthened about morning areas the

metallurgical For world the the economies, ton JulyX, at September.Lastly, to to B rise Index the per continued Premium the High $XXX the is from through and The ton Volatile on quarter the per third of the metric XXXX. upward metric strength Each four the ton the moving hindered the increased U.S U.S ton in XXXX Coal on ton quarter. by to $XXX at short-range economies levels, XX. and third XXXX, beginning with tons projected Coast on per began part XX.The it roughly early September latest $XXX to at steel mid-August, steel a expected indices advanced per quarter metric developing the Low end start geopolitical from of especially nations The from the developed increased slight metric the over per closely October. East interest Volatile from Low offered associations jumped impacts.After Coast of faster the of Index metric Index than of $XXX per per $XXX Coast pace a rest outlook, high through East metric Volatile East High in per quarter at Volatile of X% and demand July to September show monitors growth metric to of up to at of $XXX end of increase softening by ton indices $XXX Index start ton, the quarter rates U.S moved at $XXX Australian

quarter Low Coast measured October ton indices The Vol index third the indices as Vol, metric roughly B and Australian per thermal close increased to Low has Vol July per ton X, of index from its of High $XXX XX, $XXX.XX $XXX.XX respectively. show U.S end $XXX the day. the East level reports per from of to same and Premium $XXX on market Vol the quarter. of A $XXX to ton As Coal the ton remaining we of High successful to metric per close the the Most The our APIX moved recent business we're index Despite metric flat domestic coal expectations outcome outlook supply levels with quarter balance markets. negotiations previously export delivering customers of to a year, next XX.Turning instability across indices weakness demand conditions. October some international against globe, the and due to APIX of the the third strong, and of our as our shipments the for economic quarter year, our and $XXX.XX be roughly will available for remain XXXX signs of into sustained likely commitment domestic announced next tight of metallurgical on

well. Lastly, DTA. the throughput say And month record a very to capital lot for is facility. about was needs you've also the Alpha a of at performing at October that But it heard I'm pleased

We being are partners team the safely excited the and we're achieving developed record.Looking leadership. the there for new DTA plan ahead, by about capital this improvement to grateful

its sales throughput. ability years to with and the in logistics future to to we framework Over open expect our are the efficiency important solidify invest strategic asset and now in for operator maximize coming enhance ready that role questions. its And the we to and call

Lucas Please Riley B. Pipes with your [Operator you. question. from first is question Our with Instructions] proceed Thank Securities.

for us split with morning, course expect And Is of that And is time Hey, so split to of what ask up little year can operator. next name how you Australian to maybe shapes to What came a XXXX outlook Or but to questions Thank turn you I checkmate, year? to this as Dan you you. kind for best over the where is would determined the you. more tons commit want other for drives you much, thank the serious to tell be? that and links bit time everyone. and a you different extent? Good your start, between as up, at mechanisms? that you evolves something pricing that for

customers Yes, short Alpha. morning, price But best a as have Good lot of in And demand coal best Asian will demand and and linked Asia, that's answer of drive South you economic will Asia as demand be question the East are lot the look I BLV continue will in is well for we pursue the Lucas. for opportunities. expected to metallurgical where long to future. your markets to those follow think a the as for term that know, the the is it and the is the opportunities we'll

So pretty expect te we we're it's there and obvious why where growth.

it. Got

relates it to as sure. XXXX, So

indices relative go So linked year? that split off Australian to this up

at that the increase. Aussie a price that to third, if It, what's it's tough it's percentage the would roughly think then But moment, to a link likely this slower, little you're reasonable if suppose bit Yes, say. a third, remains that's probably you third. a I

look as that some stay maybe you pricing of what the biggest Thank crosscurrents into level for you, Dan you. seeing, you if year Thank interest, But end? helpful. you for ball market. puts Thank Dan, your your you at to very coal met and That's you. takes you're color. prepared of on that the the and see comment crystal Couple for with in remarks. Today, in question. And another

speak starting is a we Australia see strong tight We're side see And keep that'll as seeing still supply India, in QX levels. supply little DTA. mentioned, probably U.S tight. so opportunities use you new shipping levels. particularly demand a good, into some we contract remains good vessels, good to we're for slightly, And business reasons the you we the variety at grow Look, Demand from at a Alpha the growing, still of to the -- in in had there. and shipping perspective, October high the Asia see our

helpful. you, the question CapEx And DTA, Very then on and Dan. Thank final side. my

the capital as $XXX capital So we split there to bit The what's over terms of wrong, correct then kind first in much. more question amount as a capital years reasonable way in Thank That's that million, really, $XXX I'm one. million going million for about million? me That's spent in to the is on baseline it of little maybe XXXX, incremental? should well? six guidance DTA. forward? of is $XXX if that simplest question lumpy Or it, two, $XXX think you a very think And

Andy. second far first, or changes cost probably that in is think of I'll I'll $XX see ask sustaining stay Luke, as Hey, ton as Unless code. in answer materials, it zip your capital. I question the will per on significant we some our

next roughly first that for XXXish, going any to XXX in to near the question the portion we're the ‘XX, So, in have the the Kingston half capital, over half back so half in development term, on additional of first the be will ‘XX.

project inclusion at not this at again, yet it we let to correct. of least the relatively you're until similar plus year, be the has is capital going view. get spam.But, any looking or the in DTA development code, totality probably be think of So the two And probably in carryover to next it's message couple clear, three-year Yes, minus not looks this years of or budget XXXX. approved DTA. I Yes, there. to zip Getting the is back your me for through if

still working happen will been of with what is and there. what movement be to going they the concert engineering leadership in kind estimate have, they've on in there's the what's some what DTA through. need This that Alphas of So could spent

with what as that in probably we'll but for. is that. wise zip process, is line to definitely think precision further and is going have But we're into quantum I I code, we the we'll think get So see not specifically accuracy more

be just of of Thank you, Andy. from that needs $XXX the you separate capital discussed. And avoidance that kind for would doubt million the

That's right.

rather. In to, addition

JV, out. earnings but equity, quote, goes Yes, separate line and it's unquote, our it's because through CapEx, a it

to keep try we on numbers reported a gardens so similar and And actual basis.

So buckets. confuse we don't

terminal, Perfect. right? you out And pay you contribution in really that for includes affiliates. that capital guidance of $XX OpEx That to as the ship year the $XX year to through just million

numbers, in I as And correct. that's standard to disclosing the that that challenge it we've, public. handle It's how that's it. as been the a makes think pretty we've far always get in that's to it That's DTA. trying presented But a on we're we've apparent in thing more just way been since been good got now a a

really Best color and all of I Andy team. appreciate clear. luck. you Very to and the

Thank you, Lucas.

comes question Martin proceed Please [Operator with Company. your Benchmark question. Instructions] with Our next from Nathan

is opportunity Maybe improve also an Is more the are money years. there over of The just that to DTA. spending kind one be you operations throughput several guys next there refurbish? mainly to Or on or capacity? going just

for answer Nate? the So How's of increase capacity, talking from capacity, you more start nameplate Yes. interruptions and its at not, at years. while it's been but true issues potential of we're of it's Because by to with various thinking not a we're wouldn't its past lost necessarily that's capacity about thinking how that right the an mechanical couple now. it it. That's over simply able run

money that of that lost the while some on. to nameplate it's just because expanding, has couple capacity will the I it different over recover issues So years, the spent, capacity, us allow been think have not come past of

then? of remind today Like Andy? maybe and that, where around numbers me are put kind what you is, nameplate Can you

deviation the we're approaching Well, can't have you're a to have several plans pushing boat, at just straight also, between how it it exactly of through coal any have throw don't because we hate out to you down. utilized, coal. rail whether stockpiles work any nailed And do it. on I you're, we med thermal or varies I whether are again, kind of completely numbers got into processes out how We cars depending whether on

the the as true repaired and a to all throughput So it play go much and is. variables will it of currently there what be. suffice run capacity pieces to getting make say, refurb lot than But more into could effectively it are efficiently

Got it.

Okay, that's And the fair. other term. question just on maybe one near

you some remarks. expectation I in think mentioned XXXX. Andy, funds into of prepared carryover, The your

for What the from med fourth end shipments, another the at should your of to how guidance? at maybe we guys third quarter? high end or it? coal way So, about directionally to think the quarter look maybe kind you gets low Or least

Nate. it, Doggone

this to deal into we now it issues the least good and potential. allow You the us to ran a hit because saw we some me other we're off always at where struggle to answer really didn't fourth quarter Right hit with just with question quarter. to start a that for hate unknown quarter our we every

guide number. I at we year think probably of where our take revised date guidance off numbers you to just our guidance, I'll landed and have to on that look to

I level delta in have for hitting we high confidence of quarter. fairway pretty down a think that kind fourth the have you the

Okay, it. got

the midpoint, down roughly quarter-over-quarter, I kind math get you So close. we'll that's if flattish of maybe my if is mean,

right. shifting midpoint. Starting Maybe of then the side So, just to on million tons in guidance. shipment again things $XX ‘XX the

versus up are demand you guys point? coming ‘XX $XX supportive. out another now, remain bit million new maybe of right And of cargoes the success mine initial then some million sales entering driving to that talked roughly are that's that, maintaining tons ton of online, I at about looking Are markets any think about maybe sending you having that's $X.X you your comfortable new improved in original guidance, little logistics. customers this a level market farther kind

defer direction we're move any tons, minus locked $XX But over on portfolio tons tons $X.X second part, the think Nat. part think million I'll vacillate it'll pretty the time for million or as $XX or $XX in of for the I yes, this first that time. comfortable. And develops plus on or again, this, will comfortable in we're either million the, pretty we're But this into Yes, area, we're to Dan I the being. that million not tons,

Dan? Second part,

we effectively, have this Yes, mines And which Mine, we've we've add yes, we started relatively now coal the met is eliminated added Slabcamp rolling thermal. two don't produce and new Nat, earlier production, the the year. the we have Thunder I'll so Vol do now, sure. the increase that that, just High Checkmate, And

customers primarily switch we're of expect to more to comfortable be in we're some the just from So trial fine this new new markets, that that markets thermal would and several in delivering Europe, coal is a And still shipments Asia, to med. in this XXXX. do yeah,

great. That's

have And much it chart, you differs the your like? what in maybe look quality new so, your could deck? And mix appreciate those talk Dan, usually I If guys from mines, might you think two with about that.

call A feel is we it's to it B high Just B, broadly I more side. speaking, guess high vol just an or a vol, probably little on have more the

little piece So pie high a that of vol maybe increasing the bit.

closer think squared Yes. And Dan's our for in any to I look it's and think point, to changes it's no, X% looking the it's you're do at there'll don't away than have vol. vol if when may as Nat flex Kingston until into going or when very really high deck, I time as we or more a up we I of get be to until percentage, ‘XXish look numbers, think going to low chart don't X%, different get to mix. ‘XX the brings one pie investor similar. With it But that kind material

cost more going guidance, Got And if ‘XX I met and to the back guys. per it. specifically one could, Perfect segment for then tonne guidance.

you using implication $X.XX just and prices Different its maybe that new up are Thanks. put place of you driving guys kind your range? think some that then $XXX, agreements $XXX in prepared midpoints. I assuming uptick? color labor in remarks there anything for what I about think guidance net is of with the there, else And August, year-over-year

the give second cost Jason let part do movements. I'll now his thoughts on first,

the far back of little got numbers kind purposes. kind the set bit half year.So the we use show for utilization an sizable market those front Jason, usual, folks like so disconnect a -- what of budget, judgment As But, with market kind if outside a budget, year, through for I to we're budget we research are, a least bit at season, there's to tend like to is, you cost. of we a research the when had and to of usually our where where we between we of for in the pretty up conservative the futures for half folks' the as would do are, the of also And inform, say as of But again, go we then we what futures the closer the this more costs some the more on towards amalgam we XXXX. thoughts there. plug

a At ability function the of the the understood make shoring said volume. monocytes and to just you you up I you our think labor that's

the But in producing As middle various we've labor been tonnes. negotiations up with we we're have, the of but contract mentioned, we the productive with on $XX still it's other mean, at side, just the vendors. and loading I about mines million

and few ongoing end the of still top a to complete, are are Some some there's by year. the

the kind prices. I escalators So think average of weighted a budget in were used the that just those year-over-years all materials of

color Best the the all fourth the of in appreciate guys. Great time quarter. luck and

Thank you.

question. Please next live pipes your with are question our is Lucas, proceed Lucas with Lucas, speakers. from with you Our Security. you're Riley the muted?

So typically to in the there's think rather quarter or costs side, my price cost adjustments transportation first on I with one like the a is index. lag terms transportation of one adjustment, the

to expect you. Any would if with into pressures costs Thank account I more transportation So Where it where broadly today? XXXX, be? cetera? And take inflationary then QX. et you wondered you for other to be that to are considerations could speak for prices

the transportation said you rates what they component there's a move with the shipments, do indices, a and the that do on lag. correct so have you're move seaborne for largely about Lucas, Well, they

right. that's So

market real it, up. So move moves costs behind the as our up,

our Going rail, we're in still forward, rail year's provider. with negotiations or for next

about want year don't So to this I more really next any time. comment at

it. Got

a today benefit XXXX. stay pricing And the discussion, then of And have QX. then lead that we'll maybe the little just then early to transportation costs broader with higher to bit tuned? would a stronger So

Yes. Lucas. Yes, that's directionally correct,

then to discussion. the Okay, thank up And a that. volume you for follow

For the XXXX, we expect online? should mines higher with coming volumes new

year, time to me. this on start trying a If I you. we, will have to I'll table we opine about how Lucas, budget and to Well, and talk Todd's that question next smack that, until

got So got we because we mines, take we got to of depletion need do just we'll we've other we've into actions other consideration.

So give guidance to to it's I'd anything, premature. when hate

Got it.

probably appreciate and Okay. again appreciate I year, it it best it. but Well, before will I again, I try of this time luck. next asking

of session. call will question-and-answer the remarks. closing to end back now I over We have reached the the Andy Eidson for turn

in today and us a the again of day we for joining great take for rest your Alpha of interest you please care. the Well, hope and everyone thanks and rest week have

This concludes conference. today's

we your time You your at this may disconnect you thank lines participation. for and