Coronado Global Resources (CODQL) 25 Jul 242024 Q2 Earnings call transcript

Thank you for standing by, and welcome to the Coronado Global Resources Second Quarter Investor Call. [Operator Instructions] There will be a discussion of results from the CEO and CFO, followed by a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to Andrew Mooney, Vice President, Investor Relations and Communications. Please go ahead.

Thank you, operator, and thank you, everyone, for joining Coronado's second quarter investor call for 2024. related quarterly outlined the statistics our as key our in and as released markets other we coal which production information we report performance. ASX to SEC, well and Today financial safety, to and sales and of the by CEO, A on year and results the of earnings CFO, and our half August and with Group release. Today, financial will more our Thompson; position joined released Managing Ziems. be Director Douglas detailed to XX-Q I'm outline Xth market Gerhard our Form Within you and report, will our regarding see forward-looking reconciliations our statements notice of non-U.S. GAAP financial measures. to these filings listeners all encourage our and with in other We the SEC. ASX review statements conjunction with

over all remind U.S. metric otherwise also to dollars We and that, unless Douglas. that numbers Coronado quotes all tonnes in With participants stated.

Okay. Thanks, Andrew.

this. into get Let's

results But to plan. These XX of from the group months team our tonnes, not within reflect and on delivering to ROM materially lower a Saleable X.X X.X the is results. plan tonnes, X% total several set pleasing business delivered For our XX%, produce achieved milestones underlying at million cost and mining is quarter, million, quarter. plan, by tonnes, finished. XX% the higher outcomes our production drive the business with sales, revenue the up June X.X other up milestones remained at forward production, down positive focused Higher and of up report up March costs at $XXX as million in $XX production XX% job coal enabling It volumes improved on sales Coronado materially the hard our business higher and million of group and work tonne, and revenues higher and everyone X%, along results.

more to offer. Our plan has

of of shareholders coming have We will expansion development progress further of as benefits improvements ahead our and Mammoth for additional in for at productivity from and extremely to press which and the without start and I by our on of our cash Underground and Buchanan, or developed the the positive operational the safety organic I'm I continue both flows excited our to by be debt growth the before project safe gains the focusing quarters implementation continue operations, pipeline, But cost additional elaborate operational to from we prospects equity raise works of will on an our market. of our need business performance. the overview

reported members, one the at mine operations As temporarily a shift. Brock May, team suspended of XXst Buchanan in the the The of on at our incident Jackson. of evening announcement fatality a prior company commencement occurred public of following the

of underway. opportunity investigation We all friends from is and other for our mine. this than to directives coworkers. event. to once until the that of and incident operations on support saddened incident this take An condolences our by family, investigation cannot the our further Brock. is into are note his sympathies to the friends concluded, we and extend I'll and of colleagues continued deeply again the provide more to And comments mine the Xrd no work safely. is family our June, And and important are to there there home no tragic a us is on of or day than outcome This family resumed returning Buchanan restrictions reminder

to recordable average, time same Australian total industry compared June. X.XX the recordable injury are averages. rolling was Both year of and than of our rate total lower compared safety as injury X.XX the rate frequency turning prior the X.XX XX-month And the at this X.XX of year. to prior if And split was rate rates X.XX by XXth prior was our XX-month level, total At at incident Now to rolling compared group the June X.XX% segment, below to as XXth we statistics our our year. the in recordable U.S. year.

operational of reflecting historic Both production realized lower improved tonnes, and ROM of These increases costs rates, volumes multifaceted Australian production Saleable quarter. over coal outcomes tonnes improved our compared million the X.X the X.X and XX% our March to to completion and XX% Complex principally our are but sales from million and production performance. with combined of U.S. plan, engineering fleets quarter to In take of are segments last results and X changes respectively. of we delivered significantly Australia, our our Curragh improved Turning the And fleet removal continue XX%. subsequent pictometry the XX our quarter the due fleets prestrip gained the XX%, of over and months. The total June removal March, truck targets are on dragline made the in waste plan. by from productivity and year-to-date to with compared draglines in to and by at meet deficits as up movements waste from waste late advantage dragline improvement the of ratio improved March excavator

production quarter, to June lower the with quarter-on-quarter. interruptions experienced less reported also Curragh During rainfall

Curragh fleet June resulted for since rate contractor was to mining rationalization. The of a per per Curragh tonnes removals, production. a of coal mining excavator, productivity plus approximately in fleet Curragh of at is rain is for gains to operations. mentioned late cost XXX,XXX did plans previously is lowest per current higher tonne contractor cost about strong ROM gross or late quarter Curragh for to will in targeting from Curragh's rail position temporarily removal equates Blackwater to and are at were to we that structure improvement XX to in from This a And and improvement in as further removed take impact approximately of production And our which has July fleet. overall of momentum positive the materially Komatsu and at future quarter in planned combined quarter to quarter-on-quarter And to pieces improvements outage production number to port that cost tonnes Upon XXX an in contributing continue September March deliver site reflecting the expected improved the $XX.XX cost Curragh, and introduction on heavy However, tonne impacted of the the of additional not the The Coronado additional operational according fleets following the see June the Curragh. the with this million cost the productivity demobilization, achieved improvement cost Australian the sold equipment with tonne improvements June XXXX. At PCXXXX is average the in railing segment X also improvements are finished our exposures. Operationally, full elevated X. has This stockpiles. line June into by productivity new The days. to contractor quarter due the this the of plan. with quarter-on-quarter a removal per July. about removed deferred flown the we quarter traffic ton, strive accident XX% quarter and

in XX%, quarter sales Buchanan also U.S. operations and million quarter we tonnes, to at our of of the mine delivered X.X developed U.S. newly million were ROM Saleable production panels. respectively. performed volumes tonne. operations XX% June the The of as ROM lower southern increases production production, per coal and higher reflecting Our June in well and continue production and The quarter, cost improved delivering sales over X.X tonnes March

Saleable September perform Subsequently, and, forecasted, to resulting in operations maintenance belt highwall we skip tonne, average ROM mining for at at and and skip of the ready compared conveyor per Powellton higher-yielding have in Buchanan's and in incremental District mine time. March counts to in has a in has run XX% continue quarter, our next time, and quarter-on-quarter. The years. In currently respectively, was production the gained forecast of reestablishment and tonne from to longwall conditions continuing production systems the U.S. principally further $XXX mining Logan, June These continued their The improved ability the of operate XX% yield per tonnes significant the experience segment improved cost the the following best a may the During to This were to materialize. rates tonne the the yields due XX% June up improvement the noted in mining the June development to well, the section. At XX%, our started quarter, Northern are up increase District to is quarter, given Northern efficiencies undertaken our as the early due Buchanan, The X improvement a to both a was the last improvements U.S. in operations. improvements ROM XX% production sections the was quarter cost same surface achieved. Saleable higher to from up in plan quarter. at for production quarter-on-quarter. mine mining work product mining. reflecting rates And production year, portion the quarter the for panel a

our our take through we plans, result a of a who bit a today over guidance our XXXX June will As update. these of results market and forward position previously Gerhard, financial reaffirm now give us us to metrics. I'll hand and announced strong

the Thanks, short everybody. hello, today. Douglas, and I'll keep

million, compared despite higher in quarter, revenue sales of mainly the Our quarter June volumes because fall the up was USD prices. X% XXX to March prior

was The was which U.S. kind revenue the year-to-date negotiated revenue to of of coal And than in that prior way was than year higher pricing. Coronado's of coal delivery met because index we thermal pricing industry. because coal revenues billion, at as a on of across of prices sales coal coal mainly the percentage $X.X contracts pattern met last certain was year, of -- minor met a percentage prior about thermal met XX% year, was close year-to-date the that sales lower XX% of in time. when higher coal Our down coal XX%. time proportion total this was

FOR XX%. went domestic XXX we met XX% Australian index. versus premium for vol tonne, quarter price an So USD is average low contracts, per up realized a XX% blend U.S. from of group the and coal was FOB, reflecting price to the pricing realized which The

of As of interest-bearing had company And cash then is secured debt $XXX Curragh outstanding. of of in liabilities of XX closing We position housing June, which million, million. a completion million comprised associated the a in million notes senior with balance the arrangement. net $XX $X the $XXX had

acquisition inclusive quarter, deposits organic by the million borrowings under liquidity in XXX capital in to Coronado's million Year-to-date, March revenue Curragh. with comprising of works the in available the payment mine growth at spend of to of USD at related million, March XXX USD interest Curragh negatively the AUD relating as XX half last closed undrawn our Facility. first expenditure business of XXXX. Coronado ABL June, cash, Queensland and XX of Buchanan additional short-term majority the and of the Office discussed to available had As the was of impacted

The quarter. benchmark XX% markets, of The coal East quarter compared premium USD was average met terms met to was, compared to was March both tonne. index Coast coal tonne, low where U.S. markets, $XXX. down vol average tonne, was prices benchmark index, per was Australian index U.S. per and XX% price per second In $XXX price quarter $XXX XXX Australian down in decreased index the where coal March the the index it average

July, on prices environment well and of So the the in tonne. hand a September. quarter, the operating projecting index railway XXth seen conditions. which suggest But as for mine period, after curve, down Prices year. pricing restricted to per particularly during quarter from around supply -- Queensland the supply. SGX our issues in a that at expects to have in starts is will different the price occurring, price monsoon I production early back a is issues average than of Subsequently subject. Coronado to following June in the remain pricing environment probably back of increase our July, across at the given supply in some maintenance has an peers seaborne Douglas? forward peers now fell network. The we an These In $XXX. impacted quarter season, restocking to prices above from in coal with this July, higher just $XXX expected of have the again, March increase come Basin $XXX in dryer from of in down an the elevated Australia, U.S., of September Indian appetite from Bowen in late which operational because the the the as forward from met point, the projections now. same be data as for price long-term continue remainder longer of $XXX tonne Douglas pricing per August course

Thanks, Gerhard.

of has met the to our of upon. more in using XXX and tonnes than in second invest billion to Coronado So cash generated tonnes business to fund coal million projects organic within growth quarter, Mammoth business Buchanan growth. flows X at our continued reserves this Underground and draw resource

And term within potentially more market opportunities, on additionally growth schedule growth for remain attractive reserve potential organic create presently afoot, within beyond our what's budget recent which over long metrics growth to shareholders lower projects available expect identified value our be we've and than our present will base, this shareholders for other organic market. at the multiple over than projects So significant assessed investments the which and continue have time. substantially we the in

So project. Underground schedule, turning to Mammoth remains to regulatory but It on approval. subject

the a June supporting submitted planned the activities schedules been for and with highwall the this our the are to and workforce in project. for providers, June, for plan During In of to agreed has dates equipment statutory pleasing. stabilization leadership expression with extremely before the has portal our in necessary work commencement is and place procurement construction earthworks in placed all the response of moment, at are development. orders quarter, of dates interest Mammoth which required And commenced full we completed and these All has team S-Pit project. we the approvals the progressing staff preparation our project. delivery delivery

and Our communities to engagements the the continue positive. be regulators with

coal As the qualities the longwall the to Curragh storage increase completion storage continuing a receipt works annum bottlenecks coal of U.S. also allowing the excavation area run quarter and open ROM is growth approvals, million XXXX. Organic on to to of regulatory surface quarter, of high-quality to reducing in construction the deliver in reminder, an phase. subject the increase coal new In to ultimately our the with with expected plans X.X has Mammoth Once mirror on invest of June to mine at capacities. higher risk target capacity, set operations project raw the continued per equipment coal of met and a a of Mammoth on first at also incremental complete bridge to increase be substantial date new our the of from skips of mine's the existing first plan of fully the we is X of And reserve capacity Buchanan hoisting XX coal the operational, expected production million April to progressed million to target for construction the during capital cut. its in tonnes with December in tonnes Saleable remain works North quarter, to access roads the the remains stockpile of XXXX. In second scheduled of facility extensions. surface. And our

emissions are XXth quarter this shaft the works excavation concrete all X turning shaft June, of to equipping, As to at the of expected to works shaft plan. and in completion which project progressing is And is way lining stage Full of XXXX. And work, bottom. the complete reduction. now next is

power explored, X open and is generation gas cases pilot We downstream cut use capture during progress mine our continue commenced of substitute and targeting wells project to the waste and this gas X quarter. monitor we've performance. diesel including January from Europa Europa use data coal the and continued being to in our beneficially build with record of gas our This fleet. Gas flow reservoir's and Curragh wells at production project from to the mine to understand uses to year, in

with engine truck quarter, with performance and line the weeks. expectations over the were X commenced trial Coronado of the run a results the are trial This XXXF a in Early During upgraded its second converted and gas to our next will for truck positive assess trial. June partners what conversions.

XX% in Vent -- a unit Shaft to was reduce our Shaft The VAM approved unit and to pleased May was XX. Oil of Board further mine. Vent is to Virginia of new and emissions. a expected and emissions that Gas of in VAM is all and Shaft at June Coronado's the unit second actively our testing these the second VAM XXXX. Coronado today VAM is the over reduce The announce and completed June, conducted Air undertake of Buchanan second Vent Given operational install Thanks, the VAM of commitment itself to positive we your emissions, take now hand to the at April, XX an at a operation and by for to path I'm I'll to to Energy this the the construction reduction is at in a success emissions reducing now emissions was unit Ventilation Darcy. committed by of implementation considers technologies. And with strategic Methane, XX leader And XXth questions. operator establishment part unit that, industry fully our on

from first Eadie question George Instructions] from Your [Operator UBS. comes

X the released First weeks for you on rail known? guidance, the year. question is When was guidance on line this Blackwater downtime

Yes.

motor in good days must wasn't end of working providers that that. occurred say So a at maintenance was accident we've the that. the for mitigate above that mitigate below and I that it. and mitigate known June been has the month known, and we're for X to planned And the very vehicle while, to working about that been of obviously been rail cost rail have working then with July work industry the the to back

So rail for that the It's everybody is in considered. not that it's but to industry use common that corridor. us, [indiscernible]

wasn't way well. as Awesome. maybe it on just to then just making Yes, moving Curragh And X. sure X

these campaign pre-strip you've advance you've in risk bring years double pre-strip now offline, contractor there to of done to in in on fleet a many terms you more have now large something. But for [indiscernible] dragline great. risks in Both the I which of X or another X costs, strip guess back great need sort fleets of you how is strips seen taken and what that, So coal are for here? put is of and dirt X [indiscernible] absolutely system. we've

No.

is long-term and a to got dragline mine been in up stripping the it's operations. this that intent sustainable towards executing plan set that's geared Our that we've ratio,

the that for to better the productivities. also but different XX the deficits additional set also And So how to pits longer on last fleets up strike our months, occurred, configuration and of mobilized geometry length gained. we up site the into we on waste to catch dragline have the that's have

plan bringing plan truck further derisked not is tricks exposed brings that's that's And down lower ratio over XX%. at a wet clearly little hoping the we're options the stripping bit dragline time of to to does it's to to We're into gives which that it. us that's sustainable fleets supply that and operation risk line, you at on underground the we out have. excavator. But cost having get described. The further Our have what and to more site of available to additional running ratios contracted because the mine and mitigate an weather, us for will bring the

maybe second And Buchanan. on Yes. just

next this Northern in higher You XXs? panel September, or said And yields. it of District little sort will XX% quantify the how does overall Buchanan? a maybe? we Can this ready Are mid, of the sort and talking just live we yields ready now? high Is be quarter, from

it's that for has well. The panel well. We're done development actually has of progressed really plan. So, not our original no, team quite yet. really ahead The slightly

the might higher not and this bit yield will busy about the than that, is we're And the the mid-XXs little X% ready moment. It that So a will but north offer South mining start get but up. setting be we're us. quarter quite looking it to the at at a improvement between improvement North It now. in

Your comes Jefferies. from next Daniel Roden question from

maybe review sense that? of of regulatory update approval? to, that on heads just after public how Mammoth I timing where and a time us the for approvals the much wanted and the is required the get better Underground you're, And up Just the with closure guess, on

is, thing fairly [ we process well working good it's the is Daniel, Des's have through defined. that ]

So lines. schedule of we a set gives program outer of done time And late date approval November. set that we've what limits delivery design our can program to is in Des's us

you've moment. stops gate working of those. obviously one called what public is work as out, at we're that's to There's through the it, as So consultation you

for they'll I me don't want at I date, saying actually have well for very any Des's stage of publicly manage to little comfortable is work think than schedule what ahead of this I'm a project. request and we've more that gone that we're our against the information with time planned to our in information them that

Yes.

November, quarter Okay. with it Perfect. guess, to comfortable that's production? expectation going the modest still, be I you And December are And very an [indiscernible]. I still you in with first of assume closed

milestone Yes, achieve. that is a will ahead actually of be to that's program. All we're and work factors, progressing little other right. It bit modest, really it's a going well civil our but

is stabilization highwall at going this well Our stage.

us our put Really actually really position will as all a [indiscernible]. second that soon shape. as So in And is available. be that works delivery [indiscernible] good

due is Anglo the I on looking, that the in in expectations [indiscernible]. are -- just want lots And about production in at the and sale M&A you're thinking ] with it's tenders balance position Yes. a the coming like how I fest coal wanted guess to weeks. to assets costs [indiscernible] the to guess, [indiscernible] you turnaround up better I sheet of moment. [ [indiscernible] M&A. on in refresh There's

growth and that has and projects can there's But There the and attractive are in been opportunities investors any presenting activity understand me market a market shareholders. the team of clearly manage lower assets. right. in bit moment of We is moment. at in and in at that multiples are organic in those the the good We've at our than and These for our we to risk of of. the quite front clearly the themselves projects got plan more much the more. far what's date, You're

on growth So that's business, as focus organic where our is a is opportunities. our

and the about Anglo this the at their rather stage. assets process, comment I'd process On not

Our growth. organic our on focus is

next comes from of from Your America. Chen Instructions] Bank Jiang question [Operator

with And lower much quarter congrats on a cost. strong

at happy is Are norm going earlier, for another The this with fleets to major be removed that. the equipment XX forward? and the pieces XX equipment mining Curragh plan, and future? going on March them I will the stage of the you driven think quarter guess in quarter. some expected it's now, people as follow-up the mentioned people, operating a Just of and September I to in is -- that removal bring a you fleets? primarily guess, trying by the at et temporary the and removal not just your improvement mine people and this not I'm back cetera? if you in cost, the

invested obviously you're period now was that of catch lots, There's in that additional host Principally, these correct. us that out time, let's and come two to of fleet over deficits, work a first the that the activities exactly underlying as productivity the drive lot we last up historic of the enable because you that is has cost behind increase work that described. was

the to out. is we a the out that we're that come we've to liberation forward want getting pretty to this have what match ratios plan additional and our plan long-term fleets identified as delivered, forward. fleets that being the stripping enabling will for our we profile fleet, to gains in our have we But of site stabilized going long-term as potential Secondly contracted dragline that designs, is the much example, of now and see that going our dragline that to our sustain productivity productivity started is improvements mine at and

the liberate over gain those in of But on. we a fleet. that we're looking that we for are few for immediacy, see take either be gains. that's moved And in advantage productivity more might We our a we free don't at up looking if that incremental another area by more in productivity removal deliver can blast is where can of is will maybe That projects and materialized, and continue we gain. or those volume I'll draglines cost gains particularly time hunt to tonne an are get cast projects that draglines,

a Sure, follow-up. sure. Maybe

strip ratio. a mentioned You

is ratio at moment sorry, the So strip the improved strip long-term ratio. -- Curragh achieving long-term or

Just for strip to ratio remind Curragh. us the long-term

change have or my you pit of a in as pit to time, depending on But at doing month-to-month, up long-term to answer over have qualify it There you're or And to go average short-term average down geometry will will yes, the it below. out mining ratio. in a you is that time, answer be the to because instantaneously to and with engineering engineer want what over your average downs and that. I are potential that question we caveat, our drive stripping ups. but saying

Sure, what's macro sure. then your realization and what happening And the maybe -- then about price question, last in talk and market.

Curragh, June of the volatile quarter hard to at looking by it's price close POV, coking realization, the premium XX% the the So low coal.

I'm PCI of PCI this wondering, June quarter? provide realization, in met to that SEBA market, that the drivers else? will your the the supply in discount the demand ] the discount July of the So coal Especially price or are coal is to averaged can mainly second-tier for Gerhard, because something months the quality XX% great. [ be started that shipments in what narrowed XX% And XX% from X you if is is for also, timing lag the or and of for observation

Yes.

Okay.

good So question.

in we environment for very of in So realization quarter high I us, improved price simply terms price came from because think a has that X.

$XXX $XX in lag. X quarter per So it's a I time X less. is and quarter ton, think

same the about dramatically the has recent well, the seen goes I X as in your say, sitting price benefit It's falling realization PCI global question goes in our we realization price increased we an environment, environment, always relativity months goes time, or with months, improved. down in up price as At into to our a here, that time So XX% premium just price and index. lag. a have weeks at

Russian the exports coal is the deals any Russian banks on targeted China -- right predominantly into discount and South with market on the were usually embargo what businesses that funding Chinese stepped Brazil. U.S. it, businesses PCI very and immediately coal now, Korea small So back, and in coal driving by India businesses. lease stopped Russian Russian

more a So it's little difficult. bit

I think it's temporary.

$XXX, time the being market the this that And a $XXX Russia for course, some coal, it sales which right to about now, of of type think type Russians for available stockpile. into coal in routes alternative of sold when will of I take it's lot find at tonne. Russia they, a

or So today's at $XXX per tonne. tonne discount big per to a $XXX

might I but way little a think we'll of circumvent bit find to year. take time, they So this a embargos these

that element us, I course coal and other from in the that think way, of by and positive see quarter for for forward. the and secondary third that's of indices, us. the sits is the look, is our on we we will and very benefit -- going A very lot positive

momentum the So anything a is see terms pretty seen subdued on back do high, was of of that demand before still in high price. do even levels. appetite coal the given main benchmark start time, very very seen We wont is September exports see out high in for very, driver of to coke for see monsoon metallurgical Australia. coal we positive, they predominantly index, $XXX long Well, August markets, why or steel price the come a levels. above record exporting above What bad price and price, have of India, down at China for main market, now it's really have at I course is a India's end for $XXX. that? building of the say, prices is before which the $XXX but good depressed met again not we a $XXX coming and reason we a that was Indonesia We generate But would the

buying. the the are downside $X price, bit There's now kicks on this that on the there to more pressure index down a and to arbitrage why is on that prices maybe And in lot before index. benchmark little CFR Chinese probably So then the reason of starts pressure more a then was $XX XXX.

sanction. Appreciate the especially Russia the Gerhard, color, on

those pressure PCI due the downward coal eventually Just price you China India? competition X-month the creates mainly ]. sanction from to Australia the POV And is because I narrow, And of to PCI realization you price Russia will the that go do of And for co? discount just Russia, mean then normally from to they that's coal? then XX% them see discount see [ lagging to as or wondering summarize, so do into Australia Curragh the coal. of

is followed And market closely PCI owns the Russia. X/X by is It's has PCI. biggest of China still seaborne competition. Yes. have XX-odd tonnes you embargo always is million into and Australia it's Korea. global course, coal, market. But the chain. that Australia out a taken yes, other traditional areas, pressure on a on South in of Russia it but the Russian the of seller mean And supply you I It's competition. about India putting exporter, if and the prices.

up normalize. find driving producers see again their -- the will prices. weeks, in we other market think coal I means. XX% place It like the remain that But few that's months. relativity today. these Russia will not XX%, not that the way for another Russia benchmark find the will means PCI also the And will relativities Remember, always then XX%, -- of into the will to is -- eventually, if So through from

Your next question Company. comes Benchmark Martin from from Nathan The

tonne down Just in wanted of if equation, to to may. the it around quarter-over-quarter specifically, the in on Curragh the second here pretty from looks per come quarter. we again Congrats back $XXX to $XX side came like quarter decline. first a remarkable the cost

in third targeting improvement commentary productivity the Curragh further at quarter. and Some regarding cost

half? your of may on to additional a fleet. be would of revolving even just some productivity number fleet? room get I removal is of lot around that for how the maybe great thoughts repeatable the improve tonne $XX that maybe planned quarter initiatives the think the that that be cost But to from room per that it in an in is second back Or of there

our described I've fleet, us to in always of plan. we this plan have that what and by be The -- we that as to you executing is is out. would is driven a step it, team and The this been our knew removal number dear really a and change diligently we're a plan, now in is cost to it's talking cost

quarter, So we've additional it another down out business, the of business. there's standing is you we've will cost the will There on cost a driven in we out then the element to more denominator. out a back gains, of gains of that as And it. number had always mentioned got another which some quarter, is this which it, fleet. productivity the with stay good and has of And take

this sustained in then plan support sustain, we we production enjoy quarter, which will and if good our we that's does that continued have what So the performance, on. numbers focusing can and we're

cost $XX ] opportunity? and question, can profile, out when our that ]. there of impost opportunities costs Yes, Stanmore is, in we royalty have driving upon that's part looking Second there which substantial is we're Curragh's where plan, step ton post the another Ben, more XXXX, change for business, of costs. royalty is been that's for order our busy [ drops comes to out example, where the that another And your off, costs and offset impost [

position So And cost there's in asset incremental major term, cost changes differences. longer in the our and step near of the there's term, complex. then

Douglas, your on color, then denominator. comment that to maybe Appreciate and

I those had run X.X And upon Curragh. during guys that little second sold inventories quarter that tonnes that you increase a you to as improve rate. in increased ship? half, quarter When you could the to bit mentioned the expect inventories look think million at your at the Curragh back we do

correct. you're Nathan, were through to did ability product Yes, get We handed port rain that stockpiles to we our with because the build occurred.

the that, the right being end this product a of we rain of then over on coal that result had the run stockpiled the course also what a then hindered end as Firstly, up we port of consumed will And had quarter. ROM month And it. at coal. at be

from comes Macquarie. from question Stein next Rob Your

in the risks, how underground for but you system say, geologically relative other. processes. several the different skewing on similarly, typical Mammoth talk really like do to, view, to Underground see potentially complexity has the relative complex noting risk mine not mining underground And approval it, operations, you're U.S. a outages can also way Queensland, method. one of managing in that then impact And looking permitting the the just or noted you where context? you a have would sector, Can on us the then had and and fractured which an view both a You just give same in

we're So pillar. cover. lends is bord to going level deploy to pillar the and The and mining of bord also at Mammoth geology method the and that itself

of ratios the So out project. going very be are our extraction favorable to

costs the economic the the launched to but we that The at project civil straight-off limit coal limit. And cut that fact of have stage, would out permitted an have other fully a of to mine [indiscernible] come take from all we will Ohio conveyor not at our that mine we're to in perspective, this move. overland an open

this forward would the the us to to method. the of life cold end back life, have been gives Relativities pull of and opportunity that [indiscernible] in mine an the it the U.S. through the So mining to underground mine

we've and high mine. highly to Our in And -- over best team I got teams of the a U.S. a the Appalachian, operations, Buchanan cover of mining bank complexities in experience that's of gaseous they're we've the and Buchanan very period believe got those there's is had with a is capability to long huge X very because manage it the longwall time. a done world successfully high manage a mine. one cover we've gaseous. so

project. here. the Gas method first bord low pretty and totally we're different a in at to So the is mining that project the phase pillar the in deploying

And proven has set and is we'll bear. in business knowledge the underground they out operations set look over into having the can will getting been as more low. record we've of time, got over that of business the And with this and a that have gas can is and and So integrating mine. that of it bring leverage time increase successfully together, of developed But past. track other we've all this there built the that at skill development opportunities time, skill we over knowledge to benefit strong the open-cut breakout that

it an coal. seeking mine permits through but underground mine others. for change. method of I we're fully through we takes applying it from so This What method mining, can process We is you through think touched a our permitted. all this effectively of that's a us with to is a we're Des. cut. different open on area And under what can want being mine mine mining change We approval an Des is permitting to relativities it

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today's Douglas section of call. now closing any the to for hand question-and-answer That concludes back remarks. I'll

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does conclude for our That today. participating. Thank you. you conference Thank for

disconnect. You may now