NACCO Industries (NC) 4 Mar 212020 Q4 Earnings call transcript

Ladies and Gentlemen, thank you for standing by. And welcome to the NACCO Industries Fourth Quarter and Full Year Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the call over to your speaker today, Ms. Christina Kmetko. Please go ahead.

welcome XXXX and Call. Quarter everyone, morning, to Fourth our Earnings Good am responsible Industries. I'm Kmetko, Investor I and NACCO for Christina Relations at Thank this you us for morning. joining

able and both Joining and Executive NACCO's website. earnings filed XXXX fourth listen Vice release are Yesterday, Copies Coal; Anyone XX Butler, quarter our are Controller. me Loveman, President our and on and published entire today afternoon who approximately an to to our available and Elizabeth this and call, XX-K. this Officer not our today's of and NACCO webcast of results we of available President is North and American website XX-K J.C. year Chief version our full later months. for on be archived will

questions, statements, the J.C.? disclaim me for updated conference with quarter let and CEO, full other SEC. to in I'll our differ these follow, statements. our Butler, not moment, statements at the those of XX-K first, matters discuss in risks forward-looking night all. earnings obligation J.C. that including forward-looking include, among described if over year are some opening our But turn to cause your release and that until could fourth call, and materially may We our today. the update made to to that others, we here to answers forward-looking our actual a have contain remarks. subject last filings next earnings results. remarks results issued and from in and number These which be statements risks These any in call quarterly President In Our expressed uncertainties a

and Christy, morning, you, good Thank everyone.

pleased are start employees that by in faced stronger. we make that recognizing XXXX to I put challenges be our to business who team for the believe That doing believer job stronger. the said, customers for As behind make our forward our an I'm I'm us changes have today And we and both definitely big a I looking us, the XXXX future. incredible to our and company.

While their pandemic a vast a do day has working portion majority since jobs to been been of team to every have coming work the employees of our started. remotely, our

our our and to As they remotely did. in keep be and needed they well simply these workers, more essential our their hours others changing team to output for managed seem appreciate customers not adapted come than commitment I to through enough those truly before. and also this to work supporting working while constantly be team thank working our ever situation And more has producing safe. more putting could with employees' environments. work. to cannot pleased I I entire work how great and to themselves

that but gas the we slowed Management dealt of but quite In cover recovered has COVID-related natural have XXXX, quite lows existing XXXX, Prices segment, addition both natural than Minerals a lower to to in due quarter moment, were expected. wells in In bit our XXXX more royalty well Ohio, a in new the pace disappointing. with development in will in managing pandemic, we -- more our the Christy disappointing say with changes affected but financial which the decline in news of in safe gas detail lot. our collapse expected of also and from some associated year income early natural a down worse production from made it's the this prices results. detail customers to full in this fourth our results

segment. in earnings Coal our We in Mining also experienced reduction a significant

our modestly lower customers. Texas, production Camino we requirements Our from in XXXX, and in generally of mine South Caddo Texas East ceased our Real saw in coal mine Creek levels

extremely in for long-term the prospects somehow strong to for more diversify gas demand but related was opportunities strategies of view somewhat perhaps challenges of -- pipeline our to Despite our which reduced even continue natural Some of it business so business coal was demand demand electricity, low reduced experienced have reduced grow our prices. COVID-related, and to of given the a XXXX, positive development team. and quality a we the

be is believe We continue of that the to generation electric part coal U.S. to going an in capacity important

grow capacity to of dispatchable. the helping push our legacy improved Texas into do very it in show rapidly actively faced XXXX. over this us operating We're business. to Mining That's we the aware from engaged customers that are initiatives to diversifying think have has we but North see recent profits in skills, that coal pleased to challenges our We're and Mining other so, be and outlook do and readily our developing the business quite can leverage the fully been outside pandemic but pace is we'll no the events development other forward on can several important We've the our reputation. generation deliberately contract development our growth like run Florida, was key capabilities or continue in diversify. including Coal like new I is broad There's strong. mining and how growing American that North I in mine of in we can is Americas operating to why core entire years, of businesses continue competitive, by a to range the our an of scope growth and provide. Nevada. mine range in services services for specialized that to North business expanded American expand We of Lithium or equipment provide minerals the slowed XXXX, question lines materials, are lithium our mining skills we XXXX, pieces and specialized for we leveraging Mining's of core American activities at Mining's business drag by include activities last we would

segment, new growing projects pipeline diversifying and U.S. bigger is better our Shifting mineral buying basins interest potential by American close premier in than in of and Minerals While Mining XXXX, didn't North in the many ever. projects new on and royalty we're Management their to

certainly balance interests, prices and our the a war in Basin gas interest mineral diversify predominantly in in long-term model any time the we've gas years While and a strong focused level, our XXXX, be the in also offers acquisitions our are will Ohio. with natural pipeline in to for came the program. don't interest about This program to and our the depressed great purchase America mention we royalty strategy lot in able segment, basins yields potential. affects new in legacy last and took basins, Mitigation in management systems mineral with This total and its These largely diversification voluntary of business to royalty opportunities making good very of we're in information to made place our want we've I were decision. at separation gas-rich recognition flow in cash expanding at near-term growth this about project. response business IT mineral costs think carefully a by they reduced do, costs. Between G&A about income, price risk on and of very acquisition an Coal market of reducing business Southern We model challenges progress, some XX% our level. North potential from Resources which a our the which total with of development quality preserve Southeast. to with a and launch coming and the value has protect Permian VSP projects. can quarter. see but COVID about employee success program I new of fee headquarters the And its align will platforms careful but and the We're in mining In in banks was for reduced that the work making Resources acquiring even million. those by in directly Texas over number a XXXX, projects, our and price faced buyers to headquarters of demonstrated available. company's acquire evaluate strong our oil new years. OPEC reputation headcount few in grow some new the finding and we oil-rich Mining a coal oil streams voluntary wetlands. of of create fourth $XX that we to and we wasn't created if where easy stick and investments and do that leveraging doing environmental This good in has several departures, real This the first Mitigation is skills

plan is operate employees a tools We'll these of and team, our leverage but very and new end what of our we important were our efficiency. processes of filling was All to overall, long-term part these more but positions, our of modify few employees, needed to do. are it up IT to many

easy not in I'm say to proud that, I'd spite employees, that with So an incredible our I'm of tremendous of in got a businesses We're about of the year was the again for goals of while just advance we challenges us, of the XXXX impressed made of that team our accomplishments and by progress become in skills, excited X future. all our confidence can us. on these that building I've capabilities reputation. course, core threw strong the And lot leverage XXXX. and into diversifying And are purposefully this businesses us what in progress XXXX of

to Christy to call our the for turn me quarter. let over cover Now the back results

the with consolidated quarter provide full and additional the year start I'll then segment and J.C. you, detail level. Thank results at

disappointing we As which full in year many in faced fourth XXXX, challenges culminated results. and J.C. mentioned, quarter

quarter, detail $X.X $X $X.XX individual XXXX There or the operating of in charges more losses the of fourth we net per I in cover were will which the million and in quarter, reported the of during loss taken the consolidated that million a to segments $X.X fourth quarter. For loss contributed a million share.

year, $X.XX income profit diluted full $XX.X compared operating $X.XX and consolidated that of we with operating million share income consolidated of $XX.X for XXXX million million year. of or net and XXXX $XX.X and full the per share, net of For $XX.X profit or reported the million per

million results Lignite Mississippi Coal ton charges, year's these Company delivered a operating delivered. lower were in at database voluntary the coal a charge $XXX,XXX XXXX former the to Mining operations. with costs profit the a with tons asset the declined the the revenues. segment's quarter. lower earnings not reserves. charge following: Minerals segment an certain The additional still $X.X with resulting contributing quarter, substantially includes from $X exclude operating operating primarily wind-down a write-down value, profit legacy noncash contributed compared current of customer, $X.X and quarter. despite results. Mining Camino the in on detail for charge $X.X let program associated to a loss fourth XXXX, realizable last compared of segment our the fourth the costs Now, Camino's per tons bit to loss an XXXXs XXXX had million operating Also XXXX expenses Mining information in If million noncash an for provide cost year XXXX separation during higher Management implemented in This and Lignite the of on unconsolidated coal in in fourth Mining more operating by loss Company's quarter increase of reduction Real the XXXX we in because of in segment The of fourth operating results million of impairment covered acquired in increase a reduced me from Mississippi for quarter at reduction Fuels, net operating operating inventory profit with fourth quarter, an In reported Coal fourth

wrote During on prospects costs reserves for leasehold development quarter, fourth legacy coal XXXX. off deteriorated the $X.X capitalized where in of royalties million we prepaid and

XXXX prices. the of are an quarter the over Minerals the quarter natural in results. results the significant affecting primarily gas Excluding in charge, new XXXX the Ohio gas fourth asset increase wells increased factors fourth the because Management natural operating quarter, segment impairment fourth and Those

expect customer current let me current segment, requirements. Now, Coal XXXX comparable on expectations to to deliveries the based In turn coal be outlook. Mining our of XXXX we to

results Lignite reduction as in offset substantially there decrease reduction reduced. by unconsolidated expense profit be due profit the is decrease have Mining Coal depreciation lower part is by last Liberty This primarily operations due Company expense. compared Company XXXX the voluntary of profit we area. because the in expected because reduction the the reclamation to from of in unconsolidated employee-related to cost at at expected anticipated activities decrease segment's Mississippi earnings increase North Lignite lower and year, Mine a resulting XXXX mining Mississippi primarily Mining XXXX the earnings customer earnings expected moderately significantly a expected an coal per scope an partially coal operations. The development at be operating in by of coal However, costs to of of is new mining operating a partially fee-based mine XXXX. operating mainly lower with in Mining this in increase anticipated delivered This in The contracts. offset operating been is mine earnings higher associated driven insurance with are Mining's to lower ton in its separation a existing the expenses, with from to American over to XXXX, increase program, expect In at final year

pursuing are if that, of earnings. number we a accretive future successful, initiatives However, to be growth would

the of Bureau Thacker of Management, like project In in Environmental received to Pass of Act a the addition, would I following that from year, this completion National of U.S. the Record Decision an Policy permitting XXXX highlight Land and the in more are expected XXXX. Pass represents in half the decisions milestone This the second and begin the production expected the project later in Process. decision development of Thacker permitting important January to of with

Excluding be to and early substantially commodity natural prices, down a the mineral we This of well. in $X.X prices reduction XXXX. XXXX taken in production as Ohio result expect XXXX, decrease in lower the expected lower fewer royalty the Ohio, primarily write-off income impact natural decline profit of in is wells a Minerals new operating the occurs assets that and existing in royalty million expected a related life Management gas from to from of

minute a plans investment Minerals our spend Let for about talking Management. me

As million J.C. million additional and in we $XX $XX are acquired year. assets targeting this XXXX, we approximately mineral mentioned, investments an of in

profit, in be result reserves operating potential an in income an of the expect a to of contribution to excluding we are by mining primarily in expense size basis, activities, substantially offset expected lower these America of will reduction pretax anticipated the closed business outlook investment's a Mitigation remains the to business certain a earnings American and initiatives impact pipeline still The the While Minerals and XXXX On the we percentage at year half benefit growth and timing, we for Mining in increase the expect pretax strong lower expectations of long-term continue These the continue view the on our second business we to on acquired. as from primarily investments segment expect we of the to to consolidated be Mining each requirements consolidated North to a half income. outlook interest mentioned, long income operations. accretive new current of pandemic of mineral in decrease of year, development dependent the income but XXXX, XXXX partially this customer taxes, COVID-XX from expected are in North income to than pretax stage results the earnings, Management because interest be and lower still favorable in of positively projects. first consolidated timing potential benefit development business significantly from depletion development Resources higher Consolidated due the in as XXXX, will be due certain increase the net Coal last and to while in of segment. view -- strong. net J.C. Overall,

by completed occurred the addition, substantially the that was quarter in voluntary fourth program In the year. the separation of end

expecting $X.X As million $X.X a estimated result annually we beginning in between net this million and program, are of benefits XXXX. of

at end consolidated the of consolidated from $XX.X the million $XX.X debt We me compared some and and third the debt $XX.X ended briefly million flow $XX.X of of away Moving quarter. provide year of cash million with million cash let with cash of results, information.

working before factors. the of trends at flow and the occurring financing energy as customer important the that revolving capital as in particularly changes, expenditures, as $XXX in the in and structure we to capital royalty of year, a changes as demand, income Coal availability initiatives believe changes million and cash $XXX in We segment addition, facility. taxes Management under our had with That the of changing end varies in In and liquidity segment, interest investments our as million changes as said, our diversify well mineral other strategic given Minerals Mining markets. credit capital grow earnings well are activities and conservative well

full working NACCO's and expenditures capital, For activities royalty the of cash related mineral cash flow XXXX year, consolidated to before acquisition cash financing the significant of and was of $XX.X of use million a a interest. capital use included

We are back cash but the XXXX. level below flow a generated anticipating positive this before year, we still cash in at financing

questions. open me for the up your let call Now,

Kuhn [Operator Andrew Instructions] first Your question Compounding. from Focused comes from

is, Mississippi Since XXXX, between were the high enter a starting how do new you're mine Lignite entered first in expecting again another not XXXX. expect and in Mining end XXXX, new will at you lower CapEx My MLMC XXXX? be expenditures high because annual at you area, area and question that to of in much capital to be Company contract, mine now

mine is the to out obviously I forecast been know. as trick will I mean, with any that the spending question on going mean that's to provide don't substantial, you that you the very specific numbers, has that tell how we area been but very, develop much, far the right? I

some you need Red the capital truck, need to mean, to If you significant if some equipment, as buy anything be a low to amount into low expensive. takes drops sort replace Hills don't see can And time Red to capital time, equipment a once We fair I've a to area back haul prior at and much have this you projects, from of at you out look other of otherwise, that get expenditures we pretty new piece add before, I they're out mentioned to think capital. that And spending going But new years we've But you mine where new things. going it's level. of I with maintenance pretty to capital called to Hills. regards if or else. a forward see

Got it.

you believe tell that your market could Permian question is you maybe think you I paid in the if why reflected for in current U.S. royalty for price Next seeing? you is buyer was said what market. think you're is, you that, maybe and a you do wondering friendly market investment? Basin interest the mineral And buyer-friendly us the

bite-sized we Well, the environment X I war, compared oil, looking a the are But we at the acquisitions demand answer years than people we're ago question than that hundreds for. that. popular is market that damper pretty gas of we're bigger for gas of on down if of last that's pandemic, that are We're or a I in it good is strategy the which price Journal business being good a primarily, ago, you millions Street to year oil We're with out which money point where both I'll think States job. competing -- into really you we entering and lower. a that first. are the into plus current slowed does So for market. X mean, things, well, than COVID was development a good does say Wall bit of Those combination the The oil, this. investors affected are think, for of -- smaller a right? press, OPEC But prices more a to covering got job with Journal, -- demand that things ago. gas entering United crushed oil dollars. year the looking year Yes, and amount development and for and of kind put and crushed read now now that individual The quite are right pretty The not poured the a a

in we're pretty a at think, -- team in a is, way we a very we've I surgical thinking coming but So who very strategic got really acquire. small, about what team this small sophisticated

we that of attractive able they're helping coming out that that think, of or very I in looking gas some us to people view. a be that a nature die for long-term our is in need things debt and The to is us of acquire a think investments things helpful? service approach. some other They we're to do kind the are attractive have of -- oil needs or buy buy make immediate know, lot production other those. And Is to And company, to as investors. might take as I you not thing,

why explanation, does, is, great it a what my bit that's actually. could successes like think little North about it you business jump Resources if I a And that whether has had Mitigation material results? back America, overall last No, will think then talk of what then far. And And Yes. question the be you think And NACCO's so to could it grow? in ever you queue. I'll

Okay.

wetland Mitigation and is So develop of created initially, we that America North banks. to wetland business a stream mitigation and Resources stream

think they you stream center to anybody or expanding that all Army a else to about wetland a of acquire Corp apartment managed disturb sides in stream -- But this of them else. complex do most acquire If most in of by shopping or wetland, somewhere an that's road Engineers work, states, might, construction to a credits have building the every building This in is the mitigation permit is state. get ledger. to for way, they not a any both or order that or or true on states, or a road anything and need

go how but really to can capabilities, or in thinking needed customer that -- it's that with market customers serve needed it's history, we've we credits, got work in done have for decades, work right over what's our needs. opportunity mine the the that doing for there. technical our about of this we've come a a was of so market our born to when mitigation good wetland strong own a out really of And sensitive very And really experience quality the sites. somebody we or best environmental very, quality business seeing being an to our stream buy And provide and at

response, positive So market. a years terrific The received have I people we been participation themselves feedback few from think, in of Corp customers, this we established the from ago. kind Engineers very about from We've with. our potential of business universally this Army has relationships

Resources has best got of land reasons that they've working to have piece models. the wetlands mitigation the this we with what know and that that the with will protect that to or good land property in we does these that the and business are streams in, other to go no Engineers, enhance and be it. -- of Army with a the We so put buy So Army bad then, is, wetlands how Corp, has can a Mitigation sold Corps disturb of create conservation one ever permanently way in is, can for we do a prior easement credits One -- do streams X We we work is some that shape then that some on our those. to we acquire piece been damaged. And people.

has is banks develop the service. as Now -- bank property actually of they're primarily great all we the -- them their southeast merchant help seeing a the transactions and model property we're operating a and to Mississippi credits But of we're we We're or States. this people with came in a primary business develop are also landowners' of when most we -- landowner a selling We can and and private so mitigation want now and piece wetland do project, do somebody right that. stream we development. If for in work the banks on that and of our part are it mitigation they operations own have, where staffing Tennessee, will to them. a south, there's a out own several sell in whereby will primarily model United have you're in private their we mining kind there's the of a And those. that do bank the approach

success. that is, this. a these of optimistic investing Timing I growth. really of business. question. we part we're And about great a part credits, And meaningful of the started course, We one Can it's really become think, we part have seeing become balancing are selling a mean it I'm every of our can in, and businesses the of meaningful business?

as for grow you and but we You so that fast fast risks -- that want get to to ourselves as don't for into grow we really we can, you create don't problems you understand. want create problems

we're cautiously. now, grow I turn would into answer at Does in but North hopeful Minerals small own this aggressively, unallocated will just So I'm Mining. right your going with American Management the it's future that our -- we some our that segment. But to segment, and business business did point like its question? it's and inside

Trey question next from Your DIY Instructions] [Operator Investing. Henninger comes from

to you describe my point I word, one view ask it would from I of tone your with to had question yesterday, going like word I I would it the of first sentiment around an earnings with if that the release put When outsider's out overall into XXXX. bleak. describe read the

is you future I missing first consider the of the is, Or so or am there? question it wrong, reading that do And maybe, bleak? I was what NACCO

we're our as can There's and I can outlook, is -- talk decent contributing a opportunities -- report doing already businesses. you look not the going you right, bleak, release we mean, I But And And would these actually talking the that business transition in what at you to will predict what XXXX X few outlook we continue of a made one see when in great to be money at -- you our from lot a comes an them when bit We've earnings weeks, at it, to in if in. you what in of look business, when these kind about really I And hurdle. which to Mining new there North over and to building our look our of see lot grow. our XXXX. are that kind -- annual you covering grown a what has face each development the down -- cost at of no in are a the the significantly and not in looks you business, are couple a it, come years. That little what see made is last lot say on the -- opportunities. We all things transform going is XXXX. of really overhead Well, if in of lot to American why out really further. we're this just in money businesses of Sure. got

to now accretive we're going of are So is business that. that benefits And none top outlook largely anything we not to on results. directly respect with of be development of the to business in add --

that Mining, Management extent our or upside all buying signing contribute projects expanding Mitigation the successful can Minerals So for will business. in of more the new to American side reserves diversified growing in be we Resources North

I'm a the it's coal to I got RTOs bad in managing about remaining as around situation that very are the I think they're regional ERCOT, of the the in that's enough we're of across all There's believe you carefully reserves. plays how into need future. it's in a on thing just to these And their And think Texas country. not look all capacity that capacity that not -- country, for just too early to still a how markets. they not these tell number that manage hopeful like But sheer grid that reading ERCOT, out. exactly about to people see the going basis,

describe incredibly optimistic. as bleak. you I'm So it

I the view that you our long-term a prospects what were take are Is for? touch I And helpful? think of business. long-term that we very company great. of this know looking You Did on really

that's No, Yes. helpful.

of spend you time course, inside of -- kind a business, thinking led we and I of while about some you're of myself, it, question Andrew next lot don't? well, insights that I business. the about guidance. both you And so of we into we're think to this is outside -- really really it think my have so And

the But give long-term So quarterly a view. you X just guidance forward regular say next the you to take that's at annual you XX pretty months. really looking and next the months, time, same

when of Or purpose you that do the don't that Who what's plan helping providing -- you around audience? it you really do mines from look do it? now, I next XX manager XX thinking what time term, it's but the forecast this things. in And do And mines going are of as at do my years? have shareholder, we're you look want we're you see How outside guidance. say to as plans? How sorts many from -- What a guidance? want see, want so limestone I years more the to Is distraction? short-term of see needs at months. I mining? to your same be Because business for a now, potentially you what minerals to I How is to many have? you need it, an how the you lithium when to want Those long What is target at long-term is X I many do years do want X the do? you -- only

current or hope why coming on And understand, it? the the I Would of do -- maybe Or so just is do kind I I'm that you you you trying from. have the not question think to guess, background to provides consider changing where guidance? understand strategy

question. a good That's Yes.

short-term I like are the of there So few us guidance, that very surprises. think

whether or what think next in. I the depending the the So the the coming on year, of or year quarter short-term guidance, quarter we're it's balance

what in if I think really was the predict Obviously, guidance a going going is been could on. you seeing ago, to January year based mean go February, there with on and that's what be nobody to happen think we what This this people and pandemic help we I I in by know. right, surprised the we're short-term is not understand short-term are seeing it. what

can you You can't But predict what about the predict that. you know Sure. business?

I tie financial to guidance is, So do -- that We, I'm for people going answer to I some near-term the the think purpose so that answer. time aren't of surprised. believe our this prior

about You bleak. talked

depreciation But going operating in that I happen cash down. And cash things Coal an with talking significantly saying we're saying One where the We profit this that's an come those time, I some going we're headed good guy, measurement, is profit, if level There's be we, there is segment that's to you be look of this is capital a flow going be end. we're things. for have to been past while in flows, that affected EBITDA some -- profit coming. can no wanted a bubble operating question expenditure operating to to get it's Mining at also think by you past to about going we've increased the the understand of where to people MLMC. of been for

are thoughts So short-term the those outlook. my I that's really -- mean about

of -- X want As to have term, and states. these think to in be in of I we too want mineral entirely mining lithium to I going mines that me disingenuous targeted. think specific are for just that mines outlook put kind long specifically be us would we're our or a we X Because and it to that's

of business approaching others. perform like it it's to run one or I by opportunistically, can want project, -- we're really perceived And lithium a in how develop. perspectives these see career we think a has mine we are That are our prefer way this think of this. majority for go that been don't a those That in service And where to do it's new project. my changed a businesses turns time potential how for and not we how to on how And sales has takes approach You to customers. years, see lead, We somebody number typically -- Developing lead development. decades. transactional. the about know my in growing second changed going got into has need a you

to a these takes develop it while So relationships.

in or want So or say, think just specific. I this that's of lithium be have to this mines these -- many number states, states too specific gee, I I to

would it think I be unfair.

I best that's instead then well, Mexico think got unfair stayed said we've Texas, I but to don't of Mexico. seeing it if they're in would it. we're New to we to in teams way think Texas, be but up Because, X have in mines opportunities going with we their our Texas do New setting gee, development goals. go the chase

Now about will I can increasingly these that be you businesses. tell talking we

of some annual in earnings think some of release, saw probably or XX-K. that in it report you the the the in -- probably I

I going in You're you're which we're that I into a it more quarterly view annual And question resources to we're mining ourselves think these a going collection businesses. as we discussed growing lot Andrew lot -- to that's ourselves, at a is do of see call, the see the that that's asked the last report. other what by about about us turning in more ourselves as businesses natural industry. of viewing and talking affiliated And what Is helpful? a how

try and as projecting not I little think certain I the we can investors trying Yes, talk a what just of helpful. business be of to of while that's and forecast. current vision. you we're quite a the okay, where outside I'm certain I is, kind to don't things. numbers, vague, between I and very forecast hit necessarily saying, more was of think me future is pigeonhole but what I kind helpful. want clarity might yourself. But be seeking your going That's And I just to think is not understanding a want just differentiate to think And helpful helpful other is and to

the about, of American online? we becomes size mine if of Are of a Falkirk understand only of Freedom the you Thacker impact it not, the might idea that's Mining, size to to of of online, Can any mine? idea Mine? but Pass, talking Or that way any close the the out. terms the profit give you one of it's this Is in -- question can about to perhaps give impact if is perhaps a North a operating this business? specifically. So Sabine magnitude had I you piece it and I

kind very, When Falkirk. of kind be mine of a are impact going mine, or financials. Those and be large its and the a going really in it's terms Coteau fully operating is it's -- to terms terms to of midsized on midsized modest of not it's modest our to very It mines. full, going mine. to of running a up operation similar in and in It's be

Okay. That helps.

ahead. -- go question last So

ahead. No, go

you wouldn't only management just, Because is or talk coal question have piece, you if that was in feel which Company the side And operating and But the had any interest take the just a prospect Company. Mississippi coal color on on unconsolidated selling basically queue, on I around new how Mining there it's of before in back I mine. Mining the Mississippi you mines? mean, I'll Yes. free. Lignite Lignite give more jumping last consolidated the about

only And operating so lines? to in I unconsolidated quicker there's interest coal wonder any if moving

mine, to contractual actually respect operating one Red a just say I nearly makes what with structure to mean, unlikely. the I that that the of impossible. the coal that it selling relationships is nature structure pretty do are our ability all is consolidated very It Hills, which complex is complex would a would of make in very

no There question at time. this is further

You may continue.

very for Okay. comments? Okay. closing any much your J.C., Thank did have you you interest.

No. Thank you.

you. Thank

feel release. please free great questions, follow-up Have reach at any earnings is have day. top of the guys you If the to a phone out. My number

concludes call. today's and this gentlemen, conference Ladies

ID XXth for conference joining. (XXX) you by encore (XXX) you with available until and thank up XXX-XXXX For replay, be it XXX-XXXX, dialing XXXXXXX. will can of Again, it March, access or

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