ARCH - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Arch Resources, Inc.

First Quarter 2024 Earnings Call Conference Call. [Operator Instructions] This call is being recorded on Thursday, April 25, 2024. I would like to turn the conference over to Deck Slone, Senior Vice President of Strategy. Please go ahead.

Deck Slone

St. from morning Good for today. thanks joining and us Louis,

be Before statements statements made let Securities me Litigation performance relating the according that certain remind you may financial during and our Reform future we forward-looking Federate expected statements to begin, to business considered this Act. call, including

also formal Matt on CEO; John and call the Lang, Paul? this Paul CFO. do may and expressed address the with to press at undertake Paul. to measures whether a the that you different that our are new detail otherwise, financial participating more by than described that to Giljum, our non-GAAP questions. be Investors we'll by those our quarterly that like in result degrees, find our filed I'd different our may I'll call copy section cause annual a After we a reports COO; update statements, forward-looking information, SEC, our results Forward-looking morning's now turn happy statements, to statements. release, forward-looking Drexler, materially remind as end We matters plan events uncertainty. future their or will required we except have the our the archrsc.com. in which take in of nature, not are of to reconciliation These you which actual remarks, posted can Also at our we the in morning that, this future uncertainties, of of website be of discuss to With over our to be as law. be

Paul Lang

quarter, call plan creation appreciate glad on could you headwinds. join with proven in despite and first pleased and that Arch Dick, Arch, the good for I'm interest continued to Thanks, long-term forward your our and growth morning. report drive some the morning, consistent to We during us and everyone. this we're value

the award the cash most $XX an achieved our million capped ended, million margin the cash $XX perhaps generated the $XX with dividend a quarterly an market of share million instruments discretionary payable call associated $X.XX During X%, share underscoring shares a and XXX,XXX our adjusted ton per repurchase including environments, extended of XX,XXX nearly team of June. includes or unwinding in in and shares outstanding additional the segment, which a of state and And importantly, $XXX sustainability top of state's in West Virginia durability safety count Leer EBITDA just cash-generating award. South of quarter with state's the the metallurgical range Leer the per delivered named industry cash wide by capabilities and and reduced South, leadership of of the honored our environmental We co-recipient our core Leer flow. and across top

we've As capital in noted the program is value times centerpiece return our the of our past, many propositions.

deployed February just per $XX billion Breaking a $X.X full or that of XXXX. than relaunch May in program We in paid million figure current in for level share roughly frame, count down further, this have over now more period XX% to that XXXX, its a our capitalization of years. equivalent X market since in reducing or share over the X.X versus nearly while we shares $XXX XX% million time our dividends by

to short, our through this, this this today. from Along to XX.X count we've the progress center intense with taken reduction reducing million and the streamline of company our shares of capital even our balance including over drive indicated, of significant May progress our [indiscernible] the call. and X years, on years, during through is decision facilitate buying shares our We've million XX.X to a sustainable pullbacks. share channel in in opportunistic Arch to X systematic positioned strong ahead cap convertible shares believe stage and we the market a the prospects cash the last As recent XXXX investment greater set our efforts of repurchase In component, to believe share quarters we sales build is structure has made last the retirement program. substantial liquidation the share long-term the our front elimination already over in ongoing the last compelling the for focus. And and receiving debt, is

appear declining at metric assessing coking per year-to-date, rebound. an the $XXX same the weeks It's average and December. the base found the a throughout quarter, metric to ton signs is to After versus certain of class the relative that dynamics. present, [ last beginning market prices softness a At Coast just seaborne the appear coking are high-vol East ] over U.S. steadily per on noting $XXX be A ton market last basis, will fundamentals coal worth first despite generally to that supportive. X demand Turning of coal have show

coal positioned the books. rental cost It's value exports driving trend China, periods coking manage world, to of during point a modestly with recovered exceptionally as year-to-date, has those growth, market competitor to significantly the quartile year, Arch a first and up side albeit of The well X coal Counterbalancing of extended is for through our weakness to somewhat, supply imports global to seaborne indicators. instance, important a rebounding output excluding while shareholders. higher. for high-quality For world-class below hot level out coking continue China's still first respective was with the months X% U.S. Australian while positive

differentiating and global that also to and flows commodity underinvestment a our the support In being believe fact, is continue that.But producer with fact cycles the view in coal can a supply-demand balance periods constructive coking this in markets. that the that low-cost be thesis market ebb operators business, of to long-standing does and constraints weakness ESG-related continue will our reinforcing healthy in stronger long-term we by a

when or their if spending. [indiscernible] such worth It's already may global coal in recovery declines domestic market rebounded in economic begin at somewhat a production major conditions build fact, to macro stockpiles spur mild in more to dynamics utility turn small quarter-over-quarter and intensive coal to with now markets decline Henry and $X metric several a also market thermal the with environment. a remain the on operation. basis. [indiscernible] the per could million thermal improvement recent exports this start coal These or fundamentals price noting standing ceased in positive [indiscernible] roughly challenged with below ton.We strengthen months Newcastle the for of $XXX XX% price On on price at In API-X metric taken historically the at those $XXX has In natural to to levels X steel thermal ].Turning estimated sections increase XXXX. ton winter. high coal according after U.S. an U.S. at idled coking mines weeks, that up trading in be gas seaborne thermal ecology compared [ XXXX XX% Hub markets. first entirely high-cost quick economies a factors recent per note, production U.S. were

at value-generating strategic terminal for we're ownership At driving our operating our by Looking ahead, ongoing continuing on and DTA shareholders. same optionality returns improvement support in interest in to on platform we're time, sharply our focused the across capitalize the our to production of turn, capital afforded the as us continuous should Port closure constrained of on coal and quarter of of mine, we capital QX somewhat tragedy collapse not the our navigate the any returns. shipments the it's Key Port in second the the impact in Baltimore.While through have Francis Scott likely Bridge dampened

and substantial even rather Port with turn to for If John? the market to expect At QX. effective believe respects, in timing the impacts the markets position we're the for cash high-quality capitalize our lost. only. than our afford I'll what flow to However, be to recover. many of this, cash merely closing, when related equally built of and anticipated positioned low-cost call over on in more delayed softer we generate products operational to John the Arch with flow is our performance despite that, as on In such discussion situation our the we reopens same we as amounts further the time, us ability Baltimore robust periods say environments. With shareholders return Drexler well cash

John Drexler

morning, good everyone. and Paul, Thanks,

As QX, Paul significant a cash delivering disruptions through flow. weakening successfully still during Arch discretionary the chain to while and market logistics environment navigated the team just substantial discussed, amounts of

delivered we estimated for XX,XXX segment but core core metallurgical under. from currently [indiscernible] transitioning coordinate in an during good this mine our as production impact to geologic variability, levels typical were mining. expect both around to relocation less to ratable our quarter, annual once and again guidance moves of first performance that geologic metallurgical would momentum production be our we X the an start-up from first segment we $XXX million the of utilities a generated portfolio lost the quartile than Leer as year.In favorable with longwall days conditions, QX in and less stemming [indiscernible] While than local ratable issues longwall longwall [indiscernible], category, just Leer nearly efforts the Included characterize into despite adjusted cost and tons is a at EBITDA the perspective, of and were I latter due through increasingly at progress

by average coking inflated we above close front While lost that Even which which when with $XX steps estimate our payment, our range, segment's producers. million end income, was modestly the resulted receipt recorded U.S. other impact, top year on cash to coal $X metallurgical but $X.X our per the cost guidance per still the that in the segment the QX to we other in tier high was ton, tonnage compared costs of full took at as ton. came of that

result, rapidly midpoint there. Powder geology. coking spite our at demand the year cash per also with $XX.XX that. operate guidance increasingly short, we into indicated, million coal be consistent sales ton. that several comfortable to the as continues environment. of lost we are as and tons cash a but solid EBITDA lines remain ended volume lower Basin contracts XX that as the year netbacks to as generated that In cost than operated In And pace are to under transitioning XXXX domestic a efficiently full tonne per shipments ship XX much could million even the with mine and efficiently, our The stripping continue thermal assets it the and favorable of As West due year Thermal fact legacy dampened in River the segment, improving currently adjusted Elk anticipating level

any operated the customer the in at year's the requested for more PRB note, expect back completed past, stripping PRB a we counterbalancing the commitments the the in in to in out-year excess result, QX, additional On a to red the as by negotiating deferrals. West As preserve and capitalize on Elk. positive in in half solid performance value exchange

continue annual Looking X on to our general South view in by reinforce we our to production ahead, is development the doing in achieve to coking have at the currently for of the good million figure encounter coal mine serving in we expect is District to productive geologic operations. much the for Leer pace we X a our is conditions progression currently well be encouraged are XXXX. operating we ton and track targeted Moreover, work confidence enhanced there. the

when more our will to District discussed, prove work seam minutes mining overall we are shipping channel fortunate spend the favored as I drilling in when time beneficial South.Now experience moving Baltimore and there in with few development operations and reserves, direction via would discussing well the which previously X, the collapse. many in longwall fourth we district higher-cost in the favorable suggests at opposite data again, bridge let's be that a in a are a of As closing our quarter. materially say Leer following the advantageous to begin tragic early migration as coal other the the less at wrestling cutability

Bay our we discussed, Leer in of via the we our typically Leer coal the have or majority South roughly Baltimore. ship terminal half export Curtis volumes and coking As of overall volumes

that maximizing doing a using we I'm on to having our that are job the volumes direct and on team shipments channel the routes. focused remains front terrific closed, is report and elsewhere, alternative to With pleased

Of front, course, we in associates strategic our has in our great has been Newport support that [indiscernible]. News been received pivotal investment the from to success have on terminal as Dominion our

in the at sales around us run X.X the While QX, achieve That to would for we a X in at million first believe ton the around we tons will put continue the tons little exact the Corps reopening backlog. according over X.X projected year to constraints work U.S. of be range rate level X end million capacity on to X.X channel quarterly of the million able volumes the timing in of to in Army we of that currently is depending a quarters, May, million Engineers. volume DTA, suggesting

do to view guidance and available of impact at production logistics our as any million the Given to the port alternative levels our to stockpile and continue due to mines not capacity, our million we X.X prior achievable. volume X outage expect tons

spend to exemplary Before let's in the Matt, a sustainability passing the arena. team's time achievements the minutes few discussing

believe As you know, safety is business. and stewardship that we essential culture for firmly a success in environmental long-term of our

total During of better which Arch's X.XX XXX,XXX time lost was QX, average. rate more the aggregate incidents than employee Xx operations hours subsidiary achieved descent an industry than for worked,

Highlighting across quality recorded team's environmental West Virginia of Leer operations. the of company the South milestone co-recipient of Governor's On SPECTRA the highest work, recently lines, of subsidiary excellent environmental named and honor. Leer safety state the exceedances X water well under violations Award, the our again as Safety the X as all state's the front,

Matt In line claimed addition, the Laurel with and Excellence. will some environmental Leer the South Award In call Leer honored for state's to areas that, results. the and senior their entire team, additional in Greenlands and achievement essential to for the Leer for the additional of on for over the Mount performance. were was I excellence these commitment color workforce environmental Mount each with Award to highest On preparation honor our the honored Laurel want of and turn Guardian South Board commend deep financial Safety I South excellence. Mountaineer With now plants Leer, arena, were and Matt? Leer environmental the behalf management the

Matthew Giljum

everyone. Thanks, John. morning, Good

working with first million Let's million. quarter $XXX of a in and $XX.X of begin capital which discussion included QX, liquidity. benefit flow cash flows totaled cash the Operating

thermal in build in the million. the and million resulted drawdown with to of we quarter, meaningful a Capital period, capital While had flow shipment prices cash the anticipated spending combined in $XX $XX the lower discretionary of working over decline metallurgical was course receivable. accounts volumes totaled

Turning cash sheet. XX/XX flat $XXX essentially with We levels. balance and investments to March of with million, the short-term ended

debt term call, we end only closed largely cases, amortization discussed QX the quarter million a resulting than quarter's proceeds As loan we $XXX other million, last higher those in on make new levels. in in debt to of loan retire modestly used $XX old is and year-end and of which

position cash XX, million net March liquidity million, was target both Our above our and levels. $XXX $XXX at was of which remain

Turning program. now to the return capital

on count our of We quarter. to without that The retired cap over of approach, a share systematically through quarter. and execute call unwind, unwind dividend. the the paying cap equivalent continue the repurchases, made call XXX,XXX reducing Starting with count shares the share of repurchase to which also two-pronged XX% while the share up in $XX meaningful total was million combination we a cash outlay nearly a during share any

shares be bringing approved as remains at XX. Arch's XX,XXX average will the XXXX. in $X.XX our of XXXX. debt June the now total combined since of nearly diluted The $XX share in of The retired a the an stockholders relaunched X.X over the share share value XX proposition. of dividend QX on to shares dividend The per has to million since beginning have convertible is count of of clear reduction total, a fully by paid of record point dividend That board X.X per significant company share repurchased component priority. May the dividends return the and quarterly since today, high shares count in we reduced recent in has $XXX its million also Annual We price with program. our open market

managing some quarter. Next, redirecting has being latter X I QX with you additional Bay the Paul's standpoint, comment net activity and export an a shipments, overview weighted focused to of alternatives detail our would our been wanted returns. to to on much closed. date export Harbor of Baltimore excellent other April the around while just on from provided Curtis remains timing the heavily of shipments metallurgical away provide capital half DTA From as towards expect, result John and approach

volumes seeing further the before Additionally, a we QX summer. we thermal modest seasonal in get improvement expect into step-down as in

result, working to we and strictly QX. we we the timing flows at a the as cash operating issue, share a increase and capital this flows discretionary in significant expect currently will flows cash As view normalize and significant quarter. as be will get returns we that We to anticipate a in QX cash and capital levels offer repurchases

be compared in to maintaining the As are take With turn expect lower you. and we volumes and Operator, as than year levels, ready both to year we in call that, over second full of a guidance. stronger the we final quarter half operating financial segments I performance second while point, to guidance are the expect to back our ratable questions. will

Operator

[Operator first Securities. comes Instructions] from Riley question Lucas B. Pipes from Your

Lucas Pipes

question. to I a start want strategic with

back over Elk, number So Bay the recent issues, the then tragedy when a Curtis of obviously, kind I the of disruption, in Leer there think unexpected geology, last couple were kind years, of geology, West Baltimore. South of and

But you diversification would of the reversion of been expect on from other has kind core the case geographic mines, how to of large to do more be And you I these adding about And mean strategy Your productive is and focused kind made? assets. there the on recent focused think portfolio? a years. events or

Paul Lang

interesting an Lucas. question, think I it's

over I've told think people times the many I years.

I operating ], easiest. us, we XX think not the back for we [ was it found lines when XXXX, were in

think think I very large, spot, it sweet South, does I continue low-cost I drilling well do very others that set particularly where have is degree to we Leer think our come think, we of be But exposure.But improve very we the up a with And by in as operating certain really efficient, found there's large, will I future. well. mines. in it and

more lower our see than look some quo next I maintenance is importantly, XX much the [indiscernible]. of if what be going our CapEx that think years, you'll at you CapEx, our operating the is that status peers are to

about that's For spread you're issue to a the us, very bit the more little talking out. of of kind offset being

others that, that? with if of don't any know So on the thoughts any I have

John Drexler

stack. So the with Lucas,

done And so And Leer we addition with degree. just were that. address meaningful we've South, endeavoring the of to obviously, think a I to that

not And I to diversification which course, underscores really DTA described, to degree. investment think but you investment paying today. DTA a dividends Of the going expand be made at meaningful is our ago perfect actually is it's several years what just to we

aware do are that to routes that are have consequential. sources we multiple we we be of and certainly sure that nimble, we So make production that flexibility that need have can alternate

we We again, have horses out X the Bay one an to as paying coal have in meaningful now move of think expect coke rather significantly good right dividends think strides. fact is now taken big and the about we Curtis QX right that's volume example.So much just when comments. now how than in despite segment that And I market. we But the

Lucas Pipes

On the looked market a quite PRB given out pre-stripped you thermal like side, in the the it conditions. bit

I QX, the pretty assume to for reversal. would mean you this be what there'd cost? sharp a So expect on

end And and for to So also I volume think used working the expect through that. of comments of appreciate that capital that QX, on later will would if year. mentioned the could the the there you then, Matt, QX, at kind side reverse your on the you in cost you'd implications in be walk I side,

is on you lean repurchases. very of been the this period cash in, past tactical maybe coal temporarily pursuit restricted, where now be bullish right to have outlook though even continue the long-term prices. with very met in given a You flow the share Could

John Drexler

coal. the side. play meaningfully I'll than that prepared thermal we've John is a less electric winter start out beginning Drexler. was gas out generation discussion the at remarks, It's of level as for The described was with We've seen displacing start PRB, prices to that Obviously, we for on stripping seen our the here there what the year. prepared ideal. are in team above the

right past. lot the a that to headcount, there.What of quarters. job. PRB feeling Just down in been a -- They've managing does now overnight. over really before. done not adjusting what typically is things has and we've the of time, out proud all It something at Unfortunately, do. several just in eliminating fabulous happens takes But schedules, pressures, of they're They know the equipment, of this successfully everybody the done process doing it's laying it and that been the we've in through I'm team

some As we discussed, We stripped than inventory. pit was we have what created higher shipped.

benefit, But our from a moving look the second forward, QX future as lot that there's from essentially growth season. in perspective, we spring a you we'll that operation As in we've seen we'll the inventory seasonality of realign XX% quarter benefit that historically typically of at pressure shorter get the and quarters. pit in in because anyway

year the So one negative another back, flip strip. all the done costs, do from past, remainder in those cash We'll over XXXX. we control successfully to and you look the measures those and in be working the more be to work expect challenging the of minimizing benefit we'll when QX we've to than past. here if as And actively of that QX in we the may now team periods that get Lucas, you impact back implementing look, as shipping to sort certainly see right of but in positive through well, is the we can

You the expansion. margin can see

some Now are obviously, there side, low. stockpiles out prices very thermal are gas the high, headwinds there's on

than more more shipped. that get is which had how in we've to move strip see we itself. have than where that be we're the could when But So we headwind that in QX, that manifests pretty opposed powerful as we'll we to stripping point QX, do shipping we'll to

happens half, So the second demand see what with but thermal optimistic and have feeling certainly about we'll are also overall. watch to

Matthew Giljum

all be quarter. the clearly and we'll build to will Harder the uncertainties than predict nice sheet just volumes be our shipments diverted to program, opportunistic. up. this of on to think the And share way balance that around quarter, when quarter fundamentals latter do that to cash to a in given market expect you'll relates we most clearly in in to end be this if to of build.As be so. was that probably regarding question the the last given those share bit the cycle think But But the long-term quarter, where we built repurchase price we export will share the I the this your very say, clearly, see working when a capital that. the Xx moves quarter necessarily how safe meant that On see us really it's opportunistic shift it moved up the a repurchases, against half didn't

more a probably hold particularly to good we'd be think likely cash to buybacks. absent I opportunity continue So for that

Operator

comes Your Martin next from question the line from Nathan Company. of Benchmark

Nathan Martin

most just Just nat high low prices mild I you highlighted obviously, the stockpiles, for guys maybe the the quick. Thermal segment with mean, real gas just part. winter sticking

on there you how will XXXX.And quarter. the from West the contribution gives contracted negative another Elk for going tons think you PRB to the that contribution is have But full positive maybe? an of XX% think then confidence highlighted shipment thermal over another we targets? maybe are conversations could what segment overall those mentioned year So opportunity you based see your second I X% to separately, the roll still hit into perform? with you likely the customers guidance previously How you segment, an Thermal can in

John Drexler

and We in about the remarks. Selk] is believe going to we prepared move to that thermal the we're here, obviously, of levels on this the the essentially manage create indicating through goal well. to segment to levels. going just of and We high those the tons, you PRB that inability over, year, higher PRB see over their value both but tons forward. we're are utilities the more that to here value as the and we in preserve committed We're when as on pushback.I those about working as forward the here. over the did expectation last focused Nathan, and actually to is course talked take and talked the of to opportunities already team to team that have position, marketing the move the types ways we successfully call, in thermal significantly not that rolling cash have of shipment the in And by roll continue opportunities we coal. it what applaud and XXXX, to than positive in essentially efforts any [ stockpiles, found we're We

half expect the to the And team do it forward. the is get moving could But levels as again, the ongoing We being continue year. see to we So doing, realign pressure. marketing for back work operation shipments work to yes, of that we the the could challenged. the see once to at back cash be shipment positive we with to that's done get expected

Paul Lang

This is Paul.

that of last the back. is comfort amazing up the I thing in the Bain and years River down. team responding to X, think John have market me look job one just done and Powder an I at gives X

ton year mine a would overnight. good fit, one big the years, to probably the change million XX good very and job And changes I responding to this In these a I a they'll case, would might do we've in the the So market. buy. be it have it's done A do doesn't job. locations over that of a all think

Matthew Giljum

in right volumes get more and XX the low ship tons of end which shipments shipping the then PRB. to to million of potentially challenging. as the as foresee using the if we of of value million are may And with multiples Elk getting your at using defray million, than looking byproduct be could deferring And that to terms defer this We out of beyond is ton environment there, then you're see a with volume business Look, XX West But And could we low customers, out in they some thermal years we to that again, customers length.In is getting continue that numbers. work them now, working we real an on X granularity X land right the now, sort in had to opportunity. at stockpiles opportunity just get potentially East. and length out time, that. out range. to the high need where of and maybe additional if very But

it. So do reasonable to tons million to we're for think XX what almost the expect would million encompasses But anything. XX going in range about we strategic be a I

Nathan Martin

of your Lear met in on the in to had I the weak segment, one I over production prepared shifting years. a Maybe remarks. some quarter, this John. of weakest you But know X-plus touched think clearly,

do expect moving typical, kind that ton return you So power believe line to said mentioned? mine you the rate the it, to call also of per X kind relocation post million I into be previously you should run the quarter thicker of scene.

little line there. quarter quarter? if So to per ton should the improve, get would power you relocation thoughts. but a then it called related, segment out, the how cost from first about color your we ton seems met the It maybe get more from that we that should like $X things great remove And second be think great to least per directionally at

John Drexler

relocation Lear kind of Yes. came with longwall the Good a end question. and move. of around some line And the power that. commentary The we'll at start of

for the million move tons, in they that well. line of time those utility things other we forward.We We that for panels we $X were that other wanted us clearly, There that. delaying we We the towers. as have $X.X income. impactful, a little recorded longwall ton that start-up came was is that The requested the to a a towers impact describe the up to mine. power across compensated subside shore local XX,XXX as right But more

geologic variability. can the at day, the the in of end of have grand It's things. scheme You immaterial

So you an manage or might expect and few day there. are that and every impact. any things impact Those we each longer-term have all had a don't things X,

yes, So absolutely.

through went Leer going confident as be also. well. for back here of going remainder are to Lear's move going to It typical panels South the the a to 'XX. on of mine We heading to track. continue get We touched some, It is is that on into

in teams end opportunity them, X a we here Leer XX% see don't into quarter XX% longwall But and All year, coal about it a in talking the as District of bit to Leer up of moves. fantastic transition impact out South. longwall improved the we're we've once the We typically to experienced X. thickness, had, an South but somewhere this X little with started the of since do of than of much that what of was the job fourth again, the has range going for in District the beginning District meaningfully thicker a seam

So we moving really that good forward. about feel

through as So that once volumes again, go manage and expect we'll to forward. we improve

As you're volume. costs, obviously, related impacted by the to

We move mid-$XX the as cost range type So expect our the we into according QX. somewhere ton in a into improvement forward just forward. as back we we forward to getting expect would plans go moving

Nathan Martin

idled. more mines peg more Do coal sources, or And the mentioned, support just where if guys according may do some to drive to U.S. you met marginal higher? coal of think coal you these you maybe prices market have I coking need I days? one some may. small And Paul, even met this then maybe we ton think, cost to

Paul Lang

is of a Nate, we up think people looking source have the statement at for showing lot door our the jobs. I of

I So times. many If about direct it's cost, a at talked point. marginal this look think and pretty we've I data the

at most range. If of you -- our XXX to it peers look are call XXX in the that

or got XX You've probably are XX that mines minus that. or plus of

price. cost High-Vol East. starting this They're just B marginal marginal are for of across A. general at wish or the remember High-Vol are slowdown is drop out. a at producing frankly, A industry. High-Vol anybody, And not on producing is products.So that's right edge on right seeing mines met lesser some that don't to I you're to It's the are think $XXX these have the good those We mines And it what but harm the you I

We're this, I for think it's low keeping cost. things built We're I in check. think.

product. high-quality a have We

quarter of be this would or another bad. X not think I

Matthew Giljum

to would significant makes the ], Dive rail East now [ that metric Australia it's With related at of seen even So the per continue rationalization, assertion is we if a this or for Coast, awful That's indications that issue. that sitting you're believe marginal The you're are negative operations on sort this cost some on say which same making might B. at producer, some continue persists. in you're certainly and PLV PLV, some But prices down marginal the mine of producing have $XXX the New at you're royalties, today. a seeing premier the something very small while getting in lot rate of to very and of if would I a semi-soft. the say include I of CapEx U.S. the been producing time.So $XXX High-Vol you're producing in Australia to, them we've sustain that looking [indiscernible]. And in these producer cash at point. add premium with as product producers mid-vol B or only would straight same weighing to they're it costs thing our agree the cash. sort And the way cost best levels to we an PLV, $XXX seeing. if brief those per that once going I you're a of marginal the high also backs range, see you right not pressure be $XXX semi-hard the reduction increase, struggling High-Vol you They're metric. $XXX are cost

look, quartile some we potential good very look current there's believe do we supportive first we producer, But further us lift. feel the as this a and news environment. named for out, cash for prices the So these in as

Operator

Your line next comes Jancik Capital question from Katja from of the Markets. BMO

Katja Jancic

more for talk guide quarter. the coal end? second the met the would lower Can on higher you what a you First, to versus bring bit

Matthew Giljum

at look Clearly, through and you strategic core the of DTA, the the logistics of access tons utilizing collapse segment, lack the that and fantastic If of redirecting tons, volumes done flows. working covers the the investment team very we've a indicated, here. XX,XXX spread in and vessels the a with essentially our job vessels, the Bridge of So Baltimore X Curtis quickly, Bay partners, is significant.As vessel, we've X or that very range impact dependent on short met they're right?

and saying of are up range lot there'll get dependent Corps that the that the flow they're of end on encompassed on well. That be those of when opens that based of A encompasses get again, given lot that in a Clearly, very range. additional timing. be But far, assumption again. of we'll Engineers got this why sometime logistic is considerations deep whenever towards bit on the full that's our dependent going now, once to of bridge to a Army So able channel range going start is is continue May. what be it back as wider we're we and range. everything what going to had we we it's feel to that. But the to hit reopens able collapse good to here within just going right be And going manage managing since that we a sit little good that that the did reopened

John Drexler

a heavy referenced, it June schedule. is Matt as And

X.X%, leg, fact what the in moving and it's it that volumes. X.X% can the just to underscores to think, how loading and gets come just redirect But window of last is So that team well gets that some out. to I what down last XX-day the

John Drexler

simple think to about think miles about is XXX Newport than further this, I Curtis Bay. way a News

a plus XXX rail trains So strain of capacity miles. under. if the you that sense it's think about we or minus, got it's vessel to send the and That's additional a X

the pretty of won't as matter Curtis either way And or X is a with timing Curtis reopening volumes. week our the Bay as significant. Bay So far

Paul Lang

kind wrap to their of people. and rail add trains for discussion. our Working and shift service they've I'll up job. just providers, done that that flows big kind That's a wonderful realigning of of to with power a them in

done to everything tragic bridge. the to they've support, with that's great job working a of happened be the responsive So collapse

John Drexler

one this, is that point much Paul haul, it's fact finally, longer different. And maybe rate which it's is final the a is, a as -- on the said, not meaningfully

DTA, fairly get do we is Now I Bay the transload. we're ourselves the we to in charging though equivalent, go -- rates there. rate will included Curtis the If say

say when So maybe some differential, actually have are it's move not could blending, opportunities, cetera, to that advantages you We to et but useful DTA, we that $X some us. significant. a it's storage,

actually with, it being change. up it a we're ends move quite comfortable is but So that a

Katja Jancic

reopening if then, see or mentioned let's or What I further a make in difference. maybe What we options? say, what doesn't you a week X delays And delays know your But potentially? happens? are

John Drexler

continue move continue opportunity execute on DTA. the will we to through clearly, to Yes, to coal

share I'll The extended of be opening it and there remained we way. on the also extended those as and and to have team the any clearly, with job can is that continue those alternatives date. fantastic other meaningful if has every is types extended and get impact. looking delay and doing confident Corps on a bridge. on evaluating primary of at now. We're longer the meaningfully of that lean that's Army this to an opportunities is So ways on But can core. They're to and of if coal through to Engineers in and river mid-streaming We a Port don't hopeful to Baltimore we down get can barges manage evaluating move take the through shallow the get opportunities south can it we you midstream, actually the Gulf. we draft the update the of well.So to port of coal a they're

work shallow that be than had indicating. of opening Some to actually the they've they done earlier little channel what bit been appears a

that manage to and extended, hit going looking it so does And if at actively we and ready confident hitting and will schedules feel get going it. if prepared work happens, be those to we're But continue else to something how they're clearly, to them. we're

Katja Jancic

the you be did $XX second maybe going just quarter say per side confirm, that then to are on ton? cost met in to the And

John Drexler

will be XX% Let's see but going the towards We year being going on volumes year to levels X.X% comfortable us the QX. X.X%.I call XX% of feel as little believe very you're it middle through the hopefully of high feels XX% range comfortable. that move still described to impacted That's Obviously, key shipment here we sort range. and we range. a the for somewhere of the be with that is, dependent all of with look, that we the to even the the little provide to very in sort was high the and think better, still range the go XX% a guidance do that shipment levels to the and mid- for

Katja Jancic

South, one and more. then around On then Is million Leer And tons expecting this that fair? year are next year? X you still just still higher

John Drexler

Yes.

additional going real the As we Leer volume be when that South, X And are over XX% carry That's will where moved XX% allow once to quarter we occurs is million to the benefit the confident to thicker. clearly we're 'XX beyond. this into and again, to fourth and in coal we that then going production year tons. described in very the the district

Matthew Giljum

that than QX, The ratable, a here. way sort we variability tonne we QX, year perspective. about around Look, ratable from need that to QX cadence per always million would sort than a which were And in to of be QX, think of bring would X expect us ratable, it on we higher into lower range understanding then cadence. be based there's

Operator

from line Michael Research. comes next Dudas Vertical question from of Your the

Michael Dudas

out coal tightness seeing coming supply some the and out the U.S. elsewhere. and of the your of difficulty you're on of the thoughts appreciate I met global

product? continue -- front? how sense into And book. you so, have how some wondering especially demand a met maybe and everybody's give shifting the in from Are base certain feeling how about maybe marketing that next like going to aggressive tightness relative is Is through year that's going your some towards some there China. to occur the on given regions flowing high-volume or even or market, -- customer playing see being little your of countries? to Maybe Just high-quality your interest very other you there levels opportunities relative that talking global are out, India and the of of the on timing dynamics could globally the

Deck Slone

and the it's to not relative absolutely, customers positive seaborne particularly coal. imports in signs We've where that. terms indications. just now good in in the to there Deck, But nothing towards high-quality like new of business.So so. continental price. feel do the hot But strong. buying terms of Chinese in are that we grow, where we urgency Paul of see like That's continues Chinese grow we're for be We deal, not new you now heroic potential that. year-to-date. is new bottom and there see who feel projects referenced, in of production, fundamentals, right spot it term we are great up interested it's but out this we continuing thanks at [indiscernible] that to and about metal in of certainly. about output globally a Mike, relative life. when in or Asia. that Asia along fact were XXXX, with and or talked bumping do outreach they're customers, And multiple a But you interest look XX% and are interested the X% Yes. was coking shift imports talking from continuing to as were sort is Look, to engagement overall do we the about continuing are last the lot some China year, down right seeing are to

coke there's fact certainly for looking way for world's CSR high a to of coal. product lot a customers that these lot it can And and a give better we play there A. a of high products. are you're when High-Vol coal, using the out XX role largest terms say High-Vol And and from in months would our in stepping we're year the of the imports particular.You up million there, too, volumes interest was in makers China Coal last of seen asked we've Seaborne volumes first I of some and few U.S. So is disparate in CSR think A them through about XXXX. tons facilitates really again up actually growing of just a We steel

recognizing again So to demand, urgency High-Vol continuing sort are a of the but is of significant. buyers this is moment at feeling level the right now that be interest A meaningful

longer and that to online term. the those built in see either about think I immediate importantly, again, those come do glass So supplying we the in or being new Asia continue actually are most furnaces us outreach to

John Drexler

And Michael, I'll add to that.

it It's marketing then that job the is view specific a it up technically of start customers product, relationships High-Vol team customers marketing done A new a it a does buyers as product. specifically favorable the brings of the They've It fantastic product, the very repeat right? Just getting relatively then Once that introduced. job with something and region. that they there, in using into product. for fantastic developing

we are customers expect a new accepted, really feel good year-over-year, the the region.And fast answer that introduced And in Vietnam Marketing it look move continue we is, continues simple how I it get to product, developing portfolio, how number forward grow as and we about to that to we've significant so selling it team the job. quality judge and customers they're and between Indonesia, of ones And really not steel great what large mills also. done and These on Asia. a these are being Malaysia. And has is built in I brokers. we're added

feel I business. the that strong by Asia, we're seeing position and very And really So up. you're in it we're quality customers we're out the taking about picking building of

Paul Lang

down coal XXXX. XX are final where the million X one XX aggregate alluded just from. in you XXXX. And the to, sort into sort going high X seaborne Those big just since Canada, of coal of down We're to of look the Look, come million market, in U.S. tons. is in side, you aggregate Australia, coking the and back [indiscernible] point, the countries if which quality suppliers supply peaked supply tons on

So themselves. manifest certainly, and we we supply is continually those see see only to demand not demand do constraints the there, grow,

even don't we pretty always are we demand a say, the is So we it cost out. on because is again, constructive a long-term we what great of see sort as But though, playing view, fact a long-term producer. quartile story first need

Michael Dudas

just you we're now. the that team into guys have as region made benefits the force the to I pay sales seeing investment in going is certainly and mentioned right that marketing it

Operator

further CEO. time. call over this continue. questions There at Please the to are to I turn Paul no Mr. would back like Lang,

Paul Lang

Arch. Thank you your again for in interest

for platforms on especially nimbleness current returns, coal [indiscernible] believe generating and across our the as we're repurchases. share focused Baltimore is substantial tragedy by the low-cost same improvement as serious emphasis earlier, timely the With value group we addressing and a well coke call, noted the continuous on towards the our portfolio, acting market evidenced as operating We the July. on and lean driving basis. highlight softness we to operator, capabilities cash I value look at by our better discretionary to that, time, we'll As in the flow at showcased QX.While sharply in Stay conclude in of as everyone. such reporting our people the the to forward situations safe healthy

Operator

concludes participation. Thank your call. for today's That you conference

now may You disconnect.

Arch Resources (ARCH) 25 Apr 242024 Q1 Earnings call transcript