- Earnings call transcript Q3 2022

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Operator

Good afternoon. My name is Melanie, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Warrior Met Coal Third Quarter 2022 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator being website. be is on for and company's the recorded call available will replay This

begin, have actual we may materially Before I those contain today's note from forward-looking discussion that statements, and discussed. results differ been may asked to

tables financial refer call company regarding and the press on of has accompanying filings. have posted please SEC in to asked non-GAAP the also company's reconciliations at For more of been press statements, measures note www.warriormetcoal.com. earnings to this release information Investors I forward-looking the the discussed the release during the website that company's company's the the located section

In addition the a at Investors posted to section at has at the release, company its supplemental presentation the brief slide website earnings www.warriormetcoal.com.

results Officer, Chief company's Financial Walt Here your Boyles, may Chief discuss are and Mr. Dale today Executive Scheller, you remarks. Officer. begin the Scheller, Mr. Mr. to

Walter Scheller

delays, Hello, Thanks, schedule, third substantial The strong ask higher will detail to missed you'll take quarter thank inventory time today taking for us the shipment Port to and at not higher After to operator. ongoing eight remarks, major join of results. vessel third equipment of was is everyone. to a congestion notable demurrage outages levels, to most in results. work opportunity additional And and problematic performance, constraining led XXXX have new coal behind during that Mobile headwind became Combination our from advantage results my performance our the discuss then you and challenge, quarter factors. those review variety Dale weeks due questions. particularly above the I'm of efficient headwinds. costs. sales, met make despite coal to the and which customer share happy disappointing again rail coal of another leverage We expectations to our demand deliver demonstrated ability but market our a business our relates pricing to which maintenance quarter, delivering model performance premium met very our from strong to to for results strong our

should to negotiations. the maintenance us, quarters. contract concerned experience a National the the expect Railroad behind challenges from in remain Also, port about we stoppage be While potential we upcoming port labor to outages continue congestion

Fortunately, we've delays these of Port crew in due in and to an the of tandem see at improvements the started recently reducing car rail to commissioning the new availability dump Mobile. increase

high also continues the their gradual, see calibrate as but our improvement carrier and ongoing cycle to We slow, to as port rail continues to traffic times volume. issues and address expect performance better

a more. minute, more, if could we could As in we we'll sell ship hear

Given build to our at the strong inventory, customer base, position, production continue liquidity end low third and our capabilities strong our quarter. to XXX,XXX to short cost was business the which model tons of leverage we

take of high positioned resolved, As well shipment advantage quality demand issues our are for to products. we're continued

of as electric Turning and general particular, expected, certain demand quarter third met production than electricity we capacity. arc across a to of across previous as observe initiated the furnace production well volatility Europe coal, closures the geographies. due blast numerous Nonetheless, industry high continue pricing to from cuts we demand as steel in In experienced steel to quarters. prices, furnaces softening less

will impacts August demand, the inflation Russian uncertainty expect XX, of looking ban and see all coals customers the region, demand. high of steel to for geographies coal result continue supply. took economic which import which to European on other in we We lower in customer met on our effect

the continue to months to thermal sector strong remains strict property the for activity. In still its support depressed quarter, pricing as but first of XXXX it's modest coals underperforming policies were the and China's most months addition, compared Chinese as Asia, the production COVID nine coals first restrain third of for of saw In some for crossover quarter. demand steel provided two improvements economic

of Our first time to the that steel All short per X.X% a Steel economic at In our for quite started other that since shipbuilding in of late the early as port more sector. steel had in with X.X%. The related been including is transportation overall the delays. by if a the COVID expected erosion, demand have delayed May, quarter $XX in to sectors Even manner. floor nine lower production X.X% even recent was PLV our for well, quarter largest a ton. the its some back the is at correction while sectors, decreased to to in which per production results volume sales getting continue in X decreased third $XXX per third remain during quarter, volume production indicate third wide strong. automobiles, our that due environment. oil short are The per Discussions months performed ton we and Association the to partially low poor timely the quarter global third challenging China $XXX the FOB a $XXX $XXX have August. ton Australia, gas, stringent short by this aerospace shipment from the able to lower a property index short reported iron iron of at before China's increasing a was year. a quarter the rail margin experienced represented the undergoing ending said, of weak to of index shutdowns CFR the the XXXX. our weakened product impact customers I provider primary and this compared performance which sold and the for not index, with finding decline third demand, per the last quarter and to China their at claw period, world's quarter lower especially ton, pig could July value per pig by demand, greater our to The restrictions of as we point in the And ending due recorded $XXX decrease of quarter recently pricing result short the short ton. World of production decrease rest a backdrop,

In demand impacting thermal move dates addition, of the high some and seaborne creating higher saw additional volumes for congestion the coal times. through thermal coal, and with loading we port,

Our quarter sales volume was in million in the same to year. compared quarter X.X million short the short tons third X.X tons last

into quarter headwinds steel to softening Our into production. sales the sales in South facing of third XX% including Europe, continue XX% geography the XX% be European the and strong America, economic by despite region, into the Asia. were

gas X.X as short lower their continue local energy communities, quarter to last well both continuous longwalls operate and production. of Our coke Mine and at short X units X. running year European and in five tons costs their same as for tons year. to The in in to customers produced three heat the from compared Mine lower units was volume resulted steel continuous million at tons overall third despite million miner this the longwall X.X the miner batteries and quarter quarter produce Production third the

the we a call. the the These in last ran were another some than The while for normal XX% the for Our longwalls despite mines XX% third running We finished to to mines efficient the solid. normal represent our and long producing maintenance remain earnings and continue downtime previously quarter compared workforce, employee the well strong statistics that of very skip hourly with of employees, and production lead volume. salaried productivity days historical on quarter discussed combination more of periods. quarter representing approximately on

significant mining trended our operations, while experiencing. to higher and mines worked the to higher have employees the has of hourly some offset per by This production continuing in inflation year, more increase work Over revised past in the appreciate a efforts schedules, hour man we've maintain tons productivity well working helped produced to a capitalized levels been productive safe drive clean environment. the workforce. We due

quarter, spent development $XXX third million spending million Creek Mine was $XX the on on the was we CapEx million development. was the project. quarter. Blue Blue on which million $XX project. which CapEx the Year-to-date, spending Creek of in million, spent we during have mine for million CapEx, included $XX $XX $XX During

$XX the existing between the spend million $XX and for on for capital to year. sustaining expect mines full We million

expect $XXX for between X full-year the and Blue the spending amounts targeted million new year-to-date the highest million expect $XXX fourth be on special shields, year. In projects longwall on addition, and spend quarter we CapEx this and Creek, to spending, North these we Portal. will spending quarter Based

business We lead impacting for an inflation and times of our indefinite period see time. continue to rising long

improved duration. the addition In months new and both on these times a issues continue XX increases our costs, XX lead third results. with the operating of supplies, Despite cost be equipment rebuilds. higher at partial we're a mitigation of to repairs rebuilt, $X purchases, experiencing productivity in to tons increase to major price impact materials, in quarter negative XX% to and for Those our on equipment XX% to short and mine, supplies led the

that a rate interest its high As increases Reserve to September in in US remained of decade of down. is X.X%, pace the continued four number faster inflation Federal efforts near bring

made this we opportunity More represents of a and constructing shaft. the Blue Warrior. which we for As look transformational Creek, on strong ahead, continue slope the specifically, progress developing we service quarter and site development the

We activity this over remainder on required preliminary activity As the both through value increase to extremely excited project. remain we spending year. stockholder at of the through the Blue continue to stages schedule, about create development and of potential that the this move Creek for will significant

cash Creek and balance to term investment strong free benefit with the returning allowing flow from term. We stockholders, to Blue generation in our continue them near in long to cash

address third special dividend be to During per our to of we this I Dale second year. dividend the ask to share, greater third now detail. quarter, another $X.XX quarter pay will were pleased special in able results the

Dale Boyles

Thanks, Walter.

prices quarterly same the million $XXX adjusted per quarter quarter $X.XX in $X.XX diluted year the compared inflation by adjusted quarter The was diluted third income net sales transportation share $XX a the net net achieved $X.XX of and year. the share net quarter and compared same XXXX, to in quarter the third last in primarily share variable income expenses year. diluted supplies XX% million of rebuilds. on third cost We average share adjusted driven and the income the partially per Non-GAAP of of mine to in EBITDA income in the recorded on company non-recurring last increase impact $X.XX excluding selling labor, increase net per this compared million interruption or of and was or in GAAP last XX% expenses volumes, same quarter idle increase diluted an business higher royalty and year. $XX major $XXX offset equipment the a For by million per materials, basis to a for of

XX% the to increase in compared EBITDA Our last primarily quarter the last year. was were in the third same margin quarter year compared $XXX prices adjusted in in the and XX% was the revenues due million XX% sales $XXX to This million Total in same XX% net increase average selling higher volume. third quarter this quarter year. XX% to

index was tons index Vol was compared and of impact to and compared Inflation or attributed a sensitive $X of ton price a XX% wages, was price costs per last ago. the cost were million average cost $XX an costs other including profitability in in or higher Demurrage other also third in short X approximately inflation, spending, million same reduced revenues year, Platts versus cost, with and short $XX same volume. was lower skip per million cost revenues positively The ton. per prior-year selling price, this of dollar royalty in of higher a $XX higher ton an quarter of as in Cash higher to transportation the met previously inflation, Mine impacted year the other short of impact short per $XXX cash year. to to per hedges prices short in cable, the million gross ton were The of demonstrating to approximately higher $XXX increase sales Transportation associated million structure, third other of cost quarter last short for $XXX the quarter higher costs gas in short accounted time. ton labor and resulting Demurrage to price this that increase same of due the due cost place quarter. to treated and belt ton primarily bolts, our per natural per port the and gas to to few year to for last third third in production plus higher minutes third year, the Premium and per production rising quarter to Cash ton, major XX% quarter the quarter leverage sales Mine $X roof and a spending third ton ton on loss increase the the quarter charges in maintenance charges that million The the year higher variable flow. of of delays compared both free In $X third XX% million ton for were The $X quarter $X repairs parts repairs of same the of Despite the last magnetite, net quarter in $X costs other XXX% the per and quarter per in on and natural or rebuild. and were and $X remaining period equipment The short other higher discussed averaged that and addition, rock this $XX of increase $XX the per cash and in Australian FOB from last costs, of the $XX last cost $XX per prices shipment realization quarter. by Low margins price prior-year royalty at in dust to was million idle coal inflation ton in same or mining were of driving $X compared $XXX average, revenues $XXX year. due ton, accounted year. third $XX the to variable compared increase. primarily the due third revenues short FOB $XXX year. Walt materials, third quarter short sales X pricing to quarter mining year $XX $XXX $XXX this lower per the of other compared higher

the were were prior ramp continue versus quarter. tons and coal of primarily volume. XX% quarter, during more Variable treated to we as cost short only the of the cash of and As to same up in quarter sales year, costs driven royalty in treated by idle production being the in costs year $XXX costs XX% higher last sales compared transportation year per X the Mine as met comparable pricing production this third quarter costs

quarter. third to higher higher expenses were stock million As each our than average transportation third beginning quarter. the last lower were a of same revenues cost reset reminder, SG&A in rates are the primarily be this prices than quarter our expenses, transportation of employee-related $XX the X.X% fees. due coal fourth the year the total year and higher at or and expense, met of the expect we preceding quarter quarter based about quarter of Therefore, compensation to higher upon professional

we strike. Mine quarter, legal decrease quarter million non-recurring non-recurring related X quarter when versus and for mine restart and expenses. taxes. insurance, negotiations directly These fully running expenses incremental idled. and maintenance, of with third capacities, at to were year the the and incurred labor were that expenses partial the These were operations the labor to operations both of expenses incurred such third safety $X incremental prior-year due and the primarily represent was primarily in expenses electricity, as ongoing labor During quarter-over-quarter comparable Idle this at mines, it $X security, the expenses million business interruption other reduced

Turning flow. to cash

timing flow, $XXX free in less by million cash operating which we capital third million a for million. in year's decrease cash capital slightly pricing flow year. by previously due decrease due a by third cost in quarter net quarter positively the receivable was of sales, flow production lower to The delays and flows from the decrease cash resulted of year $XX cash last mine expenditures strong of the During was this to discussed. conversion year, third XXX% higher the from this to offset quarter of capital quarter of quarter activities $XXX resulted in and used and cash impacted due working shipment of of development provided primarily generate this million $XX of This second this of coal working in free versus met Free the accounts XX%. inventories net

continue second total increase $XXX of of was and Our cash of or at fund, equivalents available million, the we in under well representing challenging the $XXX XX% available At to record million liquidity and the of end in the of $XXX the quarter macroeconomic million consisted Creek face an $XXX the third XXXX our are a future. ABL quarter project and million facility. development cash any point, this near Blue positioned of, of our and headwinds

guidance turning to and outlook Now our for XXXX.

our guidance as a of volumes. picture this of completion overall year We have update and we clearer the have near

have we us improvements believe year. to impact of the will the those continue seen shipping While remainder we issues delays, in gradual this

believe will However, in our his volumes that section our we of we Walt production comments. final included for outlook able now back it to and to turn be sales earnings release. the meet I'll

Walter Scheller

Dale. Thanks,

to XXXX. on make and year move for I'd Q&A, full our quarter comments the we some of fourth on outlook final Before to like

end of improvements pleased production been in delays. the throughout last strong continue fourth As inventory mentioned delays the the and which gradual was quarter. peaked to shipping weeks over result at levels the we see those We've few our and shipment earlier, continuing third again to the a of the expect quarter,

could that occur. Of course, strike negotiations other the absent Railroad and dependent is upon contract National disruptions highly or potential this any

quarter. our of as transportation performance rail to the in expect port fourth drawing make We and a in gradual in result the improvements levels down inventory improvements

a for the Looking likely time demand strengthen fragile across ahead, we several other and a cannot likely production the countries. expect steel to catalyst being. United to identify for reality developed the cuts remain we States Europe, Therefore,

In the prolonged expect possibility of recession in Chinese continue property benefit war believe addition, coals steel impact the customer Mongolian the we the that to see to it an we do Russian markets. of inflationary most. our on weigh and and a will fears, sector. production the pressures, in improvement the of stubborn Russian-Ukrainian Should import to efforts materialize, given centralized this fourth the quarter, We stimulate

remainder for finishing Operator? we moving to by which continue year. volumes recently chain, with the results supply remain see to from coal major for we play supported by well with weather the strong all that control, that pure what as provider inventory, open pleased continued production have their liquidity like and concerns headwinds, these environments. confirmed believe we'd that, excellent of as With was and unique the met also for customers may met all thermal ahead coal met issues With vulnerable pricing positioning coal economic demand, we We're despite We demonstrated the producing financial resilient, the can strong our call this significant regions. on focused our and year and as of questions.

Operator

[Operator Instructions].

first comes from question Riley Your Lucas Pipes B. Securities. with

Lucas Pipes

lower so then necessary be pricing And I get inventories that first elaborate levels? back correct little about move a take have the Good questions situation. it down few And remember needs tons, inventories job to again, updated. I And range into the could quarter. if follow-up I to was a maybe on bit what on a be the you side. more but if If those is what on to on things. XXX,XXX My normal inventory that of might question me wondered will into right, those

Walter Scheller

transportation, of normal. the probably about be consider XX% was would the at what we with Lucas, rail rail shipping to

were we that level. weeks what rail in upped barge. the recent improving beyond by well we've very But sending a type of So amount is we had seen

that, capacities, dumps other cars is time lower months, for well. the the now. efficient up two Their was is are port, The a at the the and – period completely running, that led fact – caused a fact, again the the fact the And the of one port. of rail very most inventory throughput things car out in two capacities that to part inventory the And was of times at running cycle that lower was at moving taken the dumps car fantastic. which dump issues service better down of

year-end. think in rail So it's disappear I though negotiation. have contract gradual all and of going that's we'll of happens probably, potential levels that, our even be the rail, on that dependent that there'll with would inventory not in capacity again, by But a anticipate I improvement terms what line, to improving overnight, hopefully,

Lucas Pipes

side. the to I pricing do want on follow-up

think So if there, strength drivers Again, seaborne coal in lows of especially great $XXX the per some you could some ton. first, elaborate summer I the on markets. met maybe around since of were

comeback nice So there.

netback are opportunities the or see And drivers. you that higher so. If costs think, comment sent China to involved the arbitrage And obviously $XXX Blue are cargo higher seeming you could as was there. CFR, then ton market. on what some there China in is report there key but transportation there I Creek a at that – price, per was

So to market what the pricing your any view opportunity have Chinese maybe if the on well. Would an presents dynamics. on that thoughts as extent appreciate you

Walter Scheller

really calls China. Mongolia are is think lot to think go and Russian I – to those demand better if into Chinese going of I primarily are that's performing what's the flowing flowing. A going to happen, improves, coals now

bit coal of from Or that I think is little I look the direction opportunity, But majority maybe the at some of logical it go increase even But the place in a believe pickup will opportunity. even the that come or that just that you Coast US. for our to of for will So if from natural That's again, market. Australia. help. West perspective,

have drivers all, the of first of thermal. think been, I pricing

things thermal be all, coals coals because met can the met into the and you've with industry. most in are can but recent to in crossover a And pricing thermal, lot constrained. Australia that just just constraints think gives base a I the not And fact think think coal – go natural for that had supply coals issues other really skyrocketed there's storms over market. I I thermal supply keeping transferred where of the over overall as

So are for primary the I price. drivers the things the supporting think are that those what's

Lucas Pipes

I run to have cash wood, on of the as other On $XXX need one do business what elevated question. stay from do amount you coal you needs position, knock and your million, want ask cash to prices, your capital the with capital cash some return. obviously, Creek. then of structure on And to the looking then, sheet? depth are there? funding of you balance do to amount What also And investors have want Blue a

So, trying to find the into number just there. to back

So thank very your for you much on perspective this.

Dale Boyles

this balance here looking targeting from not number. forward particular as conditions. of We're we allocation the capital cash light at kind We're of move in market

remarks. While has been pricing we weakening, as demand in prepared said has high, our stayed

in the right So, Creek, think development. excess just about $XXX be capital context looking year. putting And now, in million you for next budget of mine can million, at our we're in of together capital spending middle and when Blue $XXX the we of to

cash the are. that obligations, we put see and sheet fund certainly want meet keep as going other protect that on But to as well where to all ourselves of our enough we want we balance to together So Blue Creek. we're

this at look prices and about spending into $XX business, the been might we're in just year. some Creek, be Obviously, we inflation we've as Blue seeing level, million. there being inflation you some out so next early of the So, high

number, to to those happening couple of cash, the And enough And fund in we extra So the we're through right as take move dividends. market. said, we've into those there well we're we extent already I like to just particular done we a times have shareholders, context target other as forward, than the needs. year now like a don't like to we things, budget, what's just sure special to this making excess trying with continue going is return all to that feel as

we'll turning not a pricing dividends. special To periodic off. and maybe declare remains on we're high, the extent basis additional some evaluate that those So

Lucas Pipes

month in that's one bills. And and month three T

should probably start interest I rate cash. on X% the to that So model

Operator

Instructions]. [Operator

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

Nathan Martin

you end, you the quarter. you'd end the in my the had Maybe you little maybe I'll hopefully, tons that tightening on the there? full-year you've million correct, If with can think alluded Obviously, quarter. buildup that just fourth revised to think at or high guys Congrats the do to in have start up work guidance, inventories is I over top bottom that that shift down. bit. to shipment gets and, X near you What math a

First, given right? is the this year? doable else think And so and you far that issues has plagued you with even that's guys do logistics been everyone

Dale Boyles

This is Dale.

around on is any don't As it whether But actual of high Walt you and know you the kind transportation there disruption. there's of not said, disruptions really shipment have never rail and delays rail how strike. think improves or I look, negotiations. a depends those likelihood might an what

have So dependent it's to all going to we Obviously, out. how to number. upon that get that and enough inventory much we can get

end, on which pretty X.X, of need low end. to of what close Think the the each ship kind is we'd quarters. to that two the high is done last about So we've

on are things it's that outside So control. dependent achievable, it's really our of

Nathan Martin

a would logistics shipment the what from standpoint? impact from you curious, just say I'm in delays, a the quarter guys was

Walter Scheller

Probably of vessels, say. three least, a I'd vessels, thousand hundred at two A couple or few tons.

Nathan Martin

quarter. kind again A lot the pieces on a during Dale, this out. a And quarter. you of was moving ton $X of did good another costs inflation laying that job all headwind

you level persist trying even of forward costs you signs might that maybe return of do see Really cost just fourth that do seeing headwind guys of number and a maybe into that be what where Are forward? get during kind feeling to any of abating? expect to of kind going going sticking, curious, you quarter And the Just XXXX? heading?

Dale Boyles

us, But as to cost, now, to something's pushed months, expect remarks. right prepared $X only the lead per moving a it's quarterly much. see even XX impacting we're inflation It's out change I well a basis. we're at our ton about out continue impact on XX, think not I than that. further around wouldn't as that going said getting to that's times we the but in

with the happens year, we Fed's as are hearing or going it not any all what As into actions. cutbacks. on far Right now, next reductions depends

at kind things as We I we buy to anytime – times, around these continue work long some soon. abating inventory. stick are we them trying advance But don't to and in in lead of looking are see

overall this time be abatement take economy, we It's for kind into to through work might year before see next of some to So some I going the Fed's well think. the action inflation. of we global

Nathan Martin

a of in we've costs in are net little Dale, of the you kind versus levels what And do these of deceleration XXXX elevated price say assuming seen XXXX. me just could we remind portion variable? see your let's in bit a

Just factor lower cost curious year? how or could next possibly that your ton per possibly

Dale Boyles

run. and pretty and We look production year, done, the like We component. in on don't The royalties fixed but are of quarter, cost things over variable royalties. some end XX% that be of at cost they ton of per And and basis gets at a amount look dollar of on the variable a remains depending are maintenance transportation biggest this at and than were long just they last cash certainly XX%. a versus there. the most that There'll flat that transportation the others, the quarters were really quarters only higher

be of earlier, pricing the into said lower our will look is. because the third met I you as quarter as – will fourth coal rates be our So, transportation fourth than quarter quarter, where

the on prices in but ultimate cost have our some depending So see price for on decrease have may depending quarter. in XX% where you you the royalties are, increase quarter, to some ton XX% per could fourth fourth you – may increase just

Nathan Martin

just There's if more, I may. one

having this guys on production as industry, know, to in the just there. thoughts been – labor I Are would some today, I front? Just on great made of any on like success shipments you logistics still but get where extremely couple based and you kind remains you market, hiring year? around maybe throughout do and of tight the comments of labor, a little Walt, comments look where not color a be more situation. next on know some could have the your you labor broad see

Walter Scheller

not there's is, especially in experienced We having US, lot the just throughout the labor a of are now unemployed. success It's mining, hiring. in issue

labor. equipment having them we're where time train So they to bring to to can up, them get It in safely. takes operate unexperienced

And so, more bit all little go for hiring, on. like training that has time having we'd taking than the but it's we're to success yes, a

budgeting year see still of process. in we're next In terms the we where going,

So we're to that. on build expectation continue are we our on But we is where working today.

So things look for improve. definitely we continue to to

Operator

Your B. Securities. Riley next Lucas with follow-up a question is Pipes from

Lucas Pipes

China, maybe does this adjustment things you deceleration few to example, sales that? to be you it a like On thermal, there's a demand of mentioned sales times that Would shift non-traditional extent, from markets, today, into that be commercial what to appreciate, it, for Warrior cause Warrior.

Walter Scheller

of Interestingly, at third product Europe remained projecting when you look into the fourth and we're moving what strong. percentage quarter, our the for the quarter really has

bit. a probably In up fact, it's little

Europe to those through in So year, of of our committed tons continue I their continue end customers to and continue, the the tons. know take don't want anything to next year, and changing

these they'll coke operate. of most plants I but slowing going things continue down, think are less coke, coke They'll to while So buy operate really operate to own to see their customers plants. those merchant continue who we

our think remain pretty in I see Europe, to I wouldn't demand surprised So be stable. it

a we will coal. higher satisfied price, is. as with our and a if Now at continue. Asia. order those look high But would going to go America. we there's to flop as pretty and excess can we're the America, into I move same And numbers in we'll you We now, then for book Asia opportunities in thermal of coal South South right that. as that in next look where quarter consider and move do flip a see have at the XX% If XX%, us level at be cargo can

Lucas Pipes

tons committed What XXXX? for amount are of

Walter Scheller

contracted number. have running that that of you about don't or XX% at can at to front tell look or tons typically, I I that have our have in don't I so. me. I have been been don't so. number spot change. that tons And But for running XX% about actual

Operator

Citi. with Hacking Your next from comes Alex question

Alex Hacking

of if it's I a okay. couple questions, have

would associated Firstly, levels question, that price similar shipments? with to that potentially compared an should it your higher? we what Or year operating the year? we issue footprint, will we've realized were your be just specific then, of quite mine the modeling. seen And the to production next timing was current given what strong this Is assume second be

Dale Boyles

the with start I'll Well, Most the realized that effect. lag of is prices.

[indiscernible] of contracts days' are average lag. most our XX let's an you it, If priced a, on call of remember,

days the So, vessel. index the average price to XX loading of prior the

So a lot of on. that earlier came from the higher prices

trained. in so, said going of kind we're we're to we're million particular be to somewhere that's working now, pricing. back tons, see some do down labor, the get X.X whether in this realized And predict Production, there on what range the X tons, range it's could that road. talking earlier. labor on normal to up our of it hard If going in not levels to and – that that I depending million up somewhere right to the year point as we to get about get we real that answer budgets, we around labor to on the at able additional and And with the at or shortages, point may those can

Operator

from with next Your question comes Mark Zand Wexford.

Mark Zand

you amount remaining in. I mentioned to to know million. But on get year. it to me And I over correct I Blue the next cadences? going? fill up please the for of what say you'd And it and Can sort that spent thought million $XXX Creek $XXX understood or is be you was what's go

Walter Scheller

So we're early in.

Blue website look timing would or $XX so That five-year If spent of build, million to That's for project, a project. the $XXX I with presentation you're not we've familiar only the said, at this that far million year. suggest Creek.

year. year a plus million Next will dollar XXX be

of a will quarter. fourth finalize idea range. similar better our then, we'll And a end at we the have our be third the year budget, in As

spending highest two coming years up. the So are

next Creek. X then could of to We deposits North year, That's $XXX need million put year. so, And the this $XXX $XXX the we just that Blue $XX we for million, on million. the finish about for be million portal. that And shields to amounts remaining you have do

in things, consider next between range somewhere year. all those that you we're of when So $XXX million million $XXX and

Mark Zand

And for what's Mine and life X? Mine the mine X

Walter Scheller

Mine at years. When XX consideration reserves around the take X you more somewhere believe, is into resources, you years, around Mine I XX any little then look than X, and

Mark Zand

Just for and million X nameplate is given don't that Blue got rationale mine Mine a X. explain your you've X obviously, Creek, to what know, life. capacity Mine is, me the tons And long I at

Walter Scheller

we grow we've look when look the adding And to on Creek the presentation to website, looking of you'll quality it's in company information at don't and price. in XX%. see Blue just think when to that when that Creek. Blue potential mines or we to at company, might comparison opportunity, IRR we M&A get you stack other that. We're that project any high Creek our got at better has they product about premium you've an potentially And will compare provided our or that XX% that that grow a Blue acquiring, to look a And the up

So, the building is Blue out focus that's Creek. right now,

Mark Zand

tonnage to Just like accurate? going it a is million question Lucas asked, looks back is or that more, that a your inventory tons about

Dale Boyles

No, XXX,XXX tons.

Mark Zand

causing that's that you And just railroad one the problems? use been these final one. Who is

Walter Scheller

primary rail provider. our CSX is

Mark Zand

it's So not local. somebody that's like

Operator

from Fitzgerald comes Your Baird. next Patrick question with

Patrick Fitzgerald

any with go out dividends additional any if the down special restrictions? paying you are your obligation bonds respect before Could pay you there to over

Dale Boyles

payments, the for restricted sufficient or certainly we And are payments restrictions but Well, bonds within of bond types dividends the three-year to out a have of call. a there's lot currently. pay different capacity no

some take when But, did for we at bonds. to the year in of it's we We and primarily, about a in books call when of the of of a open discount bonds. three details people the repurchase offer few But the savings gritty restrictions for the the no however, advantage a bonds advantage now. first on the and three But the future. there's took call those and bonds So, right repurchased – can discount put years. lot nitty the here quarter that some cannot market opportunities around we

Patrick Fitzgerald

is Do you the currently? RP what know basket

Dale Boyles

Yeah, all not it's get details time the into and sure. discussing. We track all we some that the of

Operator

this back I'll no At there questions. Scheller any comments. the are call further to over Mr. for time, turn now

Walter Scheller

call appreciate interest That us for Coal. Thank Warrior in this today. We your concludes afternoon. you our again joining Met

Operator

all And conclude you our you. Thank for participating. that for does today. conference Thank

disconnect. may now You

Walter Scheller, III	Chief Executive Officer
Dale Boyles	Chief Financial Officer
Lucas Pipes	B. Riley Securities
Nathan Martin	The Benchmark Company
Alex Hacking	Citi Investment Research
Mark Zand	Wexford Capital
Patrick Fitzgerald	Robert W. Baird

Warrior Met Coal (HCC) 3 Nov 222022 Q3 Earnings call transcript