Core Insights - Hepion Pharmaceuticals has entered into a binding letter of intent with New Day Diagnostics to in-license diagnostic tests for various diseases, including celiac disease and hepatocellular carcinoma [1][2][3] - The combined addressable market for these diagnostic tests exceeds $15 billion, with significant growth projections across multiple segments [2] Company Developments - The diagnostic tests include CE-marked products that are eligible for sale in Europe, allowing Hepion to generate near-term revenues through existing distributor networks [3] - Hepion's primary asset, Rencofilstat, is a potent inhibitor of cyclophilins, which has shown efficacy in reducing liver fibrosis and tumor burden in experimental models [4] - The company previously announced the winding down of its ASCEND-NASH clinical trial, which was paused in April 2023 after randomizing 151 subjects [5][6] Market Opportunities - The Respiratory Panel RT-PCR Multiplex CE-IVD targets a $5.6 billion market, growing at 6.6% annually through 2029, while the H. pylori test addresses a $700 million market with a 6.0% growth rate projected through 2032 [2] - The celiac disease screening test operates in a $457 million market, expected to grow at 10.4% annually through 2034, and the mSEPT9 assay for HCC detection serves an $8.7 billion market with a 6.7% growth rate projected through 2030 [2]

Company Overview - Warrior Met Coal (NYSE: HCC) is a U.S. metallurgical coal mining company focused on the export market [1] - The company operates two mines and is developing the Blue Creek project, all located in Alabama [1] Management and Operations - The company is noted for its good management team and consistent operations [1] - Quality of operations is emphasized, indicating a strong operational foundation [1] Investment Strategy - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 2-3 years [2] - Emphasis on value investing provides good downside protection while allowing for significant upside potential [2] - The portfolio has achieved a compounded annual growth rate of 26% over the last 6 years [2]

Financial Performance - Warrior Met Coal reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, and a significant decline from earnings of $2.63 per share a year ago, representing an earnings surprise of -220% [1] - The company posted revenues of $299.94 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 8.98%, but down from $503.51 million in the same quarter last year [2] - Over the last four quarters, Warrior Met Coal has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Warrior Met Coal shares have declined approximately 10.3% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $284.04 million, and for the current fiscal year, it is $2.06 on revenues of $1.41 billion [7] Industry Context - The coal industry, to which Warrior Met Coal belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Warrior Met Coal's stock performance [5][6]

Financial Performance - Revenue decreased by 40% to $299.9 million in Q1 2025, compared to $503.5 million in Q1 2024[15] - Net loss was $8.2 million in Q1 2025, a 106% decrease compared to a net income of $137.0 million in Q1 2024[15] - Adjusted EBITDA decreased by 80% to $39.5 million in Q1 2025, compared to $200.2 million in Q1 2024[15] - Free cash flow was negative $68.4 million in Q1 2025, a 2,950% decrease compared to $2.4 million in Q1 2024[15] - Average net selling price decreased by 42% to $135.79 per short ton in Q1 2025, compared to $233.91 per short ton in Q1 2024[15] Production and Sales - Production volumes increased by 10% to 2,254 thousand short tons in Q1 2025, compared to 2,051 thousand short tons in Q1 2024, attributable to Blue Creek[11, 15] - Sales volumes increased by 2% to 2,172 thousand short tons in Q1 2025, compared to 2,129 thousand short tons in Q1 2024[11, 15] Blue Creek Project - $55.3 million was invested in the Blue Creek project in Q1 2025, bringing the total project-to-date capital expenditures to $771.8 million[11] - Blue Creek produced 251 thousand short tons in Q1 2025[11, 24] - Longwall startup at Blue Creek is expected no later than Q2 2026[8, 11, 24, 33] - Total capital expenditure estimate for Blue Creek project reiterated in a range of $995 million to $1.075 billion[30]

Financial Performance - Total revenues for Q1 2025 were $299,943, a decrease of 40.4% compared to $503,512 in Q1 2024[14] - Net loss for Q1 2025 was $8,168, compared to a net income of $136,989 in Q1 2024, representing a significant decline[14] - Basic and diluted net loss per share for Q1 2025 was $0.16, down from $2.63 in Q1 2024[14] - Segment profit for Q1 2025 was $49,198,000, down 76.8% from $212,411,000 in Q1 2024[76] - Segment Adjusted EBITDA for Q1 2025 was $49,198,000, a decline of 76.8% compared to $212,411,000 in Q1 2024[80] - Interest income for Q1 2025 was $3,186,000, a decrease of 54.7% from $7,033,000 in Q1 2024[80] Cash and Assets - Cash and cash equivalents at the end of Q1 2025 were $454,933, a decrease from $491,547 at the end of Q4 2024[17] - Total assets increased to $2,623,894 as of March 31, 2025, compared to $2,591,516 at the end of 2024[17] - The company's total inventories, net, decreased to $197.645 million as of March 31, 2025, from $207.590 million as of December 31, 2024[37] - Total assets increased to $2,623,894,000 in Q1 2025 from $2,478,591,000 in Q1 2024, reflecting a growth of 5.9%[76] Liabilities and Debt - Total liabilities rose to $547,128 as of March 31, 2025, compared to $500,699 at the end of 2024[17] - The company's total long-term debt as of March 31, 2025, was $153.767 million, slightly up from $153.612 million as of December 31, 2024[41] - The estimated fair value of the company's outstanding debt was approximately $159.8 million as of March 31, 2025[72] Expenses - Dividends paid in Q1 2025 were $5,184, down from $30,638 in Q1 2024[19] - The company reported a depreciation and depletion expense of $45,277 in Q1 2025, compared to $40,023 in Q1 2024[19] - Coal royalty expenses for the three months ended March 31, 2025, were $22.3 million, down from $42.9 million in the same period of 2024[57] - Cash cost of sales for mining in Q1 2025 was $244,028,000, a decrease of 14.1% from $284,172,000 in Q1 2024[76] - Capital expenditures for Q1 2025 were $68,510,000, down 31.3% from $99,703,000 in Q1 2024[76] Investments and Financial Position - As of March 31, 2025, short-term investments totaled $33.1 million, an increase from $14.6 million as of December 31, 2024[31] - The company had $113.5 million of availability under the ABL Facility as of March 31, 2025, with no loans outstanding[46] - The company had finance lease payments totaling $19.464 million, with a present value of lease liabilities amounting to $18.525 million as of March 31, 2025[50] - Finance lease right-of-use assets, net, were valued at $53.972 million as of March 31, 2025, down from $56.702 million as of December 31, 2024[48] Operational Focus and Risks - Warrior Met Coal is focused on mining non-thermal steelmaking coal, primarily for the global steel industry, with operations based in Alabama[23] - The company continues to face risks including substantial indebtedness, compliance with covenants, and geopolitical events impacting operations[11] - The company is exposed to commodity price risk due to fluctuations in market pricing for steelmaking coal[162] - The estimated allowance for credit losses was immaterial as of March 31, 2025, indicating a stable credit risk profile[166] Labor Relations - The company continues to engage in negotiations with the labor union to reach a new Collective Bargaining Agreement, which expired on April 1, 2021[25] Shareholder Actions - The company repurchased 500,000 shares under its stock repurchase program for approximately $10.6 million, leaving $59.4 million available for future repurchases as of March 31, 2025[61] Environmental Compliance - The company believes it is in compliance with environmental laws and has no accruals for environmental matters other than asset retirement obligations as of March 31, 2025[53] - The company has no recorded liabilities for minimum throughput requirements as of March 31, 2025[56]

Financial Data and Key Metrics Changes - For Q1 2025, the company recorded a net loss of $8 million or $0.16 per diluted share, compared to a net income of $137 million or $2.62 per diluted share in Q1 2024, primarily due to a 42% decrease in realized average net selling prices [27][28] - Adjusted EBITDA for Q1 2025 was $40 million, down from $200 million in the same quarter last year, with an adjusted EBITDA margin of 13% compared to 40% in Q1 2024 [27][28] - Total revenues decreased to $300 million in Q1 2025 from $504 million in Q1 2024, driven by lower average gross selling prices [28] Business Line Data and Key Metrics Changes - Sales volume increased by 2% to 2.2 million short tons in Q1 2025 from 2.1 million short tons in the same quarter last year, with production volume rising by 10% to 2.3 million short tons [14][15] - The company achieved a gross price realization of 83% for Q1 2025, slightly below the targeted range of 85% to 90% [12][28] Market Data and Key Metrics Changes - Average premium low vol index prices dropped by 40% to $168 per short ton in Q1 2025 from $280 per short ton in Q1 2024 [8] - The primary index, the POV FOB Australia, ended Q1 2025 at $153 per short ton, down $25 from the end of Q4 2024 [12] - Global pig iron production decreased by 0.2% in Q1 2025 compared to the prior year, with iron production in China growing by 0.8% [13] Company Strategy and Development Direction - The company is focused on operational efficiency and cost management to navigate weak market conditions, while continuing to progress on the Blue Creek project, which is on budget and schedule [6][21] - The Blue Creek project is expected to produce 1 million short tons in 2025, with a long-term capacity of 6 million short tons [23][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing weak market conditions but expressed confidence in operational performance and the ability to manage costs effectively [6][34] - The company anticipates that weak market conditions may persist, impacting steelmaking coal prices, but expects stable demand from contracted customers [34][36] Other Important Information - The company spent $79 million on capital expenditures and mine development in Q1 2025, with $69 million allocated to CapEx [16][21] - Total available liquidity at the end of Q1 2025 was $617 million, providing sufficient funds to complete the Blue Creek project [32][21] Q&A Session Summary Question: Pricing realization expectations - Management indicated that pricing realization could remain between 80% to 85% in the current market environment [38] Question: Cost sustainability in the near term - Management confirmed that the current cost level of $120 per ton is sustainable if prices remain stable [42] Question: Impact of tariffs on longwall shields - Management clarified that there would be no tariff impacts on the longwall shields being imported [43] Question: Factors driving lower price realizations - Management explained that transportation differentials and market conditions in Asia are significant factors affecting price realizations [48] Question: Production outlook and potential curtailments - Management acknowledged the challenges in the U.S. met coal market and indicated that some production curtailments may occur [52] Question: Capital expenditures for Blue Creek - Management detailed that the remaining CapEx for Blue Creek would primarily cover final construction and labor costs [56] Question: Working capital trends - Management indicated that working capital is expected to build in the second quarter due to production at Blue Creek [60] Question: U.S. pricing reflection of the market - Management expressed confidence that U.S. prices are reflective of current market conditions, with expectations for the discount to tighten over time [65]

Financial Data and Key Metrics Changes - For Q1 2025, the company recorded a net loss of $8 million or $0.16 per diluted share, compared to a net income of $137 million or $2.62 per diluted share in Q1 2024, primarily due to a 42% decrease in realized average net selling prices [25][27] - Adjusted EBITDA for Q1 2025 was $40 million, down from $200 million in the same quarter last year, with an adjusted EBITDA margin of 13% compared to 40% in Q1 2024 [25][26] - Total revenues decreased to $300 million in Q1 2025 from $504 million in Q1 2024, driven by lower average gross selling prices [27] Business Line Data and Key Metrics Changes - Sales volume increased by 2% to 2.2 million short tons in Q1 2025 from 2.1 million short tons in Q1 2024, with production volume rising by 10% to 2.3 million short tons [14][15] - The company achieved a gross price realization of 83% for Q1 2025, slightly below the targeted range of 85% to 90% [12][25] Market Data and Key Metrics Changes - Average premium low vol index prices dropped by 40% or $112 per short ton compared to Q1 2024, averaging $168 per short ton in Q1 2025 [7][12] - The primary index, the POV FOB Australia, ended Q1 2025 at $153 per short ton, down $25 from the end of Q4 2024 [12] - Global pig iron production decreased by 0.2% in Q1 2025 compared to the prior year, with iron production in China growing by 0.8% [13] Company Strategy and Development Direction - The company is focused on managing costs tightly and operating efficiently in response to weak market conditions, while making progress on the Blue Creek project, which is on budget and schedule [6][17] - The Blue Creek project is expected to produce incremental annualized production of at least 4.8 million short tons after startup, enhancing the company's cost curve positioning [22][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the global steel market due to China's overcapacity and trade policy uncertainties, but expects demand from India to increase [34] - The company anticipates weak market conditions may persist, putting downward pressure on steelmaking coal prices, but remains optimistic about operational performance [32][34] Other Important Information - The company spent $79 million on CapEx and mine development in Q1 2025, with $69 million allocated to CapEx and $11 million to Blue Creek project development [16][20] - Total available liquidity at the end of Q1 2025 was $617 million, consisting of cash, investments, and available credit [31] Q&A Session Summary Question: Pricing assumptions for the current market environment - Management indicated that a price realization of 80% to 85% is reasonable given current market conditions [36] Question: Sustainability of cost levels in Q2 - Management confirmed that current cost levels are expected to be sustainable if prices remain stable [39] Question: Factors driving lower price realizations - Management explained that transportation differentials and market dynamics in Asia are significant factors affecting price realizations [45][46] Question: Production outlook and potential curtailments - Management noted that while there are rumors of production issues, it is difficult to estimate the overall impact on U.S. production [50] Question: Clarification on Blue Creek project CapEx - Management clarified that remaining CapEx will primarily be for final construction and labor, with a significant portion already accounted for [54][56] Question: Impact of shipping Blue Creek coal on costs - Management stated that while there may be some additional costs, they are focused on mitigating any significant impact [66][68]

Financial Performance - Warrior reported a net loss of $8.2 million, or $0.16 per diluted share, in Q1 2025, a significant decrease from a net income of $137.0 million, or $2.62 per diluted share, in Q1 2024[3]. - Adjusted EBITDA for Q1 2025 was $39.5 million, down from $200.2 million in Q1 2024, impacted by a 40% lower index price for premium low-vol steelmaking coal year-over-year[3]. - Total revenues for Q1 2025 were $299.9 million, a decline of 40.5% from $503.5 million in Q1 2024, with the average net selling price dropping by 41.9% to $135.79 per short ton[9]. - Free cash flow for Q1 2025 was negative $68.430 million, compared to positive $2.368 million in Q1 2024, indicating a significant cash outflow[41]. - The company reported a basic and diluted net loss per share of $0.16 for Q1 2025, compared to earnings of $2.63 per share in Q1 2024[32]. Production and Sales - Total production volumes increased by 10% to 2.3 million short tons in Q1 2025, with sales volumes rising by 2% to 2.2 million short tons[5][7]. - Tons sold in Q1 2025 increased to 2,172 thousand short tons, up from 2,129 thousand short tons in Q1 2024, reflecting a 2% increase[34]. - Average net selling price per ton decreased to $135.79 in Q1 2025, down 41.9% from $233.91 in Q1 2024[34]. Cost Management - Cash cost of sales per short ton decreased to $112.35 in Q1 2025 from $133.48 in Q1 2024, reflecting effective cost management[5][10]. - Cash cost of sales per short ton was $112.35 in Q1 2025, a reduction of 15.8% from $133.48 in Q1 2024[34]. - The cost of production percentage increased to 66% in Q1 2025, compared to 61% in Q1 2024, indicating rising production costs[34]. Cash Flow and Liquidity - The company generated positive cash flows from operations of $10.9 million in Q1 2025, compared to $104.1 million in Q1 2024[14]. - The company's total liquidity as of March 31, 2025, was $616.6 million, consisting of cash and cash equivalents of $454.9 million[17]. - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $462.593 million, down from $693.858 million at the end of Q1 2024[40]. Capital Expenditures and Guidance - Capital expenditures for Q1 2025 were $79.3 million, including $55.3 million for the Blue Creek project, bringing total project expenditures to $771.8 million[14]. - The 2025 guidance remains unchanged, with coal sales expected between 8.2 and 9.0 million short tons and production between 7.8 and 8.6 million short tons[20]. - The company plans to distribute a quarterly cash dividend of $0.08 per share on May 12, 2025[18]. Balance Sheet Highlights - Total assets increased to $2,623,894,000 as of March 31, 2025, up from $2,591,516,000 on December 31, 2024, representing a growth of approximately 1.25%[43]. - Current assets rose to $895,543,000, compared to $887,062,000 at the end of 2024, reflecting an increase of about 0.54%[43]. - Trade accounts receivable increased by 21.7% to $171,460,000 from $140,867,000[43]. - Total liabilities increased to $547,128,000, up from $500,699,000, marking a rise of approximately 9.2%[43]. - Stockholders' equity decreased to $2,076,766,000 from $2,090,817,000, a decline of about 0.67%[43]. - Retained earnings decreased to $1,838,254,000 from $1,851,040,000, a reduction of approximately 0.69%[43]. - Current liabilities increased to $174,352,000 from $170,430,000, an increase of about 2.1%[43]. - Long-term debt remained relatively stable at $153,767,000 compared to $153,612,000[43]. - Inventories decreased slightly to $197,645,000 from $207,590,000, a decline of about 4.3%[43]. - Short-term investments increased significantly to $33,105,000 from $14,622,000, representing a growth of approximately 126.5%[43].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Warrior Met Coal (HCC) due to lower revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - The consensus EPS estimate for the upcoming quarter is a loss of $0.05 per share, reflecting a significant year-over-year change of -101.9% [3]. - Expected revenues are projected at $275.22 million, which is a decrease of 45.3% compared to the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 119.11%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Warrior Met Coal aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [7][8]. - Warrior Met Coal currently holds a Zacks Rank of 5, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Warrior Met Coal was expected to post earnings of $0.53 per share but only achieved $0.15, resulting in a surprise of -71.70% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Warrior Met Coal does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16].

Core Viewpoint - Hanna Capital Corp. plans to raise up to $500,000 through a non-brokered private placement of secured convertible debenture units and/or units [1] Debenture Unit Offering - Each Debenture Unit consists of $10,000 principal amount of secured convertible debt and includes 500,000 common share purchase warrants [2] - Each Warrant allows the holder to acquire one common share at an exercise price of $0.05 for one year from issuance [2] - The Debentures will mature in three years, carrying an interest rate of 12% per annum, with interest paid monthly [3] - Debentures can be converted into common shares at a price of $0.01 per share [3] Unit Offering - Each Unit is priced at $0.01 and consists of one common share and one common share purchase warrant [4] - Each Warrant allows the holder to acquire one common share at a price of $0.05 for 36 months following issuance [4] Regulatory and Use of Proceeds - The private placement is subject to necessary regulatory approvals and a four-month hold period under Canadian securities laws [5] - The net proceeds will be used for general working capital [5]