Financial Data and Key Metrics - Q1 2024 net income on a GAAP basis was $137 million or $2 62 per diluted share compared to $182 million or $3 51 per diluted share in Q1 2023 [21] - Non-GAAP adjusted net income for Q1 2024 was $2 63 per diluted share compared to $3 57 per diluted share in Q1 2023 [21] - Adjusted EBITDA for Q1 2024 was $200 million compared to $259 million in Q1 2023 with an adjusted EBITDA margin of 40% vs 51% in Q1 2023 [21] - Total revenues for Q1 2024 were $504 million compared to $510 million in Q1 2023 a decrease of $6 million primarily due to a 9% decrease in average net selling prices offset by a 9% increase in sales volume [21] - Free cash flow for Q1 2024 was $2 million compared to $110 million in Q1 2023 primarily due to higher accounts receivable and Blue Creek CapEx spending [61] Business Line Data and Key Metrics - Q1 2024 sales volume was 2 1 million short tons 9% higher than Q1 2023 driven by increased production volumes following the end of the labor strike [3] - Production volume in Q1 2024 was 2 1 million short tons 17% higher than Q1 2023 the highest quarterly production output in the last three years [59] - Cash cost of sales in Q1 2024 was $284 million or 57% of mining revenues compared to $232 million or 46% in Q1 2023 [72] - The company spent $102 million on CapEx and mine development in Q1 2024 including $69 million on the Blue Creek project [59] Market Data and Key Metrics - Q1 2024 sales by geography were 44% into Europe 18% into South America and 38% into Asia with Asian sales up 17 percentage points compared to Q1 2023 [3] - Spot volume in Q1 2024 was 37% higher than the 29% in Q1 2023 with expectations for spot volume to be approximately 25% of total sales volume for the full year [3] - The PLV FOB Australia Index ended Q1 2024 at $2 22 per short ton $72 lower than its December 31st value and $85 lower than the peak of $307 per short ton achieved in early January [50] - Global pig iron production decreased by approximately 1 4% for the first three months of 2024 compared to the prior year period with Chinese production down 2 9% and the rest of the world up 1 9% [50] Company Strategy and Industry Competition - The company is focused on the disciplined development of the Blue Creek growth project which is on track for the first development tons from continuous miner units in Q3 2024 and longwall start-up in Q2 2026 [4][20] - Blue Creek is expected to produce 4 8 million short tons of premium High Vol A steelmaking coal annually after the longwall start-up enhancing the company's global cost curve positioning and delivering incremental profit and cash flows [4] - The company expects demand from the world's largest met coal import regions to remain softer in Q2 2024 with pricing expected to remain lower compared to Q1 2024 potentially challenging higher cost and marginal producers [5] Management Commentary on Operating Environment and Future Outlook - Management expects Q2 2024 demand to be subdued in India due to national elections and the monsoon season while remaining cautious on China due to weak property and construction segments [5] - The company expects disruptions caused by the Baltimore bridge collapse to be manageable and contained within Q2 2024 [5] - Management is focused on maximizing average net selling prices and managing higher than normal inventory levels if necessary [5] - The company reaffirmed its full-year 2024 outlook expecting better demand in the second half of the year [61] Other Important Information - The company's headcount was 33% higher at the end of Q1 2024 compared to Q1 2023 primarily due to the end of the labor strike [59] - The company plans to begin accepting applications for positions at the Blue Creek Mine in Q2 2024 [59] - The company's total available liquidity at the end of Q1 2024 was $801 million consisting of cash and cash equivalents of $694 million and $107 million available under its ABL facility [61] Q&A Session Summary Question: Near-term outlook for Q2 shipments and realizations - Management expects lower shipments in Q2 but realizations to continue the favorable trend from Q1 [22] - Spot opportunities are expected to remain scarce and skewed towards the Pacific Basin [5] Question: Capture rate of 84% in Q1 - The capture rate is calculated as the net average selling price divided by the average index price for the quarter [28] Question: Split between CFR and FOB business by mine - All coal flowing into Europe (44% of Q1 sales) is FOB while South America (18%) is also FOB with a smaller percentage going into Asia as FOB [43] Question: Blue Creek development progress and production expectations - The company expects to produce approximately 200 000 short tons of High Vol A steelmaking coal in H2 2024 with development tons sold in H2 2025 after the preparation plant comes online [20] - The company plans to run three continuous miner units by year-end 2024 producing about 200 000 tons clean equivalent with total production of about 1 million tons by mid-2025 [75] Question: Logistics and port upgrades - Improvements at the Port of Mobile have made a significant difference in efficiency with longer transit times due to issues in the Red Sea and Panama Canal impacting transportation costs [38] Question: Labor hiring progress - The company is on schedule with hiring plans for 2024 including 100 positions at Blue Creek and has seen a strong reception from applicants [76] Question: Blue Creek incremental volume contracting - The company plans to canvas customers for test volumes rather than selling into the spot market [77]

Warrior Met Coal (HCC) came out with quarterly earnings of $2.63 per share, beating the Zacks Consensus Estimate of $2.02 per share. This compares to earnings of $3.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 30.20%. A quarter ago, it was expected that this company would post earnings of $3.16 per share when it actually produced earnings of $2.49, delivering a surprise of -21.20%.Over the last four quarters, the company ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-38061 Warrior Met Coal, Inc. (Exact name of registrant as specified in its charter) Delaware 81-0706839 (State ...

Exhibit 99.1 Warrior Reports First Quarter 2024 Results Achieved net income of $137.0 million and adjusted EBITDA of $200.2 million Returned $30.6 million to stockholders through quarterly dividend and special cash dividend Continued making excellent progress in the ongoing development of Blue Creek BROOKWOOD, AL - May 1, 2024 - Warrior Met Coal, Inc. (NYSE: HCC) ("Warrior" or the "Company") today announced results for the first quarter of 2024. Warrior is the leading dedicated U.S.-based producer and expor ...

More seaborne steelmaking coal is expected to be needed as BFBOF(1) growth comes from countries that do not have access to domestic steelmaking coal. High-quality steel is required for the production of key green technologies at the core of global decarbonization initiatives. The global transition to lower carbon emissions will be fueled by steelmaking coal. High-quality steel produced using Warrior coal is vital in supporting growing demand for products foundational to an economy that prioritizes lower env ...

[Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements, emphasizing inherent risks and uncertainties that could cause actual results to differ [Overview of Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements%20Overview) This section outlines the nature of forward-looking statements, highlighting risks and uncertainties that could cause actual results to differ from projections - Forward-looking statements are based on expectations and beliefs concerning future events and are subject to uncertainties and factors that could cause **actual results to differ materially** [12](index=12&type=chunk) - Key risks and uncertainties include global pandemics (e.g., COVID-19), inflation, customer relationships, successful implementation of business strategies, transportation disruptions, cost increases for raw materials and equipment, labor issues, competition, litigation, cybersecurity threats, global steel demand, weather, decline in steelmaking coal prices, inherent mining difficulties, reserve development, geologic risks, workers' compensation, permitting challenges, environmental regulations, climate change concerns, surety bonds, indebtedness, liquidity, tax rates, dividend policy, stock repurchases, transfer restrictions, and geopolitical events [13](index=13&type=chunk)[16](index=16&type=chunk) [Glossary of Selected Terms](index=6&type=section&id=Glossary%20of%20Selected%20Terms) This section defines key technical and industry-specific terms used throughout the Annual Report [Overview of Selected Terms](index=6&type=section&id=Glossary%20of%20Selected%20Terms%20Overview) This section defines key technical and industry-specific terms used throughout the Annual Report [Part I](index=9&type=section&id=Part%20I) [Item 1. Business](index=9&type=section&id=Item%201.%20Business) This section provides a comprehensive overview of Warrior Met Coal, Inc.'s business, competitive strengths, strategies, and ESG initiatives - Warrior Met Coal, Inc. is a U.S.-based, low-cost producer and exporter of premium quality non-thermal steelmaking coal (HCC) to the global steel industry, primarily serving Europe, South America, and Asia [49](index=49&type=chunk) 2023 Steelmaking Coal Production | Metric Tons (millions) | | :--------------------- | | 6.9 | [Overview](index=9&type=section&id=Overview) This section provides an overview of the company's core business operations in mining non-thermal steelmaking coal - The company operates as a single reportable segment, focusing entirely on mining non-thermal steelmaking coal (HCC) using highly efficient longwall operations in its underground mines (Mine No. 4 and Mine No. 7) in Alabama [49](index=49&type=chunk)[50](index=50&type=chunk) - In addition to coal, the company removes and sells natural gas from its owned and leased coal seams [49](index=49&type=chunk) [Our Competitive Strengths](index=9&type=section&id=Our%20Competitive%20Strengths) This section highlights the company's key competitive advantages, including its market position, growth projects, and financial discipline - **Leading pure-play steelmaking coal producer** with substantially all revenue from premium steelmaking coal in global seaborne markets [51](index=51&type=chunk) - Blue Creek is a **world-class growth project**, expected to increase annual High Vol A production by **4.4 million metric tons** (**60% increase in annual capacity**) by **Q2 2026**, with potential for a fifth longwall to reach **9.6 million metric tons** (**98% increase**) [52](index=52&type=chunk) - Highly flexible cost structure (labor, royalties, logistics) varies with HCC prices, reducing cash requirements in lower price environments and capped in higher price environments [53](index=53&type=chunk) - **Robust logistics network** with multiple modalities (rail, barge) and terminals, providing a **significant cost advantage** due to proximity to the Port of Mobile, Alabama [54](index=54&type=chunk)[55](index=55&type=chunk) - **Clean balance sheet** with no pension or OPEB legacy liabilities, enabling strong cash flow generation and low sustaining capital expenditure requirements [57](index=57&type=chunk) - Disciplined financial policies target conservative financial leverage (**1.50 - 2.00x normalized EBITDA**) and minimum liquidity of **$250 million** during Blue Creek development [58](index=58&type=chunk) - As of **December 31, 2023**, available liquidity was **$845.6 million** (**$107.4 million ABL capacity**, **$738.2 million cash**) [58](index=58&type=chunk) - **Strong focus on reducing greenhouse gas (GHG) emissions and water usage**, with targets of **50% GHG reduction** and **25% water usage reduction by 2030** from a 2021 baseline [60](index=60&type=chunk) - In **2022**, achieved **16% reduction in total methane emissions** and **13% reduction in Scope 1 and Scope 2 GHG emissions** [61](index=61&type=chunk) [Our Business Strategies](index=11&type=section&id=Our%20Business%20Strategies) This section outlines the company's strategic objectives for maximizing production, organic growth, market reach, and technological innovation - Maximize profitable production from Mine No. 7 and Mine No. 4, aiming for **near-capacity output** (**6.9 million metric tons in 2023**) safely and efficiently [63](index=63&type=chunk) - Maximize organic growth and profitability through the development of the Blue Creek longwall mine, expected to increase annual production capacity by **60%** (**4.4 million metric tons/year**) and potentially **98%** (**9.6 million metric tons/year**) with a second longwall [64](index=64&type=chunk) - Broaden marketing reach to Asia (India and Southeast Asia) in addition to traditional European and South American markets, aiming for **better pricing relative to S&P Platts Index and East Coast High Vol A indices** [65](index=65&type=chunk) - Capitalize on technological innovation to reduce environmental impact, including installing a new Environmental Management Information System (EMIS) in **2023** and evaluating a full-scale Regenerative Thermal Oxidizer (RTO) for VAM emissions [66](index=66&type=chunk) [Description of Our Business](index=11&type=section&id=Description%20of%20Our%20Business) This section details the company's underground mining operations, recoverable reserves, and logistical advantages for export markets - Underground mining operations in Brookwood, Alabama, have approximately **82.9 million metric tons of recoverable reserves** as of **December 31, 2023**, operating at about **2,000 feet below surface** [67](index=67&type=chunk) - Mines No. 4 and No. 7 use longwall extraction technology, supported by continuous miners [68](index=68&type=chunk) - Proximity to the Port of Mobile (**300 miles**) and flexible rail/barge network provide a **cost advantage** for export to Europe, South America, and Asia [69](index=69&type=chunk) - Mine No. 7 coal historically approximates the Platts Premium Low Volatility FOB Australian Index price, while Mine No. 4 transitioned to High Vol A quality, targeting East Coast High Vol A indices [70](index=70&type=chunk) - Blue Creek has **67.6 million metric tons of recoverable reserves** and **39.7 million metric tons of coal resources exclusive of reserves**, totaling **107.3 million metric tons**, with potential to acquire adjacent reserves to reach **144 million metric tons** [72](index=72&type=chunk) [Coal Preparation and Blending](index=12&type=section&id=Coal%20Preparation%20and%20Blending) This section describes the company's processes for crushing, sizing, washing, and blending coal to meet customer quality specifications - The company utilizes preparation and blending facilities at its mine sites to crush, size, wash coal, remove impurities, and ensure **consistent quality to meet customer specifications** [73](index=73&type=chunk) [Marketing, Sales and Customers](index=12&type=section&id=Marketing,%20Sales%20and%20Customers) This section discusses the factors influencing steelmaking coal prices, the company's international marketing strategy, and sales contract terms - Steelmaking coal prices are influenced by global economy, steel demand, location, market, quality, mine costs, and customer alternatives [74](index=74&type=chunk) - Marketing strategy focuses on international markets (Europe, South America, Asia) where the company has a **shipping time and distance advantage** [74](index=74&type=chunk) - Sales are typically under fixed supply contracts (**1-3 years**) with indexed pricing, with some spot market sales [75](index=75&type=chunk) [Competition](index=13&type=section&id=Competition) This section identifies major competitors in the premium steelmaking coal market and key competitive factors - Major competitors are premium steelmaking coal producers from Australia, Canada, Russia, Mozambique, and the United States [76](index=76&type=chunk) - Competition factors include price at delivery, coal quality, customer relationships, and supply reliability [76](index=76&type=chunk) [Suppliers](index=13&type=section&id=Suppliers) This section outlines the company's key supplies and reliance on third-party suppliers for equipment and services - Key supplies include petroleum-based fuels, explosives, tires, conveyance structure, ventilation supplies, lubricants, raw materials, spare parts, and consumables [77](index=77&type=chunk) - The company uses third-party suppliers for equipment rebuilds, repairs, drilling, and construction, and is not dependent on any single supplier, though some equipment has long lead times and concentrated suppliers [77](index=77&type=chunk) [Inflation](index=13&type=section&id=Inflation) This section addresses the company's exposure to inflationary pressures on supplies, labor, and equipment repair costs, and mitigation strategies - The company is exposed to **inflation in purchasing supplies** (e.g., belt structure, roof bolts, cable, magnetite, rock dust) and labor/parts for equipment repair, leading to rising costs [78](index=78&type=chunk) - Mitigation strategies include earlier purchase orders, short-term contracts, and leveraging supplier relationships [78](index=78&type=chunk) [Environmental, Social and Governance](index=13&type=section&id=Environmental,%20Social%20and%20Governance) This section details the company's commitment to environmental stewardship, social responsibility, and robust governance practices - The company is committed to environmental stewardship, with a sustainability strategy developed in partnership with a third-party consultant, publicly available since **January 2023** [79](index=79&type=chunk) - Annual ESG sustainability report prepared in accordance with Global Reporting Initiative Standards and Sustainability Accounting Standards Board standards [79](index=79&type=chunk) [Environmental](index=13&type=section&id=Environmental) This section highlights the company's environmental performance, including methane emission reductions, water usage targets, and compliance records - Successfully captured approximately **69% of methane produced in mines in 2022**, resulting in a **16% reduction in total methane emissions** and a **13% reduction in Scope 1 and Scope 2 GHG emissions** compared to 2021 baseline, despite a **13% production increase** [82](index=82&type=chunk)[83](index=83&type=chunk) - Operates a low-quality gas plant to improve and sell otherwise unsaleable gas, and installed a flare system in **2021** to destroy methane from open degasification boreholes, offsetting over **63-thousand metric tons of CO2e in 2022** [61](index=61&type=chunk)[84](index=84&type=chunk) - Final evaluations are underway for installing the first full-scale Regenerative Thermal Oxidizer (RTO) to address ventilation air methane (VAM) emissions, with permits obtained in **2023** and fabrication anticipated in **2024** [85](index=85&type=chunk) - Achieved a **99.93% compliance record** with the EPA National Pollutant Discharge Elimination System (NPDES) program in **2022** [62](index=62&type=chunk) - Committed to new Environmental Management Information System (EMIS) software in **2023** to enhance monitoring and tracking of water quality, usage, waste management, and GHG emissions [86](index=86&type=chunk)[90](index=90&type=chunk) - Successfully completed testing of a dewatering pilot system for slurry tailings, leading to the construction of a **full-scale dry slurry system completed in October 2023**, **two years ahead of schedule** [87](index=87&type=chunk) - Plans to automate mechanical controls for water withdrawal systems at Mine 7 to recycle over **50% of processing water**, aiming to reduce overall water usage by **25% by 2030** [88](index=88&type=chunk)[89](index=89&type=chunk) - Controls nine certified tailings impoundment facilities subject to MSHA regulations, with two active high-hazard impoundments undergoing rigorous risk analyses and independent inspections [90](index=90&type=chunk) - Earned the Land Stewardship Award from the Alabama Mining Association in **2021 and 2022** for a wetland development project, demonstrating commitment to biodiversity [91](index=91&type=chunk) [Social](index=15&type=section&id=Social) This section outlines the company's social initiatives, including safety performance, employee training, benefits, diversity, and community engagement - Achieved a total incidence rate of **1.90 in 2023**, which is **57% lower than the national average** for underground coal mines (**4.39 for nine months ended September 30, 2023**) [93](index=93&type=chunk) - Conducted over **260 training sessions in 2023**, involving more than **1,500 employees**, accumulating over **36,000 hours of dedicated training** [94](index=94&type=chunk) - As of **December 31, 2023**, had **1,143 employees** (**711 hourly**, **432 salaried**), with the Board's Compensation Committee overseeing human resource policies [95](index=95&type=chunk) - Offers a **top-tier benefits package** including competitive salaries, performance-based incentives, 401(k) with company match, paid time off, Employee Assistance Program, and a volunteer PTO program launched in **2023** [96](index=96&type=chunk) - Focuses on attracting diverse talent through university partnerships, minority and veteran recruiting (including Historically Black Colleges and Universities), and internal talent development [97](index=97&type=chunk) - Invested **$0.4 million in leadership development training in 2023** and uses annual employee engagement surveys to improve culture and retention [98](index=98&type=chunk)[99](index=99&type=chunk) - As of **December 31, 2023**, the Board was **33% female** and **17% racially/ethnically diverse**; over **24% of the workforce was racially/ethnically diverse** (up from **18% in 2022**) [100](index=100&type=chunk) - Committed to human rights, with policies and enhanced training in **2024** on human rights, anti-bullying, harassment, and discrimination [101](index=101&type=chunk) - Contributed over **$1 million to local nonprofits in 2023** through sponsorships and donations, fostering community engagement [102](index=102&type=chunk) [Governance](index=16&type=section&id=Governance) This section describes the Board's oversight of ESG matters and the roles of various committees in ensuring sustainability and compliance - The Board oversees ESG matters, with the Nominating and Corporate Governance Committee developing guidelines and the Audit, Compensation, and Sustainability, Environmental Health and Safety (EHS) Committees providing oversight [103](index=103&type=chunk) - The EHS Committee receives quarterly reports from management to review and discuss sustainability, environmental, health, and safety initiatives and compliance [104](index=104&type=chunk) [Environmental and Regulatory Matters](index=16&type=section&id=Environmental%20and%20Regulatory%20Matters) This section details the extensive federal, state, and local environmental laws and regulations governing the company's operations - The company's operations are subject to numerous federal, state, and local environmental laws and regulations, including the Clean Air Act, Clean Water Act, RCRA, CERCLA, Endangered Species Act, and SMCRA [105](index=105&type=chunk)[106](index=106&type=chunk) - Compliance with these evolving laws can be costly, time-consuming, and may delay or restrict operations, potentially increasing capital, operating, and compliance costs [106](index=106&type=chunk)[107](index=107&type=chunk) [Permitting and Approvals](index=17&type=section&id=Permitting%20and%20Approvals) This section discusses the numerous governmental permits and approvals required for mining operations and potential delays or denials - Numerous governmental permits and approvals are required for mining and natural gas operations, involving extensive data submission and comprehensive reclamation plans [108](index=108&type=chunk) - Permit applications are subject to public comment and potential litigation, which can cause **significant delays or denials**, adversely affecting business [109](index=109&type=chunk) [Mine Safety and Health](index=17&type=section&id=Mine%20Safety%20and%20Health) This section outlines the rigorous safety and health standards under federal acts that impact operating costs and procedures - Operations are subject to rigorous safety and health standards under the Federal Mine Safety and Health Act of **1977** (Mine Act) and the MINER Act, affecting training, procedures, ventilation, and equipment [110](index=110&type=chunk) - MSHA monitors compliance through inspections and enforcement, and these regulations **significantly impact operating costs** [110](index=110&type=chunk) [Workers' Compensation and Black Lung](index=18&type=section&id=Workers'%20Compensation%20and%20Black%20Lung) This section details the company's responsibilities for workers' compensation and black lung disease benefits, including collateral requirements - The company is insured for workers' compensation benefits and is responsible for medical/disability benefits for black lung disease under federal law [111](index=111&type=chunk)[112](index=112&type=chunk) - Assumed Walter Energy's black lung liabilities and is self-insured for these, posting **$18.6 million in surety bonds** and **$9.0 million in collateral** (short-term investments) as of **December 31, 2023** [113](index=113&type=chunk) - The DOL initially requested an increase in collateral to **$39.8 million**, which was appealed and lowered to **$28.0 million**, with a further appeal ongoing [113](index=113&type=chunk) - Proposed rules may require security of at least **120% of projected liabilities** [113](index=113&type=chunk) - Changes in the Patient Protection and Affordable Care Act could **materially impact black lung program costs** [113](index=113&type=chunk) [Surface Mining Control and Reclamation Act](index=18&type=section&id=Surface%20Mining%20Control%20and%20Reclamation%20Act) This section describes the environmental protection and reclamation standards required by SMCRA, including bonding and potential liabilities - SMCRA requires comprehensive environmental protection and reclamation standards for mining activities, including permits from federal or state authorities (e.g., Alabama Surface Mining Commission) [114](index=114&type=chunk) - Mine operators must submit bonds to secure reclamation obligations, and a general funding fee is imposed on coal production for the Abandoned Mine Land Fund, extended through **September 2034** [116](index=116&type=chunk) - Extensive coal refuse areas and slurry impoundments are subject to regulation; structural failure could lead to environmental damage, personal injury, property damage, and **substantial claims/penalties** [117](index=117&type=chunk) - The 'Stream Protection Rule' was disapproved in **2017**, reverting to **1983** rules requiring operations to be **100 feet from streams** or minimize damage, with future Biden Administration actions unclear [118](index=118&type=chunk) - Drainage from mining activities can be acidic (AMD), potentially incurring **significant future treatment costs** [119](index=119&type=chunk) [Surety Bonds/Financial Assurance](index=19&type=section&id=Surety%20Bonds/Financial%20Assurance) This section explains the requirement for surety bonds or other security for long-term obligations and the challenges in obtaining them - Federal and state laws require surety bonds or other security for long-term obligations like mine closure/reclamation costs, workers' compensation, and black lung benefits [120](index=120&type=chunk) - Surety bond rates have increased, market terms are less favorable, and the number of issuers has decreased, potentially requiring collateral (e.g., letters of credit) [121](index=121&type=chunk) - As of **December 31, 2023**, the company had **$44.3 million in surety bonds** for post-mining reclamation, **$18.6 million for black lung liabilities**, and **$5.2 million for miscellaneous purposes** [121](index=121&type=chunk) [Climate Change](index=19&type=section&id=Climate%20Change) This section addresses the impact of global climate change concerns, GHG emissions regulations, and extreme weather on operations and demand - Global climate change concerns and GHG emissions (carbon dioxide, methane) directly impact operations and product end-use [122](index=122&type=chunk) - Regulations like the EPA's endangerment findings and the Inflation Reduction Act of **2022** (IRA) incentivize renewable energy and carbon capture, potentially **decreasing demand for fossil fuels** [123](index=123&type=chunk) - The Paris Agreement and subsequent international commitments (e.g., Glasgow Climate Pact) aim to reduce GHG emissions, potentially **adversely affecting the market for steelmaking coal** [126](index=126&type=chunk) - Methane must be expelled from underground mines for safety; captured methane is sold, but vented methane could face future regulation, **increasing costs or curtailing production** [127](index=127&type=chunk) - Climate change may cause more extreme weather, interfering with services and increasing costs, with potential for uninsured damages [129](index=129&type=chunk) [Clean Air Act](index=21&type=section&id=Clean%20Air%20Act) This section discusses the Clean Air Act's direct and indirect impacts on coal mining through permitting and emission control requirements - The Clean Air Act directly impacts coal mining through permitting and emission control requirements for particulate matter (e.g., fugitive dust) and indirectly by regulating emissions from steel manufacturers and coal-fired utilities [130](index=130&type=chunk) - Proposed new, more stringent emission standards for hazardous air pollutants for integrated iron and steel manufacturing facilities could **increase operating costs** [130](index=130&type=chunk) [Clean Water Act](index=21&type=section&id=Clean%20Water%20Act) This section outlines the Clean Water Act's restrictions on pollutant discharges, permitting requirements, and recent regulatory changes - The CWA restricts pollutant discharges into U.S. waters, requiring permits (NPDES program) and pre-treatment of wastewater [131](index=131&type=chunk) - Mining activities impacting waters of the U.S. (e.g., refuse impoundments) require Section 404 permits from the USACE [131](index=131&type=chunk) - Recent regulatory actions and Supreme Court decisions (**May 2023**) have narrowed the scope of 'waters of the United States,' providing clarity but also potential for future changes [131](index=131&type=chunk)[132](index=132&type=chunk) [Resource Conservation and Recovery Act](index=22&type=section&id=Resource%20Conservation%20and%20Recovery%20Act) This section describes RCRA standards for waste management and the potential impact of reclassifying coal mine wastes - RCRA establishes standards for managing solid and hazardous wastes from facilities and addresses past hazardous waste practices [133](index=133&type=chunk) - Certain coal mine wastes (overburden, coal cleaning wastes) are currently exempt from hazardous waste management; any reclassification could **significantly increase mining costs** [134](index=134&type=chunk) [Comprehensive Environmental Response, Compensation and Liability Act](index=22&type=section&id=Comprehensive%20Environmental%20Response,%20Compensation%20and%20Liability%20Act) This section explains CERCLA's requirements for hazardous substance releases and potential liabilities for current or past properties - CERCLA imposes investigation and cleanup requirements for hazardous substance releases, with potential for **joint and several liability** on operators, generators, and site owners [135](index=135&type=chunk) - Even non-hazardous coal mining wastes can contain hazardous substances, potentially triggering CERCLA liability for current or past properties and waste disposal sites [135](index=135&type=chunk) [Endangered Species Act and Similar Laws](index=22&type=section&id=Endangered%20Species%20Act%20and%20Similar%20Laws) This section discusses the Endangered Species Act's potential to prohibit or delay mining permits and impose activity restrictions - The Endangered Species Act and related statutes protect threatened/endangered species, potentially **prohibiting or delaying mining permits** and imposing activity restrictions [136](index=136&type=chunk) - Designation of new protected species in operating areas could lead to **additional costs, delays, or bans** [136](index=136&type=chunk) [Seasonality](index=22&type=section&id=Seasonality) This section clarifies that the company's business is not materially impacted by seasonal fluctuations, but rather by global economic factors - The company's primary business is **not materially impacted by seasonal fluctuations**; demand for steelmaking coal is more influenced by the global economy, steel demand, interest rates, and commodity prices [137](index=137&type=chunk) [Available Information](index=22&type=section&id=Available%20Information) This section indicates where the company's public filings and other information can be accessed - The company files annual, quarterly, and current reports, proxy statements, and other information with the SEC, available on **sec.gov** and its website (**warriormetcoal.com**) [138](index=138&type=chunk)[139](index=139&type=chunk) - Common stock is listed and traded on the New York Stock Exchange under the symbol **'HCC'** [4](index=4&type=chunk)[139](index=139&type=chunk) [Item 1A. Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) This section details substantial risks that could adversely affect the company's business, financial condition, and results of operations - The business faces substantial risks, including global economic deterioration, unsuccessful Blue Creek development, transportation disruptions, labor issues, intense competition, foreign market uncertainties, litigation, cyber-attacks, and loss of key personnel [145](index=145&type=chunk) - Industry-specific risks include a substantial decline in steelmaking coal prices/demand, customer evaluation of alternative steel production technologies, and lack of business diversification [145](index=145&type=chunk) - Regulatory compliance risks involve extensive environmental, health, and safety laws, permitting failures, black lung liabilities, reclamation obligations, and increased focus on environmental impacts of coal mining [146](index=146&type=chunk) - Financial risks include substantial indebtedness, inability to generate sufficient cash flow for debt service, debt agreement restrictions, interest rate risk, and limitations on utilizing federal and state tax Net Operating Losses (NOLs) [147](index=147&type=chunk) - Risks related to common stock ownership include significant market price fluctuations, public company compliance costs, dividend limitations, potential dilution from future stock issuances, and transfer restrictions (382 Transfer Restrictions) to preserve NOLs [147](index=147&type=chunk) [Summary of Risk Factors](index=24&type=section&id=Summary%20of%20Risk%20Factors) This section highlights key risks across business, industry, regulatory compliance, financial results, and common stock ownership - The summary highlights key risks across business, industry, regulatory compliance, financial results, and common stock ownership, advising readers to review the detailed descriptions [142](index=142&type=chunk) [Risks Related to Our Business](index=25&type=section&id=Risks%20Related%20to%20Our%20Business) This section outlines risks related to global pandemics, economic conditions, cost increases, customer contracts, and project development - Global pandemics (e.g., COVID-19) can disrupt production, impact customer demand, and affect supplier capabilities, especially in Asia and Europe [149](index=149&type=chunk)[150](index=150&type=chunk) - Deterioration in global economic conditions, including ongoing wars (Russia-Ukraine, Israel-Hamas), trade sanctions, and inflation, can **adversely affect steelmaking coal demand, prices, and operating costs** [151](index=151&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - Increases in costs and delays in delivery of raw materials (steel, copper, rubber, fuels), mining equipment, and purchased components due to global market prices, inflation, and supplier consolidation can **negatively impact profitability** [156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - Reliance on fixed supply contracts with indexed pricing (**1-3 years**) exposes the company to commodity price risk and market fluctuations [160](index=160&type=chunk) - Failure of major customers to honor or renew contracts, or their deteriorating creditworthiness, could **materially reduce revenues and financial stability** [162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - Unsuccessful or delayed development of the Blue Creek mine, requiring substantial capital expenditures (**$319.1 million in 2023**, **$325.0-$375.0 million expected in 2024**), could **limit long-term growth and financial performance** due to financial, regulatory, environmental, and operational uncertainties [167](index=167&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) - Disruptions, unavailability, or increased costs in transportation (rail, barge) for steelmaking coal, including port congestion and demurrage fees, could **impair supply to customers and reduce profitability** [175](index=175&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) - Work stoppages (e.g., UMWA strike ending **February 2023**), labor shortages, and the need for a skilled workforce can **harm business operations and increase costs** [181](index=181&type=chunk)[182](index=182&type=chunk) - Terrorist attacks, cyber-attacks (e.g., ransomware attack in **July 2023**), or other security breaches can **negatively affect business operations, financial condition, and cash flows**, despite implemented security protocols and cyber insurance [190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - Loss of executive officers and other key personnel, who possess significant industry experience, could **harm the business** due to limited availability of replacements [195](index=195&type=chunk) [Risks Related to Our Industry](index=35&type=section&id=Risks%20Related%20to%20Our%20Industry) This section details industry-specific risks, including volatile coal prices, demand fluctuations, operational hazards, and ESG perceptions - Profitability is highly dependent on **volatile steelmaking coal prices**, driven by global supply/demand, steel prices, economic conditions, geopolitical events, and transportation capacity [196](index=196&type=chunk)[197](index=197&type=chunk) - Oversupply, reduced steel production, use of substitutes for steel (aluminum, composites, plastics), or less expensive substitutes for steelmaking coal (e.g., electric arc furnaces, PCI processes) could **significantly reduce demand and prices for HCC** [198](index=198&type=chunk)[199](index=199&type=chunk) - Substantially all (**98.3% in 2023**) of revenues are from steelmaking coal sales, making the company **vulnerable to adverse economic conditions** in the steelmaking industry and lacking business diversification [200](index=200&type=chunk) - Geographic concentration of all mining operations in Alabama exposes the company to **disproportionate impacts** from significant governmental regulation, transportation constraints, equipment shortages, extreme weather, natural disasters, or other localized events [201](index=201&type=chunk) - Steelmaking coal mining involves inherent hazards and operating risks (geological conditions, equipment failures, natural disasters, accidents) that can **disrupt operations, decrease production, and increase costs**, with insurance potentially insufficient to cover all claims [202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[207](index=207&type=chunk) - Increased attention to climate change and ESG matters by investors and financial institutions can lead to **negative perceptions, lower ESG scores, restricted access to capital/financing, higher borrowing costs, and increased insurance premiums or reduced coverage** [211](index=211&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) - Defects in title or leasehold interests for properties or reserves could **limit mining ability or result in unanticipated costs**, as title insurance is not held for all interests [220](index=220&type=chunk) - Uncertainties in estimating proven and probable steelmaking coal reserves, based on geological data, operational experience, and future pricing/costs, could lead to **inaccuracies and decreased profitability** [221](index=221&type=chunk)[222](index=222&type=chunk) - Inability to develop or acquire economically recoverable steelmaking coal reserves to replace depleted ones could **significantly decrease future production and adversely impact cash flows** [223](index=223&type=chunk) - Significant downtime of major mining equipment (longwall systems, continuous miners, preparation plant) due to damage or regulatory changes could **impair supply and materially affect financial results** [224](index=224&type=chunk)[225](index=225&type=chunk) - Failure to recover investments in mining, exploration, and other assets due to unfavorable economic conditions or operational difficulties may require recognition of impairment charges [226](index=226&type=chunk)[227](index=227&type=chunk) [Risks Related to Regulatory Compliance](index=41&type=section&id=Risks%20Related%20to%20Regulatory%20Compliance) This section covers risks associated with black lung liabilities, permitting, environmental laws, mine closures, and surety bond requirements - Responsibility for black lung disease benefits, including self-insured liabilities from Walter Energy, is subject to changes in estimated claims or collateral requirements by the DOL, potentially **impacting profitability and cash flows** [228](index=228&type=chunk)[229](index=229&type=chunk) - Failure to obtain and renew numerous mining permits, which are subject to complex rules, frequent changes, discretionary interpretations, and public objections, could **restrict operations, reduce production, and harm profitability** [230](index=230&type=chunk)[231](index=231&type=chunk) - Extensive federal and state environmental, health, and safety laws (e.g., Clean Air Act, Clean Water Act, SMCRA, black lung) impose **significant costs, reduce productivity**, and may become more stringent, **adversely affecting operations and competitiveness** [232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - Federal, state, or local regulatory agencies have authority to temporarily or permanently close mines due to safety violations or accidents, which could **materially affect the ability to meet customer demands and incur re-opening costs** [236](index=236&type=chunk)[237](index=237&type=chunk) - Increased regulatory focus on environmental effects of coal mining, particularly water quality (e.g., CWA Section 404 permits, Stream Protection Rule), could **increase permitting costs, delay new mines, or lead to fines and penalties** [238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk) - Regulation of air emissions, including GHGs, could **increase operating costs and impact demand/price of products**; methane emissions from underground mines are a particular focus [246](index=246&type=chunk)[247](index=247&type=chunk)[249](index=249&type=chunk) - President Biden's regulatory agenda and a closely divided Congress create uncertainty, with potential for new mining or environmental laws that could **increase costs or impair development** [253](index=253&type=chunk)[254](index=254&type=chunk) - Operations may impact the environment or cause exposure to hazardous substances, leading to claims for toxic torts, natural resource damages, and cleanup costs, with potential for **substantial liabilities from slurry impoundment failures or acid mine drainage (AMD)** [255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) - Failure to obtain or renew surety bonds on acceptable terms, required for reclamation and coal lease obligations, could **affect the ability to mine or lease steelmaking coal** due to increased rates, collateral demands, or reduced availability of issuers [258](index=258&type=chunk) - Reclamation and mine closing obligations are based on estimates; if assumptions are inaccurate, **greater expenditures than anticipated could be required**, materially affecting future operating results [259](index=259&type=chunk)[260](index=260&type=chunk) [Risks Related to our Financial Results and Finances](index=47&type=section&id=Risks%20Related%20to%20our%20Financial%20Results%20and%20Finances) This section addresses financial risks such as indebtedness, cash flow generation, debt covenants, interest rate exposure, and NOL utilization Outstanding Indebtedness as of December 31, 2023 | Debt Type | Amount (millions) | | :-------------------- | :---------------- | | Outstanding Indebtedness | $173.2 | | Senior Secured Notes | $156.5 | | Financing Lease Obligations | $20.2 | - Substantial indebtedness could **adversely affect the ability to raise additional capital, fund operations and dividends, limit reactions to economic/industry changes, and prevent debt service payments** [262](index=262&type=chunk) - Inability to generate sufficient cash to service debt may force actions like reducing capital expenditures, selling assets, or refinancing debt, which may not be successful [265](index=265&type=chunk) - Despite current debt levels, the company may incur substantially more debt, including secured indebtedness, which could **intensify risks** [267](index=267&type=chunk)[268](index=268&type=chunk) - Debt agreements (ABL Facility, Indenture) contain restrictive covenants limiting operational flexibility, including incurring debt, paying dividends, making investments, and selling assets [269](index=269&type=chunk)[270](index=270&type=chunk) - Failure to comply with debt covenants could result in an event of default, accelerating indebtedness and potentially leading to foreclosure or bankruptcy [271](index=271&type=chunk) - Variable rate indebtedness (ABL Facility) exposes the company to interest rate risk, which could **increase debt service obligations if rates rise** [273](index=273&type=chunk)[275](index=275&type=chunk) - Inability to generate sufficient taxable income or other circumstances could **limit the utilization of significant federal and state tax Net Operating Losses (NOLs)** or deferred tax assets [276](index=276&type=chunk)[278](index=278&type=chunk) - An 'ownership change' under Section 382 of the Code could **substantially constrain the ability to deduct NOLs**; the company has implemented 382 Transfer Restrictions and an Amended Rights Agreement to prevent this [280](index=280&type=chunk)[282](index=282&type=chunk)[284](index=284&type=chunk) - Future legislation could eliminate certain U.S. federal income tax provisions (e.g., coal percentage depletion, foreign-derived intangible income), **increasing taxable income and negatively impacting cash flows** [285](index=285&type=chunk) [Risks Related to the Ownership of our Common Stock](index=51&type=section&id=Risks%20Related%20to%20the%20Ownership%20of%20our%20Common%20Stock) This section discusses risks related to stock price fluctuations, public company compliance, dividend policies, and transfer restrictions - The market price of common stock may fluctuate significantly due to various factors, including operating results, industry performance, economic conditions, and stockholder actions, potentially leading to **substantial losses for investors** [286](index=286&type=chunk)[287](index=287&type=chunk) - Adverse changes in analyst recommendations or failure to meet expectations could cause the **stock price to decline** [288](index=288&type=chunk) - Compliance with public company requirements (Exchange Act, Sarbanes-Oxley Act) demands significant resources and management attention, potentially leading to timely or cost-effective compliance challenges and **adverse financial impacts if internal controls are ineffective** [289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) - Future dividends and stock repurchases are at the Board's discretion, dependent on financial performance, market conditions, and limited by restrictive covenants in the ABL Facility and Indenture [293](index=293&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) - Future issuances of capital stock or convertible securities could **dilute an investor's percentage ownership and influence** [296](index=296&type=chunk) - The company may issue preferred stock with terms that **adversely affect the voting power or value of common stock**, or make acquisitions more difficult [297](index=297&type=chunk) - Common stock is subject to 382 Transfer Restrictions (extended to **April 19, 2026**) and an Amended Rights Agreement to prevent an 'ownership change' under Section 382 of the Code, which could **limit NOL utilization** [298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk) - Non-compliance with transfer restrictions could result in **forfeiture or dilution** [298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk) - Provisions in the certificate of incorporation, bylaws, Delaware law, and the Amended Rights Agreement could **delay or prevent a change in control**, potentially limiting the market price of common stock [303](index=303&type=chunk)[304](index=304&type=chunk)[306](index=306&type=chunk) - Related party transactions and corporate opportunities provisions allow directors/officers and their affiliates to pursue business opportunities that might otherwise be available to the company, potentially impacting its business or prospects [307](index=307&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) [Item 1B. Unresolved Staff Comments](index=57&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This section states that there are no unresolved staff comments from the SEC [Item 1C. Cybersecurity](index=57&type=section&id=Item%201C.%20Cybersecurity) This section details the company's approach to cybersecurity risk management, strategy, and governance, including board oversight - The company continuously monitors and improves cybersecurity processes, technologies, and controls to manage material risks such as operational disruptions, intellectual property theft, fraud, and reputational damage [311](index=311&type=chunk) - Cybersecurity risk is integrated into the Enterprise Risk Management (ERM) process, evaluated based on likelihood, severity, speed of onset, and persistence, with the IT function reporting to the Chief Administrative Officer [313](index=313&type=chunk) - The company utilizes third parties for cybersecurity risk management and incident response, and has a Cyber Security Incident Response Plan to prepare for, detect, respond to, and recover from incidents [314](index=314&type=chunk) - The Board, through its Audit Committee, has **ultimate oversight of cybersecurity risks**, receiving periodic reports from management and discussing ERM updates quarterly [318](index=318&type=chunk)[319](index=319&type=chunk) [Cybersecurity Risk Management and Strategy](index=57&type=section&id=Cybersecurity%20Risk%20Management%20and%20Strategy) This section describes the company's investments in cybersecurity risk assessment, identification, management, and incident response capabilities - The company invests in people, processes, and technology to enhance cybersecurity risk assessment, identification, and management capabilities, and to strengthen its response posture [311](index=311&type=chunk) - Third-party systems and networks are also sources of cybersecurity risk; the company implements measures to secure information systems and obtains/reviews attest reports for third-party controls [312](index=312&type=chunk) - A ransomware attack in **July 2023** impacted on-premises IT systems and resulted in data theft, but the company managed the incident without **significant operational disruptions or material financial impact** [192](index=192&type=chunk)[194](index=194&type=chunk) [Cybersecurity Governance](index=58&type=section&id=Cybersecurity%20Governance) This section outlines the Audit Committee's oversight of cybersecurity risks and management's reporting on these matters - The Audit Committee oversees major financial risk exposures, including cybersecurity, and receives periodic reports from management on current and future cybersecurity risks [319](index=319&type=chunk) [Item 2. Properties](index=59&type=section&id=Item%202.%20Properties) This section describes the company's mining properties, including operating mines and the undeveloped Blue Creek mine, detailing reserves and infrastructure - As of **December 31, 2023**, the company had estimated mineral reserves totaling **159.1 million metric tons** and estimated mineral resources exclusive of reserves of **39.7 million metric tons** [325](index=325&type=chunk) - Mine No. 4 and Mine No. 7, the two operating mines, had approximately **82.9 million metric tons of recoverable reserves** [325](index=325&type=chunk) - The undeveloped Blue Creek mine contained **67.6 million metric tons of recoverable reserves** and **39.7 million metric tons of in-place mineral resources exclusive of reserves** [326](index=326&type=chunk) - All mining operations are located in Tuscaloosa County, central Alabama, benefiting from diverse and robust infrastructure, including access to major roads, power, and specialized mining service providers [329](index=329&type=chunk)[330](index=330&type=chunk) [Overview and Highlights](index=59&type=section&id=Overview%20and%20Highlights) This section provides an overview of mining property information, including production data and coal royalty expenses - Information on mining properties is prepared in accordance with subpart 1300 of Regulation S-K, which requires disclosure of mineral resources in addition to reserves [322](index=322&type=chunk) - Mineral resources are not classified as reserves unless determined to be economically viable; measured and indicated resources may not convert to reserves [323](index=323&type=chunk) Production (in thousands of metric tons) for Operating Mines | Location/Mine | 2023 | 2022 | 2021 | | :------------ | :---- | :---- | :---- | | Mine No. 4 | 2,272 | 1,415 | 736 | | Mine No. 7 | 4,664 | 4,314 | 4,349 | | Total Alabama | 6,936 | 5,729 | 5,085 | - Coal royalty expense was **$120.5 million in 2023**, **$138.9 million in 2022**, and **$65.4 million in 2021**, paid to third-party landowners for leased mineral reserves [331](index=331&type=chunk) [Summary of Mineral Reserves as of December 31, 2023](index=61&type=section&id=Summary%20of%20Mineral%20Reserves%20as%20of%20December%2031,%202023) This section presents a detailed summary of the company's proven and probable mineral reserves as of December 31, 2023 Mineral Reserves as of December 31, 2023 (in millions of metric tons) | Location/Mine | Status of Operation | Proven | Probable | Reserves | Owned | Leased | % Ash | % Sulfur | % VM | | :------------ | :------------------ | :----- | :------- | :------- | :---- | :----- | :---- | :------- | :--- | | Alabama: | | | | | | | | | | | No. 4 | Production | 36.0 | 0.5 | 36.5 | — | 36.5 | 10.2 | 1 | 30 | | No. 7 | Production | 34.1 | 12.3 | 46.4 | 0.3 | 46.1 | 10.2 | 0.7 | 22 | | Blue Creek | Development | 43.3 | 24.3 | 67.6 | 11.3 | 49.2 | 10.0 | 0.7 | 32 | | Other | Various | 8.6 | — | 8.6 | 6.9 | 1.7 | 3.2-23.5 | 0.7-6.01 | N/A | | Total | | 122.0 | 37.1 | 159.1 | 18.5 | 133.5 | | | | Change in Material Mineral Reserves (2023 vs. 2022, in millions of metric tons) | Mine | 2023 | 2022 | Change (Tons) | Change (%) | | :------- | :--- | :--- | :------------ | :--------- | | No. 4 | 36.5 | 39.2 | (2.7) | (7)% | | No. 7 | 46.4 | 49.7 | (3.3) | (7)% | | Blue Creek | 67.6 | 68.2 | (0.6) | (1)% | - Changes in proven and probable mineral reserves for Mine No. 4 and Mine No. 7 are primarily due to production and additional exploration drilling [344](index=344&type=chunk) - Blue Creek's change is due to additional exploration and property control changes [344](index=344&type=chunk) [Summary of Mineral Resources Exclusive of Reserves as of December 31, 2023](index=62&type=section&id=Summary%20of%20Mineral%20Resources%20Exclusive%20of%20Reserves%20as%20of%20December%2031,%202023) This section provides a summary of the company's mineral resources exclusive of reserves as of December 31, 2023 Mineral Resources Exclusive of Reserves as of December 31, 2023 (in millions of metric tons) | Location/Mine | Status of Operation | Measured | Indicated | Measured + Indicated | Inferred | % Ash | % Sulfur | % VM | | :------------ | :------------------ | :------- | :-------- | :------------------- | :------- | :---- | :------- | :--- | | Alabama: | | | | | | | | | | Blue Creek | Development | — | 39.7 | 39.7 | — | 18.8 | 1.4 | 31 | | Total Alabama | | — | 39.7 | 39.7 | — | | | | | Total Warrior Met Coal | | — | 39.7 | 39.7 | — | | | | Change in Material Mineral Resources (2023 vs. 2022, in millions of metric tons) | Mine | 2023 | 2022 | Change (Tons) | Change (%) | | :------- | :--- | :--- | :------------ | :--------- | | Blue Creek | 39.7 | 39.2 | 0.5 | 1% | - The change in Blue Creek's coal resources exclusive of reserves is primarily due to additional exploration and laboratory testing [346](index=346&type=chunk) [Material Mining Properties](index=62&type=section&id=Material%20Mining%20Properties) This section describes the company's key mining properties, including operational details, facilities, and reserve holdings [Mine No. 4](index=64&type=section&id=Mine%20No.%204) This section details Mine No. 4's operations, facilities, production technology, and acreage holdings - Mine No. 4, in operation since **1974**, was restarted in **April 2016** after acquisition [347](index=347&type=chunk)[351](index=351&type=chunk) - It is located **20 miles east of Tuscaloosa, Alabama**, and **30 miles southwest of Birmingham, Alabama** [351](index=351&type=chunk) - Facilities include an administration building, maintenance shop, preparation plant (**1,300 raw metric tons/hour capacity**), and stock yard, with rail (CSX) and river transportation available [351](index=351&type=chunk)[352](index=352&type=chunk) - Operates a single longwall with advanced features and three continuous mining sections [353](index=353&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk)[357](index=357&type=chunk) - Infrastructure improvements include new portal facilities in **2019, 2021, and 2023** [353](index=353&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk)[357](index=357&type=chunk) Mine No. 4 Net Book Value of Property, Plant and Equipment | As of December 31, 2023 | | :---------------------- | | $213.8 million | - Comprises approximately **46,000 total acres**, with **7,200 acres for future mining**, primarily leased mineral holdings [357](index=357&type=chunk) [Mine No. 7](index=66&type=section&id=Mine%20No.%207) This section details Mine No. 7's operations, facilities, production technology, and acreage holdings - Mine No. 7, also in operation since **1974**, was acquired in **April 2016** [358](index=358&type=chunk)[361](index=361&type=chunk) - It is located **20 miles east of Tuscaloosa, Alabama**, and **30 miles southwest of Birmingham, Alabama** [361](index=361&type=chunk) - Facilities include an administration building, maintenance shop, preparation plant (**1,260 raw metric tons/hour capacity**), and stock yard [361](index=361&type=chunk)[362](index=362&type=chunk) - It also uses Mine No. 5 preparation plant (**900 raw metric tons/hour capacity**) via an overland conveyor [361](index=361&type=chunk)[362](index=362&type=chunk) - Operates two longwall sections and six continuous mining sections [364](index=364&type=chunk)[366](index=366&type=chunk) - Infrastructure improvements include new portal facilities in **2009 and 2018** [364](index=364&type=chunk)[366](index=366&type=chunk) Mine No. 7 Net Book Value of Property, Plant and Equipment | As of December 31, 2023 | | :---------------------- | | $328.1 million | - Comprises approximately **43,000 total acres**, with **10,100 acres for future mining**, primarily leased mineral holdings [366](index=366&type=chunk) [Blue Creek](index=68&type=section&id=Blue%20Creek) This section describes the undeveloped Blue Creek mine, its growth potential, capital expenditures, and development timeline - Blue Creek is an undeveloped reserve of premium High Vol A steelmaking coal, expected to provide **significant growth and high margins** due to low production costs and high quality [367](index=367&type=chunk) - First development tons from continuous miner units are expected in **Q3 2024**, with the longwall scheduled to start in **Q2 2026** [368](index=368&type=chunk)[502](index=502&type=chunk) - Initial investment was estimated at **$650.0-$700.0 million over five years**, with project scope changes increasing total capital expenditures by approximately **$120-$130 million** due to transportation and logistics enhancements [368](index=368&type=chunk)[370](index=370&type=chunk)[497](index=497&type=chunk) - Revised plan includes building a belt conveyor system to a railroad loadout and operating its own barge loadout, **de-risking transportation and lowering operating costs** [371](index=371&type=chunk)[498](index=498&type=chunk) - The project is experiencing inflationary pressures (**25-35% since late 2021**) in operating expenses and capital expenditures, expected to be offset by inflationary increases in long-term steelmaking coal price assumptions [372](index=372&type=chunk)[499](index=499&type=chunk) Blue Creek Net Book Value of Property, Plant and Equipment | As of December 31, 2023 | | :---------------------- | | $371.9 million | - The company controls approximately **28,200 total acres** of mining rights for Blue Creek, with plans to acquire additional leases [375](index=375&type=chunk) - The estimated capital expenditures for Blue Creek in **2024** are approximately **$325 to $375 million** [501](index=501&type=chunk) [Internal Controls and Material Assumptions](index=70&type=section&id=Internal%20Controls%20and%20Material%20Assumptions) This section discusses the methodology and inherent uncertainties in estimating mineral reserves and resources - Mineral reserve and resource estimates are calculated in accordance with subpart 1300 of Regulation S-K, updated annually, and involve numerous uncertainties [505](index=505&type=chunk) - Estimates are based on engineering, economic, and geological data, operational experience, and assumptions about future pricing, operational costs, and regulatory effects [505](index=505&type=chunk)[506](index=506&type=chunk) - Actual production, revenues, and expenditures may **vary materially from estimates**, affecting projected cash flows and asset valuations [507](index=507&type=chunk) [Item 3. Legal Proceedings](index=70&type=section&id=Item%203.%20Legal%20Proceedings) This section states that current legal proceedings are not expected to materially affect the company's financial position or results - Management believes current legal proceedings will **not materially affect consolidated financial position, results of operations, or cash flows** [382](index=382&type=chunk) - The company accrues for environmental expenses when costs are probable and can be reasonably estimated, and believes it is in **substantial compliance with environmental laws** [383](index=383&type=chunk) [Item 4. Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are filed as Exhibit 95 to the Annual Report - Mine safety disclosures are filed as Exhibit 95 to this Annual Report, pursuant to Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K [384](index=384&type=chunk) [Part II](index=71&type=section&id=Part%20II) [Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=71&type=section&id=Item%205.%20Market%20For%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section provides information on the market for common stock, capital allocation policy, dividend payments, and stock repurchase programs - Common stock began trading on the NYSE under the symbol **'HCC'** on **April 13, 2017** [387](index=387&type=chunk) - The Capital Allocation Policy, adopted **May 17, 2017**, includes paying a regular quarterly cash dividend, which was **increased by 14% to $0.08 per share on February 9, 2024**, along with a **special cash dividend of $0.50 per share** [388](index=388&type=chunk)[730](index=730&type=chunk) Dividends Paid | Year Ended December 31, 2023 | | :--------------------------- | | $61.1 million | - The company intends to return cash to stockholders in stronger price markets and use stock repurchases when there is no short- or long-term use for additional cash [388](index=388&type=chunk)[461](index=461&type=chunk) - As of **January 17, 2024**, there were approximately **362 holders of record** of common stock [390](index=390&type=chunk) - No share repurchases were made during the quarter ended **December 31, 2023** [391](index=391&type=chunk) [Market Information](index=71&type=section&id=Market%20Information) This section provides details on where the company's common stock is listed and traded - The company's common stock is listed and traded on the New York Stock Exchange under the symbol **'HCC'** [387](index=387&type=chunk) [Capital Allocation Policy](index=71&type=section&id=Capital%20Allocation%20Policy) This section outlines the Board's policy for quarterly cash dividends, special dividends, and stock repurchases - The Board adopted a Capital Allocation Policy on **May 17, 2017**, to pay a quarterly cash dividend, which has been consistently paid since [388](index=388&type=chunk)[461](index=461&type=chunk) - The regular quarterly cash dividend was **increased by 20% to $0.06 per share in February 2022**, by **17% to $0.07 per share in February 2023**, and by **14% to $0.08 per share on February 9, 2024** [388](index=388&type=chunk)[461](index=461&type=chunk) - A **special cash dividend of $0.50 per share** was declared on **February 9, 2024** [388](index=388&type=chunk)[461](index=461&type=chunk) - The policy allows for special dividends or stock repurchases when excess cash is generated, subject to Board discretion and various factors, including debt covenants [389](index=389&type=chunk)[462](index=462&type=chunk) [Holders](index=71&type=section&id=Holders) This section provides the approximate number of record holders for the company's common stock - As of **January 17, 2024**, the company had approximately **362 holders of record** of its common stock [390](index=390&type=chunk) [Stock Repurchases](index=71&type=section&id=Stock%20Repurchases) This section reports on any share repurchases of common stock made during the most recent quarter - No share repurchases of common stock were made during the quarter ended **December 31, 2023** [391](index=391&type=chunk) [Stock Performance Graph](index=71&type=section&id=Stock%20Performance%20Graph) This section includes a graph comparing the company's stock performance against relevant indices - The section includes a graph comparing the cumulative total return of the company's common stock, the S&P Metals and Mining Index, and the Russell 3000 Stock Index from **April 13, 2017, through December 31, 2023** [393](index=393&type=chunk) [Item 6. [Reserved]](index=72&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=73&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of the company's financial condition and results of operations - The company is a U.S.-based, environmentally and socially minded supplier to the global steel industry, focused on mining non-thermal steelmaking coal (HCC) from its Alabama underground mines (Mine No. 4 and Mine No. 7) [397](index=397&type=chunk) - As of **December 31, 2023**, operating mines had **82.9 million metric tons of recoverable reserves**, and the undeveloped Blue Creek mine had **67.6 million metric tons of recoverable reserves** and **39.7 million metric tons of coal resources** [398](index=398&type=chunk) - Demand for the company's coal is highly correlated to global steelmaking industry conditions, which are affected by cyclicality, technological developments, and availability of substitutes for steel [399](index=399&type=chunk) [Overview](index=73&type=section&id=Overview) This section provides an overview of the company's business and the pricing dynamics of its steelmaking coal products - Mine No. 7 steelmaking coal price historically aligns with the Platts Premium Low Volatility FOB Australian Index, while Mine No. 4 coal, transitioning to High Vol A, targets East Coast High Vol A indices [398](index=398&type=chunk) [Recent Developments](index=73&type=section&id=Recent%20Developments) This section discusses recent macroeconomic factors, inflation, geopolitical events, and their impact on steelmaking coal markets - U.S. inflation remains at **3.4%**, driven by energy, food costs, supply constraints, and strong consumer demand [400](index=400&type=chunk) - Inflation is expected to continue impacting profitability due to high costs for steel, freight, labor, and supplies in the coal mining industry [400](index=400&type=chunk) - The war in Ukraine, Middle East conflict, and global macroeconomic slowdown created a **volatile year for steel demand and premium steelmaking coal** [401](index=401&type=chunk) - Seaborne steelmaking coal supply fro

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-38061 Warrior Met Coal, Inc. (Exact name of registrant as specified in its charter) Delaware 81-0706839 (S ...

Warrior Met Coal, Inc. (NYSE:HCC) Q2 2023 Earnings Conference Call August 2, 2023 4:30 PM ET Company Participants Walt Scheller - Chief Executive Officer Dale Boyles - Chief Financial Officer Conference Call Participants Lucas Pipes - B. Riley Securities Nathan Martin - Benchmark Alex Hacking - Citi Operator Good afternoon. My name is Keith, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Second Quarter 2023 Financial Results Conference Call. All l ...

Forward-looking statements Warrior These slides contain, and the officers and representatives of Warrior Met Coal, Inc. (the "Company") may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-38061 Warrior Met Coal, Inc. (Exact name of registrant as specified in its charter) Delaware 81-0706839 (State ...