Financial Data and Key Metrics Changes - The diluted EPS for Q2 2020 was $0.08 per share, an increase from $0.03 per share in Q2 2019, primarily due to costs associated with the simplification transaction in the prior year [15] - Adjusted EBITDA for Q2 2020 was $59 million, down from $63.1 million in Q2 2019, with a decrease in the Logistics segment contributing to this decline [16][17] - The cash balance at the end of the quarter was approximately $81 million, reflecting a reduction in borrowings from the revolving credit facility [18] - The company expects adjusted EBITDA for 2020 to be between $190 million and $200 million, a reduction of $40 million to $50 million from previous guidance [9][25] Business Line Data and Key Metrics Changes - Domestic coke sales volumes were 977,000 tons in Q2 2020, impacted by customer volume relief, with adjusted EBITDA per ton increasing to approximately $63 from $55 in Q2 2019 [21][22] - The Logistics segment saw a decrease in throughput volumes, handling approximately 2.7 million tons less than the prior year, significantly affected by the bankruptcy of Foresight Energy [16][23] Market Data and Key Metrics Changes - Steel capacity utilization remains low at approximately 59%, with uncertainty regarding the timing of a full recovery in demand [6] - Domestic demand for foundry coke is approximately 600,000 tons per year, with recent shutdowns of foundry coke producers leading to increased interest in domestic supply [12] Company Strategy and Development Direction - The company is pursuing a new business line in foundry coke, targeting an initial production of approximately 100,000 tons in 2021, with plans for further market penetration [11][14] - Investments of approximately $12 million are being made to support the transition to foundry coke production, with expectations of a short payback period [14] - The company aims to maintain a low-cost structure and has implemented workforce reductions to achieve permanent annual savings of approximately $10 million starting in 2021 [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing challenges in market conditions due to the COVID-19 pandemic but emphasizes the importance of long-term customer relationships and operational stability [5][6] - The company remains focused on optimizing operations and maintaining asset integrity, even as it navigates lower volume levels [26][27] - Management expresses confidence in capturing significant market share in the foundry coke market and maintaining strong margins through disciplined cost management [50][55] Other Important Information - The company has declared a dividend of $0.06 per share for the quarter, indicating confidence in its liquidity despite challenging market conditions [19] - The gross leverage at the end of the quarter was 3.3 times, with a target to reduce it to 3 times or lower over time [20] Q&A Session Summary Question: Which facility will be producing the foundry coke? - The foundry coke will be produced at the Jewell facility, which is logistically positioned to be the most efficient producer [32] Question: What is the expected EBITDA margin for foundry coke? - The margins are expected to be attractive on a time basis, with a two-for-one replacement ratio for blast furnace coke [33] Question: What is the current state of the Haverhill contract? - The company anticipates shipping 800,000 tons from both facilities in 2021, with flexibility in production sourcing [34][36] Question: How does the company plan to address the volume decline to ArcelorMittal? - The company is in constant dialogue with customers regarding their long-term requirements for coke [38] Question: What is the strategy for asset sales? - The company is not currently focused on asset sales due to the pandemic's impact on the market [46] Question: How does the company plan to fill the gap created by new contracts? - The company plans to fill the gap through both traditional blast furnace customers and continued success in foundry coke [66]

SunCoke Energy, Inc. Q2 2020 Earnings Conference Call Forward‐Looking Statements This slide presentation should be reviewed in conjunction with the Second Quarter 2020 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on August 3, 2020. This conference call contains "forward‐looking statements" (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Such forward‐looking statements include statements t ...