Warrior Met Coal(US:HCC)2022-02-22 21:50Commodity Price Risk - The company is exposed to commodity price risk on coal sales, with most met coal sold under contracts with pricing terms of three months and volume terms of one to three years [496]. - The company manages price risk for supplies through strategic sourcing contracts with suppliers [498]. Interest Rate Risk - The company's Notes have a fixed interest rate of 7.875% per annum, payable semi-annually [500]. - The ABL Facility bears an interest rate equal to SOFR plus a credit adjustment spread, currently ranging from 11 bps to 43 bps [501]. - A 100 basis point increase in interest rates would increase annual interest expense under the ABL Facility by approximately $1.3 million, assuming $132.0 million outstanding [501]. - There has been a change in long-term debt from a fixed rate obligation to include a variable rate obligation [503]. Credit Risk - The company has not had any allowances for credit losses associated with trade accounts receivables for the years ended December 31, 2021, and 2020 [499]. - The company has substantial indebtedness and debt service requirements, which could affect liquidity and access to capital [16]. Market Conditions - Inflation has impacted global supply markets, leading to shortages and increased costs, but the company believes the effects on operations have not been significant [502]. - The broader negative effects of the COVID-19 pandemic have impacted the global economy and major financial markets [503]. - No other material changes to market risk exposure have been reported [503]. Surety Bonds and Reclamation Obligations - The company is subject to risks related to obtaining or renewing surety bonds, which could impact reclamation and coal lease obligations [16].