Fourth Quarter 2025 Earnings Supplement February 12, 2026 FORWARD-LOOKING STATEMENTS This communication contains certain "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements may be identified by words such as "years ahead," "look forward" and similar expressions. Forward-looking statements are not statements of historical fact and reflect Core's current views about future events. No assurances can be given that the forward-looking statements contained in thi ...

Macroeconomic Insights - January non-farm employment data exceeded expectations with an increase of 130,000 jobs, significantly higher than the anticipated 65,000[2] - The unemployment rate unexpectedly dropped to 4.3%, despite a rise in labor participation rate[2] - The Federal Reserve may pause interest rate cuts until June, with market expectations for a rate cut probability of less than 6% in March[3] Inflation and Economic Trends - The U.S. economy is transitioning from a "K-shaped" recovery to a "re-inflation" phase, with high-net-worth individuals stabilizing the economy through refinancing[6] - Inflation expectations are self-reinforcing, with actual mortgage rates at a three-year low, contributing to a recovery in the housing sector[8] - The housing affordability index remains above 100, indicating that median-income households can still afford homes despite high prices[21] Industry-Specific Developments - The traditional electronic fabric market is experiencing accelerated price increases due to supply shortages, with prices rising by 0.5-0.6 RMB/m[43] - The AI electronic fabric sector is expected to see significant growth in 2026, driven by demand from AI chips and consumer electronics[46] - The coal industry is projected to benefit from a resurgence in coal power in the U.S., with companies like Peabody Energy and China Shenhua expected to gain[51]

Group 1: ETF Market Overview - The ETF market in China has rapidly developed over the past few years, forming a comprehensive product system that covers various asset types and investment markets, including domestic and international markets [3] - ETFs are categorized by asset type into three main categories: equities, bonds, and commodities, with equity ETFs further divided into broad-based, sector, thematic, and strategy types [3] - The complete and evolving ecosystem of ETFs provides essential tools for investors to conduct refined and diversified asset allocation [3] Group 2: Military Industry Developments - The successful flight test of the Long March 10 rocket and the Dream Chaser spacecraft marks a significant breakthrough in China's manned lunar exploration program, with expectations for rapid development in space economy sectors such as space tourism and resource development during the 14th Five-Year Plan [7][8] - The Chinese government aims to achieve its first manned moon landing by 2030, with a series of planned missions leading up to this goal, including the launch of the Chang'e 7 and Chang'e 8 missions [8] - The military industry is expected to see commercial space ventures become a core investment direction during the 14th Five-Year Plan, driven by advancements in space exploration projects [8][9] Group 3: Absolute and Relative Return Strategies - Five absolute return strategies have been constructed, with annualized returns ranging from 6.74% to 11.66% over various periods, indicating the potential for stable returns through diversified asset combinations [4] - Relative return strategies include style rotation and industry rotation, with annualized returns for style rotation strategies reaching up to 26.65% and industry rotation strategies achieving returns of 20.17% [5] Group 4: Service Industry Insights - The service industry in China has significant potential for growth, with the value-added share expected to increase as the economy transitions from goods to services, reflecting a shift in consumer behavior [15][16] - The analysis indicates that sectors such as retail, dining, and healthcare within the service industry have considerable room for improvement, driven by demand and productivity changes [18]

Investment Rating - The report assigns an "Overweight" rating for the coal industry [2] Core Insights - The report anticipates a significant resurgence in U.S. coal demand, driven by the abandonment of decarbonization policies under the Trump administration, which is expected to lead to a 12.4% increase in coal consumption over the next decade [10][11] - The U.S. coal industry is at a historical turning point, with a projected increase in coal demand of 12-15 million tons by 2025 due to rising electricity needs driven by AI and extreme climate impacts [11][39] - The report emphasizes the importance of coal and natural gas as reliable baseload energy sources to address the electricity shortages exacerbated by AI-driven demand [10][31] Summary by Sections Investment Overview - The report highlights the critical role of clean coal resources in meeting rising electricity demand due to domestic manufacturing and AI data processing centers [9] U.S. Electricity Shortage and Energy Cycle - The U.S. is facing a dual challenge of both electricity load and quantity shortages, with coal and natural gas identified as key solutions [31] - The report predicts that by 2030, U.S. electricity demand will exceed 5.1 trillion kWh, with AI data centers contributing significantly to this increase [16][18] U.S. Coal Market Outlook - The report forecasts that 2025 will mark a turning point for the U.S. coal industry, with a projected increase in coal consumption and a shift towards coal-fired power generation [39][40] - It is expected that coal demand will peak around 2028, with an increase of 12-15 million short tons compared to 2024 [46] Supply Solutions for U.S. Coal - The report suggests that domestic production capacity is limited, and the most direct solution to meet rising demand is to convert approximately 50 million tons of coal exports to domestic sales [12] - The report anticipates that the U.S. may need to increase coal imports by 20-50 million tons to balance the global coal supply-demand equation [12][25] Beneficiary Companies - Recommended companies benefiting from this trend include Peabody Energy, Core Natural Resources, and Alliance Resource Partners, along with several leading Chinese coal companies [13][14]

Core Viewpoint - The article discusses President Trump's initiative to revitalize the coal industry in the U.S. through government contracts and funding for coal power plants, signaling a renewed commitment to fossil fuels [1][2][3]. Group 1: Government Initiatives - Trump plans to instruct the Pentagon to sign contracts with coal power plants to boost the coal industry, with an executive order expected to be announced [1][2]. - The U.S. Department of Energy will allocate $175 million for upgrades to six coal power plants in Kentucky, North Carolina, Ohio, Virginia, and West Virginia [2]. - This initiative is part of Trump's ongoing efforts since his first presidential campaign to support coal miners and the coal industry [3]. Group 2: Market Reactions - Following the announcement, coal stocks in the U.S. saw significant gains, with Peabody Energy rising nearly 4% and other coal companies also experiencing increases [1]. - In the A-share market, coal stocks collectively rose over 1%, marking three consecutive days of gains, indicating strong market sentiment towards coal [1]. Group 3: Supply and Demand Dynamics - Analysts suggest that the recent rise in coal stocks is linked to expectations of price increases due to anticipated supply reductions from Indonesia, which plans to cut coal production by 24% by 2026 [4][5]. - If Indonesia's production quotas are strictly enforced, global thermal coal supply may tighten, potentially reshaping the coal supply-demand landscape and raising price levels [5]. - Domestic factors, such as declining social inventory and seasonal demand increases, are also expected to support coal prices in the near term [5].

Group 1 - Core Natural Resources, Inc. (NYSE: CNR) will discuss its fourth quarter 2025 financial results on February 12, 2026, at 10:00 a.m. Eastern time [1] - The earnings release will be distributed via PR Newswire before the market opens on February 12 and will be posted on the company's website [3] - Interested participants can access the conference call by dialing 800-836-8184 or +1 646-357-8785 for international calls, with no passcode required [2] Group 2 - Core Natural Resources, Inc. is a producer of high-quality metallurgical and thermal coals, operating large-scale, low-cost longwall mines and one of the world's largest surface mines [4] - The company plays a crucial role in meeting global demands for steel, infrastructure, and energy, while also supporting U.S. power generation needs [4] - Core was formed in January 2025 through the merger of CONSOL Energy and Arch Resources and is headquartered in Canonsburg, Pennsylvania [4]

Summary of Mining Equities Conference Call Industry Overview - **Sector Performance**: In 2025, mining equities outperformed equity benchmarks, primarily driven by gold and copper, while ferrous metals and energy remained flat or declined [1][15] - **2026 Outlook**: Expectations for copper, aluminium, and lithium to outperform due to supply constraints and energy transition, with a cautious view on traditional end markets in developed economies [2][15] Key Commodities Insights Copper - **Market Dynamics**: The medium-term outlook for copper remains bullish, with expectations of market tightness in 2026 due to limited growth in global mine output and a deficit in refined output [3][4] - **Investment Opportunities**: Freeport is highlighted as a top pick due to its discounted valuation and expected production recovery at the Grasberg mine [4][23] Aluminium - **Demand vs Supply**: The outlook for aluminium is mixed; while demand holds up, supply constraints are expected, particularly from China and developed markets [5][24] - **Investment Recommendation**: A buy recommendation for Norsk Hydro is reiterated, with expectations of stable operations and potential cash returns [8][24] Gold - **Market Sentiment**: Gold remains a consensus macro trade, with equities delivering strong returns in 2025. However, valuations are less compelling than at the start of the year [9][22] - **Top Picks**: Barrick and Newmont are identified as top picks, with potential for further catalysts in 2026 [10][22] Iron Ore - **Price Forecast**: The medium-term outlook for iron ore is bearish, with prices expected to stabilize around $100/t in the short term and decline to $90/t by 2027 due to increased supply from Simandou [11][20] Coal - **Market Conditions**: Met coal prices have risen above $200/t due to demand and supply disruptions, while thermal coal remains stable at $110/t [12][20] Diversified Miners - **Performance Comparison**: Vale outperformed in the bulks sector, while RIO and BHP performed in line with benchmarks. A preference for RIO over Vale and BHP is noted due to better growth prospects [13][25] Earnings and Price Target Changes - **Adjustments**: Earnings estimates and price targets have been adjusted based on commodity price forecasts, with notable upgrades for copper miners like FCX and KGHM [28][29] Conclusion - **Investment Strategy**: The report emphasizes a selective investment approach in mining equities, focusing on commodities with strong fundamentals and potential for price gains, particularly copper, aluminium, and gold [2][15][22]

Group 1 - Summit Street Capital Management increased its stake in Core Natural Resources (CNR) by 81,170 shares during the third quarter, adding approximately $10.4 million in position value, bringing the total stake to 342,155 shares valued at $28.6 million as of September 30 [1][2] - The CNR position now represents 3.9% of Summit Street's 13F assets, making it the fund's fourth-largest holding [3] - As of the latest report, CNR shares were priced at $82.54, reflecting a 29% decline over the past year, underperforming the S&P 500, which increased by 13% during the same period [3] Group 2 - Core Natural Resources is a leading U.S.-based coal producer with vertically integrated mining and export operations, serving a diverse customer base in the energy and industrial sectors [6][9] - The company reported revenue of $3.7 billion and a net income loss of $43.4 million for the trailing twelve months [4] - CNR's latest quarter showed revenue of $1 billion, net income of $31.6 million, and adjusted EBITDA of $141.2 million, supported by 13 million tons of Powder River Basin shipments [11] Group 3 - CNR has returned approximately 100% of free cash flow to shareholders through repurchases and dividends year-to-date, ending the quarter with $995 million in liquidity [11] - The company's operational resilience is highlighted by its ability to manage disruptions without eroding cash flow, which is a positive indicator for long-term investors [10]

Financial Performance - Core reported net income of $31.6 million, or $0.61 per diluted share, and adjusted EBITDA of $141.2 million in Q3 2025, which included $18.4 million of fire extinguishment and idle mine cash costs at Leer South and a $19.4 million initial recovery of insurance proceeds related to the Leer South combustion-related event[6] - The company generated net cash provided by operating activities of $87.9 million and free cash flow of $38.9 million[6] - Core increased cash and cash equivalents by $31.5 million and overall liquidity by $47.5 million[6] Capital Return Program - Core returned $24.6 million to stockholders via share repurchases and quarterly dividends in Q3 2025, increasing the year-to-date capital return total to $218.3 million[6] - Since February 20, 2025, Core has reduced shares outstanding by approximately 5.2%[19] - As of September 30, 2025, Core had $797.4 million of remaining authorization under its existing $1.0 billion share repurchase program[22] Operational Highlights - The company achieved a strong production and sales volume performance at the Pennsylvania Mining Complex[6] - Core transitioned to a more advantageous reserve area at the West Elk mine[6] - The company raised PRB volume guidance again, taking advantage of improving domestic coal generation[6] - Core signed commitments across all segments and all periods totaling nearly 26 million tons[6] - In 2024, the company's sales volume was 85 million tons and revenue was $4.6 billion[7] Market Position and Strategy - The company has a 35% interest in Dominion Terminal Associates ("DTA")[13] - The company has 27 Mtpa export capacity via ownership interests in two marine terminals[13] - The high calorific value thermal segment has a committed book of ~17 million tons and the Powder River Basin segment has a committed book of business of ~40 million tons for delivery in 2026[28]

Core Insights - Warrior Met Coal (HCC) reported quarterly earnings of $0.7 per share, exceeding the Zacks Consensus Estimate of a loss of $0.2 per share, but down from $0.8 per share a year ago, representing an earnings surprise of +450.00% [1] - The company posted revenues of $328.59 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.58% and slightly up from $327.72 million year-over-year [2] - Warrior Met Coal shares have increased approximately 19.5% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Warrior Met Coal's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.36 on revenues of $317.33 million, and -$0.61 on revenues of $1.22 billion for the current fiscal year [7] Industry Context - The coal industry, to which Warrior Met Coal belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, indicating a challenging environment [8] - Another coal company, Core Natural Resources, is expected to report a quarterly loss of $1.40 per share, reflecting a year-over-year change of -143.5%, with its consensus EPS estimate revised 46.4% lower in the last 30 days [9]