Financial Data and Key Metrics Changes - The company reported record liquidity of $272 million at the end of Q3 2025, up over 237% compared to the same period in 2024 [32] - Q3 adjusted EBITDA was $8.4 million compared to $9 million in Q2, with a net loss of $13 million in Q3 versus a net loss of $14 million in Q2 [35][36] - Cash cost per ton sold fell to $97, down $6 from Q2, positioning the company in the first quartile of the U.S. cash cost curve [32][33] Business Line Data and Key Metrics Changes - The metallurgical coal segment saw production fall to 945,000 tons in Q3, down from approximately 1.1 million tons in Q2, primarily due to a disciplined approach to spot sales [33][34] - The company trimmed production guidance due to weak pricing conditions in export markets, with full-year 2025 production now anticipated at 3.7 to 3.9 million tons [37] - The rare earth elements and critical minerals business is projected to generate more than $500 million of EBITDA by 2028, with a pre-tax NPV of $5.1 billion [38] Market Data and Key Metrics Changes - U.S. metallurgical coal spot price indices fell another 6% in Q3 versus Q2 and almost 20% year-over-year, impacting earnings despite strong operational achievements [34] - The rare earth and critical minerals markets are experiencing a bifurcation between Chinese and Western pricing, with significant price increases for scandium noted [41] Company Strategy and Development Direction - The company aims to establish a vertically integrated platform for critical minerals, including upstream, midstream, and downstream operations [8][10] - Plans include the construction of a commercial oxide separation and processing facility and a Strategic Critical Minerals Terminal at the Brook Mine [8][21] - The company is focusing on the rapid commercialization of rare earth elements while maintaining a cautious approach to its metallurgical coal operations [24][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges in the metallurgical coal market due to oversupply from China, impacting pricing and production [22][39] - The company is optimistic about the demand for rare earths, particularly scandium, due to geopolitical tensions and the need for reliable domestic supply [11][41] - Management emphasized the importance of maintaining a strong liquidity position to navigate current market conditions and support future growth [25][32] Other Important Information - The company has engaged with federal and state officials to expand the existing approved Brook Mine permit, which currently covers approximately 4,500 acres [14] - A significant focus is placed on optimizing the flow sheet for rare earth extraction, with ongoing testing and engineering studies [57] Q&A Session Summary Question: Impact of U.S. government deals on development support - Management noted that while U.S. government deals have macro political implications, the specifics of supply from those countries remain uncertain [52][53] Question: De-risking the extraction of rare earth elements from coal - The company clarified that it is extracting rare earths from clays and shales intermingled with coal, and has successfully solubilized high-value critical minerals [55][56] Question: Modular plans for processing facilities - Management confirmed that they are conducting test work programs in parallel and have some optionality with ramp-up, allowing for quicker implementation [61][62] Question: Unique aspects of the Brook Mine compared to other PRB assets - Management highlighted geological anomalies at the Brook Mine that contribute to its unique potential for rare earth concentrations [68][69] Question: CapEx implications of the Strategic Critical Minerals Terminal - The terminal is expected to add relatively small CapEx compared to the commercial oxide plant, providing unique downstream control [70]