Financial Data and Key Metrics Changes - The company reported a GAAP net loss attributable to common stockholders of $27.6 million or $0.23 per diluted share, while generating adjusted EBITDA of $93 million [21] - Operating cash flow was $23 million, with cash at the end of the quarter amounting to $586 million and nearly $1 billion in liquidity [22] - The company raised its full-year guidance based on strong performance and cost management, with a reduction in full-year CapEx by $30 million to $420 million [27] Business Line Data and Key Metrics Changes - The Seaborne Thermal segment recorded adjusted EBITDA of $33.5 million with 17% margins, despite a loss of 400,000 tons due to port congestion [22] - The US thermal mines generated $57 million of adjusted EBITDA, demonstrating stable free cash flows and low capital requirements [23] - The seaborne metallurgical segment reported an adjusted EBITDA loss of $9.2 million, reflecting a 23% decrease in average realized prices year over year [23] Market Data and Key Metrics Changes - In the US, coal fuel generation increased by 15% compared to 2024, driven by high natural gas prices and growing electricity demand [11] - Customer stockpiles decreased by 15 million tonnes, an 11% reduction from the previous year, indicating tightening supply and demand fundamentals [12] - Seaborne thermal coal markets are supported by hot summer weather in Asia, leading to reduced stockpiles and stronger bids [14] Company Strategy and Development Direction - The company is focusing on cost management and operational efficiency to navigate the cyclical market softness in seaborne markets [20] - An acceleration of longwall operations at the Centurion mine is planned, with a target startup in February 2026 [4] - The recent US legislation is expected to provide significant benefits, including a reduction in federal royalty rates and a production tax credit for eligible domestic coal [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the US coal market, citing strong demand and supportive legislation [6][9] - The company anticipates a significant increase in PRB volumes and improved cost structures due to favorable market conditions [27] - Management highlighted the importance of coal in maintaining grid reliability and energy independence amid rising electricity demand [8] Other Important Information - The company is currently in discussions regarding the acquisition of assets from Anglo American, with ongoing disagreements over the material adverse change (MAC) event at the Moranbah North mine [29][50] - The company is advancing its rare earth element evaluation program, with initial studies indicating potential elevated levels of rare earth elements in its reserves [86] Q&A Session Summary Question: Can you provide insights on the MAC situation and potential liabilities? - Management expressed confidence in their MAC position and indicated that they are prepared to pursue arbitration if necessary [36][40] Question: What is the latest on the Centurion project and potential sell-down timing? - Management stated that there is no commitment to a sell-down at this time and that discussions are ongoing without a specific timeline [41][43] Question: What is the status of discussions with Anglo regarding the Moranbah North mine? - Management confirmed that discussions are candid but highlighted a fundamental disagreement over the impact of the MAC event [50] Question: Can you provide details on liquidity and cash availability? - The company confirmed that the cash balance of $586 million is unrestricted and fully available, with additional capital required for the Centurion project [94] Question: What are the expectations for the second half of the year regarding costs and performance? - Management indicated that costs are expected to improve and that they are on track to meet full-year guidance despite some challenges [66][84]