In light of these supply-related forces, we continue to look for durable improvements to global steel demand as the catalyst needed to improve met markets across the quality spectrum in a sustainable way. All of this is important market context as we look at what is ahead for 2026. While the high-vol market remains crowded on the supply side with incremental tons coming from Alabama and Northern Appalachia, we are looking forward to completing development at the Kingston Wildcat low-vol mine, which Jason ha ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 was $28.5 million, down from $41.7 million in Q3 2025 [8] - Tons shipped in Q4 2025 were 3.8 million, a decrease from 3.9 million in Q3 2025 [8] - Cash provided by operating activities was $19 million in Q4, down from $50.6 million in Q3 [11] - Total liquidity at the end of Q4 was $524.3 million, down from $568.5 million at the end of Q3 [11] Business Line Data and Key Metrics Changes - Metallurgical segment realizations increased to an average of $115.31 per ton in Q4, up from $114.94 in Q3 [8] - Realizations for metallurgical sales in Q4 were a total weighted average of $118.10 per ton, up from $117.62 per ton in Q3 [9] - Incidental thermal portion realizations decreased to $77.80 per ton in Q4, down from $81.64 per ton in Q3 [9] Market Data and Key Metrics Changes - The Australian Premium Low-Vol Index increased by 14.6% from $190.20 per metric ton on October 1 to $218 per metric ton on December 31 [17] - The U.S. East Coast low-vol index rose from $177 in October to $185 per metric ton by the end of December, an increase of 4.5% [18] - The U.S. East Coast High-Vol A index dropped slightly to $150.50 per metric ton at the end of the year [19] Company Strategy and Development Direction - The company aims to build on improved cost performance and resilience in 2026, with a focus on maintaining a strong balance sheet and safe operations [3][7] - Development at the Kingston Wildcat Low-Vol Mine is a priority, with expectations to produce roughly 500,000 tons in 2026 [15] - The company is exploring various opportunities for potential M&A, while maintaining a cautious approach to avoid unnecessary risks [35][45] Management's Comments on Operating Environment and Future Outlook - Management noted persistent market weakness, particularly in high-vol coal, and emphasized the importance of global steel demand for improving metallurgical markets [5][6] - The recent upward movement in coal markets is seen as largely temporary, driven by supply-related issues in Australia [4] - Management expressed cautious optimism regarding potential recovery in steel demand, particularly in Europe and South America, while acknowledging challenges in the Asian market [29] Other Important Information - The company has committed 37% of its metallurgical tonnage for 2026 at an average price of $134.02, with 53% committed but not yet priced [12] - Capital expenditures for Q4 were $29 million, up from $25.1 million in Q3 [11] Q&A Session Summary Question: Clarification on domestic vs. seaborne tonnage mix - Management indicated that approximately half of domestic volume was high-vol, with the other half being low and medium-vol [24] Question: Cost cadence over the year - Management noted that Q1 typically sees elevated costs due to lower productivity, while Q2 and Q3 are usually stronger [26][27] Question: Broader market conditions in Europe and South America - Management expressed cautious optimism about recovery in these markets, while noting ongoing competition in Asia [29] Question: Best uses for cash at this stage - Management highlighted the importance of maintaining liquidity for balance sheet strength and ongoing share buybacks, while remaining open to M&A opportunities [35] Question: Impact of U.S. tariffs on met coal - Management noted that the constant changes in tariff structures create uncertainty, affecting market activity [63][64]