Financial Data and Key Metrics Changes - The company reported a GAAP net loss attributable to common stockholders of $70.1 million or $0.58 per diluted share, which included $54 million of acquisition termination costs [24] - Adjusted EBITDA was just under $100 million, with operating cash flow of $122 million [24][22] - Cash position at September 30 was $603 million, with total liquidity exceeding $950 million [22] Business Line Data and Key Metrics Changes - Seaborne thermal segment recorded $41 million of adjusted EBITDA with 17% margins, exceeding expectations with an increase of 500,000 tons quarter over quarter [24] - Seaborne metallurgical segment reported adjusted EBITDA of $28 million, with revenue per ton rising 6% quarter over quarter [25] - U.S. thermal mines generated $59 million of adjusted EBITDA, driven by improved domestic demand [26] Market Data and Key Metrics Changes - The average benchmark price for seaborne thermal coal increased by 8% in the third quarter [14] - U.S. coal generation increased by 11% year to date, driven by favorable market fundamentals [15] - Seaborne metallurgical coal benchmark price averaged $184 per metric tonne, unchanged from Q2 [12] Company Strategy and Development Direction - The company is focused on safe, productive, and environmentally sound operations, with an emphasis on maximizing shareholder returns [34] - The Centurion mine is expected to significantly boost the company's metallurgical coal portfolio, with production expected to expand sevenfold in 2026 [3][4] - The company is assessing its potential to meet growing U.S. needs for rare earth elements and critical minerals [35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing demand for coal due to the growth of data centers and manufacturing in the U.S. [6][7] - The company anticipates that coal's role in power generation will remain significant, especially during peak demand periods [7][8] - Management expressed confidence in the ability to generate free cash flow and deliver outsized returns to shareholders [22] Other Important Information - The company is in the early stages of assessing its potential for producing rare earth elements and critical minerals, with preliminary data expected by year-end [35][76] - The company has a robust balance sheet, providing flexibility to navigate market volatility [31] Q&A Session Summary Question: What is the maximum level of output Peabody could produce in the PRB? - Management indicated that expansion would depend on customer commitments and price signals, with latent capacity being absorbed quickly [39][49] Question: How is the company thinking about M&A opportunities in the metallurgical segment? - The focus remains on getting the Centurion mine operational and maximizing output before considering further M&A [54][56] Question: What details can be expected regarding rare earth elements by year-end? - Management stated that a preliminary analysis of indicative element types and concentrations will be provided at year-end [74][75] Question: What impact do recent U.S.-China agreements on rare earths have on domestic projects? - Management noted a strong desire for domestic supply of rare earth elements, but specifics on government support were not provided [81] Question: Will the arbitration process with Anglo American affect future M&A? - Management expressed confidence in the arbitration process and stated it would not hinder strategic decisions regarding M&A [82]

Group 1 - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 2-4 years, emphasizing value for downside protection and upside participation [1][2] - The portfolio has achieved a compounded annual growth rate of 34% over the last 7 years, indicating strong performance in the sector [1] - Peabody Energy Corporation (BTU) is identified as the largest coal mining company in the U.S. based on production volume, highlighting its significant position in the industry [2] Group 2 - The investment group targets companies with quality characteristics that are trading at depressed valuations, allowing for participation in the upside of natural resource investing while mitigating extreme drawdowns [2]

Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1][2] - The portfolio has achieved a compounded annual growth rate of 34% over the last 7 years, indicating strong performance [1] - Peabody Energy Corporation (BTU) is identified as the largest coal mining company in the U.S. based on production volume, highlighting its significant market position [2] Group 2 - The investment strategy emphasizes companies with quality characteristics that are trading at depressed valuations, allowing for participation in the upside of natural resource investing while mitigating extreme drawdowns [2]

Group 1 - Alliance Resource Partners, L.P. (ARLP) is expected to report an EPS of $2.42 for fiscal 2025, slightly lower than 2024 due to coal pricing challenges and the expiration of higher-priced contracts [1] - Coal volumes and contracting momentum are strong, with management anticipating EPS to improve to $2.61 in fiscal 2026, driven by productivity improvements at Tunnel Ridge and Henderson County [2] - Operating expenses decreased by 11.7% in the Appalachia division and 6.4% in the Illinois Basin, with coal production growth of 8.5% and sales volume increase of 3.9%, indicating strong fundamentals [3] Group 2 - The stock is trading at a 42% discount on P/E and a 71% discount on EV/sales, suggesting potential for re-rating in the coming months [4] - The earnings outlook for ARLP is positive going into 2026, supported by strengthening domestic demand and management's focus on efficiency [4]

Core Viewpoint - Warrior Met Coal, Inc. has announced a regular quarterly cash dividend of $0.08 per share, reflecting the company's commitment to returning value to its shareholders [1]. Company Overview - Warrior Met Coal is a U.S.-based supplier focused on environmentally and socially responsible practices within the global steel industry [1]. - The company specializes in mining non-thermal metallurgical coal, which is essential for steel production, catering to metal manufacturers in Europe, South America, and Asia [1]. - Warrior is recognized as a large-scale, low-cost producer and exporter of premium quality hard coking coal (HCC), operating efficient longwall operations in its underground mines located in Alabama [1]. - The HCC produced from the Blue Creek coal seam is characterized by very low sulfur content and strong coking properties, making it an ideal feed coal for steel manufacturers [1].

Financial Data and Key Metrics Changes - The company reported record liquidity of $272 million at the end of Q3 2025, a 237% increase compared to the same period in 2024 [30] - Q3 adjusted EBITDA was $8.4 million, down from $9 million in Q2, while the net loss for Q3 was $13 million compared to a loss of $14 million in Q2 [32] - Cash cost per ton sold fell to $97, down $6 from the second quarter, placing the company in the first quartile of the U.S. cash cost curve [30][32] Business Line Data and Key Metrics Changes - The metallurgical coal production fell to 945,000 tons in Q3, down from approximately 1.1 million tons in Q2, primarily due to a disciplined approach to spot sales [31][32] - The company trimmed its production guidance for 2025 to 3.7 to 3.9 million tons, down from 3.9 million tons previously [34] Market Data and Key Metrics Changes - U.S. metallurgical coal spot price indices fell by 6% in Q3 compared to Q2 and nearly 20% year-over-year, impacting earnings despite operational achievements [32][37] - The rare earth and critical minerals markets are experiencing a bifurcation between Chinese and Western pricing, with significant price increases observed for scandium [39] Company Strategy and Development Direction - The company aims to establish a vertically integrated platform for critical minerals, including upstream, midstream, and downstream operations [4][6] - Plans include increasing the base size of the Brook Mine to approximately 5 million tons, which could generate over $500 million of EBITDA in the first year of commercial oxide production [7][36] - The establishment of a Strategic Critical Minerals Terminal at the Brook Mine is intended to create a fee-based terminal services business, enhancing supply chain resilience [19][66] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges in the metallurgical coal market due to oversupply from China, which has depressed prices and production [20][37] - The company is optimistic about the future of its rare earth operations, especially given the increasing demand for scandium and other critical minerals [10][39] 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 [11] - The pilot plant for rare earth processing is under construction, with initial operations expected to begin in 2026 [14][41] Q&A Session Summary Question: Can you provide your viewpoint on the deals with the United States and how that impacts support from the government? - Management indicated that while the U.S. is making deals with foreign countries, the implications for domestic supply remain uncertain, but the government is supportive of domestic industry [50][51] Question: What has been done to de-risk the extraction of rare earth elements from coal? - The company has focused on testing various processes to solubilize high-value critical minerals, with ongoing work on downstream purification and optimization [53][54] Question: How modular are the plans for the processing facilities? - The company is conducting test work in parallel and has some optionality with ramp-up, aiming to place equipment orders early to expedite the process [59][60] Question: What is the rationale behind the Strategic Critical Minerals Terminal? - The terminal will act as a regional hub for marketing rare earths, providing optionality for producers and visibility into the market without heavy CapEx requirements [68]

Core Insights - Alliance Resource Partners, L.P. (ARLP) reported a solid performance in Q3 2025, with increased coal volumes and improved unit costs, despite lower year-over-year realized pricing [1] Financial Performance - Total revenues for Q3 2025 decreased by 6.9% year-over-year to $571.4 million, driven by lower coal price realizations and reduced transportation revenues, despite an 8.5% increase in coal production and a 3.9% increase in coal sales volumes [1] - Net income for the quarter rose to $95.1 million compared to $86.9 million in Q3 2024, primarily due to lower operating costs and higher investment income [1] - Adjusted EBITDA for the quarter was $185.8 million, reflecting a 14.8% sequential increase [1] Operational Highlights - Coal tons sold increased to 8.7 million, supported by improved performance at Hamilton, River View, and Tunnel Ridge [8] - Oil & Gas royalty volumes increased by 4.1% year-over-year to 0.899 million BOE, with an average price of $35.68 per BOE [8] - The company declared a quarterly cash distribution of $0.60 per unit [8] Strategic Initiatives - The company deployed $22.1 million into a limited partnership that owns a coal-fired plant in PJM, aligning with its strategy to support baseload reliability, with expected attractive cash-on-cash returns beginning in 2026 [8] - ARLP tightened its FY25 guidance, projecting Q4 2025 results to be comparable to Q3 2025, supported by improving operational execution [1]

Ramaco Overview - Ramaco shipped metallurgical coal to steelmakers in over 20 countries[9] - Ramaco's 2024 sales volume was 40 million tons, with an adjusted EBITDA of $106 million[12] - As of October 27, 2025, Ramaco's market capitalization was $20 billion, with revenue of $666 million in 2024 and net cash of $77 million as of September 30, 2025[12] Brook Mine Expansion and Economics - The Brook Mine is projected to have a steady-state annual production of approximately 3,414 short tons of rare earths and critical minerals[13,56] - The revised total Capex requirement for Brook Mine is $1125 million, with an NPV (8%) of $51 billion and a 3-year payback period[21] - Brook Mine is projected to generate over $500 million in EBITDA by 2028, a 276% increase compared to the Fluor PEA[21] - At steady state, the Brook Mine is expected to generate $1038 million in revenue and $552 million in EBITDA, representing a 53% margin[56] Rare Earths and Critical Minerals Opportunity - Brook Mine is believed to be the only primary mine source of Gallium, Germanium, and Scandium in the world[10,14,39] - Approximately 40% of the total estimated REO production consists of primary magnetic REOs, gallium, germanium, and scandium, accounting for ~99% of annual revenue from the Brook Mine[40] - China holds dominant market shares in Gallium (>95%), Heavy Rare Earths (>90%), Light Rare Earths (85%), Scandium (>60%), and Germanium (65%)[25] Metallurgical Coal Business - Ramaco's cash costs of $100 per ton for YTD 2025 are among the lowest of its publicly traded peer group[16] - Ramaco's 2025 production guidance is between 37 million and 39 million tons[88]

Core Insights - Copper production remained largely unchanged, indicating stability in this segment [1] - Steelmaking coal production experienced a significant decline, dropping by more than half due to a fire incident at the Moranbah North mine in Australia [1] Group 1 - The overall copper production was broadly flat, suggesting no major fluctuations in output levels [1] - The steelmaking coal division faced a drastic reduction in production, which could impact the company's revenue and operational efficiency [1]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $571.4 million, down from $613.6 million in Q3 2024, primarily due to lower coal sales prices and transportation revenues, partially offset by higher coal sales volumes [4][5] - Average coal sales price per ton decreased by 7.5% year-over-year to $58.78, but increased by 1.5% sequentially [5] - Net income attributable to the company was $95.1 million, including a $3.7 million favorable increase in the fair value of digital assets [10] - Adjusted EBITDA for the quarter was $185.8 million, up 9% year-over-year and 14.8% sequentially [10][11] Business Line Data and Key Metrics Changes - Total coal production in Q3 2025 was 8.4 million tons, an increase of 8.5% compared to Q3 2024, while total coal sales volumes increased by 3.9% to 8.7 million tons [5][6] - In the Illinois Basin, coal sales volumes increased by 10.8% year-over-year but decreased by 0.8% sequentially [6] - Coal sales volumes in Appalachia decreased by 13.3% year-over-year but increased by 21.8% sequentially due to improved mining conditions [6][7] - Total revenues from royalty segments were $57.4 million, up 11.9% year-over-year, driven by higher coal royalty tons sold [9] Market Data and Key Metrics Changes - Year-to-date utility coal consumption increased by 15% in MISO and 16% in PJM, reflecting strong demand fundamentals [17] - Analysts project 4% to 6% annual growth in electricity demand in PJM and other markets over the next several years [18] - The recent PJM capacity auction cleared at maximum allowable prices, indicating a need for every available megawatt of dispatchable generation [19] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, investing prudently in core operations, and positioning for long-term growth while delivering attractive returns to unitholders [20] - The company has secured additional contract commitments for 2026, with 29.1 million tons contracted, up 9% from the previous quarter [13] - The company plans to reduce sustaining capital needs in coal segments, enhancing free cash flow visibility for 2026 and beyond [20] Management's Comments on Operating Environment and Future Outlook - Management noted that favorable federal energy policies and rising electricity demand are supporting coal demand [17] - The company expects to increase production at Tunnel Ridge and in the Illinois Basin in 2026 to meet anticipated demand [18] - Management expressed confidence in the sustainability of lower costs in Appalachia due to improved mining conditions [86] Other Important Information - Total liquidity at the end of Q3 2025 was $541.8 million, including $94.5 million in cash [11] - The company declared a quarterly distribution of $0.60 per unit, unchanged from the previous quarter [20] Q&A Session Summary Question: Duration and structure of supply contracts - Most contracts are for two to three years, primarily fixed pricing with some tariff protection [26][27] Question: Pricing guidance for 2026 - Pricing is expected to decline around 5% year-over-year due to contracts rolling off, but improved conditions at Tunnel Ridge may help maintain margins [34][36] Question: Impact of Department of Energy investments - Increased interest from utilities in extending the life of coal plants could enhance demand for coal [38][40] Question: Equity method investment income - Modestly positive numbers are anticipated for Q4, with some investments starting to yield distributions [45][46] Question: Production increase logistics - No new staffing is required; existing personnel will be utilized more efficiently due to favorable conditions [63] Question: Confidence in uncommitted met coal sales - Anticipation of selling uncommitted met coal based on current pricing trends [67] Question: Coal vs. gas competition - Competition between coal and gas is less significant due to increasing electricity demand and data center growth [72][75] Question: Capital expenditures outlook - Full year CapEx is expected to be closer to the midpoint of guidance, with Q4 anticipated to be higher [81] Question: Future M&A outlook - Focus is more on minerals rather than expanding coal operations, with limited expectations for coal M&A [59][84]