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]

Financial Data and Key Metrics Changes - In Q2 2025, adjusted EBITDA was $9 million compared to $10 million in Q1 2025, with a net loss of $14 million versus a net loss of $9 million in Q1 2025 [52][54] - Cash cost per ton sold was $103, down from $108 in 2024, with a potential $101 if excluding the idled Eagle mine [50][52] - The company anticipates full year 2025 production at the low end of the previous range of 3.9 million to 4.3 million tons, and sales at the low end of 4.1 million to 4.5 million tons [54][56] Business Line Data and Key Metrics Changes - The metallurgical coal benchmark prices dropped approximately 25% year on year, with U.S. indices falling another 5% in Q2 2025 compared to Q1 2025 [20][52] - The company achieved a record level of quarterly production in Q2 2025, with tons sold reaching 1.1 million compared to 900,000 in Q1 2025 [51][52] - The Brook Mine is expected to produce a significant domestic supply of rare earth and critical minerals, with a target for commercial oxide production by 2027, accelerated from 2028 [11][31] Market Data and Key Metrics Changes - Chinese coking coal prices surged 38% in July 2025, indicating a potential recovery in the market [33] - The Australian Premium Low Vol Index increased to $183.2 per ton in July 2025, up from a low of $166 in late March [34] - U.S. steel prices remain the highest globally, nearly double Asian seaborne levels, supporting domestic demand for metallurgical coal [39] Company Strategy and Development Direction - The company is transitioning to a dual platform model, focusing on both metallurgical coal and rare earths, aiming to become a significant player in the critical minerals market [6][25] - Plans to expand rare earth mine production to exceed the currently permitted 2.5 million tons per annum and enhance oxide processing capacity [8][10] - The company is actively engaging with U.S. government agencies to support the development of the Brook Mine, emphasizing its strategic importance for national security [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding pricing recovery in the metallurgical coal market, driven by firmer Chinese fundamentals and resilient Indian demand [23][24] - The company is focused on optimizing production and sales to avoid lower-margin spot sales, particularly in Asia [54][87] - Management highlighted the importance of government support for domestic critical mineral production to level the playing field against foreign competition [66][67] Other Important Information - The Brook Mine has received a five-year renewal of its mining permit, allowing for continued development [48] - The company is increasing its SG&A guidance for 2025 from $36 million to $40 million, reflecting the acceleration of the pilot plant development [57] Q&A Session Summary Question: Impact on quality mix and sales mix between domestic and export - Management expects no impact on the quality portfolio and anticipates a sales mix of roughly two-thirds seaborne and one-third domestic [60][62] Question: Estimated savings from the production tax credit - Estimated savings from the production tax credit are projected to be around $15 million per year on EBITDA [63] Question: Discussions with the administration regarding price support for critical minerals - Management confirmed ongoing discussions with the government but did not disclose specifics, emphasizing the need for support to counteract foreign pricing manipulation [65][67] Question: Pricing assumptions for scandium and balancing supply with demand - Management indicated that demand for scandium is expected to grow, particularly if a Western source becomes available, and they are confident in their pricing assumptions based on market studies [70][72] Question: Key growth drivers in the scandium market - The airline industry is identified as a primary end user for scandium, with potential applications in automotive and other sectors [80][82]