Financial Performance - Total Income decreased by 34% year-on-year, from US$1327 million to US$872 million, due to a 25% reduction in Average Sales Price and a decrease of 436Kt in sales volumes[34, 35] - Underlying EBITDA decreased from US$375 million in 1H 2024 to US$147 million in 1H 2025[10, 34] - Underlying EBITDA Margin decreased from 28% in 1H 2024 to 17% in 1H 2025[34] - Operating Cash Flow decreased from US$209 million in 1H 2024 to US$151 million in 1H 2025[10, 32] - Net Debt increased to US$99 million, compared to a Net Cash position of US$(192) million in 1H 2024[10, 32] Production and Cost - Saleable Production was 65 Mt [10, 25] - FOB Cash Cost was US$89/t [10, 25] - Capital Expenditure was US$36 million [33] Guidance and Outlook - The company reaffirmed its full-year 2025 saleable production guidance of 138 – 144 Mt [40] - The company reaffirmed its full-year 2025 FOB Cash Cost guidance of US$85 - 90/t [40] - The company reaffirmed its full-year 2025 Capital Expenditure guidance of US$80 - 90 million [40, 45]

Yancoal Australia 1H 2025 Financial Results 20 August 2025 For personal use only Important Notice and Disclaimer Acceptance - This presentation is issued by Yancoal Australia Limited ABN 82 111 859 119 ("Yancoal"). By accepting, accessing or reviewing this presentation, you acknowledge and agree to the terms set out in this Important Notice and Disclaimer. Summary of information - This presentation has been provided solely to convey information about Yancoal and its related entities, and their activities. T ...

Company Overview - Warrior Met Coal is a U.S. metallurgical coal mining company operating in Alabama with two producing mines and a development project named Blue Creek, which is expected to commence longwall mining in Q1 [1] Investment Strategy - The focus is on investing in turnarounds within the natural resource industries, typically holding investments for 2-3 years, emphasizing value for downside protection while still allowing for significant upside potential [2] - The portfolio has achieved a compounded annual growth rate of 29% over the last 6 years [2]

Core Viewpoint - Natural Resource Partners L.P. (NRP) reported a decline in net income and revenues for Q2 2025, primarily due to weaker coal and soda ash prices, but still managed to generate significant free cash flow [2][8][13] Financial Performance - NRP's net income for Q2 2025 was $34.2 million, a decrease of 25.7% from $46.1 million in the same quarter last year [2] - Total revenues fell 23.6% year over year to $50.1 million, influenced by lower metallurgical and thermal coal prices and reduced soda ash sales prices [2][8] - Diluted earnings per common unit increased to $2.52 from $2.29 in the prior-year quarter [2] - Operating cash flow decreased to $45.6 million from $56.6 million, while free cash flow dropped to $46.3 million from $57.3 million [2] Segment Performance - The Mineral Rights segment, the largest contributor, saw net income decline by $13 million to $39.7 million, with coal royalty revenues per ton averaging $5.17, down from $5.98 a year ago [3] - The Soda Ash segment recorded net income of $2.5 million, down $1.1 million due to lower sales prices amid global oversupply [4] - Corporate and Financing segment improved net income by $2.3 million, aided by lower interest expenses [5] Management Insights - Management emphasized the resilience of free cash flow generation, reporting $46 million for the quarter and $203 million over the last 12 months, attributed to a decade-long deleveraging strategy [6] - Expectations are set to pay off nearly all debt by mid-2026 and to begin increasing unitholder distributions by August 2026 [7][10] Market Conditions - Current market conditions for coal and soda ash remain challenging, with excess supply and low prices expected to persist [11] - Factors contributing to revenue and profit declines include stagnant steel demand, high thermal coal inventories, and reduced soda ash demand due to sluggish construction activity [8] Future Outlook - NRP is on track to eliminate nearly all debt by mid-2026, which would allow for significant increases in distributions starting August 2026 [10] - Management anticipates that metallurgical and thermal coal pricing will remain muted through year-end, with soda ash markets unlikely to recover until supply rationalization occurs [11] Other Developments - NRP declared a second-quarter 2025 cash distribution of 75 cents per common unit, consistent with the first quarter of 2025 [12] - There has been no significant progress in carbon-neutral initiatives during the period, although long-term opportunities are still recognized [12]

Company Overview - Alpha sold 171 million tons of coal in 2024[11] - Alpha's adjusted EBITDA in 2024 was $408 million[11] - Export sales accounted for 76% of Alpha's sales mix, while domestic sales made up 24%[11] Production and Reserves - Total production in 2024 was 157 million tons[18] - Total reserves as of year-end 2024 were 299 million tons[18] - Marfork Mining Complex accounted for 29% of 2024 production and 31% of total reserves[18] Financial Performance - In 2024, the average realized price for domestic coal was $152 per ton, while the average realized price for export coal was $140 per ton[37] - Alpha plans to invest approximately $27 million per year in DTA for infrastructure and equipment upgrades over the next 5 years[53] - Free cash flow for 2024 was $349 million[43] Safety and Environment - Alpha's safety performance shows approximately 35% lower Total Reportable Incident Rate vs industry average[16] - Alpha's safety performance shows approximately 70% lower Non-Fatal Days Lost vs industry average[16] - Alpha has planted over 53 million trees since 2016[16]

Financial Performance - The company reported a net loss of $366 million, or $070 per diluted share, but adjusted EBITDA of $1443 million, which included $212 million of fire extinguishment expense at Leer South[7] - Net cash provided by operating activities was $2202 million, and free cash flow was $1311 million[7] - Adjusted EBITDA increased by 17% quarter-over-quarter, rising from $1235 million in Q1 to $1443 million in Q2[14, 15] - Free cash flow increased significantly from $491 million in Q1 to $1311 million in Q2[15] Capital Allocation - The company returned $871 million to investors through share repurchases and dividends in Q2, bringing the year-to-date total to $1937 million[7] - $819 million was invested to repurchase 12 million shares, representing approximately 2% of shares outstanding, at an average price of $6964 per share during Q2[21] - Year-to-date, $1832 million has been invested to repurchase 26 million shares, or about 5% of shares outstanding[21] - As of June 30, 2025, $8168 million remained authorized under the $1 billion share repurchase program[21] Operational Highlights - The company is targeting annual cost savings and operating synergies between $150 million and $170 million following the merger[7, 22] - Powder River Basin segment achieved sales volumes of 126 million tons[16] - High calorific value thermal segment cash cost of coal sold decreased by 8% quarter-over-quarter, from $4278 to $3947 per ton[30]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported a cash cost per ton sold of $103, which is a decrease from $108 in 2024, indicating improved efficiency [22][50] - Adjusted EBITDA for Q2 was $9 million, down from $10 million in Q1, with a net loss of $14 million compared to a loss of $9 million in Q1 [52][54] - 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, impacting revenue despite record production levels [20][52] - The company achieved a record level of quarterly production with tons sold reaching 1.1 million in Q2, up from 900,000 in Q1 [51] - The Brook Mine, focused on rare earths and critical minerals, is expected to begin pilot plant operations in the fall, with commercial production anticipated by 2027, accelerated from 2028 [11][32][56] Market Data and Key Metrics Changes - Chinese coking coal prices surged 38% in July, indicating a potential recovery in the market, while U.S. met coal producers have reduced production due to pricing pressures [20][34] - The Australian Premium Low Vol Index increased to $183.2 per ton, reflecting a recovery from earlier lows [35] - The company expects U.S. apparent steel consumption to rebound by 3% to 4% in 2026, supporting met coal pricing [38] Company Strategy and Development Direction - The company is transitioning to a dual platform model, producing both metallurgical coal and rare earths, aiming to enhance its market position and growth trajectory [6][25] - Plans to expand rare earth mine production to exceed the currently permitted 2.5 million tons per annum and to increase oxide processing capacity [7][11] - The company is actively engaging with U.S. government agencies to support the development of its critical minerals business, emphasizing national security [13][66] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding pricing recovery in the met coal market, driven by improved fundamentals in China and India [23][34] - The company is focused on optimizing production and sales strategies 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 [64][66] Other Important Information - The Brook Mine has a defined TREO base of 1.7 million tons, with ongoing exploration expected to expand reserves [8][10] - The company has received a five-year renewal of its mining permit for the Brook Mine, allowing continued development [48] - The preliminary economic analysis from Fluor indicates a pre-tax net present value of $1.2 billion for the Brook Mine project, with an IRR of 38% [55] Q&A Session Summary Question: Impact on quality mix and sales mix between domestic and export - Management confirmed no expected impact on quality and indicated a sales mix of roughly two-thirds seaborne and one-third domestic [60][61] Question: Estimated savings from the production tax credit - Management estimated savings in the range of $15 million per year on EBITDA from the production tax credit [62] Question: Discussions with the administration regarding price support for critical minerals - Management acknowledged ongoing discussions with the government but did not provide specifics, emphasizing the need for support to counteract foreign pricing manipulation [64][66] Question: Price assumptions for scandium and balancing supply with demand - Management indicated that demand for scandium is expected to grow significantly if a Western source is established, with discussions suggesting potential market growth [70][72] Question: Key growth drivers in the scandium market - Management identified the aerospace industry as a primary end user for scandium, with potential applications in automotive and other sectors [80][81]

Financial Performance & Production - Ramaco reported revenue of $666 million and adjusted EBITDA of $106 million for the key 2024 metrics[11] - The company's sales volume reached 4 million tons[11] - Ramaco's net debt to adjusted EBITDA is less than 1.2x[11] - The company anticipates growing production at least 5% vs 2024[36] Cost Management - Ramaco's cash costs of $101 per ton in 1H25 were among the lowest of its publicly traded peer group[13] - Ramaco's 2Q25 cash costs were $103/ton[23] - The company's low cash costs per ton places it in the first quartile of the US cost curve[24] Rare Earth Elements (REE) Opportunity - The Brook Mine is expected to produce approximately 1,240 tons of rare earths and critical minerals annually[14,75] - Over 40% of the total estimated REO basket consists of primary magnetic REOs, gallium, germanium, and scandium[58] - The Brook Mine's revenue is estimated at $378 million, with $143 million EBITDA (38% margin) at steady state[71,75] - The company estimates a ~$12 billion NPV assuming an 8% discount rate[75]

Summary of Key Points from the Conference Call on Metals & Mining Industry Overview - The conference call focused on the dynamics of the steel, iron ore, and metallurgical coal markets, highlighting current trends and future outlooks in these sectors [1] Steel Market Insights - Pre-emptive stocking and record long positioning earlier in the year, combined with weak demand from March to June, contributed to the underperformance of spot prices, which did not fully react to tariff hikes [2] - EU steel prices are at multi-year lows, but structural support and policy changes may limit further downside [2] - Inventories are normalizing, but prices remain below historical averages; tightness may emerge in the second half of the year [2] - Scrap markets are expected to recover due to substitution economics amid rising raw material costs [2] - US tariff exemptions are deemed unlikely due to complex compliance requirements, particularly concerning Chinese-origin steel [2] Iron Ore and Metallurgical Coal Insights - China's steel production remains robust, with mills operating above 90% capacity, driven by strong margins of $30-40 per ton [3] - The recent price rally in iron ore and steel is attributed more to sentiment and trader positioning rather than fundamentals [3] - Mills are restocking iron ore at higher prices, supported by healthy order books and margin confidence [3] - Steel demand is seasonally soft but remains flat year-over-year, with resilience in infrastructure and manufacturing offsetting weakness in the property sector [3] - A shift towards higher-grade ore is noted due to margin expansion and environmental restrictions [3] - The China Mineral Resources Group (CMRG) has been inactive during the recent price rally, which may affect market stability [3] US and EU Steel Price Dynamics - In the US, steel prices have moderated due to aggressive stocking ahead of anticipated tariffs, leading to a record long market [6] - EU prices have fallen to five-year lows due to ineffective safeguard duties and minimal import barriers [7] - The muted reaction in spot markets to tariff increases is attributed to weak demand across key sectors, with US domestic production up 8% year-to-date [8] Inventory and Demand Trends - US inventories have been drawn down and are close to the five-year average, but prices remain below average [9] - Recent weeks have seen service centers and fabricators begin drawing from stock, indicating a potential inflection point in demand [10] - Scrap prices in Turkey, the US, and the EU are at five-year lows, but a recovery is anticipated [13] Future Outlook - The commodities research team expects a more positive outlook for US hot-rolled coil (HRC) in 2026, supported by economic growth and increased end-use demand [15] - EU demand remains weak, but downside risk to prices appears limited, with potential support from fiscal expansions and tightening safeguard quotas [16] - China's steel demand is expected to remain flat year-over-year, with macro policy expectations and trader positioning playing significant roles in price dynamics [22] Additional Observations - A notable shift in mills' preference for high-grade iron ore is observed, driven by expanding steel margins and environmental considerations [25] - The degradation of Pilbara Blend fines has led to a discount in the premium market, which may impact pricing in the second half of the year [26] - China's National Energy Agency is inspecting potential overproduction among coal miners, which could lead to production cuts if oversupply persists [28]

Investment Rating - The report maintains a Neutral rating on Vale, RIO, BHP, and FMG, with a Sell rating on KIO [7] Core Insights - The iron ore market is expected to move into surplus starting in the second half of 2025, with prices projected to average around $90 per ton in 2026 due to increased supply from Australian projects and Simandou in Guinea [5][10] - Metallurgical coal prices are anticipated to remain range-bound at approximately $180 per ton over the next 1-2 years, with limited downside risk [6][15] Iron Ore Fundamentals - Supply and demand fundamentals for iron ore were initially tight in early 2025 but softened in the second quarter as seaborne supply recovered and steel production moderated [5] - Iron ore prices have softened since mid-May, influenced by elevated inventories at ports and mills in China, alongside moderating steel production [7] - The report expects a balanced market in 2025, transitioning to a surplus in 2026/27, driven by increased supply from major producers [10][13] Metallurgical Coal Fundamentals - Demand for metallurgical coal is challenged in regions like India and China due to high domestic production and increased supply from Mongolia [6] - The medium-term outlook for metallurgical coal is more favorable, but the market needs to absorb new supply over the next 1-2 years [6] - The report suggests that while prices are expected to remain stable, the market may rebalance by 2027/28 as demand grows and supply is curtailed [15] Supply and Demand Projections - Iron ore supply is expected to grow by approximately 3% annually in 2026 and 2027, with significant contributions from Australia and Brazil [11] - The report anticipates that China's steel demand will decline by about 1% per annum over the next 3-5 years, impacting iron ore demand [12] - For metallurgical coal, the report predicts a moderate growth in seaborne demand of 1-2% in the medium term, supported by new blast furnaces being constructed in India and Southeast Asia [15]