Core Natural Resources Inc (CNR) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the Core Natural Resources, Inc. second quarter earnings call. (Operator Instructions) This call is being recorded on Tuesday, August 5, 2025.

女士們、先生們，早安。歡迎參加 Core Natural Resources, Inc. 第二季財報電話會議。（操作員指示）此通話於 2025 年 8 月 5 日星期二錄製。

I would now like to turn the conference over to Deck Slone, Senior Vice President, Strategy. Please go ahead.

現在我想將會議交給策略資深副總裁 Deck Slone。請繼續。

Good morning from Canonsburg, Pennsylvania, everyone, and thanks for joining us today. Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance may be considered forward-looking statements according to the Private Securities Litigation Reform Act.

賓州坎農斯堡的大家早安，感謝大家今天加入我們。在我們開始之前，請允許我提醒您，根據《私人證券訴訟改革法案》，本次電話會議中所做的某些聲明，包括與我們預期的未來業務和財務業績有關的聲明，可能被視為前瞻性聲明。

Forward-looking statements, by their nature, address matters that are to different degrees, uncertain. These uncertainties, which are described in more detail in the annual and quarterly reports that we file with the SEC, may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

前瞻性陳述就其性質而言，涉及不同程度的不確定事項。這些不確定性在我們向美國證券交易委員會提交的年度和季度報告中有更詳細的描述，可能會導致我們未來的實際結果與前瞻性陳述中表達的結果有重大差異。我們不承諾更新我們的前瞻性陳述，無論是由於新資訊、未來事件或其他原因，除非法律要求。

I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss this morning at the end of our press release, a copy of which we have posted in the Investors section of our website at corenaturalresources.com.

我還想提醒您，您可以在新聞稿末尾找到我們計劃今天上午討論的非 GAAP 財務指標的對帳表，該對帳表的副本已發佈在我們網站 corenaturalresources.com 的投資者部分。

Also participating on this morning's call will be Paul Lang, our CEO; Mitesh Thakkar, our President and CFO; and Bob Braithwaite, our Senior Vice President of Marketing and Sales. After some formal remarks from Paul and Mitesh, we will be happy to take questions.

參加今天早上電話會議的還有我們的執行長 Paul Lang、我們的總裁兼財務長 Mitesh Thakkar 以及我們的行銷和銷售資深副總裁 Bob Braithwaite。在保羅和米特什發表一些正式演講之後，我們很樂意回答問題。

With that, I'll now turn the call over to Paul. Paul?

說完這些，我現在將電話轉給保羅。保羅？

Thanks, Deck, and good morning, everyone. We're glad you could join us on the call today. I'm pleased to report that in the quarter just ended, Core again demonstrated its significant cash-generating capabilities even while navigating a softer market environment as well as with the current outage in our Leer South mine.

謝謝，Deck，大家早安。我們很高興您能參加今天的電話會議。我很高興地報告，在剛結束的這個季度，即使在市場環境疲軟以及我們 Leer South 礦目前停產的情況下，Core 再次展示了其強大的現金創造能力。

During Q2, the team generated adjusted EBITDA of $144 million and free cash flow of $131 million, increased our merger-related annual synergy target to a range of $150 million to $170 million, which is roughly 30% higher at the midpoint than the original guidance. Returned $87 million to investors through share buybacks and a quarterly dividend, increased cash and cash equivalents by $25 million and overall liquidity by $90 million. And finally, advanced our plan for resuming longwall production at Leer South during Q4.

在第二季度，該團隊實現了 1.44 億美元的調整後 EBITDA 和 1.31 億美元的自由現金流，將與合併相關的年度協同效應目標提高到 1.5 億美元至 1.7 億美元的範圍，比最初的指導中位數高出約 30%。透過股票回購和季度股息向投資者返還了 8,700 萬美元，現金和現金等價物增加了 2,500 萬美元，整體流動性增加了 9,000 萬美元。最後，我們推進了第四季度恢復 Leer South 長壁生產的計畫。

On the operations front, the high CV thermal segment again set the pace achieving a significant step-up in sales volumes while lowering unit costs markedly. Exclusive of the outage at Leer South, the metallurgical platform also executed well, led by the segment's flagship Leer mine which achieved a second straight quarterly production record.

在營運方面，高 CV 熱能部門再次領先，實現了銷售量的大幅成長，同時顯著降低了單位成本。除萊爾南礦產停產外，冶金平台表現也良好，其中旗艦萊爾礦連續第二季創下產量紀錄。

Finally, the Powder River Basin segment delivered another strong performance as power generators sought to accelerate shipments in advance of the summer season. We remain focused on pursuing operational excellence across the entire operating portfolio and expect ongoing synergy capture to lift our performance further as the year progresses.

最後，由於發電廠試圖在夏季來臨前加快出貨量，粉紅河盆地分部再次表現強勁。我們將繼續致力於在整個營運組合中追求卓越運營，並期望隨著時間的推移，持續的協同效應將進一步提升我們的績效。

Now let's shift our attention to the capital return program. As you will recall, we announced a new capital return framework in February, shortly after the merger's completion, which was designed to reward shareholders for their ongoing support and which we consider a central tenet of Core's long-term value proposition. The centerpiece of this framework is the targeted return to shareholders of around 75% of free cash flow through share repurchases and a sustaining quarterly dividend of $0.10 per share. We kicked off that program in a strong fashion in Q1 with a return to shareholders of $107 million and maintained our momentum in Q2 with a return of an additional $87 million. In total, we've now returned $194 million to shareholders in just the first two quarters of the combined company despite generally weak market conditions during that period.

現在讓我們把注意力轉移到資本回報計劃上。您可能還記得，我們​​在合併完成後不久的二月份宣布了一項新的資本回報框架，旨在獎勵股東的持續支持，我們認為這是 Core 長期價值主張的核心原則。該框架的核心是透過股票回購向股東返還約 75% 的自由現金流，並維持每股 0.10 美元的季度股息。我們在第一季強勢啟動了該計劃，為股東帶來了 1.07 億美元的回報，並在第二季度保持了這一勢頭，額外回報了 8,700 萬美元。總體而言，儘管當時市場普遍疲軟，但僅在合併後公司的前兩個季度，我們就已向股東返還了 1.94 億美元。

As a central component of this effort, we've repurchased 2.6 million shares or 5% of the total shares outstanding as of the program's launch. Supplementing that buyback effort, we've now returned approximately $11 million to stockholders via small sustaining quarterly dividend. In short, we're putting our excess cash to work opportunistically in today's depressed equity market environment. And let me stress, we expect the share repurchases to be highly value creating at current valuations.

作為此努力的核心組成部分，我們已回購 260 萬股，佔該計劃啟動以來流通股總數的 5%。除了回購努力之外，我們現在已經透過小額持續季度股息向股東返還了約 1,100 萬美元。簡而言之，在當今低迷的股票市場環境下，我們正將多餘的現金投入機會中。我要強調的是，我們預期股票回購將依照當前估值創造高價值。

Indeed, that is another key strength of the combined platform, our ability to generate cash across a wide range of market cycles, given our diversified portfolio and strong mix of contract and market exposed volumes. As previously indicated, the Board has authorized a total of $1 billion in share repurchases in support of the capital return framework. And as of the end of Q2, we have roughly $817 million remaining on that authorization. That authorization level, quite obviously, underscores the Board's confidence in our near, mid- and long-term outlook.

事實上，這是合併平台的另一個主要優勢，鑑於我們多元化的投資組合以及強大的合約和市場曝險組合，我們能夠在廣泛的市場週期中產生現金。如前所述，董事會已批准總計 10 億美元的股票回購，以支持資本回報框架。截至第二季末，我們的授權金額還剩下約 8.17 億美元。顯然，這項授權水準凸顯了董事會對我們的近期、中期和長期前景的信心。

Turning now to the status of Leer South. As you know, in mid-January, the operations team sealed the active longwall panel at that operation to establish an isolated combustion event occurring in the mined-out area behind the longwall. On June 10, Core personnel and regulatory officials reentered the sealed area of the mine and conducted an evaluation of the equipment and infrastructure. As expected, the major components and systems appeared in good condition from our visual inspection, and we were able to repressurize the longwall shields.

現在來談談 Leer South 的現況。如您所知，1 月中旬，作業團隊封閉了該作業中的活動長壁面板，以確認長壁後面的採空區域發生了孤立的燃燒事件。6月10日，Core人員和監管官員重新進入礦井封閉區域，對設備和基礎設施進行了評估。正如預期的那樣，從我們的目視檢查來看，主要部件和系統狀況良好，並且我們能夠重新給長壁盾構機加壓。

Then on June 26, more than two weeks after reentering the impacted zone, the team found it necessary to seal a smaller affected area due to an increase in carbon monoxide levels. Since that time, we've been collaborating with federal and state officials to develop a plan to recover the longwall equipment and move it to a new area in the same panel that was unaffected by the incident. Given that the area where the fire was located is small and will be relatively easy to keep isolated, we remain confident in Leer South's ability to deliver on its strong potential over the long term.

6 月 26 日，即重新進入受影響區域兩週多後，該團隊發現由於一氧化碳含量增加，有必要封鎖較小的受影響區域。從那時起，我們一直與聯邦和州官員合作制定計劃，回收長壁設備並將其轉移到同一面板中未受事件影響的新區域。鑑於火災發生區域較小且相對容易隔離，我們仍然對 Leer South 長期發揮其強大潛力的能力充滿信心。

Now I'd like to spend a few minutes on the global market dynamics, which continue to be highly variable. First, domestic thermal markets appear to be strengthening in the face of rising demand outlook and the advent of summer temperatures. Second, seaborne thermal demand has shown signs of recovery, particularly in Asia, where coal-fired power remains a critical part of the energy mix. Conversely, global coking coal markets remained soft, pressured by sluggish steel production in key regions such as Europe and China and ongoing destocking by mills. Despite these headwinds, we believe we are well positioned to navigate market troughs.

現在我想花幾分鐘時間談談全球市場動態，其變化仍然很大。首先，隨著需求前景的改善和夏季氣溫的到來，國內熱電市場似乎正在走強。其次，海運熱能需求已出現復甦跡象，特別是在亞洲，燃煤發電仍是能源結構的重要組成部分。相反，全球煉焦煤市場依然疲軟，受到歐洲和中國等主要地區鋼鐵產量低迷以及鋼廠持續去庫存的壓力。儘管面臨這些不利因素，我們相信我們有能力渡過市場低谷。

Our low-cost, high-quality operations, flexible logistics enable us to shift between domestic and export markets as conditions evolve preserving margin. Mitesh will discuss how we're seeking to optimize value and build our contract book in this market environment. But let me spend a few minutes on the broader market dynamics as well as on the corrective forces we believe are already at work on several fronts.

我們的低成本、高品質的營運和靈活的物流使我們能夠隨著情況的變化在國內和出口市場之間轉換，同時保持利潤。Mitesh 將討論我們如何在這種市場環境下尋求優化價值並建立我們的合約書。但請允許我花幾分鐘時間討論一下更廣泛的市場動態以及我們認為已經在多個方面發揮作用的糾正力量。

Starting with the metallurgical markets. Tariff-related uncertainties continue to weigh on market demand. However, several recent developments including the recent trade agreements with Japan and the EU as well as ongoing discussions with other major trading partners suggest that such uncertainties could begin to abate in the not-too-distant future, even as potential secondary tariffs remain at risk.

從冶金市場開始。與關稅相關的不確定性持續影響市場需求。然而，最近的一些發展，包括最近與日本和歐盟達成的貿易協定以及與其他主要貿易夥伴正在進行的討論，表明這種不確定性可能在不久的將來開始消退，儘管潛在的二級關稅仍然存在風險。

In addition, we believe that major coking coal indices are at levels well below the marginal cost of production. Moreover, we continue to see signs at these pricing levels are beginning to take a toll on supply as high cost production has started to exit the market.

此外，我們認為主要煉焦煤指數遠低於邊際生產成本。此外，我們繼續看到這些定價水準開始對供應產生影響的跡象，因為高成本產品已開始退出市場。

As evidence of that fact, coking coal exports from the three primary high-quality supply regions, Australia, the United States and Canada are down 7% in aggregate through May with more cuts likely. In addition, we expect demand for metallurgical coal to continue at steady upward climb over time as the young economies in Southeast Asia, particularly India, continue to add new blast furnace capacity in support of their ongoing infrastructure build-out.

作為這一事實的證據，澳洲、美國和加拿大這三個主要優質供應地區的煉焦煤出口量截至 5 月累計下降了 7%，並且可能會進一步下降。此外，隨著東南亞新興經濟體（尤其是印度）繼續增加新的高爐產能以支持其正在進行的基礎設施建設，我們預計冶金煤的需求將持續穩定上升。

In the thermal arena, domestic power markets are experiencing a second straight year of demand growth after several decades of sideways movement. Underscoring this tightness, the PJM PAMC market auction conducted just two weeks ago, cleared at a record price for the second straight year. We expect this power demand growth to continue in the quarters ahead, buoyed by increasing energy requirements of AI and data centers.

在火力發電領域，經過數十年的橫向波動後，國內電力市場連續第二年出現需求成長。兩週前舉行的 PJM PAMC 市場拍賣會連續第二年創下紀錄清算價格，凸顯了這種緊張局面。我們預計，受人工智慧和資料中心能源需求不斷增長的推動，未來幾季電力需求將持續成長。

As for the high CV seaborne thermal markets, both API2 and Newcastle prices have rebounded from their lows and we continue to believe that certain strategic elements of that market, such as the Indian cement demand are poised for further recovery, particularly in the post monsoon season. Specifically, we expect cement demand in India to continue to grow at robust rates throughout the balance of the decade and beyond and believe Core with our energy dense high CV thermal product site should be a prime beneficiary.

至於高CV海運熱電市場，API2和紐卡斯爾價格都已從低點反彈，我們仍然相信該市場的某些戰略要素，例如印度水泥需求將進一步復甦，特別是在季風季節後。具體來說，我們預計印度的水泥需求將在未來十年及以後繼續保持強勁增長，並相信擁有高能量密度高 CV 熱產品基地的 Core 將成為主要受益者。

Let me take a moment to express our appreciation to the President and the U.S. Congress for the steps they've taken in recent months to protect and support the U.S. coal industry. In April, the President issued a series of executive orders aimed at reducing the regulatory burden on America's coal-fired power plants and preserving the U.S. coal generating fleet. During the White House ceremony, the President's recognition and inclusion of many of our hourly employees was a poignant example of the past and future contribution of coal miners in meeting the country's energy and industrial needs, a recognition that's been ignored in recent years.

請允許我藉此機會對總統和美國國會近幾個月來為保護和支持美國煤炭工業所採取的措施表示感謝。今年四月，總統發布了一系列行政命令，旨在減輕美國燃煤電廠的監管負擔，並保護美國燃煤電廠。在白宮舉行的儀式上，總統對我們許多計時工的認可和接納，是煤礦工人過去和未來為滿足國家能源和工業需求所做貢獻的一個深刻例證，但近年來，這種認可卻一直被忽視。

In addition to the executive orders on July 4, the President signed into law the One Big Beautiful Bill, which included several provisions designed to strengthen the US coal industry and enhance the competitiveness of our products overseas. Of note, the new legislation designates US-produced metallurgical coal as a critical material under Section 45X through which the company will be eligible for a 2.5% monetizable tax credit on production-related costs over the next 4 years.

除了7月4日的行政命令外，總統還簽署了《一項偉大的美麗法案》，其中包括多項旨在加強美國煤炭工業和提高我國產品海外競爭力的條款。值得注意的是，新立法根據第 45X 條將美國生產的冶金煤指定為關鍵材料，根據該規定，該公司將有資格在未來 4 年內獲得與生產相關的成本 2.5% 的貨幣稅收抵免。

Significantly, the new legislation also lowers the royalty rate on tons produced on federal lands, which in turn will reduce the cash cost and enhance the competitiveness of our Powder River Basin and West Elk operations in future periods.

值得注意的是，新立法還降低了聯邦土地上生產的噸位特許權使用費率，這反過來將降低現金成本並增強我們未來時期 Powder River Basin 和 West Elk 業務的競爭力。

Again, we applaud the President and Congress for their leadership and foresight in taking these historic steps. Steps that will help ensure that U.S. coal remains a key element of America's future energy supply as well as a stabilizing force in both domestic and global energy markets.

我們再次對總統和國會在採取這些歷史性舉措中所展現的領導力和遠見表示讚賞。這些措施將有助於確保美國煤炭仍然是美國未來能源供應的關鍵要素，以及國內和全球能源市場的穩定力量。

Let me close by again recognizing the Core team for tremendous progress it has made in integrating the combined operating, marketing and logistics portfolio into a cohesive, high-performing unit while at the same time, unlocking the synergistic value created by the merger. With our world-class mines, logistical network, strong balance sheet, significant cash-generating capabilities and talented workforce, we believe we're equipped to create shareholder value in a wide range of market environments.

最後，我要再次讚揚核心團隊在將合併後的營運、行銷和物流組合整合成一個有凝聚力、高效的部門方面取得的巨大進展，同時釋放了合併所創造的協同價值。憑藉我們世界一流的礦場、物流網絡、強大的資產負債表、強大的現金創造能力和優秀的員工隊伍，我們相信我們有能力在廣泛的市場環境中創造股東價值。

With that, I'll now turn the call over to Mitesh for greater detail on our Q2 financial results as well as our outlook for the balance of the year. Mitesh?

現在，我將把電話轉給 Mitesh，以更詳細地了解我們的第二季財務業績以及我們對今年剩餘時間的展望。米特什？

Thank you, Paul, and good morning, everyone. First, let me review our second quarter financial results and then provide an update on the outlook and synergy fronts. This morning, we reported a net loss of $37 million or $0.70 per diluted share and adjusted EBITDA of $144 million for 2Q '25.

謝謝你，保羅，大家早安。首先，讓我回顧一下我們第二季的財務業績，然後提供有關前景和綜效的最新情況。今天上午，我們報告 2025 年第二季淨虧損 3,700 萬美元，即每股攤薄虧損 0.70 美元，調整後 EBITDA 為 1.44 億美元。

We spent $89 million on capital expenditures and generated $131 million of free cash flow. Additionally, during 2Q '25, we spent $21 million related to Leer South combustion event and idling costs, which is included in our reported adjusted EBITDA.

我們花了 8,900 萬美元的資本支出，並產生了 1.31 億美元的自由現金流。此外，在 2025 年第二季度，我們花費了 2,100 萬美元用於 Leer South 燃燒事件和空轉成本，這筆費用已包含在我們報告的調整後 EBITDA 中。

As Paul indicated, during the quarter, we repurchased 1.2 million shares for approximately $82 million at a weighted average price of $69.64 and paid dividends totaling approximately $5 million. In addition, we announced this morning that the Board of Directors has declared $0.10 per share dividend payable on September 15 to stockholders of record on August 29. We have now repurchased 2.6 million shares or 5% of our total shares outstanding since the launch of our capital return program in February. When coupled with dividends, we have returned $194 million to shareholders in aggregate during the first half of 2025.

正如保羅所指出的，在本季度，我們以 69.64 美元的加權平均價格回購了 120 萬股，價值約 8,200 萬美元，並支付了總額約 500 萬美元的股息。此外，我們今天上午宣布，董事會已宣布將於 9 月 15 日向 8 月 29 日登記在冊的股東派發每股 0.10 美元的股息。自二月啟動資本回報計畫以來，我們已回購了 260 萬股，佔總流通股數的 5%。加上股息，我們在 2025 年上半年累計向股東返還了 1.94 億美元。

Year-to-date, we have returned over 100% of free cash flow to shareholders through our share buybacks and dividends demonstrating our ability and willingness to return capital and repurchase shares in a countercyclical manner while maintaining strong liquidity and a leverage neutral balance sheet.

年初至今，我們已透過股票回購和股息向股東返還了超過 100% 的自由現金流，這表明我們有能力和意願以逆週期的方式返還資本和回購股票，同時保持強大的流動性和槓桿中性的資產負債表。

At the end of the second quarter, we had total liquidity of $948 million, an increase of $90 million compared to the end of the first quarter, driven by an increase in our cash balance and higher availability on our revolver and securitization facilities. In July, we combined two legacy A/R securitization facilities further firming up our liquidity position. The combined facility has a borrowing base of up to $250 million and an extended maturity to 2028.

截至第二季末，我們的總流動資金為 9.48 億美元，比第一季末增加了 9,000 萬美元，這得益於我們的現金餘額增加以及循環信貸和證券化工具的可用性提高。7 月份，我們合併了兩項遺留應收證券化工具，進一步鞏固了我們的流動性狀況。合併貸款的借款額度高達 2.5 億美元，期限延長至 2028 年。

Consolidating these facilities marks the final step for us in constructing the desired post-merger capital structure, which also includes an upsized revolving credit facility of $600 million and multistate tax-exempt bond financings totaling $307 million. In aggregate, we have now completed approximately $1.2 billion in advantageous financing transactions in a depressed commodity environment and an uncertain macroeconomic backdrop.

合併這些設施標誌著我們建立理想的合併後資本結構的最後一步，其中還包括 6 億美元的增加的循環信貸額度和總額為 3.07 億美元的跨州免稅債券融資。總體而言，在低迷的大宗商品環境和不確定的宏觀經濟背景下，我們目前已完成約 12 億美元的有利融資交易。

Let me now provide a quick update on the marketing progress we made during the second quarter and outline how we are positioning the business for future success. The second quarter presented a mixed market environment. Export markets, particularly in the metallurgical segment remained challenged due to ongoing headwinds affecting global trade. These pressures continue to weigh on customer demand and contributed to a subdued spot and term export market.

現在，讓我簡要介紹一下我們在第二季度取得的行銷進展，並概述我們如何定位業務以取得未來的成功。第二季的市場環境好壞參半。由於全球貿易持續面臨不利因素，出口市場，特別是冶金領域的出口市場仍面臨挑戰。這些壓力持續影響客戶需求，並導致現貨和定期出口市場低迷。

In contrast, domestic market conditions continue to strengthen with a notable increase in utility-driven demand and customers seeking thermal coal in both spot and term contracts. In response, we capitalized on the domestic strength during the quarter, and increased our 2025 contracted positions for high CV thermal coal to 30 million tons, coking coal to 7.5 million tons and PRB coal to 47.8 million tons. This places us near fully contracted for the remainder of 2025.

相比之下，國內市場狀況持續走強，公用事業驅動的需求顯著增加，客戶在現貨和定期合約中尋求動力煤。作為回應，我們利用本季的國內優勢，將 2025 年高 CV 動力煤合約部位增加至 3,000 萬噸，煉焦煤合約部位增加至 750 萬噸，PRB 煤合約部位增加至 4,780 萬噸。這使得我們在 2025 年剩餘時間的合約幾乎全部到期。

Furthermore, we have continued to build momentum into 2026 by layering in additional committed tonnage for the high CV thermal and PRB segments. Encouragingly, in the thermal coal space, we are starting to see term business conclude above the current published markets, reflecting rising power generation demand and significant contango in natural gas markets. We now have approximately 13 million tons in the high CV thermal segment and 33 million tons in the PRB segment committed in 2026.

此外，我們將繼續為 2026 年積聚動力，為高 CV 熱能和 PRB 領域增加額外的承諾噸位。令人鼓舞的是，在動力煤領域，我們開始看到定期業務的成交價高於目前公佈的市場價格，這反映了發電需求的上升和天然氣市場的大幅溢價。目前，我們已承諾在 2026 年為高 CV 熱電領域提供約 1,300 萬噸電力，為 PRB 領域提供約 3,300 萬噸電力。

Now let me provide a quick update on our outlook for 2025. On the metallurgical front, we are maintaining sales volume guidance and slightly increasing our cash cost guidance due to the delayed restart of the longwall at Leer South and reduced production at the Itmann mine. At Itmann, we issued a WARN notice in June and are now planning to operate only one section.

現在，讓我簡單介紹一下我們對 2025 年的展望。在冶金方面，由於 Leer South 長壁開採作業重啟延遲以及 Itmann 礦山產量下降，我們維持銷售量指引不變，並略微提高了現金成本指引。在伊特曼，我們在 6 月發布了 WARN 通知，目前計劃只運行一個路段。

While this was a difficult decision, we found it necessary to reduce ongoing cash loss while protecting the long-term economic potential of the operation. We continue to evaluate all operations on an ongoing basis guided by market dynamics. This market-driven approach will also inform our strategy as we participate in the domestic metallurgical RFP cycle. We remain prepared to further reduce production where the market does not support value-accretive outcomes.

雖然這是一個艱難的決定，但我們發現有必要減少持續的現金損失，同時保護營運的長期經濟潛力。我們將繼續根據市場動態持續評估所有營運。當我們參與國內冶金 RFP 週期時，這種市場驅動的方法也將為我們的策略提供指導。當市場不支持增值結果時，我們仍準備好進一步減少產量。

As in the past, our guidance for coking coal sales will continue to be driven by our operational capabilities and constantly evolving market realities. For the high CV thermal segment, we are lowering our projected pricing range on committed tons by $1 to a range of $60 to $62 per ton. This adjustment is primarily the result of contracting the previously uncommitted volumes at current spot prices, partially offset by higher power prices. We are maintaining our guidance for both sales volume and cash costs in this segment.

與過去一樣，我們對焦煤銷售的指導將繼續由我們的營運能力和不斷變化的市場現實所驅動。對於高 CV 熱電部分，我們將承諾噸位的預計價格範圍將降低 1 美元，至每噸 60 至 62 美元。此次調整主要是由於以當前現貨價格簽訂了先前未承諾的合約量，但部分被更高的電價所抵消。我們維持對該部門銷售量和現金成本的指導。

For the PRB segment, we are increasing our sales volume guidance to a range of 45 million to 48 million tons and our committed and price position has increased by approximately 6 million tons to 47.8 million tons at a realized coal revenue of approximately $14.40 per ton. We are also lowering our cash cost guidance by approximately $1 a ton to $12.75 to $13.25. These updates reflect the impact of legislation that Paul discussed in his prepared remarks and an improved sales volume outlook benefiting the fixed cost per ton produced.

對於 PRB 部門，我們將銷售量指引提高到 4,500 萬至 4,800 萬噸的範圍，我們的承諾和價格地位增加了約 600 萬噸，達到 4,780 萬噸，實現煤炭收入約為每噸 14.40 美元。我們也將現金成本指導價下調約1美元/噸，至12.75美元至13.25美元。這些調整反映了保羅在其準備好的演講中提到的立法的影響，以及銷售前景的改善，這將有利於降低每噸固定成本。

Let me now provide our thoughts on the current market landscape. In the high CV thermal segment, macro uncertainties continue to weigh on the export market, while we have seen an increase in base demand in the domestic power generation markets. As noted earlier, on July 22, the PJM capacity auction concluded with capacity prices increasing to $329 per megawatt day for the 2026, 2027 delivery period. A second straight record high. This compares to last year's auction, bringing prices of $270 per megawatt day. This, along with the support from the Trump administration represents an incentive for power plant operators to invest in existing generation.

現在讓我談談我們對當前市場狀況的看法。在高CV熱電領域，宏觀不確定性繼續對出口市場造成壓力，而我們看到國內發電市場的基本需求增加。如前所述，7 月 22 日，PJM 容量拍賣結束，2026 年、2027 年交貨期的容量價格上漲至每兆瓦日 329 美元。連續第二次創下歷史新高。相比之下，去年的拍賣價格為每兆瓦日 270 美元。這項舉措，加上川普政府的支持，激勵發電廠營運商投資現有發電。

As we have discussed in the past, capacity utilization for the US coal fleet was approximately 43% in 2024. Historically, the U.S. coal fleet ran at capacity factors as high as around 70%, which provides a lot of room for coal demand growth domestically. PJM recently acknowledged that in 2026, the data center boom will drive power demand to all-time highs. It also indicated that summer peak power consumption may climb by 70 gigawatts over the next 15 years or 30% higher than the all-time high, reached in 2006. This will margins. We believe some portion of this playing out in several RTOs, which highlights the need to keep existing coal plants running.

正如我們過去討論過的，2024 年美國煤炭發電廠的產能利用率約為 43%。從歷史上看，美國煤炭船隊的運力利用率高達70%左右，這為國內煤炭需求成長提供了很大的空間。PJM 最近承認，到 2026 年，資料中心的繁榮將推動電力需求達到歷史最高水準。報告也指出，未來15年，夏季高峰用電量可能增加70吉瓦，比2006年的歷史最高值高出30%。這將產生利潤。我們認為，這種情況在幾個區域輸電組織 (RTO) 中有所體現，這凸顯了維持現有燃煤電廠運轉的必要性。

For the PRB segment, the continue to drive and enhance outlook. There are multiple examples of utilities revising their IRPs as they extend the operational life of existing units to meet capacity needs. Tight capacity conditions in MISO and SPP are likely to support increased demand for PRB coal in 2026 and 2027 as well.

對於 PRB 部門，其前景將繼續受到推動和改善。有多個公用事業公司修改其 IRP 的例子，因為它們延長了現有設備的使用壽命以滿足容量需求。MISO 和 SPP 的緊張產能狀況也可能支持 2026 年和 2027 年對 PRB 煤炭的需求增加。

Let me now provide an update on the progress we have made on the synergy front. As a reminder, at the merger announcement, we guided to an average annual run rate of $110 million to $140 million of synergies 18 months following close. Then during our 1Q '25 earnings call, we updated the range to $125 million to $150 million. We are pleased to report that we are again increasing our projected annualized synergies range to approximately $150 million to $170 million. The key drivers of this increase are the additional benefits we identified in the areas of admin costs, purchasing and best practices sharing. Admin costs such as lower insurance premiums and benefits costs are now well delineated and account for the majority of the increase. Best practice sharing and head count optimization are expected to make up the difference.

現在，讓我介紹一下我們在協同方面取得的進展。提醒一下，在合併公告中，我們預計合併完成後 18 個月內的綜效年平均運行率為 1.1 億至 1.4 億美元。然後，在我們 25 年第一季的財報電話會議上，我們將範圍更新為 1.25 億美元至 1.5 億美元。我們很高興地報告，我們再次將預計的年度協同效應範圍提高至約 1.5 億美元至 1.7 億美元。這一成長的關鍵驅動因素是我們在管理成本、採購和最佳實踐分享領域中發現的額外好處。管理成本（例如降低保險費和福利成本）現已明確劃分，佔成長的大部分。最佳實踐共享和人員數量優化有望彌補這一差距。

While depressed export metallurgical and thermal prices have reduced the value of the expected uplift from the thermal byproduct planning, we still expect to achieve our overall marketing synergy targets by finding offsets. Furthermore, when the market recovers, the value of the uplift will drive the blending synergy higher.

儘管出口冶金和熱電價格低迷降低了熱電副產品規劃預期提升的價值，但我們仍希望透過尋找補償來實現我們的整體行銷協同目標。此外，當市場復甦時，提升的價值將推動混合協同效應的進一步提高。

In closing, we continue to demonstrate the strategic benefits of the merger as we identify additional synergies while navigating a mixed coal market and dynamic macro landscape. While our results have improved quarter-over-quarter, we believe they do not fully reflect the long-term potential of this company. As commodity prices begin to more accurately reflect global cost structures, particularly on the metallurgical side and certain broader macroeconomic uncertainties begin to dissipate, we expect the Core platform to deliver the full earnings power of our assets and the value of the captured synergies and to fully reflect the efforts of our miners and corporate employees.

最後，我們在混合煤炭市場和動態宏觀格局中尋找額外的協同效應，並繼續展示合併的策略優勢。雖然我們的業績比上一季有所改善，但我們認為這並不能完全反映該公司的長期潛力。隨著大宗商品價格開始更準確地反映全球成本結構，特別是在冶金方面，以及某些更廣泛的宏觀經濟不確定性開始消散，我們預計核心平台將充分發揮我們資產的盈利能力和所獲得的協同效應的價值，並充分反映我們的礦工和公司員工的努力。

The post-merger integration has progressed exceptionally well in a very short period of time, and I'm very grateful for our team members' dedication and hard work throughout the year.

合併後的整合在很短的時間內進展非常順利，我非常感謝我們團隊成員一年來的奉獻和努力。

With that, I'll hand the call back to the operator who will provide further instructions and begin the Q&A session.

說完，我會將電話交還給接線員，接線員會提供進一步的指示並開始問答環節。

(Operator Instructions)

（操作員指示）

Chris LaFemina, Jefferies.

克里斯‧拉費米納 (Chris LaFemina)，傑富瑞 (Jefferies)。

Hi guys, thanks for taking my question first. I appreciate that. So just quickly on the buyback. I mean you generated good cash flow in the quarter, but the buyback on total capital return was below the 75% target. And I was wondering, in light of the fact that your share price have been weak and there's pretty good outlook for most of your segments. I would think that now would be a very good time to accelerate the buyback. I'm just wondering why it wasn't an impressive scale to buy back, I'm just wondering why it wasn't even bigger in light of where your share price is and how good the outlook is?

大家好，首先感謝你們回答我的問題。我很感激。因此，我們很快就開始回購。我的意思是，您在本季度產生了良好的現金流，但總資本回報的回購低於 75% 的目標。我很好奇，鑑於你們的股價一直很疲軟，而你們大部分業務的前景都很好。我認為現在是加速回購的最佳時機。我只是想知道為什麼回購規模不是很大，我只是想知道為什麼考慮到你的股價和前景有多好，回購規模不是更大？

Chris, this is Mitesh here, and thank you for that question. I think generally, our guidance on the buybacks have been that we'll return approximately 75% of our free cash flow back to the shareholders. I think if you look at first half of the year, we have done just over 100% of shareholder returns. So I would say we have been a little bit more aggressive than what we have guided to.

克里斯，我是米特什，謝謝你的提問。我認為總體而言，我們對回購的指導是將大約 75% 的自由現金流返還給股東。我認為，如果你看今年上半年，我們的股東回報已經超過 100%。所以我想說，我們比我們指導的要積極一些。

Having said that, I think we continue to monitor the markets and everything around it with all the uncertainties on the macro side. We generate free cash flow from our business, and we'll continue to deploy cash. I think to the extent we have cash flow generation coming in from our operating segments, which we do and working capital improvements that a big portion of that is going back to shareholder returns. So I would say every quarter is going to be different. Some quarters are going to be higher than what we generate in terms of free cash flow, some might be lower. But I think that's how I would think about it from a -- as a guidance perspective in the coming quarters.

話雖如此，我認為我們將繼續關注市場及其周圍的一切，以及宏觀的所有不確定性。我們從業務中產生自由現金流，我們將繼續部署現金。我認為，就我們從營運部門產生的現金流量以及營運資本改善而言，其中很大一部分將回歸股東回報。所以我想說每季都會有所不同。有些季度的自由現金流會高於我們產生的自由現金流，有些季度可能會低於我們產生的自由現金流。但我認為，從未來幾季的指導角度來看，我會這樣考慮。

Okay. That's fair. And secondly, on the $100 million insurance recovery you're expecting to get for Leer South. How should we think about that in the context of the capital returns?

好的。這很公平。其次，您預計將為 Leer South 獲得 1 億美元的保險賠償。從資本回報的角度來看，我們該如何考慮這個問題？

Yes. Like I said, similar to working capital, I think those funds are available for all corporate purposes. Right now, we see that the biggest value for our shareholders and the stock and our view of the value of the stock hasn't changed. So from that perspective, I think you should consider that as part of our capital return program as well.

是的。就像我說的，與營運資金類似，我認為這些資金可用於所有公司用途。目前，我們看到了股東和股票的最大價值，我們對股票價值的看法並沒有改變。因此從這個角度來看，我認為你也應該將其視為我們資本回報計畫的一部分。

Okay great thank you. Good luck.

好的，非常感謝。祝你好運。

Nick Giles, B. Riley Securities.

尼克吉爾斯 (Nick Giles)，B. Riley 證券。

Thanks, operator. Good morning, everyone. Guys, Congrats on a strong quarter here. First, I wanted to ask about your overall level of confidence at Leer South and ultimately returning to normalized levels of production. Should we think about that return as occurring over a number of months? Or maybe said differently, could we see Leer South run below normalized levels until market fundamentals improve?

謝謝，接線生。大家早安。夥計們，恭喜你們本季表現強勁。首先，我想問一下您對 Leer South 的整體信心水準以及最終恢復正常生產水準的信心水準。我們是否應該認為這種回報會在幾個月內發生？或者換句話說，在市場基本面改善之前，我們是否會看到 Leer South 的股價低於正常水平？

Nick, this is Paul. Look, I think first and foremost, I think the mine overall is not at risk, and I have a real high confidence in the ability to get back up and running. I think what we were able to do in June, even though we got pushed out, we saw that -- we got our eyes on the longwall. We were actually able to repressurize the seal. So while there's some minor damage, as you would expect, the longwall is in good shape. So with the plan we have before, which is to go back in here when reading is stabilized and try and recover the longwall equipment sometime in early fall.

尼克，這是保羅。聽著，我認為首先，我認為礦井整體上沒有風險，我對恢復運作的能力非常有信心。我認為我們在六月能夠做到的事情是，儘管我們被推遲了，但我們看到了——我們把目光投向了長壁。我們實際上能夠重新給密封加壓。因此，儘管存在一些輕微損壞，但正如您所預料的那樣，長壁狀況良好。因此，按照我們之前的計劃，當讀數穩定後再回到這裡，並嘗試在初秋的某個時候恢復長壁設備。

I feel pretty good that so long as the atmosphere cooperates, we'll be able to do it. The plan then will be to move the longwall equipment to the new phase, which is about 500 feet from the existing phase and seal the area behind us. My expectation is that while we'll have to do some repairs on the longwall, I'm not expecting anything major, and this could, in fact, just look like a very extended longwall move of a couple of weeks. So at this point in time, I'm still fairly confident about the ability to get up and running relatively quick, particularly heading to Q1.

我感覺很好，只要氣氛配合，我們就能做到。計劃是將長壁設備移至新階段，距離現有階段約 500 英尺，並封閉我們身後的區域。我的預期是，雖然我們必須對長壁進行一些修復，但我並不期待任何重大的修復，事實上，這可能看起來只是一次持續數週的長壁移動。因此，目前，我仍然對能夠相對較快地啟動和運行的能力相當有信心，特別是進入第一季。

And Nick, this is Bob. To answer your question from a marketing standpoint. I mean, we do see opportunities even today, most of them being in the Pacific market. But again, with our cost structure, it certainly allows us to participate. So as soon as we get that longwall back up and running, we'll have opportunities to put that coal into those markets.

尼克，這是鮑伯。從行銷的角度回答你的問題。我的意思是，即使在今天我們確實看到了機會，其中大部分都在太平洋市場。但同樣，以我們的成本結構，我們當然可以參與。因此，一旦我們恢復長壁開採並運行，我們就有機會將煤炭投放到這些市場。

Bob, I appreciate that. And maybe just as a follow-up. I mean, I believe we are coming up on domestic contracting season on the met side. So wondering if you had any early indication of how pricing could move beyond year. I mean what's your general appetite to participate in that market this year?

鮑勃，我很感激。或許只是作為後續行動。我的意思是，我相信我們即將迎來大都會方面的國內承包季節。所以我想知道您是否有任何關於價格在未來幾年將如何變動的早期跡象。我的意思是，今年您對參與市場的整體興趣如何？

So as you mentioned, there are several that are out today. We think there's a couple more forthcoming. But for those that we participated in thus far, we are having constructive negotiations. It's about all I can say. I do think that based on where cost structures are I think it's going to be hard to see a significant decrease, especially on the low vol side year-on-year. But again, we are in those negotiations today. And I think you'll see us participate more in the domestic market on a go-forward basis.

正如您所說，今天已經發布了幾款產品。我們認為還會有更多消息即將公佈。但對於我們迄今為止參與的談判，我們正在進行建設性的談判。這就是我能說的全部了。我確實認為，基於成本結構，我認為很難看到顯著的下降，特別是同比低波動率方面。但今天我們又正在進行這些談判。我認為您會看到我們未來將更多地參與國內市場。

Maybe one last one, if I could. I mean, PRB margins appear very solid. You've now raised your full year guide and with lower costs. So -- just was wondering if you could provide some additional color on how contracting is looking specifically in the outer years?

如果可以的話，也許這是最後一個。我的意思是，PRB 利潤率看起來非常穩定。現在，您已經提高了全年指導價，而且成本更低。所以——我只是想知道您是否可以提供一些關於未來幾年合約情況的額外資訊？

Yes, I think, certainly, demand is up. We raised our guidance midpoint 6 million tons this year. And then as Mitesh mentioned, we have 33 million tons contracted for next year. I can tell you the average price of those tons are in the mid-14s today, and we're certainly seeing some appetite of prices even higher than that. So we are seeing a lot of appetite for future contracting, not only in the PRB, but also in the high CV segment as well. So again, all good news there on the thermal side.

是的，我認為需求確實上升了。我們將今年的指導中點提高了 600 萬噸。正如 Mitesh 所提到的，我們明年的合約是 3300 萬噸。我可以告訴你，這些噸的平均價格今天在 14 美元左右，而且我們當然看到一些人對價格甚至更高的需求。因此，我們看到了對未來合約的巨大興趣，不僅在 PRB 領域，而且在高 CV 領域也是如此。因此，熱力方面再次出現好消息。

Well, thank you for taking my questions and best of luck. Thanks.

好吧，感謝您回答我的問題，祝您好運。謝謝。

George Eadie, UBS.

瑞銀的喬治·艾迪。

Yeah, good morning, Paul, Mash, Bob, and Deck. Nice update here. Can I start by asking, have you run any studies on rare earth potential at any of your mines like some peers in the sector?

是的，早安，保羅、馬什、鮑伯和德克。這裡有很好的更新。首先我想問一下，您是否像業內的一些同行一樣，對您所在礦山的稀土潛力進行過研究？

Yes. We have -- we've talked a few times in the past drilling and continue to look at the various potential. As you know, the Powder River Basin geology is fairly same mine to mine to mine. And so like many of the peers of the basin, we're all looking at the same thing. And look, I think it's worth pursuing the analysis where it will lead, I'm not sure, but look, it's time to continue to look at it. And obviously, others have had good success with it. So we're interested, like everybody else.

是的。我們過去曾多次談論鑽探，並將繼續研究各種潛力。如您所知，粉河盆地各個礦山的地質情況大致相同。因此，與該盆地的許多同行一樣，我們都在關注同一件事。而且，我認為值得繼續分析它會帶來什麼結果，我不確定，但是，現在是時候繼續研究它了。顯然，其他人也已經取得了成功。因此，我們和其他人一樣感興趣。

Okay. And maybe switching tunes a bit. But on the insurance claims, can I just get a little bit more color here. You called out in the release, $100 million for Leer South, but there's also the Baltimore bridge one too. So if I think about them combined, let's say, $100 million to $150 million, is that about right? And in terms of timing, is it some in Q4 this year may be the bridge and then say, 2/3 or the majority falls in early 2026?

好的。或許還可以稍微改變一下曲調。但關於保險索賠，我可以在這裡提供更多詳細資訊嗎？您在新聞稿中提到，要為 Leer South 撥款 1 億美元，但也要為巴爾的摩大橋撥款。因此，如果我將它們合併起來，比如說 1 億美元到 1.5 億美元，這樣對嗎？就時間而言，今年第四季的一些成長可能是過渡階段，然後 2/3 或大部分成長將在 2026 年初實現？

Yes. So I think, George, I think generally speaking, as we have guided before, I think you're in the ballpark in terms of the cadence. I think, we have submitted an initial claim on some of the expenses that we have incurred with respect to firefighting and idling costs to the insurance adjusters for Leer South claim. So I think we are hopeful that we'll get some of that in the remainder of the year.

是的。所以我認為，喬治，我認為一般來說，正如我們之前所指導的那樣，我認為就節奏而言，你的判斷是準確的。我認為，我們已經向 Leer South 索賠的保險理賠員提交了與消防和空轉成本相關的部分費用的初步索賠。因此我認為我們希望在今年剩餘時間內實現一些目標。

Similarly, on the Baltimore claim, I think the claim has already been submitted. And we are going through the adjustment process. We are hopeful both of those two get resolved here towards the end of this year.

同樣，關於巴爾的摩的索賠，我認為索賠已經提交。我們正在經歷調整過程。我們希望這兩個問題能夠在今年年底前解決。

On the Leer South claim, just to clarify the expenses reimbursement claim is a smaller one. I think the business interruption claim would be a bigger one that we haven't submitted yet. As we get our estimates and everything in row I think there's going to be a claim submitted for business interruption side as well. So when you put the business interruption and the expenses side, that's the 100-plus number that we are talking about, and that's going to be more of a 2026 recovery.

關於 Leer South 的索賠，需要澄清的是，費用報銷索賠金額較小。我認為業務中斷索賠是一個更大的索賠，我們還沒有提交。當我們得到估算並將所有事情安排妥當後，我認為也會有針對業務中斷方面的索賠提交。因此，當你把業務中斷和費用考慮在內時，我們談論的就是 100 多個數字，而這更像是 2026 年的復甦。

Yes. Okay. And then just one more for you. Working capital, like it was a pretty big outflow in Q1, nearly half of that unwound this quarter. How should we think about working capital in the second half? Is that potentially say, $50 million more unwind? I know it's early, you're not going to know timing, but a bit more to come potentially there?

是的。好的。然後再給你一個。營運資金在第一季出現了相當大的流出，其中近一半在本季流出。下半年該如何看待營運資金？這是否有可能意味著要再釋放 5,000 萬美元？我知道現在還早，你不知道具體時間，但可能還會有更多事情發生？

Yes, George. So we are expecting some more working capital here, but just recognize that the vast majority of that has been reversed in Q2 with respect to the receivables. I think in Q3 and Q4, I think there's some work being done on inventory reduction. We have said earlier that, we have some metallurgical coal inventory due to strong performance at some of our mines that is going to flow through as well. So I think there is some reversal coming. It's not going to be of the same magnitude as you saw in Q2.

是的，喬治。因此，我們預計這裡會有更多的營運資金，但要認識到，就應收帳款而言，其中絕大部分已在第二季被逆轉。我認為在第三季度和第四季度，我們正在做一些減少庫存的工作。我們之前說過，由於我們一些礦場的業績強勁，我們有一些冶金煤庫存，這些庫存也將流出。所以我認為即將出現一些逆轉。它不會像第二季那樣幅度。

Yes. Okay. No, that's great. And then just one more for you Mitesh. If I look at the corporate, other and eliminations line in revenue it jumped $10 million quarter-on-quarter. Can you maybe help me understand what's happening there, the net loss for this segment is up quite a bit all things considered Q-on-Q?

是的。好的。不，那太好了。然後，再給你一個，Mitesh。如果我看一下公司、其他和消除項目的收入，它比上一季增長了 1000 萬美元。您能否幫助我了解那裡發生的事情，從各方面來看，該部門的淨虧損環比增長了不少？

For corporate, other and eliminations, is that what you're referring to?

對於公司、其他和消除，您指的是這些嗎？

Yes.

是的。

Yes. So what is going through corporate, others and eliminations, some of the spending that we have with respect to items such as gain on sale of assets, litigation, corporate loss accrual. We have some fire cleanup costs also going through it. So those are the kind of things that's flowing through. I think over time, you will see that stabilize a little bit. Does that answer your question?

是的。那麼，我們在企業、其他和消除方面的一些支出，例如資產出售收益、訴訟、企業損失累積等，都經歷了哪些變化？我們還需要承擔一些火災清理費用。這些都是正在流傳的事。我認為隨著時間的推移，你會看到情況稍微穩定下來。這回答了你的問題嗎？

Yes. No, that's handy. I can follow up, just to clarify a few things there. but thanks.

是的。不，這很方便。我可以跟進，只是為了澄清一些事情。不過還是謝謝。

Nathan Martin with The Benchmark Company.

基準公司 (The Benchmark Company) 的 Nathan Martin。

Yeah, thanks Alfredo. Good morning, everyone. Maybe just to start, Bob, you just mentioned that the 2026 PRB tons priced, I think, in the mid-$14 range. Any thoughts on the pricing for the 13 million tons or so of the high CV thermal coal you guys have for '26?

是的，謝謝阿爾弗雷多。大家早安。鮑勃，也許只是開始，你剛才提到，我認為 2026 年 PRB 噸的價格在 14 美元左右。你們對 26 年約 1300 萬噸高 CV 動力煤的定價有何看法？

Yeah. So the 13 million, Nick, is broken down really 6.5 domestic, 6.5 export and about 4 million is linked to different API2, call it, 2.5 fixed on the export side, balance obviously to be domestic. I will tell you, we're using a $110 API2 price and we're looking at low 60s.

是的。因此，尼克，這 1300 萬實際上分為 650 萬國內產量、650 萬出口產量，還有大約 400 萬與不同的 API2 相關，也就是 250 萬固定在出口方面，餘額顯然是在國內。我會告訴你，我們使用 110 美元的 API2 價格，我們正在尋找 60 年代的低點。

Okay. Perfect, Bob. That's helpful. And maybe looking at the met segment, $21 million of Leer South idling cost this quarter, calling out another, I think it's $20 million to $30 million for the fourth -- for the third quarter. Obviously, those expenses don't run through the met segment cost per ton line item, but I'm just hoping to get some thoughts on how you see that trending as we enter the second half. It looks like based on your updated full year guidance, met segment cost per ton is going to need to increase to an average of over $96 a ton, which is higher than it was in the second quarter. So just any way you can walk us through kind of the drivers of the forecasted increase, especially if you still foresee a lower cost of Leer South mine coming back online, hopefully, in the fourth quarter?

好的。完美，鮑伯。這很有幫助。也許從大都會地區來看，本季 Leer South 的空轉成本為 2,100 萬美元，另外，我認為第四季或第三季的空轉成本為 2,000 萬至 3,000 萬美元。顯然，這些費用不計入每噸物料部門的成本，但我只是希望了解您對下半年這一趨勢的看法。根據您更新的全年指導，冶金部門每噸成本似乎需要增加到平均每噸 96 美元以上，高於第二季的水準。那麼，您能否向我們介紹一下預測成長的驅動因素，特別是如果您仍然預見到 Leer South 礦的成本會降低，希望在第四季度恢復生產？

I think -- this is Mitesh here. I think in Q3 and Q4, I think the cost is going to be a little bit elevated because we are going to have some CM mining costs. If you recall, we explained this on the last call, that -- when the CMs are mining at Leer South, you have a little bit of an elevated cost structure. What ended up in Q2 is in the month of June when we pull the CMs out. And when we pull the CMs out as we reached the seals, for the rest of that month, I think all that cost moved down to idle costs instead of the per-ton costs. So I think it's at a different location that cost was incurred, but it's at a different location because there were no tons being produced. I think as we go to Q3 and Q4, that cost is elevated because of the CM tons will have production associated with it, which will impact the per tons.

我認為——這是 Mitesh。我認為在第三季度和第四季度，成本將會略有上升，因為我們將有一些 CM 採礦成本。如果您還記得的話，我們在上次電話會議上解釋過這一點，即當 CM 在 Leer South 進行採礦時，您的成本結構會略有上升。當我們在 6 月撤出 CM 時，第二季就結束了。當我們在到達密封處時將 CM 拉出時，對於該月的剩餘時間，我認為所有成本都轉移到了閒置成本而不是每噸成本。所以我認為成本是在不同的地方產生的，但這是在不同的地方，因為沒有生產噸數。我認為，隨著我們進入第三季度和第四季度，成本將會上升，因為 CM 噸將與其相關的生產，這將影響每噸的成本。

But longer term, I think once CM is up and running, we do expect our costs to drift down to that low 90s level.

但從長遠來看，我認為一旦 CM 啟動並運行，我們確實預計我們的成本將下降到 90 年代初期的水平。

Okay. Mitesh, I appreciate that. Maybe one for Paul. Can we get your thoughts on the recently announced Union Pacific and Norfolk Southern merger. Core is still a customer of both rails. So I was just curious to hear, how you think a potential combination could impact your business?

好的。Mitesh，我很感激。也許保羅也有一個。我們能否了解一下您對最近宣布的聯合太平洋鐵路和諾福克南方鐵路合併的看法。Core 仍然是這兩條鐵路的客戶。所以我只是好奇，您認為潛在的組合會對您的業務產生什麼影響？

I mean it's an interesting question. I think we're all a little surprised by the potential merger. While we obviously have some concerns, I get the desire for both railroads to want to create a more efficient and cost-effective platform. If you stand back and think about it, some of the positives for us could be our ability to blend some of our western coal with PAMC. It would also probably give us better access to our East Coast terminals for our western coal. Think about it, we could load larger vessels and have less sailing time to Europe than we do out of the Gulf of America, and transit time should be a little bit better with fewer handoffs.

我的意思是這是一個有趣的問題。我想我們都對潛在的合併感到有點驚訝。雖然我們顯然有一些擔憂，但我明白兩條鐵路都希望創造一個更有效率、更具成本效益的平台。如果你退一步想一想，對我們來說，一些積極因素可能是我們能夠將部分西部煤炭與 PAMC 混合。這也可能使我們更好地將西部煤炭運往東海岸的碼頭。想想看，我們可以裝載更大的船隻，航行到歐洲所需的時間比從美洲灣出發的要少，而且轉運次數減少，運輸時間也會更好一些。

Having said all that though, I think what we're going to want to understand as a shipper on both of these railroads is -- first and foremost is that they're going to drive a great deal of savings out of this and that we're assuming some of this is going to come back to us as a shipper. And secondly, we're going to have some protections on that, the service levels stays high. I mean the bottom line is we are critically dependent on rail service and rail cost. And for us to be competitive, both domestically and globally, the railroads have to perform and they have to perform at a reasonable rate. So look, we have great relationships with both railroads, and we're open to a balanced discussion, and we'll see where this goes.

儘管如此，我認為作為這兩條鐵路的托運人，我們首先要了解的是，他們將從中節省大量資金，並且我們假設其中一些資金將返還給我們作為托運人。其次，我們將採取一些保護措施，維持高服務水準。我的意思是，最重要的是我們嚴重依賴鐵路服務和鐵路成本。為了在國內和全球範圍內保持競爭力，鐵路必須正常運行，並且必須以合理的速度運行。所以，我們與這兩條鐵路都保持著良好的關係，我們願意進行平衡的討論，我們將拭​​目以待事情的進展。

Appreciate that, Paul. And then maybe it would also be good to get your thoughts around some of the recent increase in trade tensions with India, especially given Core's, it's important export market for Core, I should say.

非常感謝，保羅。然後，也許您也可以考慮最近與印度的貿易緊張局勢加劇，特別是考慮到 Core，我應該說，這是 Core 的重要出口市場。

Yes, I'll start off and let the others jump in. I mean I -- the following of the tariffs and the reciprocal tariffs is becoming morning obsession, I think, with a lot of us to try and understand where it's going. I think the -- one thing I take some solace in is that most of these have been resolved, although it's been a little messy. But Japan and the EU getting resolved, it would sure nice to be have -- for us to have India resolved because India remains a huge trading partner of Core. Any other thoughts from the group?

是的，我先開始，然後讓其他人加入。我的意思是——我認為，關注關稅和互惠關稅已經成為我們許多人每天早上都會​​關注的事情，我們試圖了解它的發展方向。我認為——讓我感到些許安慰的是，儘管情況有點混亂，但大多數問題都已經解決。但是，如果日本和歐盟的問題得到解決，那麼印度問題也得到解決肯定是一件好事，因為印度仍然是核心國家的重要貿易夥伴。小組還有其他想法嗎？

I would just add one thing. I think PAMC in particular, the quality of that coal makes it a very flexible product. As you know, it goes into the crossover met market, it goes into the domestic power generation markets and of course, the industrial market overseas. I think, as Bob mentioned, we'd hope that India, US trade tensions abate. And it's not an issue, but the product itself is flexible for us to be able to move. I think if you look at China is a great example, right? Like last year, we shipped a lot of crossover product into China. This year, we are not doing much at all because of the tariffs, but we are moving more to Indonesia.

我只想補充一點。我認為 PAMC 尤其如此，其煤炭的品質使其成為非常靈活的產品。如您所知，它進入了跨界金屬市場、國內發電市場，當然還有海外工業市場。我認為，正如鮑伯所提到的，我們希望印度和美國的貿易緊張局勢能夠緩和。這不是問題，但產品本身很靈活，我們可以移動。我認為中國就是一個很好的例子，對嗎？與去年一樣，我們向中國運送了大量跨界產品。今年，由於關稅的原因，我們的業務量沒有太大成長，但我們正在將更多的業務轉移到印尼。

So I think what I'm trying to say is our marketing team is doing a very good job of managing through this. And I feel like the product quality and the logistics strength that we have with different terminals and the blending potential, I think we'll have to continue to look for new homes.

所以我想說的是我們的行銷團隊在管理這件事上做得非常好。我覺得，憑藉我們的產品品質和物流實力以及不同的終端和融合潛力，我們必須繼續尋找新的歸宿。

All right, very helpful, guys. I'll leave it there, best of luck in the second one.

好的，非常有幫助，夥計們。我就把它留在那裡，祝你第二次好運。

Nick Giles, B. Riley Securities.

尼克吉爾斯 (Nick Giles)，B. Riley 證券。

Thanks for taking my follow up. Apologies if this is somewhat repetitive, but I believe in your prepared remarks, you mentioned that met volumes will be market driven. And just so when we start to think about what 2026 met volumes could look like with the recovered Leer South, should we be thinking that you could hold back some tons? Or anything you'd call out from a mix perspective? I appreciate any color there.

感謝您關注我的後續問題。如果這有點重複，請原諒，但我相信在您準備好的發言中，您提到了交易量將由市場驅動。因此，當我們開始思考 2026 年恢復利爾南部後產量會是多少時，我們是否應該考慮可以保留一些噸數？或者從混合角度來說您想指出什麼？我欣賞那裡的任何顏色。

Yeah. My view is that when we get back Leer South running, and hopefully, that's early in Q1 at full speed. We will see volumes very much akin to what people were used to. As Mitesh noted in his earlier comments, the decision at Itmann was a difficult one, but one I think we took because I think there was a belief that the balance sheets of some of the coal companies would go ahead and support losses in some of these mines for some period of time. And we took the fact of we're not going to do that. And that will follow through into next year. Look, as long as we can generate a margin and feel comfortable in the outlook, we'll keep running operations. But we'll remain market-driven, and do what we have to do to adjust our operations.

是的。我的觀點是，當我們重新讓 Leer South 運轉時，希望是在 Q1 初期全速運轉。我們將看到與人們過去習慣的非常相似的交易量。正如米特什在他之前的評論中指出的那樣，伊特曼做出的決定很艱難，但我認為我們之所以做出這個決定，是因為我認為人們相信一些煤炭公司的資產負債表會在一段時間內繼續支撐其中一些礦山的虧損。而我們卻接受了事實，我們不會這麼做。這一趨勢將持續到明年。你看，只要我們能夠產生利潤並且對前景感到滿意，我們就會繼續運作。但我們仍將以市場為導向，並盡我們所能調整我們的營運。

George Eadie, UBS.

瑞銀的喬治·艾迪。

Just one more as well. On the met coal segment, realized price for the thermal byproduct was up nearly 40% Q-on-Q. But that seems very good given the pricing, soft environment at the moment. Like how much higher can that get with blending and so forward and maybe a bit more color, like should we assume that higher price from this quarter is a more reasonable assumption going forward?

還剩一個。在冶金煤領域，熱電副產品的實現價格較上季上漲近 40%。但考慮到目前的定價和軟環境，這似乎非常好。例如，透過混合等方式，價格能漲多少，顏色能再多一點，我們是否應該假設從本季開始更高的價格是未來更合理的假設？

Yes. So George, this is Bob. So as you mentioned, I think in Q1, we were mid-30s; Q2, mid-40s on the thermal byproduct from a pricing perspective. And what we've done since the merger is took -- we've been able to take advantage of that product and blending it in with PAMC. And I will tell you that on a go-forward basis, we're looking to continue to maximize doing so.

是的。喬治，這是鮑伯。正如您所提到的，我認為從定價角度來看，第一季我們的熱副產品價格為 30 多美元；第二季為 40 多美元。自合併以來，我們所做的就是——我們能夠利用該產品並將其與 PAMC 融合在一起。我要告訴你們，在未來，我們希望繼續最大限度地發揮這一作用。

So when you look at Q3, Q4, I'd say it's going to be a lot similar to Q2. It's also market-driven because it depends on what the realization you're getting back on the international market is as well. So as the international market continues to improve, then you'll see the mids pricing improve. But for sake of where we stand today, I'd say you're closer to Q2 realization than you are Q1 on the mids product.

因此，當您查看第三季和第四季時，我會說它將與第二季非常相似。這也是由市場驅動的，因為它也取決於你在國際市場上獲得的回報。因此，隨著國際市場的持續改善，您會看到中端定價的改善。但就我們今天的立場而言，我想說，在中期產品方面，您距離 Q2 實現比 Q1 更近。

Yes. Okay. Great. And then just checking, I've got it right before, when you were talking about '26 pricing, was that $110 metric a ton for API2 and then for the 4 million ton. And then when you said low 60, was that talking as a whole? Or what's priced in so far for domestic?

是的。好的。偉大的。然後檢查一下，我之前就明白了，當你談論 26 年的定價時，API2 的價格是每噸 110 美元，然後是 400 萬噸的價格。然後，當您說低於 60 時，是整體而言嗎？或是目前國內的價格是多少？

Yes. So we use the $110 as the assumption that's baked into the 4 million tons that are linked to API2. And that would net back all in what's for the 13 million tons would be in the low 60s back to the segment.

是的。因此，我們以 110 美元作為假設，將其計入與 API2 相關的 400 萬噸。這樣，1300 萬噸的淨利潤將回到該部門的 60 出頭。

Yeah, thanks again. Best of luck

是的，再次感謝。祝你好運

And we have no further questions at this time. I would like to turn it back to Paul Lang for closing remarks.

目前我們沒有其他問題。我想請保羅朗 (Paul Lang) 作最後發言。

Thank you again for your interest in Core. Let me close again by recognizing the Core team for tremendous progress they've made and the work they've put in, in bringing the two companies together. The markets that we're currently going through just simply refortify the reasons why we did the merger and the ability to generate cash through a wide range of market environments.

再次感謝您對 Core 的關注。最後，我要再次感謝核心團隊為兩家公司的合併所取得的巨大進步和付出的努力。我們目前正在經歷的市場只是簡單地重申了我們進行合併的理由以及透過廣泛的市場環境產生現金的能力。

With that, operator, I want to thank you, and we'll talk to you in October.

接線員，我想對您表示感謝，我們將在十月與您交談。

Thank you, presenters. And ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect.

謝謝各位主持人。女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。