Warrior Met Coal Inc (HCC) 2022 Q4 法說會逐字稿

Good afternoon. My name is Joe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Fourth Quarter and Full Year 2022 Financial Results Conference Call. (Operator Instructions) This call is being recorded and will be available for replay on the company's website.

下午好。我叫喬，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加 Warrior Met Coal 第四季度和 2022 年全年財務業績電話會議。 （操作員說明）此通話正在錄製中，可以在公司網站上重播。

Before we begin, I've been asked to note that today's discussion may contain forward-looking statements and actual results may differ materially from those discussed. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings.

在我們開始之前，我被要求注意今天的討論可能包含前瞻性陳述，實際結果可能與討論的結果大不相同。有關前瞻性陳述的更多信息，請參閱公司的新聞稿和 SEC 文件。

I've also been asked to note that the company has posted reconciliations to the non-GAAP financial measures discussed during this call in the tables accompanying the company's earnings press release located on the Investors section of the company's website at www.warriormetcoal.com. In addition to the earnings release, the company has posted a brief supplemental slide presentation to the Investors section of its website at www. warriormetcoal.com.

我還被要求注意，該公司已在公司網站 www.warriormetcoal.com 投資者部分的公司收益新聞稿隨附的表格中公佈了本次電話會議期間討論的非 GAAP 財務措施的對賬。除了收益發布外，該公司還在其網站 www.Investors 部分發布了簡短的補充幻燈片演示。 warriormetcoal.com.

Here today to discuss the company's results are Mr. Walter Scheller, Chief Executive Officer; and Mr. Dale Boyles, Chief Financial Officer. Mr. Scheller, you may begin your remarks.

今天在這裡討論公司業績的有首席執行官 Walter Scheller 先生；首席財務官 Dale Boyles 先生。 Scheller 先生，您可以開始您的發言了。

Thanks, operator. Hello, everyone, and thank you for taking the time to join us today to discuss our fourth quarter and full year 2022 results. After my remarks, Dale will review our results and additional detail, and then you'll have the opportunity to ask questions.

謝謝，運營商。大家好，感謝您今天抽出時間與我們一起討論我們的第四季度和 2022 年全年業績。在我發言後，Dale 將審查我們的結果和其他詳細信息，然後您將有機會提問。

We entered the fourth quarter with optimism that strong customer demand would facilitate a drawdown of our inventories with the expectation of continuous improvement in rail transportation and improved performance at the McDuffie Terminal. Unfortunately, several uncontrollable shipment delays continued to drive higher-than-normal inventories and lower shipment volumes in the fourth quarter.

進入第四季度時，我們樂觀地認為，強勁的客戶需求將有助於減少我們的庫存，並期望鐵路運輸持續改善並提高 McDuffie Terminal 的績效。不幸的是，一些無法控制的發貨延遲繼續導致第四季度庫存高於正常水平和發貨量下降。

As we mentioned on previous calls, the rail transportation and the McDuffie Terminal performance issues impacted our shipment volumes each quarter during 2022 and caused our demurrage cost to increase by 415% last year. This underperformance by our business partners resulted in sales volumes that were below our expectations and guidance for the full year 2022. We had the customer orders ready to ship, but the mechanical failures prevented us from realizing the strong customer demand during the fourth quarter.

正如我們在之前的電話中提到的，鐵路運輸和 McDuffie Terminal 性能問題影響了我們 2022 年每個季度的出貨量，並導致我們去年的滯期費增加了 415%。我們的業務合作夥伴表現不佳導致銷售額低於我們對 2022 年全年的預期和指導。我們已經準備好發貨客戶訂單，但機械故障使我們無法在第四季度實現強勁的客戶需求。

Looking further at our outbound logistics, the fourth quarter provided a mix of encouraging and disappointing news. On the positive side, we experienced our best coal movement quarter of the year, largely due to improvements in rail service and the consistent reliability of our barging system. The performance by our rail carrier was stable throughout the quarter and has remained so into the first few weeks of 2023. We expect to see this level of service going forward as incremental improvements are made over time in order to return the service to historical performance levels.

進一步觀察我們的出境物流，第四季度提供了令人鼓舞和令人失望的消息。從積極的方面來看，我們經歷了今年最好的煤炭運輸季度，這主要是由於鐵路服務的改善和我們的駁船系統始終如一的可靠性。我們的鐵路承運人的表現在整個季度都很穩定，並且一直保持到 2023 年的前幾週。我們希望看到這種服務水平隨著時間的推移而不斷改進，以便將服務恢復到歷史表現水平.

On the disappointing side, our main export terminal, McDuffie, suffered a myriad of mechanical issues that greatly impeded its loading ability. The mechanical failures have been mainly concentrated on its conveyor and transfer systems, as well as on the larger operational equipment such as the ship loaders. In addition, vessel movement was interrupted for approximately 6 days during December due to heavy fog and severe weather. As a result, we experienced longer-than-normal vessel queues and fell short of our end-of-year shipping potential by approximately 300,000 to 350,000 short tons.

令人失望的是，我們的主要出口碼頭 McDuffie 遭遇了無數的機械問題，極大地阻礙了其裝載能力。機械故障主要集中在其輸送機和傳輸系統，以及裝船機等大型操作設備上。此外，由於大霧和惡劣天氣，船隻在 12 月的航行中斷了大約 6 天。因此，我們經歷了比正常情況更長的船隻排隊，並且比我們年底的航運潛力少了大約 300,000 至 350,000 短噸。

In January this year, we initiated a series of projects jointly with our partner and McDuffie to address the root causes of these recurring issues. In addition, we've committed both personnel and other resources towards these projects. We've already seen significant progress with these joint efforts, and we expect the performance at McDuffie to improve over the coming quarters, while recognizing that some other projects such as the replacement of major operational equipment will take longer to fully address. In addition to providing support to our terminal partner, we are also diverting some of our coals to alternative local terminals to maintain our sales volumes with a minimal increase in cost.

今年 1 月，我們與我們的合作夥伴和 McDuffie 共同啟動了一系列項目，以解決這些反復出現的問題的根本原因。此外，我們還為這些項目投入了人力和其他資源。我們已經看到這些共同努力取得了重大進展，我們預計 McDuffie 的業績將在未來幾個季度有所改善，同時認識到更換主要運營設備等其他一些項目將需要更長的時間才能完全解決。除了為我們的碼頭合作夥伴提供支持外，我們還將部分煤炭轉移到其他當地碼頭，以在成本增加最少的情況下維持我們的銷量。

From a market perspective, the fourth quarter played out in line with our forecast, with the obvious exception being China's decision to abandon its Zero COVID policy. As a result of China's reopening, we saw several transactions between Chinese customers and U.S. suppliers, with loadings in both the fourth quarter of 2022 and the early part of 2023. China has also announced several measures to stimulate its critically important property sector, which should directly benefit the local steel industry. Despite these tailwinds, improvement in China's economic activity have been slow to come.

從市場角度來看，第四季度的表現符合我們的預測，明顯的例外是中國決定放棄其零 COVID 政策。由於中國重新開放，我們看到中國客戶與美國供應商之間進行了幾筆交易，交易時間為 2022 年第四季度和 2023 年初。中國還宣布了幾項刺激其至關重要的房地產行業的措施，這些措施應該直接惠及當地鋼鐵行業。儘管有這些有利因素，但中國經濟活動的改善進展緩慢。

In the Atlantic Basin, steel production remained subdued due to a combination of low demand, high energy prices, and inflation. One estimate has the total capacity reduction close to 26 million metric tons per year. During the fourth quarter, we also saw capacity reductions in other Asian countries, with Vietnam announcing the idling of several of its blast furnaces. The good news is that steel pricing in most geographies seems to have found support late in the quarter as several attempts to pass on price increases were successful. These price increases, albeit modest, are welcomed by our customers whose margins have been stressed by the current environment.

在大西洋盆地，由於需求低迷、能源價格高企和通貨膨脹，鋼鐵生產仍然低迷。據估計，每年總產能減少接近 2600 萬噸。第四季度，我們還看到其他亞洲國家的產能減少，越南宣布閒置了幾座高爐。好消息是，大多數地區的鋼鐵價格似乎在本季度末找到了支撐，因為幾次轉嫁價格上漲的嘗試都取得了成功。這些價格上漲雖然幅度不大，但受到我們客戶的歡迎，他們的利潤率因當前環境而受到壓力。

From a supply standpoint, there were challenges with our (inaudible) logistics, labor and production have remained a common theme across the world's 3 largest supply regions. With November 2022 year-to-date exports trailing the previous year's volume by 5%, the largest exporter, Australia, is on track to deliver a third year in a row of negative year-over-year growth. Exports from both the U.S. and Canada should end the year with single-digit growth in export volumes versus 2021.

從供應的角度來看，我們的（聽不清）物流、勞動力和生產仍然存在挑戰，這仍然是全球 3 個最大供應地區的共同主題。 2022 年 11 月年初至今的出口量比上年下降 5%，最大的出口國澳大利亞有望連續第三年出現同比負增長。與 2021 年相比，美國和加拿大的出口量到年底應該會實現個位數增長。

A lack of a positive supply response during the best met coal pricing year ever is by itself remarkable. We expect some of the issues affecting supply, such as the European ban on Russian coal, weather and port disruptions, high inflation, and poor rail transportation performance, to ease in 2023. We do expect the lack of sector investment over the last several years with an improving global demand outlook beyond 2023 to continue to constrain supply and drive pricing above all benchmarks for long-term pricing.

在有史以來最好的滿足煤炭定價年度期間缺乏積極的供應反應本身就是值得注意的。我們預計一些影響供應的問題，例如歐洲對俄羅斯煤炭的禁令、天氣和港口中斷、高通脹和鐵路運輸表現不佳，將在 2023 年得到緩解。我們確實預計過去幾年行業投資不足隨著 2023 年以後全球需求前景的改善，將繼續限制供應並推動定價高於所有長期定價基準。

The World Steel Association recently reported that global pig iron production decreased by 3.8% in 2022. China recorded a decrease in production of 0.8% for the period, while the rest of the world's pig iron production decreased by 9.4%. The decreases were primarily driven by the Russia-Ukraine war, weak economic conditions in Europe, and lower production from China. China's lower production continued to be impacted by strict COVID policies and depressed property markets. India was the only country with a year-over-year increase of 2.9%. Our European customers had an especially challenging quarter dealing with compressed margins due to elevated energy and raw material costs and low steel pricing due to soft demand. As reported by industry publications, several integrated producers operated at reduced production rates and in some cases even idled some blast furnace capacity.

世界鋼鐵協會最近報告稱，2022 年全球生鐵產量下降了 3.8%。中國同期的產量下降了 0.8%，而世界其他地區的生鐵產量下降了 9.4%。下降的主要原因是俄羅斯-烏克蘭戰爭、歐洲經濟狀況疲軟以及中國產量下降。中國較低的產量繼續受到嚴格的 COVID 政策和低迷的房地產市場的影響。印度是唯一一個同比增長 2.9% 的國家。由於能源和原材料成本上升以及需求疲軟導致鋼材價格低迷，我們的歐洲客戶在這個季度面臨著特別具有挑戰性的利潤壓縮問題。正如行業出版物所報導的那樣，幾家綜合生產商的生產率降低，在某些情況下甚至閒置了一些高爐產能。

From a pricing standpoint, the fourth quarter was the least volatile quarter of the year in our primary index, the PLV FOB Australia. The index started the quarter at $245 per short ton, averaged $253, and closed the year at $267 per short ton. The CFR China Index was more range bound, averaging $277 per short ton and closing the year at $286 per short ton. Even with the shipment delays, we performed quite well, delivering fourth quarter sales volume of 1.5 million short tons that was flat compared to the fourth quarter of 2021.

從定價的角度來看，第四季度是我們主要指數 PLV FOB 澳大利亞一年中波動最小的季度。該指數本季度初為每短噸 245 美元，平均為 253 美元，年末為每短噸 267 美元。 CFR 中國指數波動較大，平均每短噸 277 美元，全年收於每短噸 286 美元。即使發貨延遲，我們的表現也相當不錯，第四季度的銷量為 150 萬短噸，與 2021 年第四季度持平。

As I said on previous calls in 2022, we could have sold more volume during the quarter if not for the shipment delays. These shipment delays pushed our coal inventory level to 855,000 short tons by the end of the fourth quarter. As performance on the McDuffie Terminal improves, we believe that we are well positioned to take advantage of customer demand and spot market opportunities to reduce the working capital tied up in our inventories.

正如我在 2022 年之前的電話會議上所說，如果不是因為發貨延遲，我們本可以在本季度銷售更多的產品。到第四季度末，這些裝運延遲將我們的煤炭庫存水平推高至 855,000 短噸。隨著 McDuffie Terminal 業績的改善，我們相信我們已做好充分準備，可以利用客戶需求和現貨市場機會來減少庫存中佔用的營運資金。

Our sales by geography in the fourth quarter were 46% into Europe, 32% into South America, and 22% into Asia. European sales continued to be strong despite the economic headwinds facing the region, including the softening of the steel production. Production volume in the fourth quarter 2022 was 1.5 million short tons compared to 1.1 million short tons in the same quarter of 2021. The higher tons produced in the fourth quarter and for the full year resulted primarily from restarting Mine 4 and running a full year in 2022. We added approximately 140 people at the mines during the year compared to the prior year with the bulk of those additions at Mine 4. The mines ran well and were very efficient in the fourth quarter, despite the normal extended downtime for the holidays. Our safety incident rate continues to be approximately 63% lower than the industry average and reflects the training programs in place and the dedication of our employees to maintain a safe working environment. I want to say a special thank you to all of our employees for your hard work and dedication.

我們第四季度按地域劃分的銷售額有 46% 進入歐洲，32% 進入南美，22% 進入亞洲。儘管該地區面臨經濟逆風，包括鋼鐵生產疲軟，但歐洲的銷售依然強勁。 2022 年第四季度的產量為 150 萬短噸，而 2021 年同期為 110 萬短噸。第四季度和全年產量增加的主要原因是 4 號礦井重啟並全年運行2022 年。與去年相比，我們在礦山增加了大約 140 人，其中大部分是在 4 號礦山。礦山在第四季度運行良好，效率很高，儘管假期通常會延長停機時間。我們的安全事故率仍然比行業平均水平低約 63%，這反映了現有的培訓計劃以及我們員工為維護安全工作環境所做的奉獻。我要特別感謝我們所有員工的辛勤工作和奉獻精神。

Over the past year, the mines have trended higher in clean tons produced per manhour work due to well capitalized mining operations, revised work schedules, and a more productive hourly workforce. This increase in productivity has helped offset some of the inflation we've been experiencing. These statistics represent another strong quarter for employee productivity and safety compared to historical periods. We appreciate the significant efforts by our employees to drive higher production levels while continuing to maintain a safe working environment.

在過去的一年裡，由於資本充足的採礦業務、修改後的工作時間表和更高效的小時工，礦山每工時生產的清潔噸數呈上升趨勢。生產率的提高幫助抵消了我們一直在經歷的一些通貨膨脹。與歷史時期相比，這些統計數據代表了員工生產力和安全性的又一個強勁季度。我們感謝我們的員工為推動更高的生產水平，同時繼續保持安全的工作環境所做的重大努力。

During the fourth quarter, we spent a record high $98 million on CapEx and mine development. CapEx spending was $85 million, which included $27 million on the Blue Creek project. Mine development spending was $13 million during the fourth quarter. We expect development of Mine 4 will be completed by the second half of this year.

在第四季度，我們在資本支出和礦山開發上花費了創紀錄的 9800 萬美元。資本支出為 8500 萬美元，其中包括用於 Blue Creek 項目的 2700 萬美元。第四季度的礦山開發支出為 1300 萬美元。我們預計 4 號礦的開發將於今年下半年完成。

We made good progress in 2022 on the development of Blue Creek, which represents a transformational growth opportunity for Warrior. More specifically, we continue developing this site, constructing the slope, service shaft, and ventilation shafts. We invested approximately $47 million in Blue Creek in 2022. As we continue to move through the preliminary stages of development on schedule, both activity at Blue Creek and the spending required for that activity will increase substantially over the next 2 years. As I will discuss in a few minutes, we remain extremely excited about the potential to create significant stockholder value through this project. We expect to continue to balance our growth investment in Blue Creek with returning excess cash to stockholders, allowing them to benefit from our strong free cash flow generation in the near term and over the long term. Dale will speak more to capital allocation in a moment.

2022 年，我們在 Blue Creek 的開發方面取得了良好進展，這代表了 Warrior 的轉型增長機會。更具體地說，我們繼續開發這個場地，建造斜坡、服務豎井和通風豎井。 2022 年，我們在 Blue Creek 投資了約 4700 萬美元。隨著我們繼續按計劃完成初步開發階段，Blue Creek 的活動和該活動所需的支出將在未來兩年內大幅增加。正如我將在幾分鐘後討論的那樣，我們仍然對通過該項目創造重要股東價值的潛力感到非常興奮。我們希望繼續平衡我們對 Blue Creek 的增長投資與向股東返還多餘現金，使他們能夠在短期和長期內從我們強大的自由現金流產生中受益。稍後戴爾將更多地談到資本配置。

For most of 2022, we met or exceeded our targets as outlined in our previous guidance. Except for sales volume that were lower than our expectations due to the the previously discussed shipment delays. Despite the lower sales volume, we delivered strong financial results in the fourth quarter that marked the conclusion of an exceedingly strong financial year for Warrior, which posted record operating cash flow, free cash flow, and adjusted EBITDA, which is more than double our 2021 adjusted EBITDA of nearly $1 billion.

在 2022 年的大部分時間裡，我們達到或超過了我們之前指南中概述的目標。由於之前討論的裝運延遲，銷量低於我們的預期除外。儘管銷量較低，但我們在第四季度取得了強勁的財務業績，標誌著 Warrior 極其強勁的財政年度結束，該年度的運營現金流、自由現金流和調整後 EBITDA 均創下歷史新高，是 2021 年的兩倍多調整後的 EBITDA 接近 10 億美元。

I will now ask Dale to address our fourth quarter results in greater detail.

我現在將請戴爾更詳細地介紹我們第四季度的業績。

Thanks, Walt. For the fourth quarter of 2022, the company recorded net income on a GAAP basis of $100 million, or $1.93 per diluted share, compared to net income of $138 million, or $2.68 per diluted share, in the same quarter of 2021. Non-GAAP adjusted net income for the fourth quarter, excluding the nonrecurring business interruption expenses, idle mine expenses, and other noncash adjustments was $1.90 per diluted share, compared to an adjusted net income of $3.17 per diluted share in the same quarter of 2021. These decreases quarter over quarter were primarily driven by lower average net selling prices and higher operating costs.

謝謝，沃爾特。 2022 年第四季度，公司錄得 GAAP 淨收入 1 億美元，或稀釋後每股收益 1.93 美元，而 2021 年同期的淨收入為 1.38 億美元，或稀釋後每股收益 2.68 美元。非 GAAP第四季度調整後的淨收入（不包括非經常性業務中斷費用、閒置礦山費用和其他非現金調整）為每股攤薄收益 1.90 美元，而 2021 年同一季度的調整後淨收益為每股攤薄收益 3.17 美元。這些減少了季度超過一季度的主要原因是較低的平均淨售價和較高的運營成本。

We reported adjusted EBITDA of $148 million in the fourth quarter of 2022 compared to $240 million in the same quarter of 2021. The quarterly decrease was primarily driven by a 17% decrease in average net selling prices on flat sales volume, plus higher variable transportation and royalty cost and the impact of inflation on labor, materials and major equipment rebuilds. Our adjusted EBITDA margin was 43% in the fourth quarter of 2022 compared to 58% in the same quarter of 2021.

我們報告稱，2022 年第四季度調整後的 EBITDA 為 1.48 億美元，而 2021 年同期為 2.4 億美元。季度下降的主要原因是銷量持平，平均淨售價下降 17%，加上可變運輸和特許權使用費和通貨膨脹對勞動力、材料和主要設備重建的影響。 2022 年第四季度，我們調整後的 EBITDA 利潤率為 43%，而 2021 年同期為 58%。

Total revenues were $345 million in the fourth quarter compared to $416 million in the fourth quarter 2021. This 17% decrease was primarily due to the 17% decrease in average net selling prices. Other revenues were slightly lower in the fourth quarter of 2022, primarily due to the prior year including a mark-to-market gain of $7 million on our gas hedges, offset partially by an increase in revenues due to higher natural gas prices.

第四季度總收入為 3.45 億美元，而 2021 年第四季度為 4.16 億美元。下降 17% 的主要原因是平均淨售價下降 17%。其他收入在 2022 年第四季度略有下降，這主要是由於上一年包括我們的天然氣對沖按市值計算的 700 萬美元收益，部分被天然氣價格上漲導致的收入增加所抵消。

The Platts Premium Low Vol FOB Australian Index price on average was $82 per short ton lower in the fourth quarter of 2022 compared to the same quarter of 2021. The index price averaged $253 per short ton for the fourth quarter. Demurrage and other charges reduced our gross price realization to an average net selling price of $227 per short ton in the fourth quarter 2022 compared to $274 per short ton in the same quarter of 2021. Demurrage and other charges were $4 million higher this fourth quarter versus the fourth quarter of 2021 as a result of the shipment delays.

與 2021 年同期相比，2022 年第四季度 Platts Premium Low Vol FOB 澳大利亞指數價格平均每短噸下跌 82 美元。該指數第四季度平均價格為每短噸 253 美元。滯期費和其他費用將我們的總價格實現降低到 2022 年第四季度的平均淨售價為每短噸 227 美元，而 2021 年同期為每短噸 274 美元。第四季度滯期費和其他費用比 2022 年同期高出 400 萬美元由於裝運延誤，2021 年第四季度。

We continue to see inflation and long lead times impacting our business for an indefinite period of time. In addition to the higher cost, the lead times on supplies and equipment purchases continue to be in the range of 18 to 24 months. Despite partial mitigation of these issues with our improved productivity at the mines, we are experiencing significant increases in cost of operating supplies and materials, repairs, and major equipment rebuilds. Those price increases led to a $5 per short ton negative impact on our fourth quarter results.

我們繼續看到通貨膨脹和較長的交貨時間無限期地影響我們的業務。除了更高的成本外，耗材和設備採購的交貨期仍保持在 18 至 24 個月的範圍內。儘管我們提高了礦山的生產率，這些問題得到了部分緩解，但我們的運營供應和材料、維修和主要設備改造的成本正在顯著增加。這些價格上漲對我們第四季度的業績造成了每短噸 5 美元的負面影響。

Cash cost of sales were $179 million, or 54% of mining revenues in the fourth quarter compared to $153 million or 39% of mining revenues in the fourth quarter of 2021. The increase of $26 million was primarily due to higher variable costs associated with price-sensitive wages, transportation, and loyalty costs, plus the impact of inflation. Variable transportation and royalty costs were higher, primarily due to the delayed impact of tons being produced in earlier quarters when met coal prices were higher and recognized in cost of sales on a FIFO inventory basis in the fourth quarter. This delayed recognition will revert back to normal as we bring down our coal inventory levels. Inflation accounted for $7 million of the higher cost, or $5 per short ton, resulting from higher costs for labor materials and major equipment rebuilds, as previously noted.

第四季度現金銷售成本為 1.79 億美元，佔採礦收入的 54%，而 2021 年第四季度為 1.53 億美元，佔採礦收入的 39%。增加 2600 萬美元的主要原因是與價格相關的可變成本較高- 敏感的工資、交通和忠誠度成本，加上通貨膨脹的影響。可變運輸和特許權使用費成本較高，主要是由於前幾個季度煉焦煤價格較高時生產噸數的延遲影響，並在第四季度以 FIFO 庫存為基礎計入銷售成本。隨著我們降低煤炭庫存水平，這種延遲確認將恢復正常。如前所述，通貨膨脹佔成本增加的 700 萬美元，即每短噸 5 美元，這是由於勞動力材料和主要設備改造成本增加所致。

Cash cost of sales per short ton, FOB port, was approximately $123 in the fourth quarter compared to $106 in the fourth quarter of 2021. Higher variable wages, transportation, and royalty costs were the primary drivers, as previously noted, plus the $5 per short ton impact of inflation. Despite the higher variable cost and inflation, cash margins were $104 per short ton in the fourth quarter. SG&A expenses were about $12 million, or 3.4% of total revenues in the fourth quarter of 2022, and were higher than the fourth quarter of 2021, primarily due to an increase in stock compensation expense of $2 million and charitable donations of $1 million. The interest income earned on our cash investments exceeded the interest expense on our outstanding notes and equipment leases during the fourth quarter of 2022, primarily due to our high cash balances. Our fourth quarter noncash tax expense primarily reflects the utilization of our federal net operating losses, or NOLs, offset partially by the tax benefits for depletion.

FOB 港口的每短噸銷售現金成本在第四季度約為 123 美元，而 2021 年第四季度為 106 美元。如前所述，可變工資、運輸和特許權使用費成本增加是主要驅動因素，加上每噸 5 美元短噸通貨膨脹的影響。儘管可變成本和通貨膨脹率較高，第四季度的現金利潤率為每短噸 104 美元。 SG&A 費用約為 1200 萬美元，佔 2022 年第四季度總收入的 3.4%，高於 2021 年第四季度，主要原因是股票補償費用增加 200 萬美元，慈善捐款增加 100 萬美元。 2022 年第四季度，我們現金投資賺取的利息收入超過了未償還票據和設備租賃的利息支出，這主要是由於我們的現金餘額較高。我們第四季度的非現金稅收支出主要反映了我們聯邦淨營業虧損或 NOL 的使用情況，部分被消耗的稅收優惠所抵消。

During 2022, we utilized a significant amount of our federal NOLs and have approximately $122 million remaining, plus $23 million of tax credit carryforwards. We expect to continue to utilize our federal NOLs and tax credit carryforwards and believe we may become a cash taxpayer in late 2023 or 2024 based upon our long-term forecast in met coal prices, sales volumes, and performance.

2022 年期間，我們使用了大量聯邦 NOL，剩餘約 1.22 億美元，外加 2300 萬美元的稅收抵免結轉。我們預計將繼續利用我們的聯邦 NOL 和稅收抵免結轉，並相信根據我們對冶煉煤價格、銷量和業績的長期預測，我們可能會在 2023 年底或 2024 年成為現金納稅人。

During the fourth quarter, we incurred incremental nonrecurring business interruption expenses of $3 million that were directly related to the ongoing labor strike. These nonrecurring expenses were primarily for incremental safety and security, legal and labor negotiations, and other expenses. Idle mine expenses were $2 million in the fourth quarter and represent expenses incurred with the operations at both mines running at reduced capacities, such as electricity, insurance, maintenance, labor, and taxes. These expenses decreased quarter-over-quarter primarily due to the restart of Mine 4 operations during 2022 versus the prior year comparable quarter when it was fully idle.

在第四季度，我們產生了 300 萬美元的增量非經常性業務中斷費用，這些費用與正在進行的罷工直接相關。這些非經常性支出主要用於增加安全保障、法律和勞資談判以及其他支出。第四季度的閒置礦山費用為 200 萬美元，代表兩個礦山以降低產能運行時產生的費用，例如電力、保險、維護、人工和稅收。這些費用環比下降主要是由於 4 號礦井在 2022 年與完全閒置的去年同期相比重新開始運營。

Turning to cash flow. During the fourth quarter of 2022, we generated $97 million of free cash flow, which resulted from cash flows provided by operating activities of $195 million, less cash used for capital expenditures and mine development cost of $98 million. This resulted in free cash flow conversion of 65% this quarter versus 63% in the fourth quarter of 2021. Free cash flow in the fourth quarter of 2022 was positively impacted by a $47 million decrease in net working capital from the third quarter of 2022. The decrease in net working capital was primarily due to a decrease in accounts receivable due to lower average net selling prices, partially offset by higher inventories and lower accounts payable. Our total available liquidity at the end of the fourth quarter was a record $953 million, representing an increase of $84 million, or 10%, over the third quarter, and consisted of cash and cash equivalents of 830 and $123 million available under our ABL facility.

轉向現金流。 2022 年第四季度，我們產生了 9700 萬美元的自由現金流，這是由經營活動提供的 1.95 億美元現金流減去用於資本支出的現金和 9800 萬美元的礦山開發成本產生的。這導致本季度的自由現金流轉換率為 65%，而 2021 年第四季度為 63%。2022 年第四季度的自由現金流受到 2022 年第三季度淨營運資本減少 4700 萬美元的積極影響。淨營運資金的減少主要是由於平均淨售價降低導致應收賬款減少，部分被存貨增加和應付賬款減少所抵消。第四季度末我們的可用流動資金總額達到創紀錄的 9.53 億美元，比第三季度增加 8400 萬美元，即 10%，其中包括現金和現金等價物 830 美元和 ABL 貸款下的 1.23 億美元.

From a capital allocation standpoint, the company continues to be committed to returning excess cash to stockholders to increase stockholder value while driving long-term growth with the investment in its world-class Blue Creek reserves. We demonstrated that commitment in 2022 by increasing our fixed quarterly dividend by 20% and paying 2 different special cash dividends, which together totaled $1.30 per share. A stronger macroeconomic environment that pushed prices to levels never seen before in this sector enabled us to provide the stockholder returns on top of relaunching a significant value creation opportunity in Blue Creek. In addition, and more recently, the company announced further returns to stockholders with another increase in its fixed quarterly dividend of 17% and another special dividend of $0.88 per share to be paid in early March.

從資本配置的角度來看，公司繼續致力於將多餘的現金返還給股東，以增加股東價值，同時通過投資其世界級的 Blue Creek 儲備來推動長期增長。我們在 2022 年通過將固定季度股息提高 20% 並支付 2 種不同的特別現金股息（總計每股 1.30 美元）來證明這一承諾。更強勁的宏觀經濟環境將價格推高至該行業前所未有的水平，使我們能夠在重新啟動 Blue Creek 的重大價值創造機會的基礎上為股東提供回報。此外，最近，該公司宣布進一步增加股東回報，將其固定季度股息再次增加 17%，並於 3 月初支付每股 0.88 美元的特別股息。

In summary, despite the multiple issues in rail transportation and operational issues at the McDuffie Terminal throughout 2022 that led to lower shipment volumes, we delivered record-breaking financial results. Some of those all-time records were revenues of over $1.7 billion, adjusted net income of $666 million, or $12.88 per diluted share, adjusted EBITDA of nearly $1 billion, cash flows from operations of $842 million, free cash flow of $588 million, and total liquidity of $953 million. In addition, we relaunched our growth investment in the Blue Creek reserves in 2022, which we expect to create significant stockholder value.

總而言之，儘管整個 2022 年 McDuffie Terminal 的鐵路運輸和運營問題導致貨運量下降，但我們實現了創紀錄的財務業績。其中一些歷史記錄包括收入超過 17 億美元、調整後淨收入 6.66 億美元或每股攤薄收益 12.88 美元、調整後 EBITDA 近 10 億美元、運營現金流 8.42 億美元、自由現金流 5.88 億美元，以及流動資金總額為 9.53 億美元。此外，我們於 2022 年重新啟動了對 Blue Creek 儲備的增長投資，我們預計這將創造可觀的股東價值。

Now turning to our outlook and guidance for 2023. We believe we are well positioned to achieve our targets outlined in the outlook section of our earnings release. The achievement of these targets will be driven in part by the continuous improvements in performance at the McDuffie Terminal and in rail transportation to allow us to draw down our coal inventory in 2023 as we currently expect. We expect capital spending for the year to be an all-time record high as we continue the development of Blue Creek, complete the 4 North portal, and make final payments on the 2 sets of longwall shields. Any future capital returns beyond those recently announced from excess cash flows will be at the discretion of the Board of Directors and subject to consideration of several factors, including business and market conditions, future financial performance, and other strategic investment opportunities.

現在轉向我們對 2023 年的展望和指導。我們相信我們有能力實現我們在收益發布的展望部分概述的目標。實現這些目標的部分原因是 McDuffie Terminal 和鐵路運輸的性能不斷提高，使我們能夠像我們目前預期的那樣在 2023 年減少煤炭庫存。我們預計今年的資本支出將創下歷史新高，因為我們將繼續開發 Blue Creek，完成 4 North 入口，並支付 2 套長壁盾構的尾款。超出最近宣布的超額現金流的任何未來資本回報將由董事會酌情決定，並考慮多種因素，包括業務和市場狀況、未來財務業績和其他戰略投資機會。

I'll now turn it back to Walt for his final comments.

我現在將它轉回給 Walt，聽取他的最後評論。

Thanks, Dale. Before we move on to Q&A, I would like to make some final comments on our outlook for 2023. Overall, we are cautiously optimistic entering this year as some of the factors that impacted global steel and met coal demand last year will begin to subside and revert back to past norms while other factors may continue to linger longer than expected. The daily news headlines continue to proclaim the expectations of a coming global economic slowdown in 2023. We believe the Atlantic Basin customers will operate at reduced capacity levels in the first quarter while expecting some improvements in local steel demand. Also, we expect the steel price increases initiated towards the end of 2022 to establish a floor and, more importantly, provide positive improvements for our customers' margins.

謝謝，戴爾。在我們進行問答之前，我想對我們對 2023 年的展望做一些最後的評論。總體而言，我們對進入今年持謹慎樂觀態度，因為去年影響全球鋼鐵和滿足煤炭需求的一些因素將開始消退，恢復到過去的常態，而其他因素的持續時間可能比預期的要長。每日新聞頭條繼續宣布 2023 年全球經濟放緩的預期。我們認為，大西洋盆地客戶將在第一季度以較低的產能水平運營，同時預計當地鋼鐵需求將有所改善。此外，我們預計到 2022 年底開始的鋼鐵價格上漲將建立一個底線，更重要的是，將為我們客戶的利潤率提供積極的改善。

In early January, rumors of a change in Chinese policy toward the import of Australian coals became true. This change is unfolding now, and additional details may change our view. But for now, we do not see the reopening as materially disruptive. We believe changes in trade flows will occur over time as markets become more efficient. The recent changes in Chinese policies are encouraging with the government unveiling a comprehensive plan to support the property markets and guidelines for a gradual reversal of their strict Zero COVID policies. These measures, combined with other stimulus measures, should lead to some recovery in Chinese steel demand in 2023, offsetting the challenging economics in the U.S. and Europe. India has continued to demonstrate ongoing strength in steel production recently and may provide another bright spot to global weaknesses elsewhere.

1 月初，有關中國改變澳大利亞煤炭進口政策的傳言成為現實。這種變化現在正在展開，更多的細節可能會改變我們的看法。但就目前而言，我們認為重新開放不會造成重大破壞。我們相信，隨著市場效率的提高，貿易流量會隨著時間的推移而發生變化。中國政策最近的變化令人鼓舞，政府公佈了一項支持房地產市場的綜合計劃和逐步取消其嚴格的零 COVID 政策的指導方針。這些措施與其他刺激措施相結合，應該會導致中國鋼鐵需求在 2023 年出現一定程度的複蘇，抵消美國和歐洲充滿挑戰的經濟形勢。印度最近繼續展示鋼鐵生產的持續實力，並可能為全球其他地區的疲軟提供另一個亮點。

We expect the year 2023 will be a significant turning point in the development of our world-class Blue Creek mine that will drive long-term stockholder value. As I said earlier, we started the construction of the slope, service shaft, and ventilation shafts in 2022, and that work will continue in 2023. More importantly in 2023, we will begin groundbreaking for the larger infrastructure components, such as the [new coal] preparation plant, bathhouse with mine offices, overland belt conveyor, and barge load out. We're very excited to see the progress that will come this year as we expect to spend approximately $250 million on the project. We are extremely excited about this organic growth project, which will transform Warrior and allow us to build upon our proven track record of creating value for our stockholders. As we previously indicated, we expect the first development tons from continuous miner units in the third quarter of 2024, with the longwall scheduled to start up in the second quarter of 2026.

我們預計 2023 年將成為我們世界級 Blue Creek 礦山開發的重要轉折點，這將推動長期股東價值。正如我之前所說，我們在 2022 年開始建造斜坡、服務豎井和通風豎井，這項工作將在 2023 年繼續進行。更重要的是，在 2023 年，我們將開始建設更大的基礎設施組件，例如 [new選煤廠、帶礦山辦公室的澡堂、陸上皮帶輸送機和駁船卸貨。我們很高興看到今年將取得的進展，因為我們預計將在該項目上花費約 2.5 億美元。我們對這個有機增長項目感到非常興奮，它將改變 Warrior 並使我們能夠在為股東創造價值的可靠記錄的基礎上再接再厲。正如我們之前指出的那樣，我們預計 2024 年第三季度連續採礦裝置的第一批開發噸，長壁計劃於 2026 年第二季度啟動。

As I said earlier, there are expectations of a global economic slowdown in 2023, which could impact the short-term overall financial results of the company if those expectations play out as forecasted. However, since we have over $800 million of cash on hand and nearly $1 billion in total liquidity, we expect to continue the development of Blue Creek at a rapid pace despite the overall macroeconomic environment in 2023.

正如我之前所說，預計 2023 年全球經濟將放緩，如果這些預期如預期那樣發揮作用，這可能會影響公司的短期整體財務業績。然而，由於我們手頭有超過 8 億美元的現金和近 10 億美元的總流動資金，我們預計儘管 2023 年的整體宏觀經濟環境仍將繼續快速發展 Blue Creek。

With that, we'd like to open the call for questions. Operator?

有了這個，我們想打開問題的電話。操作員？

(Operator Instructions) And our first question here will come from Lucas Pipes with B. Riley Securities.

（操作員說明）我們在這裡的第一個問題將來自 B. Riley Securities 的 Lucas Pipes。

My first question is on the cost guidance for 2023. And I wondered if you could add a little bit more color as to the key drivers here to what extent is the first half of this year materially higher than the first half last year, with inflation really taking off over the course of last year. Is that a component? And then related to this, obviously, there's still some terminal issues down in Mobile. If those issues do get resolved here in the short term, could there be a greater fixed cost absorption on the sales side? So interested in the interplay there with cost and volumes.

我的第一個問題是關於 2023 年的成本指導。我想知道你是否可以為這裡的主要驅動因素添加更多顏色，今年上半年在多大程度上顯著高於去年上半年，通貨膨脹在去年的過程中真正起飛。那是一個組件嗎？然後與此相關，很明顯，Mobile 中仍然存在一些終端問題。如果這些問題確實在短期內在這裡得到解決，那麼銷售方面是否會吸收更多的固定成本？對成本和數量之間的相互作用非常感興趣。

Yes. This is Dale. Yes, the cost guidance includes some incremental inflation this year on top of what we experienced last year. And as I noted, for the full year, we experienced about an additional $4 a ton of inflation. So we built in somewhat of a similar amount into 2023 because we're not seeing any changes in that right now at this point. As we said in our prepared remarks, also the lead times on supplies and equipment continue to be quite long. And so the security of some of [those supplies] is costing a little more. So we've tried to protect ourselves with that, but that is one of the key drivers.

是的。這是戴爾。是的，成本指導包括今年在我們去年經歷的基礎上的一些增量通貨膨脹。正如我所指出的，在全年中，我們經歷了大約每噸 4 美元的額外通貨膨脹。所以我們在 2023 年建立了一些類似的數量，因為我們目前沒有看到任何變化。正如我們在準備好的發言中所說，物資和設備的交貨時間仍然很長。因此，[這些物資]中的一些安全成本要高一些。所以我們試圖用它來保護自己，但這是關鍵驅動因素之一。

And as I also said in my remarks, because we built up some of these inventories that were produced earlier in the year, those were at higher met coal prices. So our transportation rates reset, but they haven't reset to the lowest prices in the fourth quarter. So you have some lag effect still rolling over for a quarter until those inventories get down. So that's part of it. We can get some good leverage as we move forward, depending upon how the operations at the port improve.

正如我在發言中所說，由於我們積累了今年早些時候生產的一些庫存，因此這些庫存的冶煉煤價格較高。所以我們的運輸費率重置了，但它們並沒有重置到第四季度的最低價格。所以你有一些滯後效應仍然會持續一個季度，直到這些庫存下降。這就是其中的一部分。在我們前進的過程中，我們可以獲得一些很好的影響力，這取決於港口運營的改善情況。

And at the port, our expectation is that they will -- their performance will improve relatively quickly. It won't get back up to what we consider to be optimal levels for a while, I don't think. I think they have some big projects they have to work on, but I think they'll get back to a reasonable operating level. And that shouldn't -- so we should see a decrease in inventory levels. That's our expectation. And that should not have any impact on our cost.

在港口，我們的期望是他們會——他們的表現會相對較快地提高。它不會恢復到我們認為的最佳水平一段時間，我不認為。我認為他們有一些必須開展的大項目，但我認為他們會恢復到合理的運營水平。那不應該——所以我們應該看到庫存水平下降。這是我們的期望。這不應該對我們的成本產生任何影響。

That's helpful. And to stay on the port side. Can you, one, elaborate a little bit more on what exactly happened? And then two, in terms of the sales cadence throughout the year, I appreciate it's early, but could you maybe walk us through maybe what's reasonable for Q1 sales volume wise, Q2. Obviously, back half of the year is pretty far out. And to the extent any [longwall] moves have an impact on this cadence as well, I would appreciate that additional color.

這很有幫助。並留在左舷。你能詳細說明一下到底發生了什麼嗎？然後是兩個，就全年的銷售節奏而言，我很欣賞它的早期，但你能否帶我們了解一下 Q1 銷售量明智的合理情況，Q2。顯然，今年下半年還很遙遠。就任何 [長壁] 移動也會對這種節奏產生影響而言，我會很感激這種額外的顏色。

Okay. On the ports, it really is just a myriad of small maintenance issues that are plaguing them, belt splicing, the chute works at transfer points on their belt lines, they had the weather issues, and this all -- in my opinion, this all kind of really started back when they had to completely rebuild the 2 car dump last summer. I think that just started a little bit of a cascading of problems at the port as they completed that project and were very focused on that, I think some other things just slipped past, and now there's a bit of attention that needs paid to that. And that project -- replacement of that 2-car dump was pretty capitally intensive, and they have a budget as well. And I think that now we're just going to have to work our way back to what we consider to be strong performance.

好的。在港口，實際上只是無數的小維護問題困擾著他們，皮帶拼接，皮帶線上轉運點的滑槽工作，他們遇到了天氣問題，而這一切——在我看來，這一切去年夏天他們不得不完全重建 2 輛汽車的垃圾場時，才真正開始了。我認為，當他們完成該項目並非常專注於此時，港口才開始出現一系列問題，我認為其他一些事情剛剛過去，現在需要對此給予一些關注。那個項目——更換那個 2 輛車的垃圾場是相當資本密集型的，他們也有預算。而且我認為現在我們只需要努力回到我們認為的強勁表現。

And as far as the sales cadence, Lucas, I think we tried to build into our guidance there for sales volume, taking down some of these inventories versus what we're going to produce this year. And if you take the midpoint and evenly put that over the quarters, you're probably looking at an average of about 1.7, 1.75 per quarter. So we don't want to get too far ahead of ourselves to say, look, we're going to recover all this in the first quarter. As we said all last year, we thought we were going to get there every quarter, and we just didn't get there. So while we're seeing improvement in things down there, we don't want to commit to anything higher than that at this point.

至於銷售節奏，盧卡斯，我認為我們試圖將銷售量納入我們的指導，與我們今年要生產的產品相比，減少了一些庫存。如果你取中點並將其均勻地放在季度中，你可能會看到平均每季度約 1.7、1.75。所以我們不想說得太快，看，我們將在第一季度恢復所有這些。正如我們去年一整年所說的那樣，我們認為我們每個季度都會到達那裡，但我們沒有到達那裡。因此，雖然我們看到那裡的情況有所改善，但我們現在不想承諾比這更高的事情。

(Operator Instructions) Our next question will come from Nathan Martin from The Benchmark Company.

（操作員說明）我們的下一個問題將來自 The Benchmark Company 的 Nathan Martin。

Yes. Congrats on a record year, despite some of those logistical challenges. Maybe just sticking with full year shipment guidance for a second, up around 1 million tons at the low end. Obviously, you're, hopefully, going to sell some of those inventory -- some of that inventory based on the delta between production and sales guidance as well. But maybe can you walk us through how you see the increase, which I think on the sales side, again, over 1 million tons and on the production side looks over 300,000 tons or so at the midpoint, how you're getting to those numbers?

是的。祝賀創紀錄的一年，儘管存在一些後勤挑戰。也許只是堅持全年出貨量指導，在低端增加約 100 萬噸。顯然，您希望出售其中一些庫存——其中一些庫存也基於生產和銷售指導之間的差值。但也許你能告訴我們你是如何看待增長的，我認為在銷售方面，再次超過 100 萬噸，在生產方面看起來超過 300,000 噸左右，在中點，你是如何得到這些數字的？

Well, I think, first of all, if you look at our production, the production is going to be pretty good for this year, 6.3% to 6.9% in that range. And we just finished this year with a strong production year of 6.3% -- I'm sorry, yes, it was 6.3 million tons. So that's the low end of our guidance. So if we do nothing different in '23, we should be at that low end. And the fact that we're trying to hire more people, get more boots on the ground to increase production that can get us to that upper end of that range.

好吧，我認為，首先，如果你看看我們的產量，今年的產量會相當不錯，在這個範圍內達到 6.3% 到 6.9%。今年我們剛剛結束了 6.3% 的強勁產量——對不起，是的，是 630 萬噸。所以這是我們指導的低端。因此，如果我們在 23 年沒有做任何不同的事情，我們應該處於那個低端。事實上，我們正試圖僱用更多的人，在地面上獲得更多的靴子以增加產量，這可以使我們達到該範圍的上限。

That's what's [taking down] the inventory, like you were saying, should get us to those sales guidance numbers.

這就是 [減少] 庫存，就像你說的那樣，應該讓我們達到那些銷售指導數字。

When we look at the inventory levels, as we exited last year at 880,000 tons, our expectation is the right level of inventory is sub-500,000 tons, somewhere between 350,000 tons and 500,000 tons is probably an optimal inventory level. So you can see, we have at least 380,000 tons of excess inventory that we expect to work off.

當我們查看庫存水平時，我們去年的庫存水平為 880,000 噸，我們的預期是正確的庫存水平低於 500,000 噸，介於 350,000 噸和 500,000 噸之間可能是最佳庫存水平。所以你可以看到，我們至少有 380,000 噸的過剩庫存需要處理。

That's very helpful, guys. And then I wanted to touch, too, on the labor situation. I think you said in your prepared remarks, you added about 140 mine workers in '22. Dale, it sounds like you're still looking to grow that number just to confirm that, and then just any updates on the efforts there given the tight market.

這很有幫助，伙計們。然後我也想談談勞工狀況。我想你在準備好的發言中說過，你在 22 年增加了大約 140 名礦工。戴爾，聽起來你仍然希望增加這個數字只是為了確認這一點，然後只是在市場緊張的情況下更新那裡的努力。

Yes. We continue to hire people on monthly basis and train them and get them to work. Now, naturally, a lot of these people that we're hiring right now are inexperienced. So it takes time for them to get up to speed and be able to do some of the jobs like running equipment, but we'll continue to hire. There's a lot of opportunity if we can continue to get folks in at the rate we were able to hire last year, and we'll continue to hire at that rate. As far as the labor situation with UMWA, we continue to negotiate in good faith. But there hasn't been an awful lot of headway made.

是的。我們繼續按月僱用人員並培訓他們並讓他們工作。現在，很自然地，我們現在招聘的很多人都沒有經驗。因此，他們需要時間才能跟上速度並能夠完成一些工作，例如運行設備，但我們會繼續招聘。如果我們能繼續以去年的招聘速度招人，我們就有很多機會，我們將繼續以這樣的速度招聘。至於與 UMWA 的勞工狀況，我們將繼續本著誠意進行談判。但是並沒有取得太大的進展。

Got it. Appreciate that, Walt. Going back maybe real quickly to the full year cost guidance. I appreciate the earlier comments. Additionally, just curious what met prices are you guys assuming in that range?

知道了。對此表示讚賞，沃爾特。可能很快就會回到全年成本指導。我很欣賞之前的評論。此外，只是好奇你們在這個範圍內假設的價格是多少？

We're just a little over $200 per short ton for the year.

我們今年每短噸的價格略高於 200 美元。

Okay. And does that get you to that midpoint of that cost-per-ton range, Dale? I think that's a little bit wider than you guys usually give to that $109 per short ton to $125 per short ton range.

好的。戴爾，這會讓你達到每噸成本範圍的中點嗎？我認為這比你們通常給出的每短噸 109 美元到每短噸 125 美元的範圍要寬一些。

That's correct. Yes, it's the midpoint.

這是正確的。是的，這是中點。

Okay. Perfect. And then just want to make sure I heard this correctly, too. Looking at the breakdown of growth CapEx for the year, the $325 million to $345 million, I think you guys said in the prepared remarks, $250 million of that was Blue Creek, but maybe just to make sure, can you break out Blue Creek versus spending on the longwall shields in the 4 North portal.

好的。完美的。然後只是想確保我也沒有聽錯。看看今年增長資本支出的細目，3.25 億美元到 3.45 億美元，我想你們在準備好的發言中說過，其中 2.5 億美元是 Blue Creek，但也許只是為了確定，你能把 Blue Creek 與在 4 北門戶的長壁護盾上花費。

That's correct. About $250 million at Blue Creek for the year.

這是正確的。 Blue Creek 的年收入約為 2.5 億美元。

Okay. And then just the balance mainly on those 2 other items?

好的。然後只是其他兩個項目的餘額？

Yes. The shields are roughly $52 million to $55 million and then the rest of it is finishing the 4 North portal.

是的。盾牌大約是 5200 萬到 5500 萬美元，然後其餘部分正在完成 4 North 門戶。

Our next question will come from David Gagliano with BMO Capital Markets.

我們的下一個問題將來自 BMO Capital Markets 的 David Gagliano。

A lot of have already been asked. I just wanted a quick follow-up on the last question. On the other discretionary spending, obviously, longwall shields and [especially] 4 North portal, as you go into '24, is there any meaningful incremental other discretionary spending aside from obviously Blue Creek, which has already been laid out?

已經問了很多。我只想快速跟進最後一個問題。在其他可自由支配的支出方面，很明顯，長壁盾牌和 [尤其是] 4 North 門戶，當你進入 24 世紀時，除了已經佈置好的明顯的 Blue Creek 之外，是否還有任何有意義的增量其他可自由支配的支出？

There should be a very small amount. We're putting a bunker in at the 4 North portal. And that bunker's set to come online in the first quarter of '24. So there will be a little, maybe $5 million or so on that project. And I can't say we won't find other projects we want to do. But right now, that would be the only one that I'm aware of that would be -- we would categorize as discretionary.

應該有很少的量。我們正在 4 North 入口處放置一個地堡。該地堡將於 24 世紀第一季度上線。所以這個項目會有一點，可能是 500 萬美元左右。我不能說我們找不到其他我們想做的項目。但現在，這將是我所知道的唯一一個——我們將歸類為自由裁量權。

Okay. That's helpful. And then just switching gears a little bit. We've seen some restarts, obviously, in Europe in terms of the blast furnaces. And I was just wondering if you could comment a little bit on the -- I know there was some commentary in the prepared remarks. I was wondering if you could comment a little bit further on any recent change. Obviously, your volumes are committed, but just curious about the customer activity in recent weeks.

好的。這很有幫助。然後稍微換檔。顯然，就高爐而言，我們已經在歐洲看到了一些重啟。我只是想知道你是否可以對 - 我知道準備好的發言中有一些評論。我想知道您是否可以就最近的任何更改進一步發表評論。顯然，您的交易量已承諾，但只是對最近幾週的客戶活動感到好奇。

What we've seen is very strong customer demand. We've seen customers ask for additional tons, additional vessels here and there, a few additional vessels. So we're seeing very robust demand out of our traditional customer base.

我們看到的是非常強烈的客戶需求。我們已經看到客戶要求增加噸位，在這里和那裡增加船隻，一些額外的船隻。因此，我們看到傳統客戶群的需求非常強勁。

(Operator Instructions) Our next question is a follow-up from Lucas Pipes with B. Riley Securities.

（操作員說明）我們的下一個問題是 Lucas Pipes 與 B. Riley Securities 的後續行動。

The first one is also a market-related question. Aussie pricing pulled well ahead of Atlantic price. First, I believe that is ultimately benefiting you because you're selling under the Aussie price, so you're benefiting from that strength. If you could just comment on that. And then related, what do you think is driving those spreads? And any views on how sustainable they are at these levels?

第一個也是市場相關的問題。澳元定價遠遠領先於大西洋價格。首先，我相信這最終會讓你受益，因為你以低於澳元的價格出售，所以你會從這種力量中受益。如果你能對此發表評論。然後相關，你認為是什麼推動了這些價差？對它們在這些層面上的可持續性有何看法？

I just don't think there's been a lot of additional supply come online. I think that's driving it more than anything else. And I think when you look at -- and I think I mentioned it in my comments that if you look at last year, it was one of the best -- is the best market for met coal ever. And from a supply standpoint, there was very little, if any, incremental supply come online.

我只是不認為有很多額外的供應上線。我認為這比其他任何事情都更能推動它。而且我認為當你看 - 我想我在評論中提到過，如果你看去年，它是最好的市場之一 - 是有史以來最好的冶煉煤市場。從供應的角度來看，很少有增量供應上線。

There's reports of some additional problems in a few of the Australian operations going into this year. I think when you look at the growth model for what's expected in India, India is going to have a very high demand level. You're going to have China coming back into the market. That's going to cause -- that's just going to redistribute where the coal goes. But I just think it's going to continue to be a very strong market. And I think the Chinese coming back in is helping to influence that market. And again, I think the other thing that's allowing the market to stay firm right now are some of the price increases our customers were able to get for steel towards the end of the year last year.

有報導稱，今年澳大利亞的一些業務會出現一些其他問題。我認為，當您查看印度預期的增長模式時，印度的需求水平將非常高。你會讓中國重新進入市場。這將導致 - 這只會重新分配煤炭的去向。但我只是認為它將繼續成為一個非常強勁的市場。我認為中國人的回歸有助於影響該市場。再一次，我認為讓市場現在保持堅挺的另一件事是我們的客戶在去年年底能夠獲得的鋼鐵價格上漲。

And is the strength in the Australian price pulling more of your cargoes into the Asian market already?

澳大利亞價格走強是否已經將更多貨物拉入亞洲市場？

No, it's a pretty traditional number in the low 20% range, somewhere there. We may have a quarter here or there where we find a few spot vessels and ship some spot vessels out. So we may have a quarter or 2 where that will be impacted. But I think overall, it will be pretty traditional for us in terms of a 20%, 22% into Asia, 50% or so into Europe, and the remainder into South America.

不，這是一個相當傳統的數字，在 20% 的低範圍內，在那裡的某個地方。我們可能在這里或那裡有一個季度，在那裡我們找到一些現貨船並將一些現貨船運出。因此，我們可能會有四分之一或兩個受到影響。但我認為總體而言，就 20%、22% 進入亞洲、50% 左右進入歐洲以及其餘部分進入南美而言，這對我們來說將是相當傳統的。

That's helpful. And then turning to Blue Creek for a moment. Could you comment on the nature of the contract with the general contractor or key contractor? Are there pass-through provisions for some of these inflationary pressures that we're seeing? Are, for example, raw materials price protected for you? Any views on that. And then in terms of the project development with labor generally still being tight across the economy, any view on potential impacts there? I know it's early, but curious to hear your thoughts.

這很有幫助。然後暫時轉向 Blue Creek。您能否評論與總承包商或主要承包商的合同性質？對於我們所看到的這些通脹壓力，是否有轉嫁條款？例如，原材料價格是否為您提供保護？對此有何看法。然後就項目開發而言，整個經濟中勞動力普遍仍然緊張，對那裡的潛在影響有何看法？我知道現在還早，但很想听聽您的想法。

So on the contract side, a lot of the key large contracts, as we noted in our prepared remarks, will be entered into this year and started, Lucas. So still it's speculation on what those prices are. Some may have provisions for pass-throughs, others won't because we're basically digging holes in the ground this past year. And now this year we're in negotiations for the prep plant, the overland conveyor belt, the barge loadout, all the big chunks of capital. So we'll have a better update on total CapEx expense later this year. Hopefully, once we get into those -- get those project contracts signed, those particular ones because there are various contractors doing different parts, so that we can accelerate and get this project done as soon as possible.

因此，在合同方面，正如我們在準備好的評論中指出的那樣，許多關鍵的大型合同將在今年簽訂並開始，盧卡斯。所以仍然是對這些價格的猜測。有些可能有直通規定，有些則沒有，因為過去一年我們基本上是在地上挖洞。而現在今年我們正在就準備工廠、陸上傳送帶、駁船裝載以及所有大筆資金進行談判。因此，我們將在今年晚些時候更好地更新總資本支出。希望一旦我們進入這些 - 簽署那些項目合同，那些特定的合同，因為有不同的承包商在做不同的部分，這樣我們就可以加速並儘快完成這個項目。

The labor situation for our contractor seems to be pretty manageable. We haven't had any delays based on labor shortages. As we look at the mine from our standpoint, and we begin running continuous miner units there, probably in the third quarter of next year, we'll be growing that workforce in fits and starts, but there will probably be -- each quarter there will probably be 30 or 40 people at least that are added to that workforce. I think we'll be able to manage that pretty well.

我們承包商的勞工情況似乎很容易處理。我們沒有因勞動力短缺而造成任何延誤。當我們從我們的角度來看礦山時，我們開始在那裡運行連續的採礦設備，可能在明年第三季度，我們將不時增加勞動力，但可能每個季度都會有可能至少會有 30 或 40 人加入該勞動力隊伍。我認為我們將能夠很好地管理它。

And our next question will be a follow-up from David Gagliano with BMO Capital Markets.

我們的下一個問題將是 David Gagliano 與 BMO Capital Markets 的後續問題。

I think this may have already been asked, but I apologize if it has. I just had a quick question on the cash cost guide for 2023. The price assumption embedded in the cash cost and if $10 change in the price is about how much of a change in the cash costs?

我認為這可能已經被問過，但如果有人問過，我深表歉意。我剛剛有一個關於 2023 年現金成本指南的快速問題。現金成本中包含的價格假設以及如果價格變化 10 美元是關於現金成本變化多少？

Yes. We said earlier that our midpoint of our cost guidance is roughly $200 index price for the year. And then we've also built in some additional inflation into '23 as well.

是的。我們早些時候說過，我們的成本指導的中點是今年大約 200 美元的指數價格。然後我們還在 23 年增加了一些額外的通貨膨脹。

Okay. And then just the second part of that, like every $10 change in that price is about how much of a change in the cash cost?

好的。然後是第二部分，比如價格每變化 10 美元，現金成本就會變化多少？

I don't really have that handy, David. We don't track it that closely. We're looking more at the factors individually. And hopefully, some of this inflation will turn around. That's been a big driver this year, but maybe we can get that to slow down.

我真的沒有那麼方便，大衛。我們不會密切跟踪它。我們正在更多地單獨考慮這些因素。希望這種通貨膨脹會有所扭轉。這是今年的一個重要驅動因素，但也許我們可以讓它放緩。

At this time, there are no further questions. I will now turn the call back over to Mr. Scheller for any comments.

目前，沒有進一步的問題。我現在將把電話轉回給 Scheller 先生徵求任何意見。

That concludes our call this afternoon. Thank you, again, for joining us today, and we appreciate your interest in Warrior Met Coal.

我們今天下午的電話會議到此結束。再次感謝您今天加入我們，感謝您對 Warrior Met Coal 的興趣。

Thank you. And that concludes today's conference. Thank you all for participating. You may now disconnect your lines.

謝謝。今天的會議到此結束。謝謝大家的參與。您現在可以斷開線路。