Warrior Met Coal Inc (HCC) 2023 Q3 法說會逐字稿

Good afternoon. My name is Allan, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Third Quarter 2023 Financial Results Conference Call. (Operator Instructions) This call is being recorded and will be available for replay on the company's website.

午安.我叫艾倫，今天我將擔任你們的會議操作員。此刻，我歡迎大家參加勇士2023年第三季財務業績電話會議。 （操作員說明）此通話正在錄音，並將在公司網站上重播。

Before we begin, I have 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有重大差異。有關前瞻性陳述的更多信息，請參閱本公司的新聞稿和 SEC 文件。

I have also been asked to note that the company has posted reconciliations of 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，該公司已在該公司網站 www.warriormetcoal.com 投資者部分的公司收益新聞稿隨附的表格中發布了本次電話會議期間討論的非公認會計準則財務指標的調節表。除了收益發布外，該公司還在其網站 www.warriormetcoal.com 的投資者部分發布了簡短的補充幻燈片演示。

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

今天，執行長沃爾特·謝勒 (Walt Scheller) 先生在此討論公司的業績；以及財務長 Dale Boyles 先生。謝勒先生，您可以開始發言了。

Thanks, operator. Hello, everyone, and thank you for taking the time to join us today to discuss our third quarter 2023 results. After my remarks, Dale will review our results in additional detail, then you'll have the opportunity to ask questions.

謝謝，接線生。大家好，感謝您今天抽出時間加入我們討論我們 2023 年第三季的業績。在我發言後，戴爾將更詳細地審查我們的結果，然後您將有機會提出問題。

We were pleased to deliver another strong quarter in which we were able to leverage our operational excellence to achieve record sales volume, which represented a 51% increase over last year's third quarter. We continue to see improved performance from our transportation partners and at the McDuffie Terminal, which allowed us to ship more volume and reduce our excess inventory.

我們很高興再次實現強勁的季度業績，我們能夠利用卓越的營運能力實現創紀錄的銷量，比去年第三季度增長 51%。我們繼續看到我們的運輸合作夥伴和麥克達菲碼頭的績效不斷提高，這使我們能夠運送更多的貨物並減少多餘的庫存。

Our quarter-over-quarter growth in sales volume also yielded strong profitability as well, generating a cash margin of $158 million or $70 per short ton. Steel output from China, the world's largest producer, was stronger than we had anticipated, and its widely publicized production cuts have not yet materialized. In fact, weaker domestic demand has led China to export higher-than-normal volumes of steel, which has impacted supply in some of our customers' markets.

我們銷量的環比成長也帶來了強勁的獲利能力，現金利潤達到 1.58 億美元，即每短噸 70 美元。作為全球最大的生產國，中國的鋼鐵產量強於我們的預期，廣大宣傳的減產措施尚未落實。事實上，國內需求疲軟導致中國鋼鐵出口量高於正常水平，這影響了我們一些客戶市場的供應。

With the exception of India, most other major steel-producing regions experienced lower demand and as a result, lower prices for their finished products. We've heard of customers adjusting their production rates to match demand. In contrast, the met coal index for premium low-vol coals experienced large upward trends during the latter part of the third quarter, while most other indices experienced more modest gains. These factors have put our customers' margins under pressure with the diverging steel prices in relation to raw material costs.

除印度外，大多數其他主要鋼鐵生產地區的需求下降，因此成品價格下降。我們聽說客戶調整生產力以滿足需求。相較之下，優質低揮發分煤炭的冶金煤炭指數在第三季後半段經歷了大幅上升趨勢，而大多數其他指數的漲幅則較為溫和。由於鋼材價格與原料成本的差異，這些因素使我們客戶的利潤率面臨壓力。

In sharp contrast to the second quarter this year, the availability of premium hard coking coals was tight during the third quarter as several Australian producers began their maintenance programs. In addition, the vulnerability of the supply chain was on display again with a slew of production issues, labor-related constraints and logistical issues impacting the availability of met coal.

與今年第二季形成鮮明對比的是，隨著幾家澳洲生產商開始維護計劃，第三季優質硬焦煤的供應緊張。此外，供應鏈的脆弱性再次顯現，一系列生產問題、勞動力相關限制和物流問題影響了冶金煤的供應。

However, we continue to see strong Mongolian met coal exports flowing into China as well as significant Russian coal exports finding their way into China and India. All of the major indices closed the quarter at their highs for the period. Our primary index, the PLV FOB Australia, experienced the largest increase of all the indices, getting $91 per short ton over the second quarter and closing at $302 per short ton.

然而，我們繼續看到蒙古煤炭出口強勁流入中國，俄羅斯煤炭出口也大量進入中國和印度。所有主要指數本季收於同期高點。我們的主要指數 PLV FOB Australia 的漲幅是所有指數中最大的，第二季上漲了每短噸 91 美元，收盤價為每短噸 302 美元。

In contrast, the PLV CFR China Index increased by $51 per short ton with a closing price of $254. The ARP between these industries swung into negative territory in mid-August achieving a delta of $48 per short ton at the end of the third quarter.

相比之下，PLV CFR中國指數每短噸上漲51美元，收盤價為254美元。這些行業之間的 ARP 在 8 月中旬轉入負值，第三季末達到每短噸 48 美元的差值。

According to the World Steel Association monthly report, global pig iron production increased by approximately 1.5% during the first 9 months of 2023 as compared to the same period last year. The positive growth was mainly driven by higher Chinese steel production, which grew by 2.8% for the first 9 months.

根據世界鋼鐵協會每月報告，2023年前9個月全球生鐵產量較去年同期成長約1.5%。正成長主要是由於中國鋼鐵產量增加，前 9 個月增加了 2.8%。

India steel production, although lower in absolute terms compared to China, continues to grow at impressive rates, increasing by 8.2% for the same period. Most other large steel-producing regions of the world experienced production declines compared to the previous year period.

印度鋼鐵產量雖然絕對值低於中國，但仍繼續以令人印象深刻的速度成長，同期成長了 8.2%。與去年同期相比，世界上大多數其他大型鋼鐵生產地區的產量均出現下降。

As I noted, our record-setting third quarter sales volume of 2.3 million short tons was 51% higher than the comparable quarter last year. The previous record was set in the second quarter of 2019. The increase was driven by the improved performance of our transportation partners in the McDuffie Terminal, which enabled us to export more product and reduce our excess inventory. In addition, better-than-expected production contributed to an increase in sales volume for the quarter.

正如我所指出的，我們第三季的銷售量創紀錄，達到 230 萬短噸，比去年同期高出 51%。先前的紀錄是在 2019 年第二季創下的。這一增長是由於我們在麥克達菲碼頭的運輸合作夥伴的業績改善所推動的，這使我們能夠出口更多產品並減少過剩庫存。此外，好於預期的生產也促進了該季度銷售的成長。

Our sales by geography in the third quarter breaks down as follows: 39% into Europe, 22% into South America and 39% into Asia. The increase in Asian sales was primarily driven by higher spot volumes sold into India and China during the third quarter. Our spot volume was 44% and abnormally high with excess inventory in the third quarter.

第三季我們的銷售額按地區劃分如下：歐洲佔 39%，南美洲佔 22%，亞洲佔 39%。亞洲銷售額的成長主要是由於第三季銷往印度和中國的現貨量增加所致。我們的現貨量為 44%，異常高，第三季庫存過剩。

I want to spend a moment explaining the factors that went into the sales mix and how they impacted our average net selling price, revenue and net income. Warrior has experienced a larger spot volume this year, primarily due to the end of the labor strike and to a lesser extent, the quality transition of Mine 4.

我想花點時間解釋一下銷售組合中的因素以及它們如何影響我們的平均淨售價、收入和淨利潤。 Warrior 今年的現貨交易量有所增加，這主要是由於罷工的結束以及 4 號礦的品質轉變。

As we did not know when the strike would end, we entered 2023 assuming that additional production would have to be directed towards the spot market. However, a spot activity on our natural markets has been very weak this year. And since spot demand was fairly stable in countries like China and India, we turned our focus to the Pacific markets.

由於我們不知道罷工何時結束，進入 2023 年時我們假設額外的產量必須用於現貨市場。然而，今年我們自然市場的現貨活動卻非常疲軟。由於中國和印度等國家的現貨需求相當穩定，我們將重點轉向了太平洋市場。

With these dynamics in mind, it's important to understand that pricing in the Pacific markets and how it differs from our traditional spot markets depending on market conditions. Typically, the Pacific markets are priced based on a CFR basis rather than the PLV FOB Australia basis, which is more common in our traditional spot market.

考慮到這些動態，重要的是要了解太平洋市場的定價以及它與我們傳統現貨市場的不同之處，具體取決於市場條件。通常，太平洋市場的定價是基於 CFR 基礎，而不是 PLV FOB 澳洲基礎，這在我們的傳統現貨市場中更為常見。

The freight differentials borne by a supplier on a CFR basis whenever the buyer has market leverage, which is the case in the third quarter. In a departure from historical trends, these industries have seen a dislocation which are not currently moving in tandem with CFR prices trailing PLV FOB prices by approximately $80 per short ton on average.

當買方擁有市場槓桿時（第三季就是這種情況），供應商會以 CFR 承擔運費差價。與歷史趨勢不同的是，這些行業出現了混亂，目前 CFR 價格落後 PLV FOB 價格平均每短噸約 80 美元。

This is occurring due to a number of factors, including the limited end markets for Russian coal and CFR China pricing that was largely based on domestic dynamics rather than on a delivered basis from Australia. These dynamics resulted in a negative impact to our average net selling prices, revenues and net income during the third quarter.

造成這種情況的原因有很多，包括俄羅斯煤炭終端市場有限，以及 CFR 中國定價主要基於國內動態而非澳洲交付。這些動態對我們第三季的平均淨售價、收入和淨利潤產生了負面影響。

With our headcount and production levels becoming more predictable over the coming quarters, we'll be better positioned to contract our product in advance, which enables us to capture the benefit of the rise in pricing. We might not see the impact of this in the fourth quarter, but we believe we're well-positioned to take advantage of higher pricing in the medium term.

隨著未來幾季我們的員工數量和生產水平變得更加可預測，我們將能夠更好地提前簽訂產品合同，這使我們能夠從價格上漲中獲益。我們可能不會在第四季度看到這一影響，但我們相信我們處於有利地位，可以在中期利用更高的定價。

Let's now return to other key details of our third quarter performance. Production volume in the third quarter was better than expected and totaled 2 million short tons compared to 1.6 million short tons in the same quarter of last year, representing a 21% increase. This is the highest quarterly production output since the first quarter of 2021 and a record-setting quarter for Mine 4. Both mines operated at higher capacity levels in this quarter as a result of additional employees returning from the labor strike.

現在讓我們回到第三季業績的其他關鍵細節。第三季產量優於預期，總計200萬短噸，較去年同期的160萬短噸增加21%。這是自 2021 年第一季以來最高的季度產量，也是 4 號礦場創紀錄的季度。由於罷工後有更多員工返回，這兩個礦場在本季的產能水準有所提高。

Our headcount was 44% higher in the third quarter compared to the prior year's third quarter. The higher sales over production volume in the third quarter drove our coal inventory down to 489,000 short tons from 760,000 at the end of the second quarter.

與去年第三季相比，我們第三季的員工人數增加了 44%。第三季銷售量高於產量，導致我們的煤炭庫存從第二季末的 76 萬短噸下降至 489,000 短噸。

During the third quarter, we spent $112 million on CapEx and mine development. CapEx spending was $107 million, which included $66 million on the Blue Creek project, which I'll discuss more in a moment.

第三季度，我們在資本支出和礦場開發上花費了 1.12 億美元。資本支出為 1.07 億美元，其中包括 Blue Creek 項目的 6,600 萬美元，我稍後將詳細討論該項目。

CapEx spending was a little lower than expected during the third quarter due to some delays in equipment deliveries and the timing of spending at Blue Creek. However, we expect to be within our full year spending guidance range by the end of the year.

由於設備交付的一些延遲以及 Blue Creek 的支出時間安排，第三季資本支出略低於預期。然而，我們預計到年底將達到全年支出指引範圍。

Mine development spending was $6 million during the third quarter as we completed the development of Mine 4. Now that we're mining in the new area for Mine 4, we're seeing a transition in quality from the mid-vol to a high-vol A, which is similar to Blue Creek.

第三季度，我們完成了 4 號礦的開發，礦場開發支出為 600 萬美元。現在我們正在 4 號礦的新區域進行採礦，我們看到質量從中量到高量的轉變。vol A，與Blue Creek 類似。

Turning to the development of our world-class Blue Creek asset. During the third quarter, we continued to make substantial progress on the project, and I'm pleased to share that our work remains on schedule. During the third quarter, we continued to make progress on the production slope, service shaft, ventilation shaft, which will be fully connected next year to allow the continuous miners to start development.

談到我們世界級 Blue Creek 資產的開發。在第三季度，我們繼續在該專案上取得實質進展，我很高興地告訴大家，我們的工作仍然按計劃進行。第三季度，我們繼續在生產斜坡、服務井、通風井方面取得進展，這些井將於明年完全連接，以便連採機開始開發。

In addition, we continue to develop the site for the construction of the preparation plant and the run-of-mine belt structure as well as building the bathhouse and warehouse.

此外，我們繼續開發場地，用於建造選礦廠和原礦帶結構以及建造浴室和倉庫。

Capital expenditures during the third quarter for the development of Blue Creek were $66 million and totaled $191 million year-to-date. We spent $238 million since the beginning of the project.

第三季用於 Blue Creek 開發的資本支出為 6,600 萬美元，年初至今總計 1.91 億美元。自專案開始以來，我們花費了 2.38 億美元。

I'll now ask Dale to address our third quarter results in greater detail.

我現在請戴爾更詳細地介紹我們第三季的業績。

Thanks, Walt. For the third quarter of 2023, the company recorded net income on a GAAP basis of $85 million or $1.64 per diluted share, representing a decrease over the net income of $98 million or $1.90 per diluted share in the same quarter of last year.

謝謝，沃爾特。 2023年第三季度，該公司以公認會計準則計算的淨利潤為8500萬美元，即稀釋後每股收益1.64美元，較去年同期的淨利潤9800萬美元，即稀釋後每股收益1.90美元有所下降。

Non-GAAP adjusted net income for the third quarter, excluding the nonrecurring loss on the early extinguishment of debt, business interruption and other expenses was $1.85 per diluted share. This compares to adjusted net income of $2.10 per diluted share in the same quarter of 2022. These decreases quarter-over-quarter were primarily driven by a 26% lower average net selling price combined with lower financial results from our gas business, which were offset partially by 51% higher sales volume.

扣除提前清償債務、業務中斷和其他費用的非經常性虧損後，第三季非公認會計準則調整後淨利為每股稀釋每股 1.85 美元。相比之下，2022 年同一季度調整後攤薄後每股淨利潤為 2.10 美元。這些環比下降主要是由於平均淨售價下降 26%，加上我們天然氣業務的財務業績下降，這被抵消了部分銷量增加了51%。

We reported adjusted EBITDA of $146 million in the third quarter of this year compared to $172 million in the same quarter of last year. The quarterly decrease was primarily driven by a number of factors. First, the average net selling price of our steelmaking coal was 26% lower than the prior year quarter. Second, as I mentioned, we saw lower financial results from our gas business. However, these were partially offset by 51% increase in sales volume and lower transportation and royalty cost. Our adjusted EBITDA margin was 34% in the third quarter of this year compared to 44% in the same quarter of last year.

我們報告今年第三季調整後 EBITDA 為 1.46 億美元，去年同期為 1.72 億美元。季度下降主要是由多種因素推動的。首先，我們煉鋼用煤的平均淨售價比去年同期下降了26%。其次，正如我所提到的，我們的天然氣業務的財務表現較低。然而，銷量成長 51% 以及運輸和特許權使用費成本下降部分抵消了這些影響。今年第三季我們調整後的 EBITDA 利潤率為 34%，而去年同期為 44%。

Total revenues were $423 million in the third quarter compared to $390 million in the third quarter of last year. This 9% increase was primarily due to the 51% increase in sales volume, offset by the 26% decrease in average net selling prices. Other revenues from our gas business were 64% lower in the third quarter of this year, primarily due to a 72% decrease in natural gas prices between the periods.

第三季總營收為 4.23 億美元，而去年第三季總營收為 3.9 億美元。 9% 的成長主要是由於銷量成長 51%，但被平均淨售價下降 26% 所抵消。今年第三季度，我們天然氣業務的其他收入下降了 64%，主要是由於各時期天然氣價格下降了 72%。

The Platts Premium Low Vol FOB Australian Index price remained on a slow but steady upward trajectory for much of the third quarter, rising sharply towards the end. Since the record rise did not occur until late in the third quarter, we did not significantly benefit from the increase due to its timing.

Platts Premium Low Vol FOB 澳洲指數價格在第三季的大部分時間裡保持緩慢但穩定的上升軌跡，並在接近尾聲時大幅上漲。由於創紀錄的上漲直到第三季末才出現，因此由於其時機的原因，我們並沒有從上漲中顯著受益。

The index price averaged $13 per short ton higher in the third quarter compared to the same quarter of last year. The index price averaged $240 per short ton in the third quarter.

第三季該指數價格平均每短噸比去年同期上漲 13 美元。第三季該指數平均價格為每短噸 240 美元。

Demurrage and other charges reduced our average net selling price to $185 per short ton in the third quarter this year compared to $248 per short ton in the same quarter of last year. Demurrage and other charges were $6 million lower compared to last year's third quarter. The higher demurrage and other charges in the third quarter of last year were the result of temporary delays in vessel loadings due to severe weather and port congestion.

滯期費和其他費用使今年第三季我們的平均淨售價降至每短噸 185 美元，而去年同期為每短噸 248 美元。與去年第三季相比，滯期費和其他費用減少了 600 萬美元。去年第三季滯期費和其他費用較高，是由於惡劣天氣和港口擁堵導致船舶裝貨暫時延誤的結果。

Cash cost of sales was $259 million or 62% of mining revenues in the third quarter compared to $202 million or 54% of mining revenues in the third quarter of last year. Of the net $57 million increase in cash cost of sales, $102 million was due to the 51% increase in sales volumes, offset partially by $45 million of lower transportation and royalty costs on lower average net selling prices.

第三季現金銷售成本為 2.59 億美元，佔礦業收入的 62%，去年第三季為 2.02 億美元，佔礦業收入的 54%。在現金銷售成本淨增加 5,700 萬美元中，其中 1.02 億美元是由於銷量成長 51%，部分被平均淨售價降低帶來的運輸和特許權使用費降低 4,500 萬美元所抵銷。

Our headcount was 44% higher in this third quarter compared to last year due to a focus on hiring workers during the labor strike and the addition of employees who returned from the labor strike in the second quarter of this year. In addition, the inflation we experienced in operating expenses and purchasing equipment over the last 18 months has remained steady. We have not seen any significant changes up or down so far this year.

由於我們專注於罷工期間的員工招募以及今年第二季從罷工中返回的員工，我們第三季的員工人數比去年增加了 44%。此外，過去 18 個月我們在營運費用和採購設備方面經歷的通膨保持穩定。今年到目前為止，我們還沒有看到任何重大的上升或下降變化。

Cash cost of sales per short ton FOB port was approximately $115 in the third quarter compared to $135 in the third quarter of last year. While premium steelmaking coal prices were 6% higher in the third quarter of this year compared to last year, our average net selling prices were 26% lower. This resulted in lower transportation and royalty costs, which were 38% of our cash cost per ton in the third quarter compared to 47% in the same quarter last year.

第三季每短噸離岸港口的現金銷售成本約為 115 美元，而去年第三季為 135 美元。儘管今年第三季優質煉鋼煤價格比去年上漲 6%，但我們的平均淨售價卻下降了 26%。這導致運輸和特許權使用費降低，第三季占我們每噸現金成本的 38%，去年同期為 47%。

Our cash cost of production per short ton was flat in the third quarter as compared to the prior year third quarter despite the incremental cost associated with the 44% higher headcount. In other words, despite the incremental cost of the returning employees from the labor strike, we were neutral on our cost per ton for the third quarter due to the increase in production volumes.

儘管員工數量增加了 44%，導致成本增加，但第三季每短噸的現金生產成本與去年第三季持平。換句話說，儘管因罷工而返回的員工成本增加，但由於產量增加，我們對第三季的每噸成本保持中立。

Cash margins were $70 per short ton in the third quarter of this year and were impacted by the higher spot volume, as Walt noted earlier. SG&A expenses were about $11 million or 2.6% of total revenues in the third quarter this year and were slightly higher than last year's third quarter, primarily due to an increase in employee-related expenses.

正如 Walt 早些時候指出的那樣，今年第三季的現金利潤率為每短噸 70 美元，受到現貨交易量增加的影響。今年第三季的銷售、管理及行政費用約為 1,100 萬美元，佔總收入的 2.6%，略高於去年第三季度，主要是因為員工相關費用的增加。

The interest income earned on our cash investments well exceeded the interest expense on our outstanding notes and equipment leases during the third quarter of this year, primarily due to our high cash balances, earning sound investment returns. Our third quarter income tax expense reflects expense on pretax income and includes an income tax benefit for depletion expense and foreign-derived intangible income.

今年第三季度，我們的現金投資賺取的利息收入遠遠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，獲得了良好的投資回報。我們第三季的所得稅費用反映了稅前收入的費用，包括消耗費用和外國無形收入的所得稅優惠。

Also during the quarter, we successfully executed tender offers for our senior secured notes as part of our ongoing commitment to effectively manage our balance sheet. By taking advantage of favorable market conditions, we reduced our leverage by $146 million or nearly 50%, enhancing our already strong debt-to-equity ratio.

同樣在本季度，我們成功地對我們的優先擔保票據執行了要約收購，作為我們有效管理資產負債表的持續承諾的一部分。透過利用有利的市場條件，我們將槓桿率降低了 1.46 億美元，即近 50%，從而提高了本已強勁的債務股本比率。

In connection with this action, we recorded a loss of $12 million on the early extinguishment of debt. The loss represents the premiums paid to retire the debt and associated fees and expenses in connection with the transaction.

與此相關的行動，我們因提前清償債務而損失了 1,200 萬美元。損失代表為償還債務而支付的溢價以及與交易相關的相關費用和支出。

In addition, the company will have the ability from time to time in the future to make one or more restricted payments in the form of special dividends or stock repurchases up to an aggregate amount of approximately $300 million. However, any future special dividends or stock repurchases are at the discretion of the Board and subject to a number of factors, including business and market conditions, future financial performance and other strategic investment opportunities.

此外，該公司未來將有能力不時以特別股息或股票回購的形式支付一筆或多筆限制性付款，總額最高約為3億美元。然而，任何未來的特別股利或股票回購均由董事會酌情決定，並受到多種因素的影響，包括業務和市場狀況、未來財務表現和其他策略投資機會。

During the third quarter, we incurred incremental nonrecurring business interruption expenses of $347,000, which were significantly lower than last year. The decrease is primarily due to the end of the labor strike earlier this year. We expect to incur ongoing legal expenses associated with the ongoing labor negotiations.

第三季度，我們產生了增量非經常性業務中斷費用 347,000 美元，明顯低於去年。下降的主要原因是今年早些時候罷工的結束。我們預計會產生與正在進行的勞資談判相關的持續法律費用。

Turning to cash flow. During the third quarter of 2023, free cash flow was $26 million. This was the result of cash flows generated by operating activities of $138 million, less cash used for capital expenditures and mining development cost of $112 million.

轉向現金流。 2023 年第三季度，自由現金流為 2,600 萬美元。這是由於經營活動產生的現金流量為 1.38 億美元，減去用於資本支出和採礦開發成本的現金 1.12 億美元。

Free cash flow was significantly lower than in last year's third quarter, primarily due to less cash generated from operating activities and higher Blue Creek CapEx spending. Free cash flow in the third quarter of this year was negatively impacted by a $9 million increase in net working capital from the second quarter of 2023. Increase in net working capital was primarily due to an increase in accounts receivable and higher sales volume, partially offset by lower inventories and higher payables and accrued expenses.

自由現金流顯著低於去年第三季度，主要是因為經營活動產生的現金減少以及 Blue Creek 資本支出增加。今年第三季的自由現金流受到淨營運資本較 2023 年第二季增加 900 萬美元的負面影響。淨營運資本的增加主要是由於應收帳款的增加和銷售量的增加，部分抵銷了庫存減少、應付帳款和應計費用增加。

Despite the higher capital spending associated with the Blue Creek project year-to-date, we have generated free cash flow of $114 million, of which $46 million has been returned to stockholders in the form of a special dividend earlier this year on top of the regular quarterly dividends.

儘管今年迄今與 Blue Creek 項目相關的資本支出較高，但我們仍產生了 1.14 億美元的自由現金流，其中 4,600 萬美元已於今年早些時候以特別股息的形式返還給股東。定期季度股息。

Total available liquidity at the end of the third quarter was $810 million, representing a decrease of $141 million over the second quarter and consisted of cash and cash equivalents of $687 million and $123 million available under our ABL facility. The decrease is related to the extinguishment of debt and related fees and expenses during the third quarter as previously discussed.

第三季末的可用流動資金總額為 8.1 億美元，比第二季減少 1.41 億美元，其中現金和現金等價物為 6.87 億美元，ABL 設施下的可用流動資金為 1.23 億美元。如前所述，這項減少與第三季債務及相關費用和支出的清償有關。

Finally, turning to our outlook and guidance for the full year 2023. We updated our guidance for mine development and interest income as outlined in our outlook section of our earnings release. No other key metrics were changed from our prior earnings release.

最後，轉向我們對 2023 年全年的展望和指導。我們更新了對礦山開發和利息收入的指導，如收益發布的展望部分所述。與我們之前發布的財報相比，其他關鍵指標沒有變化。

Since we reduced our excess inventory in the third quarter, our sales production volume should be similar amounts and lower in the fourth quarter. It's worth noting that the implied fourth quarter volumes between our midpoint and upper end of our guidance range for the full year indicates the fourth quarter will be our lowest volume for the year, as Walt will discuss in a moment.

由於我們在第三季減少了過剩庫存，因此第四季度的銷售產量應該與此相當，但會更低。值得注意的是，隱含的第四季度銷售介於我們全年指導範圍的中點和上限之間，這表明第四季度將是我們今年的最低銷量，沃爾特稍後將討論這一點。

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

現在我將把它轉回沃爾特以徵求他的最終意見。

Thanks, Dale. Before we move over to Q&A, I'd like to make some final comments. We remain cautious for the fourth quarter, especially in light of the evolving situation in the Middle East and also because of the distortion in price indices.

謝謝，戴爾。在我們進行問答之前，我想做一些最後的評論。我們對第四季度保持謹慎態度，特別是考慮到中東局勢的演變以及物價指數的扭曲。

Demand for steel is expected to remain weak but stable until the end of the year. However, we do recognize the uncertainty in the global economy and are closely monitoring its impact on steel demand.

預計到年底鋼鐵需求將保持疲軟但穩定。然而，我們確實認識到全球經濟的不確定性，並正在密切關注其對鋼鐵需求的影響。

We expect met coal pricing to remain under pressure during the fourth quarter, potentially claim back some of the gains we saw recently, mainly supported by expected improvements in coal availability.

我們預計第四季度煤炭價格仍將面臨壓力，可能會收回我們最近看到的部分漲幅，這主要是受到煤炭供應預期改善的支持。

For Warrior, now that we reduced our excess inventory, we expect our fourth quarter volumes to be seasonally lower as implied by our year-to-date performance compared to our full year volume guidance. There are a number of factors contributing to those lower fourth quarter volume expectations. First is the continued weak customer spot demand in our natural markets. Second is that we have fewer operating days associated with the end of the year holidays. Third, we'll perform some needed mine maintenance. And fourth, we'll take a more strategic approach to maximize market pricing and profitability for our premium hard coking coals into the spot market.

對於 Warrior 來說，既然我們減少了過剩庫存，我們預計第四季度的銷量將出現季節性下降，正如我們今年迄今的業績所暗示的那樣，與全年銷售指引相比。有許多因素導致第四季銷售預期較低。首先是我們的自然市場客戶現貨需求持續疲軟。其次，我們與年末假期相關的營業天數較少。第三，我們將進行一些必要的礦場維護。第四，我們將採取更具策略性的方法，最大限度地提高現貨市場優質硬焦煤的市場定價和獲利能力。

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

至此，我們想開始提問。操作員？

(Operator Instructions) Our first question comes from Lucas Pipes from B. Riley Securities.

（操作員指示）我們的第一個問題來自 B. Riley Securities 的 Lucas Pipes。

Walt and Dale, appreciate all the color in the prepared remarks. My first 2 questions tie in to your final comments there, Walt. First on the production side, when I think about the low end of guidance for the full year and what that implies for Q4, I come out to about 1.1 million tons. And when I looked at your historical production, I'd have to go back to 2021 and of course, you have to strike to see that level of output. So are you seeing anything specifically in your mine plan that would -- that could lead to this low end of the guidance for the full year on the production side? Or is that maybe just a degree of conservatism?

沃爾特和戴爾，欣賞準備好的演講中的所有色彩。沃爾特，我的前兩個問題與您的最終評論相關。首先在生產方面，當我考慮全年指導的下限以及這對第四季度意味著什麼時，我得出的結果約為 110 萬噸。當我查看你們的歷史產量時，我必須回到 2021 年，當然，你們必須努力才能看到​​那個產量水平。那麼，您在礦山計劃中是否看到任何具體內容可能會導致全年生產指導值出現如此低的水平？或者這可能只是某種程度的保守主義？

No, that's a -- that one would be extraordinarily conservative. Our expectations are well above that. I would say you can imply a 1 5-ish number, that will move to 1 4, 1 5, 1 55, something like that.

不，那是一個非常保守的人。我們的期望遠高於此。我想說你可以暗示一個 1 5 左右的數字，它會移動到 1 4、1 5、1 55，類似的東西。

And that's for production Q4?

那是第四季的生產嗎？

That's for production, yes.

那是為了生產，是的。

And I would expect -- this is Dale, Lucas. I would expect probably sales volume to be a similar number. And I think both of those would kind of get you right near the upper end of our guidance if you just kind of take the year-to-date results.

我希望──這是戴爾，盧卡斯。我預計銷量可能會是類似的數字。我認為，如果你只看今年迄今為止的結果，這兩者都會讓你接近我們指導的上限。

Got it. That's very helpful. And then I do want to tie in the commercial side. Lots to discuss there, but maybe just to keep the discussion focused for now. In the fourth quarter, what percentage of your anticipated sales would be linked to the Australian FOB PLV index? What percentage would be more spot exposed? And what is the best benchmark to use as inadequate as it might be for those spot volumes?

知道了。這非常有幫助。然後我確實想加入商業方面。那裡有很多值得討論的地方，但也許只是為了暫時集中討論。在第四季度，您的預期銷售額將與澳洲 FOB PLV 指數掛鉤的百分比是多少？點曝光較多的百分比是多少？對於這些現貨量來說，最好的基準是什麼？

This is Dale. Probably about 1/4 or 25%, I think, is spot in the fourth quarter. And that just depends on where that goes. If that goes into India, it could be on a CFR India or China index, could be an AC 64, could be some PLV Australia. But the contract should be -- contracted volume should be at the PLV FOB Australian rate index.

這是戴爾。我認為，大概 1/4 或 25% 是在第四季出現的。這只取決於它的去向。如果進入印度，它可能會出現在 CFR 印度或中國指數上，可能會出現在 AC 64 上，也可能出現在澳洲的某些 PLV 上。但合約應該是——合約成交量應該是PLV FOB 澳洲利率指數。

So there is a range of potential pricing indices, and you will be efficient. Now hypothetically, of the range of those indices that you mentioned, what would be the most conservative netback price today?

因此，存在一系列潛在的定價指數，您將變得有效率。現在假設，在您提到的這些指數範圍中，今天最保守的淨回值價格是多少？

Today, this I do not know. I really don't know what that would be today. Lucas, I'm sorry, I didn't check on those rates today. But just suffice it to say, the spot volume because of all the dislocation that we've talked about with not only the ARP between the indices but then the additional freight, we saw some of those differences greater than $100 a ton back during the quarter.

今天，這個我不知道。我真的不知道今天會是什麼樣子。盧卡斯，抱歉，我今天沒有查看這些費率。但只要說一下就足夠了，由於我們所討論的所有錯位，現貨交易量不僅涉及指數之間的 ARP，還涉及額外的運費，我們在本季度看到其中一些差異超過每噸 100 美元。

So if you do have the supply coming back online out of Australia pretty strongly in the fourth quarter, I think you will see PLV prices drop, and you'll see those ARPS narrowed quite substantially. So it would be a real, real guess to tell you what that might be right now on that spot volume.

因此，如果您確實在第四季度從澳洲恢復了供應，我認為您會看到 PLV 價格下降，並且您會看到這些 ARPS 大幅收窄。因此，這將是一個真實的、真實的猜測來告訴你現在現貨交易量可能是什麼。

Okay. This is still -- this is helpful color, Dale. I appreciate that very much. I'll try to squeeze one Blue Creek question. And I think in your prepared remarks, you mentioned equipment delays. One, can you expand on that? And then two, equipment delays can often cause knock-on effects where the development doesn't go as initially planned. You work around things, and that can lead to cost pressures. Is that reading too much into this? Or are you still monitoring that situation from a cost perspective?

好的。這仍然是——這是有用的顏色，戴爾。我非常欣賞這一點。我將嘗試解決一個藍溪問題。我認為在您準備好的發言中，您提到了設備延誤。一，你能擴展一下嗎？第二，設備延誤通常會導致連鎖反應，導致開發無法依照最初計畫進行。您需要解決一些問題，這可能會導致成本壓力。是不是讀太多了？或者您仍在從成本角度監控這種情況嗎？

Actually, some of the equipment delays were for Mines 4 and Mine 7. Even with Blue Creek, we've placed those orders far enough out in advance that we are -- we remain comfortable with the delivery times for everything we've ordered. We've made sure we've done everything we can to lock those things in and get our slots with vendors to assure that we'll have the equipment when we need it.

事實上，部分設備延誤是針對4 號礦和7 號礦的。即使是Blue Creek，我們也已經提前足夠的時間下達了這些訂單，因此我們對所訂購的所有產品的交貨時間仍然感到滿意。我們已確保已盡一切努力鎖定這些東西，並與供應商取得聯繫，以確保我們在需要時擁有設備。

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

（操作員說明） 此時，沒有進一步的問題。我現在將把電話轉回給謝勒先生徵求意見。

That concludes our call this afternoon. Thank you again for joining us today. We appreciate your interest in Warrior.

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。我們感謝您對戰士的興趣。

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

謝謝。今天的會議到此結束。感謝大家的參與。您現在可以斷開連線。