Warrior Met Coal Inc (HCC) 2024 Q2 法說會逐字稿

Good afternoon. My name is Drew, and I will be your conference call operator today. At this time, I would like to welcome everyone to the Warrior second-quarter 2024 financial results conference call. (Operator Instructions) This call is being recorded and will be available for replay on the company's website.

午安.我叫德魯，今天我將擔任您的電話會議接線生。此刻，我歡迎大家參加勇士2024年第二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。

I would like to turn the conference over to D'Andre Wright, Vice President of External Affairs and Communications. Please go ahead.

我想將會議交給對外事務和通訊副總裁德安德烈·賴特 (D'Andre Wright)。請繼續。

Good afternoon, and welcome, everyone, to Warrior's second-quarter 2024 earnings conference call. Before we begin, let me remind you that certain statements made during this call include statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act. Forward-looking statements by their nature address matters that are to different degrees uncertain. Those uncertainties, which are described in more detail in the company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected 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.

下午好，歡迎大家參加 Warrior 的 2024 年第二季財報電話會議。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》，本次電話會議中所做的某些陳述包括與我們預期的未來業務和財務業績相關的陳述，可能被視為前瞻性性陳述。前瞻性陳述本質上涉及不同程度不確定的事項。這些不確定性在公司向美國證券交易委員會提交的年度和季度報告中進行了更詳細的描述，可能會導致我們未來的實際結果與前瞻性聲明中的預期存在重大差異。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。

For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings. We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our 2024 second quarter press release furnished to the SEC on Form 8-K, which is also posted on our website. Additionally, we filed our 10-Q for the second quarter ended June 30, 2024, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com which also includes the second-quarter supplemental slide deck that was posted this afternoon.

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。我們還將討論某些非GAAP 財務指標，這些指標在我們以8-K 表格形式向SEC 提供的2024 年第二季度新聞稿中定義並與可比較GAAP 財務指標進行了協調，該表格也發佈在我們的網站上。此外，我們今天下午向 SEC 提交了截至 2024 年 6 月 30 日的第二季 10-Q 報表。您可以在我們的網站 www.warriormetcoal.com 上找到有關該公司的更多信息，其中還包括今天下午發布的第二季度補充幻燈片。

On the call with me today are Mr. Walt Scheller, Chief Executive Officer; and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we will be happy to take any questions.

今天與我通話的是執行長 Walt Scheller 先生；以及財務長 Dale Boyles 先生。在我們正式發言後，我們將很樂意回答任何問題。

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

這樣，我現在將把電話轉給沃特。沃特？

Thanks, D'Andre. Hello, everyone, and thank you for taking the time to join us today to discuss our second-quarter 2024 results. After my remarks, Dale will review our results in additional detail, and then you'll have the opportunity to ask questions. We delivered very strong results for the second quarter, driven by our continued success in maximizing the benefits of our high-quality assets and our operational capabilities. Our highly successful operational performance led to double-digit increases in both sales and production volumes despite weaker global demand, which led to strong financial performance of adjusted EBITDA and free cash flow.

謝謝，德安德烈。大家好，感謝您今天抽出時間加入我們討論我們的 2024 年第二季業績。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。在我們不斷成功地最大化優質資產和營運能力的效益的推動下，我們在第二季度取得了非常強勁的業績。儘管全球需求疲軟，但我們非常成功的營運表現導致銷售和產量實現兩位數成長，從而帶來了調整後 EBITDA 和自由現金流的強勁財務業績。

We generated $147 million of cash from operations, which was used to fund $122 million of CapEx and mine development during the second quarter, resulting in free cash flow of $25 million. In addition, we continue to make excellent progress on Blue Creek, meeting several key milestones as we advance the development of this world-class asset. This exceptional performance and the development of Blue Creek continue to drive value for our stockholders regardless of market factors.

我們從營運中產生了 1.47 億美元的現金，用於為第二季 1.22 億美元的資本支出和礦山開發提供資金，從而產生 2,500 萬美元的自由現金流。此外，我們在 Blue Creek 專案上繼續取得出色進展，在推動這項世界級資產的開發過程中實現了幾個關鍵里程碑。無論市場因素如何，Blue Creek 的卓越業績和發展都將繼續為我們的股東帶來價值。

From a market perspective, the second quarter played out largely as we had expected, with softer demand and stronger supply from all regions, resulting in a weaker steelmaking coal price environment. We were hoping to see signs of improving demand towards the end of the quarter, which did not materialize. In addition, we were surprised by the spot volume availability from Australia in May and June. Customers recognize these favorable supply conditions and were patient in their buying approach.

從市場角度來看，第二季基本上符合我們的預期，各地區需求疲軟，供應強勁，導致煉鋼煤炭價格環境走弱。我們希望在本季末看到需求改善的跡象，但這並沒有實現。此外，我們對 5 月和 6 月澳洲的現貨供應感到驚訝。客戶認識到這些有利的供應條件，並在購買過程中保持耐心。

Other factors contributing to the weaker demand included Chinese steel exports at multi-year highs and global steel prices declining for most of the second quarter, reflecting the softer steel demand across all regions. As a result, steelmaking coal prices extended the sharp decline that started in March. We saw two attempted price spikes during the second quarter that were short-lived as the market fundamentals were not supportive.

其他導致需求疲軟的因素包括中國鋼鐵出口創多年高位，以及第二季大部分時間全球鋼鐵價格下跌，反映出所有地區鋼鐵需求疲軟。受此影響，煉鋼煤價延續了3月開始的大幅下跌趨勢。我們在第二季度看到了兩次價格上漲的嘗試，但由於市場基本面不支持，但都是短暫的。

We were again extremely pleased by the performance of our rail partner during the second quarter as we were able to navigate the temporary loss of the barging system due to the failure of the Demopolis lock without any impact to our customers and with minimal impact to our costs. This lock was repaired and reopened towards the end of May, allowing us to return to moving our products on the river. Unfortunately, that reopening was short-lived as the river system had to be closed again in late June due to the failure of the Holt Lock unrelated to the Demopolis lock.

我們再次對鐵路合作夥伴第二季度的表現感到非常滿意，因為我們能夠應對因 Demopolis 船閘故障而造成的駁船系統暫時中斷，而不會對我們的客戶產生任何影響，並且對我們的成本影響最小。該船閘於五月底修復並重新開放，使我們能夠重新在河上運輸我們的產品。不幸的是，這次重新開放是短暫的，因為與德莫波利斯船閘無關的霍爾特船閘故障，河流系統不得不在六月下旬再次關閉。

Right now, we do not have an official repair plan from the local core of engineers. However, we're planning as if the repairs will take as long as the Demopolis lock repairs of about four to five months. We expect to be able to manage the current Holt lock failure without interruption to our customers, just as we did in the previous lock failure.

目前，我們還沒有當地核心工程師的正式修復計畫。然而，我們計劃修復的時間與 Demopolis 鎖的修復時間一樣長，大約需要四到五個月。我們希望能夠在不中斷客戶的情況下管理當前的 Holt 鎖定故障，就像我們在先前的鎖定故障中所做的那樣。

The steep correction in pricing experienced in March continued into the beginning of the second quarter, where we saw all indices establish recent lows around early April. Our primary index, the PLV FOB Australia, ended the second quarter at $212 per short ton, which was $95 lower than its first-quarter high of $307 per short ton. Likewise, the PLV CFR China Index experienced a $76 decline during the same period, closing the second quarter at a price of $224 per short ton.

3 月經歷的價格大幅調整一直持續到第二季​​度初，我們看到所有指數在 4 月初左右創出近期低點。我們的主要指數 PLV FOB 澳洲第二季收於每短噸 212 美元，比第一季高點每短噸 307 美元低 95 美元。同樣，PLV CFR 中國指數同期下跌 76 美元，第二季收於每短噸 224 美元。

Similar declines were observed with second tier indices, which were also lower relative to the PLV index, averaging between 86% and 90% for the second quarter. High Vol A prices ended the second quarter at $192 per short ton and averaged $197 per short ton for the second quarter. We achieved a consolidated gross price realization of 90% in the second quarter, which was a function of product mix, geography and freight rates.

二級指數也出現了類似的下降，相對於 PLV 指數也較低，第二季平均在 86% 至 90% 之間。第二季末，Vol A 價格高點為每短噸 192 美元，第二季平均價格為每短噸 197 美元。我們在第二季度實現了 90% 的綜合總價格實現，這是產品組合、地理位置和運費的函數。

According to the World Steel Association monthly report, global pig iron production decreased by approximately 2.6% for the first 6 months of 2024 as compared to the prior year period. Pig iron production in China, which is the world's largest production region, fell by 3.6% for the same period, whereas the rest of the world's production experienced a more modest decline of 0.3% for the first half of the year. India remains a bright spot with a growth rate of 2.7% and is expected to continue growing with new blast furnace capacity coming online later this year.

根據世界鋼鐵協會月度報告，2024年前6個月全球生鐵產量較去年同期下降約2.6%。作為全球最大的生鐵生產地區，中國的生鐵產量在同一時期下降了 3.6%，而全球其他地區的生鐵產量今年上半年則下降了 0.3%。印度仍然是一個亮點，成長率為 2.7%，預計隨著今年稍後新高爐產能的投產，印度將繼續成長。

Several other reasons also experienced positive growth for the period, such as select European countries and Brazil. However, their gains were largely offset by declining production from Japan and South Korea. Now let me turn to our second quarter results. Our second-quarter sales volume of 2.1 million short tons was 18% higher than the comparable quarter last year. The overall increase was primarily driven by both mines operating at higher capacity levels this year compared to last year, stable contractual demand from our traditional markets, and solid Asian spot demand.

其他幾個原因在此期間也出現了正向成長，例如部分歐洲國家和巴西。然而，他們的收益在很大程度上被日本和韓國產量下降所抵消。現在讓我談談我們第二季的業績。我們第二季的銷量為 210 萬短噸，比去年同期成長 18%。整體成長主要是由於今年兩家礦場的產能水準高於去年、傳統市場穩定的合約需求以及亞洲現貨需求強勁。

Our sales by geography in the second quarter break down as follows: 39% into Europe; 38% into Asia; and 23% into South America. The majority of the sales into Asia in the second quarter were to customers in Japan, China, and India. As we've previously noted, demand from the Asian steel producers has been growing over the last year, resulting in higher sales to that geography, while sales from our traditional markets for Europe and South America have been lower primarily due to weak spot markets.

我們第二季的銷售額按地區劃分如下： 39% 銷往歐洲； 38%進入亞洲； 23%進入南美洲。第二季亞洲的大部分銷售額來自日本、中國和印度的客戶。正如我們之前指出的，去年亞洲鋼鐵生產商的需求一直在增長，導致該地區的銷量增加，而歐洲和南美傳統市場的銷量則較低，主要是由於現貨市場疲軟。

Our spot volume was 30% in the second quarter of 2024, which was primarily sold into the Asian markets. This rate was lower than the 37% in the first quarter of the year. For the full year, we expect our gross spot volume to approximately 25% to 30% of total sales volume. Production volume in the second quarter was 2.2 million short tons compared to 1.9 million short tons in the same quarter 2023, representing a 13% increase. This is the highest quarterly production output over the last three years. Both mines operated at higher capacity levels in the second quarter of this year compared to the same quarter last year.

2024 年第二季我們的現貨量為 30%，主要銷往亞洲市場。這一比率低於今年第一季的37%。我們預計全年現貨總銷量將佔總銷量的 25% 至 30% 左右。第二季產量為 220 萬短噸，較 2023 年同季的 190 萬短噸增加 13%。這是過去三年來最高的季度產量。與去年同期相比，這兩個礦場今年第二季的產能水準較高。

Our coal inventory increased slightly to 895,000 short tons from 892,000 short tons at the end of the first quarter. During the second quarter, we spent $122 million on CapEx and mine development. CapEx spending was $111 million, which included $84 million on the Blue Creek project. Mine development spending on Blue Creek project was $11 million during the second quarter 2024. As we begin developing the first longwall panel at Blue Creek in the third quarter, our mine development costs will continue to grow in the second half of the year and until the longwall starts production, which we expect to occur in 2026.

我們的煤炭庫存由第一季末的 892,000 短噸小幅增加至 895,000 短噸。第二季度，我們在資本支出和礦場開發上花費了 1.22 億美元。資本支出為 1.11 億美元，其中包括 Blue Creek 項目的 8,400 萬美元。2024 年第二季 Blue Creek 專案的礦場開發支出為 1,100 萬美元。隨著我們第三季開始在 Blue Creek 開發第一塊長壁壁板，我們的礦場開發成本將在今年下半年繼續成長，直到長壁牆開始生產（我們預計將於 2026 年開始生產）。

Next, I'd like to provide you with a progress report on our Blue Creek growth project, including updates on our remarkable development progress in the second quarter and what comes next. We've now completed major components for seam access on schedule, which include the production slope, service shaft, ventilation shaft, and fan. The next major step is completing the installation of the service cage and the slope belt. Given our significant progress to date, we are able to begin development of the initial longwall panel with the first continuous monitor unit expected in the third quarter.

接下來，我想向您提供我們 Blue Creek 成長專案的進度報告，包括我們第二季度取得的顯著開發進度以及接下來的進展的最新情況。目前，我們已按計劃完成了接縫通道的主要部件，包括生產坡道、服務豎井、通風豎井和風扇。下一個主要步驟是完成服務籠和斜坡帶的安裝。鑑於我們迄今為止的重大進展，我們能夠開始開發初始長壁面板，預計將在第三季推出第一個連續監測裝置。

On the surface infrastructure components, we completed the construction of the bathhouse, warehouse, and critical electrical substations and made noteworthy progress on the construction of the preparation plan. On the coal transportation components, good progress was made on the construction of the run-of-mine and clean coal belt structures. Steady progress continued during the quarter on the rail and barge load outs as well. All of these components remain on schedule.

地面基礎建設部分，完成澡堂、倉庫、重要變電站建設，籌建方案建設有顯著進展。煤炭運輸板塊，原礦及潔淨煤帶結構建設取得正面進展。本季鐵路和駁船裝運也持續穩定進展。所有這些組件均按計劃進行。

In addition, we are focused on increasing our head count at Blue Creek by approximately 100 people by the end of the year and are on track to meet that goal. We are extremely excited that the longwall panel development is scheduled to begin on the originally expected time line, and we are on track to produce approximately 200,000 short tons of High Vol A steelmaking coal in the second half of 2024. The development tons produced from the second half of this year through the first half of 2025 are expected to be sold in the second half of 2025 after the preparation plant comes online.

此外，我們的重點是在今年年底將 Blue Creek 的員工人數增加約 100 人，並且有望實現這一目標。我們非常興奮的是，長壁面板開發計劃按照最初預期的時間開始，並且我們預計在 2024 年下半年生產約 200,000 短噸高 Vol A 煉鋼煤。今年下半年至2025年上半年生產的開發噸預計在製劑廠投產後於2025年下半年銷售。

On the financial side, Warrior invested $84 million during the second quarter of 2024 on the development of Blue Creek, which brings the year-to-date spending to $153 million. The company expects to invest approximately $325 million to $375 million in 2024 on the continued development of the Blue Creek reserves, inclusive of the $153 million already invested. For the entire project to date to the end of the second quarter, we have invested a grand total of $519 million. We remain focused on tight capital spending discipline to ensure the project will be completed within our reset baseline cost estimate and on the original schedule, including the longwall startup in the second-quarter 2026.

在財務方面，Warrior 在 2024 年第二季投資了 8,400 萬美元用於 Blue Creek 的開發，這使得年初至今的支出達到 1.53 億美元。該公司預計到 2024 年將投資約 3.25 億至 3.75 億美元用於 Blue Creek 儲量的持續開發，其中包括已投資的 1.53 億美元。截至第二季末的整個項目，我們總共投資了 5.19 億美元。我們仍然專注於嚴格的資本支出紀律，以確保該專案將在我們重置的基準成本估算內和原計劃內完成，包括 2026 年第二季的長壁啟動。

Blue Creek represents one of the last remaining untapped premium, high-quality, High Vol A coal reserves in the US, which we anticipate will achieve premium prices. Warrior expects incremental annualized production of 4.8 million short tons of premium High Vol A steelmaking coal after the start-up of the longwall, which the company expects will enhance and strengthen its already strong global cost curve positioning and deliver incremental profit and cash flows.

Blue Creek 是美國最後一批未開發的優質、高品質、高 A 煤儲量之一，我們預計煤炭儲量將實現溢價。Warrior 預計，長壁開採啟動後，優質高Vol A 煉鋼煤的年產量將增加480 萬短噸，該公司預計這將增強和加強其本已強勁的全球成本曲線定位，並帶來增量利潤和現金流。

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

我現在請戴爾更詳細地介紹我們第二季的業績。

Thanks, Walt. Despite the weaker global demand for steelmaking coal in the second quarter, we continued to deliver strong operational and financial performance by leveraging our high-quality assets and strong operational competencies. Strong financial performance allows us to invest in the future of our company and drive incremental value for our stockholders.

謝謝，沃爾特。儘管第二季全球煉鋼煤炭需求疲軟，但我們利用優質資產和強大的營運能力，持續實現強勁的營運和財務表現。強勁的財務表現使我們能夠投資公司的未來，並為股東帶來增量價值。

We are investing nearly $1 billion over five years in our company's future from the cash generated from our existing operations without taking on any additional financial leverage. In fact, we have deleveraged the company since the beginning of the development of Blue Creek and paid out incremental special dividends to our stockholders. That makes a strong statement about the high quality of our existing assets, our people, and our focus on generating value for our stockholders. The opportunity at Blue Creek, combined with our operational efficiency and strong existing assets, means that Warrior has a very bright future ahead.

我們將在五年內利用現有業務產生的現金，在不承擔任何額外財務槓桿的情況下，為該公司的未來投資近 10 億美元。事實上，自藍溪發展之初，我們就對公司進行了去槓桿化，並向股東支付了增量特別股息。這有力地證明了我們現有資產、員工的高品質以及我們對為股東創造價值的關注。Blue Creek 的機遇，加上我們的營運效率和強大的現有資產，意味著 Warrior 擁有非常光明的未來。

Now let's look at the specific financial results for the second quarter. For the second quarter of 2024, the company recorded net income on a GAAP basis of $71 million or $1.35 per diluted share compared to net income of $82 million or $1.58 per diluted share in the same quarter of 2023. Non-GAAP adjusted net income for the second quarter, excluding the non-recurring business interruption expenses, was $1.35 per diluted share. This compares to adjusted net income of $1.64 per diluted share in the same quarter of 2023. These decreases quarter-over-quarter were primarily driven by the 11% lower average net selling price and lower results from our gas business, partially offset by 18% higher sales volumes.

現在我們來看看第二季的具體財務表現。2024 年第二季度，該公司以 GAAP 計算的淨利潤為 7,100 萬美元，即稀釋後每股收益 1.35 美元，而 2023 年同一季度的淨利潤為 8,200 萬美元，即稀釋後每股收益 1.58 美元。不計非經常性業務中斷費用，第二季非公認會計準則調整後淨利為每股稀釋每股 1.35 美元。相比之下，2023 年同一季度調整後攤薄每股淨利潤為 1.64 美元。這些環比下降主要是由於平均淨售價下降 11% 和天然氣業務業績下降造成的，但銷量成長 18% 部分抵消了這一影響。

We reported adjusted EBITDA of $116 million in the second quarter of 2024 compared to $130 million in the same quarter of last year. Our adjusted EBITDA margin was 29% from the second quarter of 2024 compared to 34% in the same quarter of last year. Our adjusted EBITDA margin per ton was $55 for the second quarter of this year.

我們報告 2024 年第二季調整後 EBITDA 為 1.16 億美元，而去年同期為 1.3 億美元。自 2024 年第二季起，我們的調整後 EBITDA 利潤率為 29%，而去年同期為 34%。今年第二季度，我們調整後的每噸 EBITDA 利潤率為 55 美元。

As I previously mentioned, these decreases quarter over quarter were primarily driven by the 11% lower average net selling price and lower results from our gas business, which were partially offset by 18% higher sale volumes. Total revenues were $397 million in the second quarter compared to $380 million in the second quarter of 2023. This overall increase of $17 million was primarily due to the 18% increase in sales volume, offset by the 11% decrease in average net selling prices and higher demurrage and other charges.

正如我之前提到的，季度環比下降主要是由於平均淨售價下降 11% 和天然氣業務業績下降，但銷量增加 18% 部分抵消了這一影響。第二季總營收為 3.97 億美元，而 2023 年第二季總營收為 3.8 億美元。整體成長 1700 萬美元，主要是由於銷量成長 18%，但被平均淨售價下降 11% 以及滯期費和其他費用增加所抵消。

Demurrage and other charges were $4 million higher compared to 2023 second quarter. Demurrage and other charges resulted in an average net selling price of $186 per short ton in the second quarter of 2024 compared to $209 per short ton in the same quarter of last year. Other revenues, mainly from our gas businesses were lower in the second quarter of 2024 compared to the same quarter of last year, primarily due to a 10% decrease in natural gas volumes between the periods.

與 2023 年第二季相比，滯期費和其他費用增加了 400 萬美元。滯期費和其他費用導致 2024 年第二季平均淨售價為每短噸 186 美元，而去年同期為每短噸 209 美元。2024 年第二季的其他收入（主要來自我們的天然氣業務）與去年同期相比有所下降，主要是由於各時期之間的天然氣量減少了 10%。

Cash cost of sales in the second quarter of 2024 was $260 million or 67% of mining revenues compared to $229 million or 62% of mining revenues in the second quarter of 2023. Of the $31 million increase in cash cost of sales, $41 million of the increase was driven primarily by the 18% increase in sales volumes and the higher employee wages and incentives associated with a higher headcount. This increase was offset partially by the decrease in cash cost of sales of $10 million attributed to lower variable cost of transportation and royalties associated with lower steelmaking coal prices.

2024 年第二季的現金銷售成本為 2.6 億美元，佔礦業收入的 67%，而 2023 年第二季為 2.29 億美元，佔礦業收入的 62%。在現金銷售成本增加 3,100 萬美元中，其中 4,100 萬美元的增加主要是由於銷售增加 18% 以及員工薪資和員工數量增加帶來的激勵措施的提高。這一增長被現金銷售成本減少 1000 萬美元所部分抵消，該減少是由於煉鋼煤炭價格下降導致運輸和特許權使用費可變成本下降。

Cash cost of sales per short ton, FOB port, was approximately $124 in the second quarter of this year compared to $129 in the second quarter of 2023. Our cash cost of production was 61% of our total cash cost per short ton compared to 59% last year. On a per ton basis, cost of production were flat in the second quarter compared to the prior year quarter. This reflects the higher headcount and associated employee-related wages and incentives that were offset by the higher production volumes.

今年第二季每短噸（FOB 港口）的現金銷售成本約為 124 美元，而 2023 年第二季為 129 美元。我們的現金生產成本佔每短噸總現金成本的 61%，而去年為 59%。以每噸計算，第二季的生產成本與去年同期持平。這反映出員工人數增加以及與員工相關的薪資和激勵措施被產量增加所抵消。

Overall transportation and royalty costs were 39% of our cash cost of sales per short ton in the second quarter of this year on lower average net selling prices compared to 41% in the same quarter last year. Transportation costs were about $3 per short ton lower due to lower average net selling prices and their impact on variable transportation costs. This was net of the $1 per short ton impact of the higher rail mix due to the Demopolis lock failure. Likewise, royalty costs were lower by about $2 per short ton on lower average net selling prices.

今年第二季度，整體運輸和特許權使用費占我們每短噸現金銷售成本的 39%，平均淨售價低於去年同期的 41%。由於平均淨售價下降及其對變動運輸成本的影響，運輸成本每短噸降低約 3 美元。這已扣除因 Demopolis 船閘故障而導致鐵路組合上漲造成的每短噸 1 美元的影響。同樣，由於平均淨售價較低，特許權使用費每短噸降低約 2 美元。

As a result of these changes in our cash cost, our cash margin per short ton was $62 in the second quarter compared to $80 in the same quarter last year. SG&A expenses were about $15 million or 3.9% of total revenues in the second quarter of 2024, and were slightly higher than 2023 second quarter of 3.5%, primarily due to an increase in employee-related compensation expenses. The interest income earned on our cash investments was lower in the second quarter this year, primarily due to lower average cash balances.

由於現金成本的這些變化，第二季每短噸的現金利潤為 62 美元，而去年同期為 80 美元。2024 年第二季的 SG&A 費用約為 1,500 萬美元，佔總收入的 3.9%，略高於 2023 年第二季的 3.5%，主要是因為與員工相關的薪資費用增加。今年第二季度，我們的現金投資賺取的利息收入較低，主要是由於平均現金餘額較低。

Our interest expense was lower primarily due to the early retirement of debt in August of 2023, and the capitalization of interest to the construction of Blue Creek. Our low effective tax rate continues to reflect an income tax benefit for depletion expense and foreign-derived intangible income.

我們的利息支出較低，主要是由於 2023 年 8 月提前償還債務，以及 Blue Creek 建設的利息資本化。我們的低有效稅率繼續反映了消耗費用和外國無形收入的所得稅優惠。

Turning to cash flow, during the second quarter of 2024, free cash flow was $25 million. This was the result of cash flows generated by operating activities of $147 million, less cash used for capital expenditures and mine development of $122 million. Free cash flow was $48 million higher than the second quarter of 2023, primarily due to higher operating cash flows and lower Blue Creek CapEx spending.

談到現金流，2024 年第二季度，自由現金流為 2,500 萬美元。這是由於經營活動產生的現金流量為 1.47 億美元，減去用於資本支出和礦山開發的現金 1.22 億美元。自由現金流比 2023 年第二季增加 4,800 萬美元，主要是由於營運現金流增加和 Blue Creek 資本支出減少。

Free cash flow in the second quarter of 2024 was positively impacted by a $29 million decrease in net working capital from the end of the first quarter, primarily due to lower accounts receivable on timing of sales and lower steelmaking coal prices. Our total available liquidity at the end of the second quarter of 2024 was $816 million and consisted of cash and cash equivalents of $709 million and $107 million available under our ABL facility.

2024 年第二季的自由現金流受到淨營運資本較第一季末減少 2,900 萬美元的正面影響，這主要是由於銷售時間的應收帳款減少和煉鋼煤炭價格下降。截至 2024 年第二季末，我們的可用流動資金總額為 8.16 億美元，其中包括 7.09 億美元的現金和現金等價物以及 ABL 設施下可用的 1.07 億美元。

Now let's turn to our outlook and guidance for the full-year 2024. After another strong quarter of operational and financial performance despite weak demand in the global markets, we have reaffirmed our outlook and guidance for the full year as outlined in our earnings release. We did a non-material adjustment to interest expense by lowering the full year expected amount.

現在讓我們談談我們對 2024 年全年的展望和指導。儘管全球市場需求疲軟，但在又一個強勁的季度營運和財務業績之後，我們重申了財報中概述的全年展望和指導。我們透過降低全年預期金額對利息支出進行了非重大調整。

I will 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 on to Q&A, I'd like to make some final comments. We're expecting demand to increase as the second half of the year progresses, although we still do not have firm signals and are therefore cautious. We will continue to be patient when possible and seek opportunities that maximize price realizations even if we need to temporarily manage higher than normal inventory levels. We do not expect any meaningful domain improvements in our traditional markets of Europe and South America, but are expecting to see demand improve in certain geographies like India and Southeast Asia.

謝謝，戴爾。在我們進行問答之前，我想做一些最後的評論。我們預計隨著下半年的進展，需求將會增加，但我們仍然沒有明確的訊號，因此持謹慎態度。即使我們需要暫時管理高於正常的庫存水平，我們也將在可能的情況下繼續保持耐心，並尋求最大化價格實現的機會。我們預期歐洲和南美洲的傳統市場不會有任何有意義的領域改善，但預計印度和東南亞等某些地區的需求將會改善。

As for China, we anticipate steelmaking coal production cuts will be implemented in the second half of the year as the recent stimulus efforts have failed to improve demand. We believe the steelmaking coal supply will be slightly tighter in the second half of the year due to a combination of supply disruptions, like mine fires, formal line maintenance and longwall moves in Australia.

至於中國，由於近期的刺激措施未能改善需求，我們預期煉鋼用煤減產將在下半年實施。我們認為，由於礦井火災、正式線路維護和澳洲長壁開採等供應中斷的綜合影響，下半年煉鋼煤炭供應將略有緊張。

We are well positioned operationally and from an inventory level standpoint to capitalize on increasing market demand in the second half of the year. While we're well prepared to address a variety of market conditions, we're also extremely excited and laser-focused on the disciplined development of our world-class Blue Creek reserves. We are on track for 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.

從庫存水準的角度來看，我們在營運上處於有利地位，可以利用下半年不斷增長的市場需求。雖然我們已做好應對各種市場條件的充分準備，但我們也非常興奮並專注於世界級 Blue Creek 儲量的嚴格開發。我們預計在 2024 年第三季實現第一批連採機產量，長壁開採計畫於 2026 年第二季啟動。

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) Lucas Pipes, B. Riley Securities.

（操作員指示）Lucas Pipes，B. Riley Securities。

Well, Dale, congrats on the progress at Blue Creek. And I wanted to ask about your key milestones for the project between now and the end of the year? And then I also wanted to ask who will have the honor to mine the first ton of coal with the continuous miner unit in Q3? Thank you, Walt, very much for your perspective.

好吧，戴爾，恭喜藍溪的進展。我想問一下從現在到年底您的專案的關鍵里程碑是什麼？然後我還想問誰有幸在第三季用連續採煤機開採第一噸煤炭？沃爾特，非常感謝您的觀點。

Key milestones will be getting that first continuous miner unit up and running, which will happen pretty quickly here. It will happen in the third quarter. And then the other key milestone will be getting that second continuous miner unit running before the end of the year after we've cleared enough space with the first continuous miner unit. And we've talked about the completion of the slope and the slope belt is being installed now. We'll have the service cage up and running pretty quickly here in the third quarter. So the key moments are getting -- be getting those first two continuous miner units running. And I have no doubt that our mine manager over there will insist that he be the one to make the first cut with the continuous miner.

關鍵的里程碑將是讓第一個連續採礦機裝置啟動並運行，這將在這裡很快發生。這將在第三季發生。然後，另一個關鍵的里程碑將是在我們為第一個連續礦工單元清理足夠的空間後，讓第二個連續礦工單元在年底前運行。我們已經談到了斜坡的完工，現在正在安裝斜坡帶。我們將在第三季快速啟動並運行服務籠。因此，關鍵時刻是讓前兩個連續礦工單元運作。我毫不懷疑我們那邊的礦經理會堅持讓他成為第一個與連續採礦機進行切割的人。

In terms of your annual guidance, when I look at the midpoint, it implies about 3.5 million tons of production in the second half versus first half at 4.2 million tons. So quite a bit of a pullback. I appreciate that's at the midpoint, but is there anything that you see operationally that would call for that reduction? Or is that a degree of conservatism either operationally or because of where the market is?

就你們的年度指導而言，當我查看中點時，這意味著下半年產量約為 350 萬噸，而上半年產量為 420 萬噸。所以有相當大的回調。我很高興這是中間點，但是您認為在操作上有什麼需要減少的嗎？或者這是某種程度的保守主義，無論是在操作上還是因為市場所處的位置？

We always like to under-promise and over-deliver. But frankly, we've got three longwall moves that will occur. And while we have shields and those should be zero day moves, we still have slowed down towards the end of the panel in order to complete the meshing process and get that phase bolted up before we move over to start the new longwall phase. So that will be on all three of those longwall moves. And then we always expect that around the holidays, between absenteeism and just trying to get people a little extra time off, we expect a reduction in our production levels.

我們總是喜歡少承諾多交貨。但坦白說，我們將發生三個長壁移動。雖然我們有防護罩並且這些應該是零日移動，但我們仍然在面板末端放慢速度，以便完成網格劃分過程並在我們開始新的長壁階段之前將該階段用螺栓固定。這將是所有這三個長壁移動的內容。然後我們總是期望在假期期間，在缺勤和只是想讓人們多休息一下之間，我們預計我們的生產水平會降低。

Then the cost guidance related to that conservatism as well? You had a nice improvement there quarter over quarter.

那麼成本指導也與這種保守主義有關嗎？與上一季相比，您的進步很大。

Yes. Lucas, this is Dale. I mean, if you look at our year to -date, we're right on track of where we said we would be in our range. So when you look at where prices are and versus what our guidance is built on, we're pretty much in line with all that. So all that seems to be actually unfolding as we said. So we feel good about where we are.

是的。盧卡斯，這是戴爾。我的意思是，如果你看看我們今年迄今為止的情況，我們就在我們所說的範圍內。因此，當你看看價格在哪裡以及我們的指導所依據的基礎時，我們幾乎與所有這些一致。因此，正如我們所說，這一切似乎正在實際展開。所以我們對自己所處的位置感覺良好。

Nathan Martin, The Benchmark Company.

內森馬丁，基準公司。

Maybe start on the pricing side. Walt, it sounded like you said capture rate up to about 90% this quarter, which is better than, I believe it was 84% in the first quarter. So I'm guessing likely aided a bit by the quarter-over-quarter decline in net prices. But you guys still feel confident that Warrior can hit kind of that 85% to 90% bogey that Dale mentioned previously, the Aussie benchmark for the full year?

也許從定價方面開始。Walt，聽起來您說本季的捕獲率高達 90% 左右，這比第一季的 84% 更好。因此，我猜測淨價格環比下降可能會有所幫助。但你們仍然有信心勇士隊能夠打出戴爾之前提到的 85% 到 90% 的柏忌，也就是全年的澳洲基準嗎？

Or should we assume maybe given the higher High Vol A production that we're seeing from Mine 4, which I think is running at pretty near record levels at least through the first half and still that wider than historical spread between High Vol A and the benchmark, that maybe ends up being a little bit lower than that range? It would be great to get your thoughts.

或者我們是否應該假設，考慮到我們從 4 號礦場看到的較高的 High Vol A 產量，我認為至少在上半年，該產量非常接近創紀錄的水平，並且仍然比 High Vol A 和基準，最終可能會比該範圍低一點？很高興能得到您的想法。

Well, actually, we've seen the spread close back up a little bit, which is very positive. And I think your first comment about the decline in price, pushing those relativities up higher, that's very accurate. And I think what we'll see is if we see continued decline in prices, unfortunately, I think you'd continue to see that percentage go up or stay up. However, I do feel confident that -- I'm hoping the price will go back up, and I'd rather see the spread and our percentage go down a little bit because we have a rising coal price. But we're still pretty confident in that 85% to 90% range.

嗯，實際上，我們已經看到價差略有回升，這是非常積極的。我認為你對價格下跌的第一個評論，推高了這些相對性，這是非常準確的。我認為，如果我們看到價格持續下降，不幸的是，我認為您會繼續看到該百分比上升或保持上升狀態。然而，我確實有信心——我希望價格會回升，我寧願看到價差和我們的百分比略有下降，因為我們的煤炭價格不斷上漲。但我們對 85% 到 90% 的範圍仍然非常有信心。

Maybe just related to then kind of the cadence of shipments for the remainder of the year, I know you guys mentioned three longwall moves, two in Q3, one in Q4, if I remember correctly. Walt, you mentioned a slight build in inventories quarter over quarter. When would you expect maybe some of those inventories to be drawn down, whether it be third quarter, fourth quarter? Just any specific thoughts or drivers around shipments between the quarters in the last half of the year?

也許只是與今年剩餘時間的發貨節奏有關，我知道你們提到了三個長壁移動，兩個在第三季度，一個在第四季度，如果我沒記錯的話。沃爾特，您提到庫存逐季略有增加。您預計其中一些庫存何時會減少，是第三季還是第四季？關於今年下半年各季度之間的出貨量有什麼具體的想法或驅動因素嗎？

Well, I think the first thing we have to remember here is, as we've said, we're going to mine a couple of hundred, thousand tons out of Blue Creek, which is going to be incremental inventory. So if we just maintain our inventory levels flat for 4 and 7, we actually increased inventory by 200,000 tons. In terms of working that inventory down, as I said, we're going to be very patient. We are not going to jump in the market just to dump tons. We don't need to do that. So we're going to be [patient]. And if we see market opportunities that, in our opinion, justify going ahead and moving additional coal, we'll do that, but we don't feel pressured to do so.

好吧，我認為我們必須記住的第一件事是，正如我們所說，我們將從藍溪開採數百萬噸，這將是增量庫存。因此，如果我們保持 4 月和 7 月的庫存水準持平，我們實際上增加了 20 萬噸庫存。正如我所說，在減少庫存方面，我們將非常有耐心。我們不會為了大量拋售而進入市場。我們不需要這樣做。所以我們將會成為[病人]。如果我們看到市場機會，我們認為有理由繼續運輸額外的煤炭，我們就會這樣做，但我們並不感到有這樣做的壓力。

Yes. Nate, this is Dale. I'll just add to that. If you look at last year, if you remember third quarter, we really pushed a lot of volume out to introduce our products into Asia. And then we pulled back in the fourth quarter and we only shipped about 1.5 million last year. So we try to take advantage of the market situations when we can. And if we think the latter half of the year, prices are going to increase, then we're going to be a little more patient with our approach. So Q3 could be a little lower and Q4 could be a little higher. It just really depends on what the market and customer demand is, so that we maximize price.

是的。內特，這是戴爾。我就補充一下。如果你看看去年，如果你還記得第三季度，我們確實推出了大量銷量，將我們的產品引入亞洲。然後我們在第四季有所回落，去年我們的出貨量僅為 150 萬左右。因此，我們會盡可能地利用市場狀況。如果我們認為下半年價格將會上漲，那麼我們就會對我們的方法更加耐心。所以第三季可能會低一點，第四季可能會高一點。這實際上取決於市場和客戶的需求是什麼，以便我們可以最大化價格。

And then maybe just one last question on Blue Creek. It's one I get from investors fairly often. Looking to the slide deck, obviously, some of these numbers are a little stale at this point, but specifically focused on the cash costs and the possibilities around the Blue Creek product, I know you guys have said that it should eventually to help lower the overall average cash cost for Warrior. Your slide deck is still showing around $70 or so. But maybe can we just get some thoughts on where that number could look like once you guys update some of these economics, especially given some of the inflationary pressures that we've already applied to the CapEx budget?

也許還有關於藍溪的最後一個問題。這是我經常從投資者那裡得到的資訊。看看幻燈片，顯然，其中一些數字目前有點陳舊，但特別關注現金成本和 Blue Creek 產品的可能性，我知道你們已經說過，它最終應該有助於降低戰士的總體平均現金成本。您的幻燈片仍然顯示大約 70 美元左右。但也許我們可以想一下，一旦你們更新了其中一些經濟學原理，特別是考慮到我們已經應用於資本支出預算的一些通膨壓力，這個數字可能會是什麼樣子？

Yes, good question, Nate. Look, we do expect to be updating all those project economics. As we said, the scope change last year, really had no effect on -- because we had the improvement in transportation costs and everything, so no net impact on the overall economics. I actually think they're going to be better with a higher met coal pricing assumption. So sometime next year we'll get that information back out, but that's $70 all in before. We've been talking about the inflation in supplies and everything being 30%, 35%. So if you tack that on, you're starting to get to where we think it will probably be. I don't know if that's the exact number, but that's a pretty good idea of where we're probably headed right now.

是的，好問題，內特。看，我們確實希望更新所有這些項目經濟學。正如我們所說，去年範圍的變化確實沒有產生任何影響，因為我們在運輸成本等方面都有所改善，所以對整體經濟沒有淨影響。事實上，我認為如果煤炭定價假設更高，他們會做得更好。因此，明年某個時候我們會返回該訊息，但之前的總金額為 70 美元。我們一直在談論供應的通貨膨脹，一切都是 30%、35%。因此，如果你堅持下去，你就會開始達到我們認為可能的目標。我不知道這是否是確切的數字，但這是我們現在可能走向的一個很好的想法。

(Operator Instructions) Katja Jancic, BMO Capital Markets.

（操作員指示）Katja Jancic，BMO 資本市場。

I think in the prepared remarks, Walt, you mentioned that the spot exposure in '24 is going to be between 25% to 30%. Is that a bit higher than what was previously expected? I thought initially the expectation was around 25%.

Walt，我認為在準備好的發言中，您提到 24 年的現貨敞口將在 25% 到 30% 之間。是不是比之前的預期高一點？我最初的預期是 25% 左右。

I think we had said 25% to 30% all along. But the issue is there's been really no materialization of spot activity in Europe or South America at all. So it's just having to continue to move the coal into Asia and a lot of that's happening in the spot market.

我想我們一直都說 25% 到 30%。但問題是歐洲或南美洲其實根本沒有現貨活動。因此，只需繼續將煤炭運往亞洲，其中許多都發生在現貨市場上。

Is it in the near term? Because as you mentioned right now, the spot activity is a little softer, that the spot volume could be -- or the spot exposure could be lower during, let's say, the third quarter?

是近期嗎？因為正如您現在提到的，現貨活動稍微疲軟，現貨交易量可能會減少，或者說在第三季度期間現貨敞口可能會較低？

Yes, it could be. Again, we were at 37% in Q1, down to 30% in Q2, and we're still saying 25% to 30%. So it has to go down in order for us to hit our range, it has to be below 30% in the third or fourth quarter to drag our number down where we believe it will end up.

是的，可能是這樣。同樣，我們在第一季為 37%，在第二季下降到 30%，我們仍然說 25% 到 30%。因此，為了達到我們的範圍，它必須下降，第三季或第四季必須低於 30%，才能將我們的數字拖到我們認為最終會達到的水平。

And one more, if I may. Longer term, once Blue Creek starts ramping up, does that exposure change?

如果可以的話，再來一張。從長遠來看，一旦 Blue Creek 開始增加，這種風險敞口會改變嗎？

I think that exposure increases in the first couple of years of Blue Creek. You're putting another 4.8 million short tons into the market and getting that coal established and finding homes for it. So I think the percentage of spot will increase for that term for the next few years.

我認為在藍溪的最初幾年，曝光度有所增加。您將另外 480 萬短噸投入市場，並建立這些煤炭並為其尋找歸宿。因此，我認為未來幾年該術語的現貨百分比將會增加。

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

目前，沒有其他問題了。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。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。