NACCO Industries Inc (NC) 2023 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the NACCO Industries fourth quarter and full year 2020 earnings conference call. (Operator Instructions) This call is being recorded on Thursday, March 7, 2024, and I would now like to turn the conference over to Christina Kmetko, Investor Relations. Please go ahead.

早安，女士們，先生們，歡迎來到NACCO Industries第四季和全年2020年收入電話會議。（操作員的指示）該電話將於2024年3月7日（星期四）記錄，我現在想將會議交給投資者關係克里斯蒂娜·克梅特科（Christina Kmetko）。請繼續。

Thank you. Good morning, everyone, and welcome to our fourth quarter and full year 2023 earnings call. Thank you for joining us this morning. I'm Christina Kmetko, and I'm responsible for Investor Relations at NACCO. Joining me today are J.C. Butler, President and Chief Executive Officer; and Elizabeth Loveman, Senior Vice President and Controller. And yesterday we published our 2023 fourth quarter and full year results and filed our 10-K. This information is available on our website.

謝謝。早上好，大家好，歡迎進入我們的第四季和全年2023年收入電話。感謝您今天早上加入我們。我是Christina Kmetko，我負責NACCO的投資者關係。今天加入我的是J.C. Butler，總裁兼執行長；以及資深副總裁兼總裁伊麗莎白·洛夫曼（Elizabeth Loveman）。昨天，我們發布了2023年第四季和全年成績，並提交了10-K。此資訊可在我們的網站上找到。

Today's call is also being webcast, and the webcast will be on our website later this afternoon and available for approximately 12 months. Our remarks that follow, including answers to your questions contain forward looking statements.

今天的電話也是網路廣播，今天下午晚些時候，網路廣播將在我們的網站上，大約12個月。隨後的我們的評論，包括您問題的答案，包括前瞻性陳述。

These statements are subject to several risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements made here today These risks include, among others, matters that we described in our earnings release, 10-K and other SEC filings. We may not update these forward-looking statements until our next quarterly conference call.

這些陳述受到幾種風險和不確定性的約束，這些風險可能會導致實際結果與今天在這裡發表的前瞻性陳述中所表達的結果有重大不同美國證券交易委員會備案。在下一個季度電話會議之前，我們可能不會更新這些前瞻性陳述。

Will also be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in our earnings release and on our website.

也將討論我們認為對評估公司營運績效有用的非GAAP資訊。這些非GAAP措施的對帳可以在我們的收益發布和網站上找到。

With the formalities out of the way, I'll turn the call over to J.C. for some opening remarks. Jc?

隨著手續，我將把電話交給J.C.，以進行一些開幕詞。JC？

Thank you, Christine. Good morning to everyone. As we put 2023 behind us. I'm pleased to be looking forward to 2024. We expected 2023 to be challenging, and it ended up being more difficult than we expected that said, challenges are what make us stronger.

謝謝你，克里斯汀。各位早安。正如我們將2023放在我們身後一樣。我很高興期待2024年。我們預計2023年將具有挑戰性，最終比我們預期的要困難得多，這使我們變得更強大。

And I definitely believe that we are entering 2024 in a very strong position. Our teams have delivered on our two key strategies to protect the core and grow and diversify, and we emerge from 2023 with a solid foundation for future growth. The unfavorable comparisons we experienced throughout 2023 should turn favorable in 2024 and lead to continuing improvement in the future.

而我絕對相信我們將進入2024年的地位。我們的團隊已經制定了我們的兩種關鍵策略，以保護核心並成長和多樣化，從2023年開始，我們以可靠的未來成長為基礎。我們整個2023年經歷的不利比較應該在2024年變得有利，並導致未來的持續改進。

Before I get into our fourth quarter highlights, I'd like to recognize our outstanding employees. I'm extremely proud of the way these talented, dedicated and motivated individuals have worked to make our operations run efficiently despite any challenges they may face. They continue to find new and exciting ways support to support our existing customers while growing and diversifying our company.

在進入第四季度亮點之前，我想認識到我們的傑出員工。我為這些才華橫溢，敬業和積極進取的人努力使我們的業務有效地運作的方式感到非常自豪，儘管他們可能面臨任何挑戰。他們繼續尋找新的令人興奮的方式來支持，以支持我們現有客戶，同時發展和多元化我們的公司。

I want to thank each of them for the hard work and many contributions that they put forth to strengthen us today and to secure new opportunities for our future. I am honored each and every day to work alongside such an amazing team. The most notable item this quarter is the impairment at Mississippi Lignite Mining Company.

我要感謝他們每個人所做的辛勤工作和許多貢獻，以加強我們，並為我們的未來獲得新的機會。我每天都很榮幸能與如此出色的團隊一起工作。本季最值得注意的項目是密西西比州褐煤礦業公司的損害。

In mid-December, MLMC. received a force majeure notice from its customer. This notice was the result of an issue affecting one of the two boilers at the Red Hills power plant. This one unit is still not functioning and the time line for resolution is uncertain. This issue is expected to result in a significant decline in customer demand during 2024, while the power plant is running on just one unit.

12月中旬，MLMC。收到了其客戶的不可抗力通知。該通知是影響紅山發電廠的兩個鍋爐之一的問題的結果。這個單元仍無法運行，解決的時間列不確定。預計該問題將導致2024年客戶需求大幅下降，而該發電廠僅以一個單位運作。

Without getting into all the accounting details, I'll just say it was this anticipated reduction in demand that contributed to the Company, taking a noncash impairment charge of $65.9 million during the 2023 fourth quarter. The combination of this noncash impairment charge and substantially lower operating results at our coal mining and minerals management segments resulted in substantial consolidated operating and net losses for the fourth quarter and full year.

在沒有進入所有會計細節的情況下，我只會說，這是預期的減少需求會導致該公司，在2023年第四季度，非現金損傷收費為6590萬美元。在我們的煤礦開採和礦產管理領域，這種非現金損傷指控的結合以及經營業績的大幅降低，導致了第四季度和全年的大量合併營運和淨損失。

Christy will go into more detail about our fourth quarter earnings and provide an overview of our outlook in a minute. But first, let me talk about some of our accomplishments during the year. I'll start with the Coal Mining segment. During 2023, MLMC. successfully completed the move to a new mine area and overcame unfair favorable mining conditions to remove the last remaining coal from the prior mine area. This move to a new mine area was a multiyear project.

克里斯蒂（Christy）將更詳細地了解我們的第四季度收益，並在一分鐘內概述我們的前景。但首先，讓我談談一年中的一些成就。我將從煤炭開採領域開始。在2023年，MLMC。成功地完成了轉移到新的礦區，並克服了不公平的採礦條件，以從先前的礦區清除剩餘的煤炭。該搬到新的礦區是一個多年項目。

We've known that a move to a new mine area would be required since the mine was built back in the late 1990s. So this was no surprise there soon. A new mine area is just across the state highway from the prior mine area. So it will not change the economics of hauling the coal in a meaningful way, but we did have to get the equipment to the new mine area. You'll see a photo of the drag line walking across the state highway in our upcoming Annual Report.

我們已經知道，自1990年代後期建造了該礦山以來，將需要搬到新的礦區。所以很快就不足為奇了。一個新的礦區正好在曾經的礦山區域對面。因此，它不會改變以有意義的方式拖運煤炭的經濟學，但是我們確實必須將設備帶到新的礦區。您將在我們即將推出的年度報告中看到一張拖拉線穿越州高速公路的照片。

As anticipated, MLMC.'s costs began to improve after the move to the new mine area which contributed to improved fourth quarter results compared to the third quarter. While this move was challenging and expensive, it sets us up nicely for the future. We expect production costs at MLMC. to decline significantly in 2024 from recent levels. These costs, however, are expected to remain above historical levels through 2024 until the boiler issue at the power plant is resolved and a pit extension in the new mine area is complete.

正如預期的那樣，MLMC。搬到新的礦區後的成本開始有所提高，與第三季度相比，這有助於提高第四季度的結果。儘管這一舉動具有挑戰性且昂貴，但它為未來帶來了很好的態度。我們預期MLMC的生產成本。 2024年從最近的水平下降。但是，這些成本預計將在2024年之前保持高於歷史水平，直到解析發電廠的鍋爐發行並完成新礦區的坑擴大為止。

Shifting to Minerals Management, the Catapult mineral partners team, which oversees our Minerals Management segment successfully negotiated and closed on a $37 million acquisition in the Midlands section of the Permian Basin. This acquisition of oil and gas mineral interests is Catapult's largest acquisition to date.

彈射礦物合作夥伴團隊轉移到了礦產管理，該團隊負責監督我們的礦產管理部門在二疊紀盆地的Midlands部分進行了3700萬美元的收購，成功地談判並關閉了。迄今為止，石油和天然氣礦物利益的收購是彈射器最大的收購。

The Catapult team has done a great job of growing and diversifying our portfolio of mineral interests over the last few years. Prior to 2020, our income related to oil and gas mineral interests was highly concentrated in the Appalachian Basin, largely focused on natural gas. We still have these legacy interest and profit from owning them, but we now own oil and gas interest in other major basins across the country as well.

在過去的幾年中，彈射團隊在成長和多樣化的礦產利益投資組合方面做得很好。在2020年之前，我們與石油和天然氣礦物利益有關的收入高度集中在阿巴拉契亞盆地，主要集中在天然氣。我們仍然擁有這些遺產利益並從擁有它們中獲利，但是現在我們在全國其他主要盆地也擁有石油和天然氣權益。

We're also now more diversified in terms of operators and stages of development, ranging from reducing well producing wells to undeveloped mineral interest. We think this business is well positioned for the future based on work done thus far, and we continue to invest.

現在，我們在營運商和開發階段都更加多樣化，從減少生產井到不發達的礦產興趣。我們認為，基於迄今為止所做的工作，這項業務在未來方面已經有利，我們繼續投資。

In 2024, Minerals Management is targeting additional investments of up to $20 million future investments as well as development of new wells on existing owned reserves. Beyond those included on our current forecast would be accretive to future results. In 2023, North American Mining made significant progress on operational and strategic projects to improve profitability. While its fourth quarter operating results were down from the prior year.

2024年，礦產管理公司的目標是多達2,000萬美元的未來投資，以及在現有儲量上開發新的井。除了我們目前預測中的那些還可以增強未來的結果。2023年，北美採礦在營運和策略項目上取得了重大進展，以提高獲利能力。雖然其第四季的經營業績比前一年下降了。

Full year, operating profit was up 52% compared with 2022. I think this improvement in results is a very positive sign that the team is making meaningful progress toward building North American mining into a very successful business platform for us. North American mining continues to grow. Our North American mining team succeeded in winning a bid for a secure contract extension with its largest customer and secured a new 15-year contract to mine phosphate phosphate building on its goal to diversify into additional minerals.

全年，與2022年相比，營業利潤成長了52％。我認為結果的這種改善是一個非常積極的信號，表明該團隊正在為我們建立一個非常成功的商業平台，在將北美採礦建立成果。北美採礦不斷成長。我們的北美礦業團隊成功地贏得了與最大客戶的安全延期簽訂的競標，並獲得了一項新的15年合同，以挖掘其磷酸鹽磷酸鹽建設的目標，以使其成為多樣化的礦物質。

Wrapping up my North American Mining comments, let me mention sawtooth mining, which is the exclusive contract miner for Lithium Americas, Thacker Pass lithium project in northern Nevada construction attack or past commenced in the 2023 first quarter with that, we began requiring equipment for the project and have acquired $23 million of equipment to date. We expect to continue to recognize moderate income prior to the commencement of Phase one lithium production.

總結我的北美採礦評論，讓我提到鋸齒採礦，這是美國鋰美洲的獨家合約礦工，在內華達州北部建設攻擊或過去在2023年第一季度開始的Thacker Pass Lithium Project，我們開始需要為設備提供設備的設備迄今為止，已經購買了2300萬美元的設備。我們希望在第一階段鋰生產開始之前繼續認識到中等收入。

Moving to our mitigation resources of North America business. This team continues to advance existing mitigation projects and build on the substantial foundation established over the past several years. I'm very pleased with the level of growth Mitigation Resources has achieved since first starting five years ago, and I'm very enthusiastic about their progress prospects during 2023.

轉移到我們對北美業務的緩解資源。該團隊繼續推動現有的緩解項目，並以過去幾年建立的實質基礎為基礎。自從五年前首次開始，我對減輕成長資源的水平感到非常滿意，我對他們在2023年的進步前景感到非常熱情。

This business invested in people and data analytics to make even more informed decisions about which markets to target. We anticipate that Mitigation Resources will further expand and develop its business model in 2024 with a focus on generating a modest operating profit by 2025 and G. and achieving sustainable profitability in future years.

該業務投資於人員和數據分析，以做出更明智的決定，以實現哪些市場。我們預計，緩解資源將在2024年進一步擴展和開發其業務模式，重點是到2025年和G.獲得適度的營業利潤，並在未來幾年中實現可持續的盈利能力。

Our team continues to look for ways to create additional value by utilizing our core mining competence competencies, including reclamation and permitting. Among the ways we are doing that is through development of utility-scale solar projects on reclaimed mining properties in 2023, we formed region resources to pursue such projects, including the potential to potential development of a solar farm on reclaimed land at Mississippi Lignite Mining Company.

我們的團隊繼續尋找利用我們的核心採礦能力（包括開墾和許可）來創造額外價值的方法。我們這樣做的方式是透過開發2023年收回採礦物業的公用事業規模太陽能項目，我們成立了地區資源來追求此類項目，包括潛在的潛在的在密西西比州木地礦業公司在收回的土地上開發太陽能農場的潛力。

I continue to be very optimistic about our outlook as we look past 2023, I have a lot of confidence in our team, and I'm pleased with the way all of these businesses continue to advance their strategies, including efforts to protect our core mining business. With that, I'll turn the call back over to Christie to cover our results for the quarter. And our outlook in more detail, interesting application.

當我們看著2023年，我對我們的團隊充滿信心，我對我們的前景保持非常樂觀商業。這樣，我將把電話回到克里斯蒂（Christie），以涵蓋我們本季的結果。以及我們的前景更詳細，有趣的應用程式。

I'll start with some high-level comments on our consolidated fourth quarter financial results and then add detail on our individual segments. We reported a consolidated net loss of $44 million or $5.88 per share loss compared with net income of $13.8 million or $1.84 per share last year. As Jason mentioned, our fourth quarter results include a $65.9 million pretax asset impairment charge. I'd note that while the impairment relates solely to Mississippi Lignite Mining Company.

我將從我們合併的第四季度財務業績的一些高級評論開始，然後添加各個細分市場的詳細資訊。我們報告說，合併淨虧損為4,400萬美元或每股5.88美元，而去年的淨收入為1,380萬美元或每股1.84美元。正如傑森（Jason）所提到的那樣，我們的第四季度業績包括6590萬美元的稅前資產損傷費用。我會注意到，雖然減損僅與密西西比褐煤礦業公司有關。

We recorded $60.9 million in the coal segment and $5.1 million at minerals management because certain land assets were included within that business, we generated consolidated adjusted EBITDA of $7.1 million compared with $23.6 million in 2022. While adjusted EBITDA excludes the impairment charge, these lower results were primarily due to significant decreases in our coal mining and mineral domain and Minerals Management earnings.

由於某些土地資產已包括在該業務中，我們在煤炭領域錄製了60090萬美元，在礦產管理中的資產為510萬美元，我們產生的合併調整後的EBITDA為710萬美元，而2022年為2360萬美元。雖然調整後的EBITDA排除了損傷費用，但這些較低的結果主要是由於我們的煤礦開採，礦產領域和礦物質管理收入大幅下降。

Our coal mining segment reported an operating loss of $62.3 million which includes the impairment charge of $60.8 million. This compares to a loss of $4.7 million in third quarter 2023 and operating profit of $3.7 million in Q4 2020. We generated segment adjusted EBITDA of $3.2 million this past quarter compared to $8.1 million last year.

我們的煤礦開採部門報告說，營業損失為6,230萬美元，其中包括6,080萬美元的減損費用。相較之下，2023年第三季虧損470萬美元，在2020年第4季的營業利潤為370萬美元。過去一個季度，我們的細分市場調整後的EBITDA為320萬美元，而去年為810萬美元。

The decrease in segment. Adjusted EBITDA was primarily due to the substantial decline in Mississippi Lignite Mining Company results, as well as a decrease in earnings in our unconsolidated operations because of lower customer requirements. Higher employee related expenses also contributed to the decline decrease in Mississippi Lignite Mining Company results was primarily the result of fewer tons delivered in part due to the issue affecting the power plants.

細分市場減少。調整後的EBITDA主要是由於密西西比州褐煤礦業公司的結果大幅下降，以及由於客戶需求較低而未合併營運的收入下降。較高的與員工相關的費用也導緻密西西比褐煤礦業公司的下降下降，主要是由於影響發電廠的問題的部分原因較少。

The decrease in tons delivered contributed to an increase in the cost per ton sold and a $900,000 write-down of coal inventory to net realizable value including the impairment. The primary reason behind the decline in minerals Management's results is significantly lower natural gas and oil prices. With this more in context, current natural gas prices as measured by the Henry Hub.

交付的噸減少導致每噸售出的成本增加，並將900,000美元的煤炭庫存下注至可實現的淨值，包括損害。礦物管理結果下降的主要原因是天然氣和石油價格明顯降低。在這種情況下，這是亨利樞紐衡量的當前天然氣價格。

Average natural gas spot price declined 51% from 2022. And oil prices as measured by the West Texas Intermediate averaged crude oil spot price decreased 5% from the prior year. At North American Mining improved fourth quarter 2023 earnings and cited in North American Mining's active quarry were more than offset by a $500,000 loss on sale of the driveline, $400,000 of higher outside service costs compared with 2022 related to business development activities and the impact of the substantial completion of services category in 2022.

2022年起，天然氣現貨平均價格下跌了51％。西德州中間的原油現貨價格比去年衡量的石油價格下降了5％。在北美採礦中，2023年第四季度的收益得到了改善，並在北美礦業的活躍採石場被引用，被銷售的500,000美元虧損，$ 400,000的外部服務成本$ 400,000，而與業務開發活動相關的2022款損失及其影響。在2022年實質地完成服務類別。

As a result, North American Mining's fourth quarter 2023 operating loss of $600,000 increased over the prior year segment adjusted EBITDA was positive and comparable to 2022 despite the higher operating loss because results at the mining operations improved when the impact of depreciation expense was excluded.

結果，北美礦業的2023年第四季的營運損失在上一年調整後的EBITDA上增加了60萬美元，儘管營運損失較高，但在排除折舊費用的影響時，礦業業務的結果得到了改善，但與2022年相當。

Looking forward. At our Coal Mining segment, we expect strong 2024 for operating profit compared with the significant 2023 loss and substantially higher segment adjusted EBITDA. These anticipated increases are primarily due to an improvement in results at Mississippi Lignite Mining Company and higher earnings at Falcon tail. We are expecting M&C to incur a loss in 2024, but it is expected to be significantly less than in 2023.

期待。在我們的煤礦開採領域，我們預計2024年的營業利潤與2023年的顯著損失和更高的細分市場調整後的EBITDA相比獲得強勁的營運利潤。這些預期的成長主要是由於密西西比褐煤礦業公司的業績改善以及獵鷹尾部的更高收入。我們預計M＆C將在2024年造成損失，但預計將大大低於2023年。

As Jason mentioned, we are anticipating lower production costs. However, while production costs are projected to decline significantly from recent levels they are expected to remain above historical levels through 2024 when a pit extension in the new mine area is complete. Lower depreciation and amortization expense as a result of the lower depreciable value of MLMC.'s assets after the impairment is expected to contribute to the improved results.

正如傑森（Jason）提到的那樣，我們預計生產成本較低。但是，儘管預計生產成本將大大下降，但預計到2024年，新礦區的礦井延長至2024年，它們將保持在歷史水準。由於損害減值後，MLMC。資產的較低折舊價值導致降低折舊和攤銷費用，預計有助於改善結果。

An extended delay and repairs to the Red Hawk power plant could significantly affect the Company's 2024 outlook and anticipated increase in 2024 for earnings at the unconsolidated coal mining operations is driven primarily by an expectation for increased customer requirements at Canton Halkirk as well as a higher profit per ton management fee at Falco beginning in June 2024, when temporary price concessions.

延長的延誤和對紅鷹發電廠的維修可能會嚴重影響該公司的2024年前景，並預計2024年未固定的煤礦開採業務的收入會增加，這主要是由於對Canton Halkirk以及更高利潤的客戶需求的期望以及更高的利潤而驅動2024年6月，臨時價格優惠開始時，FALCO的每噸管理費。

We expect operating profit to be higher in the second half of '24 compared with the first half due to anticipated improvements at MRMC increased demand at the unconsolidated coal mining operations and the end of the Falco price concessions in June of '24 as a result of the impact of the new and modified contracts JC mentioned, we expect North American mining to achieve consecutive quarterly growth in operating profit and segment adjusted EBITDA in 2024, leading to significantly improved full year results over '23.

我們預計，與上半年相比，由於預計在MRMC的改善增加了未經合併的煤礦開採業務的需求以及2004年6月的Falco Price Propessions的終結，我們的運營利潤會更高。JC提到的新合約的影響，我們預計北美採礦將在2024年連續實現營運利潤和細分市場調整後的EBITDA的季度增長，從而導致23年的全年成績顯著改善。

Finally, in Minerals Management, we expect 2024 for operating profit and segment adjusted EBITDA decreased moderately compared with the prior year. Excluding the 2023 impairment charge, the forecasted reduction in profitability is primarily driven by current market expectations for natural gas and oil prices and modest expectations for development of additional new wells by third-party lessees.

最後，在礦產管理中，我們預計2024年的營業利潤和細分市場調整後的EBITDA與上一年相比中度減少。除了2023年的減損指控外，預測的獲利能力降低主要是由於目前對天然氣和石油價格的市場期望以及第三方承租人開發其他新井的預期。

Our operating expenses are expected to partially offset the anticipated profit decline overall at a consolidated level, we expect to generate net income in '24 versus the '23 net loss. Adjusted EBITDA is also expected to increase significantly over 2023, and these improvements are primarily due to increased profitability at the Coal Mining segment from improved results at Mississippi Lignite Mining Company poker game content growth at North American Mining is also expected to contribute to the higher '24 net income.

預計我們的營運費用將部分抵消整體上預期的利潤下降，我們預計將在'24中與'23淨虧損相比產生淨收入。預計調整後的EBITDA也有望在2023年中顯著增加，這些改進主要是由於密西西比州褐煤礦業公司撲克銷售公司撲克遊戲內容增長的提高煤礦開採領域的獲利能力也將有助於更高的' ' 24淨收入。

Lastly, from a liquidity standpoint, we ended the quarter with consolidated cash of $85 million and debt of $36 million. We had availability of $105 million under our revolving credit facility. During the fourth quarter, we repurchased approximately 66,000 shares for $2.3 million under an existing share repurchase program. In '24, we expect cash flow before financing activities to be a moderate use of cash.

最後，從流動性的角度來看，我們以8500萬美元的合併現金結束，債務為3600萬美元。在我們的循環信貸額度下，我們有1.05億美元的售價。在第四季度，我們在現有的股票回購計畫下以230萬美元的價格回購了大約66,000股。在24年，我們預計融資活動之前的現金流量將成為現金的中等用途。

We will now turn to any questions you may have.

現在，我們將提出您可能遇到的任何問題。

(Operator Instructions) Doug wise from DSW Investments.

（操作員說明）DSW Investments的Doug Wise。

Is it possible to say how much some sort of additional costs are per quarter for the on the work you're doing on the Karma on them. Mississippi lignite coal mine.

是否可以說您每季在業力上所做的工作每季每季有多少額外費用。密西西比褐煤煤礦。

I'm not sure I understand the question.

我不確定我是否理解這個問題。

So in other words, if you're sort of operating dual mines and moving the equipment and so forth, once that process is completed, how much on how much costs will just drop out of the quarters?

因此，換句話說，如果您有點操作雙礦場並移動設備等等，那麼一旦完成該過程，您就可以從零件中輟學多少成本？

It was I'll give this a shot and see what you think I am so on I mean, I'm not going to give you an exact dollar amount, but I would say that our costs are going to return to where they were prior to you know us incurring these additional costs to move into the new mine area.

我會試一試，看看您認為我是什麼，我的意思是，我不會給您確切的美元金額，但我會說我們的費用將返回到他們之前的地方您知道我們會產生這些額外費用進入新的礦區。

We'd sort of doubled up on costs and it was less efficient while we were doing this. But I think once we get established over there and obviously you're delivering for volumes, meaningful volumes when the plant's up and running, again, I think, will recur returned to historical cost levels was the Zephyr.

我們的成本增加了一倍，而這樣做的時候效率降低了。但是我認為，一旦我們建立在那兒，顯然您正在為銷量提供有意義的數量，當植物啟動並運行時，我認為，Zephyr將再次恢復到歷史成本水平。

I would agree. I would also say you were you mentioned we were operating at two mine areas. We've already moved over to the new mine area. We're not operating at the previous mine area.

我同意。我還要說您是您提到我們在兩個礦區運作。我們已經搬到新的礦區了。我們沒有在上一個礦區運作。

Okay. Okay. Great. Pick up, right.

好的。好的。偉大的。撿起，對。

Where we're kind of Pit extensions.

我們的坑擴展位置。

Yes.

是的。

Just to clarify, the prior mine area, which we call mine area one is now in reclamation. And you know, the costs when we're in reclamation is really more of a balance sheet exercise than it is a income statement exercise because we've accumulated reserves to cover reclamation of that mine area. So as we expand costs, those really just come out of our reserve.

只是為了澄清，我們稱之為礦區的礦區現在正在開墾。而且，您知道，我們在開墾時的成本實際上是資產負債表的練習，而不是這是一項損益表，因為我們累積了儲備金來涵蓋該礦區的填海。因此，隨著我們擴大成本，這些實際上只是從我們的儲備中出來的。

So at this point, the costs are really all all attributable to normal operations in the new mine area. They're just not at the efficiency levels we expect because we're delivering it. We're mining at half rate because the power plants only running on one unit and we're getting this initial pit extended length, we want it to be.

因此，在這一點上，成本實際上都是歸因於新礦區的正常運作。他們只是不達到我們期望的效率水平，因為我們正在交付它。我們以一半的價格開採，因為電廠僅在一個單元上運行，我們希望它擴展長度，我們希望它能成為。

Okay. Tom, then the have you do you have any visibility on when that second boiler will come up.

好的。湯姆，那你有什麼可見的，何時何時出現第二個鍋爐。

You know, our our guys at the mine site are in regular communication with the power plant as typical at all of our operations and they are they are certainly discussing the time line, it's really entirely in our customers' control. But I would say I think they are we know from everything we can tell they're handling this very professionally.

您知道，我們在礦場上的人在我們所有的營運中都定期與發電廠進行溝通，他們當然是在討論時間表，這確實完全在我們的客戶控制中。但是我想說我認為他們是從我們能告訴他們的所有事情中都知道的。

And you know, I expect they're going to get this thing back up and running during the year. But I'm I'm not going to put any dates out there. I think it's really up to our customer to decide if they're going to talk about that publicly. But it's it's expected to be during during the course of 2024.

而且您知道，我希望他們在一年中會恢復並運行。但是我不會在那裡放任何日期。我認為這確實取決於我們的客戶決定他們是否要公開談論這個問題。但預計將在2024年期間。

Okay. Okay. And in the coal division, the SG&A expense, does that should I think about that being applied to all your coal operations or just the consolidated full operations? In other words to the unconsolidated already include SG&A, that's that's US income statement or is it is does it all flow into your income statement?

好的。好的。在煤炭部門，SG＆A費用，我是否應該考慮將其應用於您的所有煤炭運營或僅僅是合併的全部運營？換句話說，未經合併的人已經包括SG＆A，那是美國的損益表，還是它全部流入您的損益表？

It's kind of a combination of the two with respect to the unconsolidated mines, which you know is really a majority of the of the Coal Mining segment. We the way the contracts work is we do receive some compensation in our fees and to cover some overhead costs that we incur. You can't really see that split out because it's all just a part of the fee. But the fees that we receive are some of those are targeted directly towards SG&A costs that we incur in that segment.

相對於未固結的礦山，這確實是兩者的結合，您知道這實際上是煤礦開採領域的大部分。我們的合約工作方式是，我們確實獲得了一些賠償，並支付了我們所產生的一些間接費用。您真的看不到那個分裂，因為這只是費用的一部分。但是，我們收到的費用是其中一些直接針對我們在該細分市場中產生的SG＆A成本。

And so there's no internally we can see that there's a netting and you know that that covers a lot of those expenses. But externally, you can't really see that now some of the some of the coal segment SG&A is related to our consolidated operations at Red Hills as well.

因此，我們沒有內部看到網絡，您知道這涵蓋了許多此類費用。但是在外部，您實際上看不到一些煤炭部門SG＆A也與我們在Red Hills的合併運營有關。

So I'd really say you kind of have to just spread it across that. I think I think of the cold segment as a unit think of as a business and those SG&A costs now are all attributable to that segment. However, some of those are by contract. We're doing the work like we're providing IT platforms and H. in HR and benefits BakBone and we're getting a G&A fee to cover that.

因此，我真的說您只需要將其散佈在其中。我認為我認為冷段是一個單位，將其視為一家業務，而這些SG＆A的成本現在都歸因於該細分市場。但是，其中一些是合約。我們正在做就像我們提供IT平台和H。在人力資源和福利Bakbone一樣，我們正在收取G＆A費用來支付這一點。

Okay. Okay. Makes sense. And just in terms of what the other boiler is offline is how do you think about the volume in those quarters? Or is it because it looked like they're already operating sub capacity? So is it actually a 50% reduction or is it less than that because they were already not at full capacity?

好的。好的。說得通。就其他鍋爐離線而言，您如何看待這些季度的音量？還是因為它們看起來已經運作量很高？因此，實際上是減少了50％，還是因為它們還沒有滿足嗎？

Well, I mean, it's the two the two units are similar and so they're the same size, right? It's a 50/50 kind of proposition, um, you know, I think, well, I know that the plant is operating at 50% of the level that it would probably be operating if both both boilers were operating.

好吧，我的意思是，這兩個單元是相似的兩個單元，所以它們的大小相同，對嗎？這是一種50/50的命題，嗯，我知道，我知道，我知道該工廠的運行量是兩個鍋爐都在運行的50％的水平。

Okay. Okay.

好的。好的。

No, because if the plant's going to be dispatched, they're going to probably dispatch it fully. And if it's not going to be special dispatch, it's not. So I think it's kind of I think it's for the most part, a 50 50 proposition.

不，因為如果要派遣植物，他們可能會充分派遣它。如果不是特別派遣，那就不是。因此，我認為這在大多數情況下是50 50命題。

Okay. Okay. Got it. So congratulations on that. On the new phosphate contract. Is it possible to give some sense of how large that could be.

好的。好的。知道了。所以恭喜你。在新的磷酸合約上。是否有可能對可能的大小有所了解。

As you know, it is not the major contract, but I think it's a very important step in our growth of that business free for years. We mined Lime Rock in Florida using draglines underwater or draglines. Digging lime rock that's underwater. It's dragging on, of course, was above the surface from the app so, you know, we've expanded into lithium. I think that's a very exciting development for us.

如您所知，這不是主要合同，但我認為這是我們免費增長多年來這項業務的非常重要的一步。我們使用水下或德拉線的德拉線在佛羅裡達開採石灰岩。在水下挖石灰岩。當然，它拖到了應用程式的表面上方，因此，您知道，我們已經擴展到鋰。我認為這對我們來說是一個非常令人興奮的發展。

We've expanded outside of Florida where mining other minerals were doing sand and gravel and other things we've, for a long time had had our sights on trying to get into phosphate mining. And we discovered an opportunity that really was several years in the making that we think gives us a nice nice entry into mining yet.

我們已經在佛羅裡達州以外擴展了其他礦物，在那裡開採沙子和礫石以及其他我們已經嘗試進入磷酸鹽採礦的事物。我們發現了一個實際上已經有幾年的機會，我們認為這使我們可以很好地進入採礦。

Another another Minera Florida is a huge, a contributor to global phosphate production. So I think this this new contract is a pretty exciting one for us. It is a dry, it's a dragline operation, but of course, it's dry and we're very, very pleased to start up, get that started up sometime this year.

另一個佛羅裡達州的另一個Minera是全球磷酸鹽產生的巨大貢獻者。因此，我認為這項新合約對我們來說是一個非常令人興奮的合約。這是乾燥的，是一個拖拉操作，但是當然，它很乾，我們非常高興地啟動，今年某個時候開始。

Okay, great. And how much of the CapEx that you've given in your disclosures is on for Dr. pass this year?

好的，太好了。今年，您在揭露中給出了多少資本支出？

And I don't know that was.

我不知道那是。

We did not call out specifically the backup path, but we did last year for 2023 when it was material. So I think you can deduce from that that it's not a material amount this year.

我們沒有特別喊出備用路徑，但是去年我們在2023年做了材料。因此，我認為您可以從今年的實體金額中得出。

Okay. And I do not know.

好的。我不知道。

Sorry, I was just on your CapEx question. I would just add that there is a part of the CapEx I'm not going to say how much, but there is a part of our 2024 CapEx that is CapEx from 2023 that wasn't spent. We're always looking for ways that we can defer capital spending.

抱歉，我只是在您的資本支出問題。我只想補充說，有一部分資本支出我不會說多少，但是我們2024年的資本支出的一部分是2023年的資本支出。我們一直在尋找可以推遲資本支出的方法。

It's I know it's always a smart thing to do. If you can figure out how to either spend less capital or spend it later from a present value standpoint makes good sense. So there's a piece of our 2024 CapEx. That's a carryover from 2023.

我知道這總是一件很聰明的事。如果您能弄清楚如何花費更少的資本或以後從現在的價值觀點支出，這很有意義。因此，有我們2024年資本支出的一部分。那是2023年的結轉。

Okay. Got it. Untied capacity. My sense is that's the kind of new scope of work for you. If you think how do you kind of add the operational capabilities you need to do that? How different is it from the work you're doing the dragline work you're doing? And are there operational risks there that you're sort of planning for?

好的。知道了。未接觸的能力。我的感覺是，這是您的新工作範圍。如果您認為如何新增需要這樣做的操作功能？與您正在做的Dragline工作的工作有何不同？您是否正在計劃有營運風險？

I mean, there is it's really very, very, very similar to the work that we do in our coal mining operations, we're going to run a full fleet of equipment. It's more similar to our coal mining operations. It is the Lime Rock business where we are really operating very specific pieces of equipment in kind of a specialized sort of thing at the packer Pass project.

我的意思是，它確實非常非常非常非常相似，我們在煤礦開採業務中所做的工作，我們將運行全部設備。它與我們的煤礦開採業務更相似。這是Lime Rock的業務，我們確實在Packer Pass專案中真正經營著非常特定的設備。

We're going to we're doing all the work related to mining it is very, very, very similar, almost identical to the work that we do. There's virtually no operating risk for us. We're operating the same types of equipment we use. It's a very similar contract structure. We apply the same disciplines that we do. You know, what are our other operations. So we don't really see any operational risk in this operational and another reason why it's so exciting.

我們要做與採礦有關的所有工作，它非常非常非常相似，幾乎與我們所做的工作相同。我們幾乎沒有營運風險。我們使用的設備類型相同。這是一個非常相似的合約結構。我們應用了與我們相同的學科。您知道，我們的其他操作是什麼。因此，我們並沒有真正看到此操作的任何操作風險，也沒有看到如此令人興奮的另一個原因。

Right. And then I know you're reimbursed for the capital equipment. Do you keep that equipment after the project is complete?

正確的。然後我知道您已為資本設備償還。項目完成後，您是否保留該設備？

We do.

我們的確是。

Okay. Then just a really quick bookkeeping question here. The EBITDA you report in your headline results of around seven plus million is slightly different than on your sub table where you break out EBITDA and it's sort of six plus million is could you say that what I'm what the plug is between those two numbers and I can follow to if it's not an easy one to add .

好的。然後，這裡只是一個非常快速的簿記問題。您在標題上報告的EBITDA大約七百萬大約與您打破EBITDA的子桌子略有不同，而您可以說這兩個數字之間的插頭是什麼，這是六百萬如果這不是一個容易添加的容易的事，我可以遵循。

We're looking. I think the [6.4] is segment adjusted EBITDA, is that the number you are referring to and that you have? And the [7.1] is on page 10 of the release that's consolidated adjusted EBITDA. So we have two different EBITDA metrics. One is segment adjusted in our segment adjusted operating profit, whereas the consolidated adjusted is more of that traditional EBITDA.

我們正在尋找。我認為[6.4]是調整後的EBITDA，是您所指的數字嗎？並且[7.1]在整合調整後的EBITDA版本的第10頁。因此，我們有兩個不同的EBITDA指標。一是我們的部門調整後營業利潤中的部門調整，而合併調整後更多的是傳統的 EBITDA。

Okay.

好的。

(technical difficulty) 7.1 is on page 10 of the release.

（技術困難）7.1在版本的第10頁。

So. Okay. And just last question, there's no one you get any insurance recovery related to the force majeure.

所以。好的。只是最後一個問題，沒有人會獲得與不可抗力有關的任何保險恢復。

And it's the Red Hills mine, Mississippi Leon income yet. So that's that's to be determined. I mean, we obviously cover business interruption insurance and we have a team of people that are that are working on that. I don't we're certainly not at the point we want to disclose what we think we're going to receive with respect to recoveries. But I will tell you that we've got a we have a team of people that are very focused on that right now.

這是紅山礦山，密西西比Leon的收入。這就是要確定的。我的意思是，我們顯然涵蓋了業務中斷保險，我們有一個正在為此而努力的人。我當然不是在我們想透露我們認為我們將收到的關於恢復的情況的那一刻。但是我會告訴你，我們有一個我們的團隊現在非常專注於此。

Okay, great. Well, thank you for all the answers.

好的，太好了。好吧，謝謝您的所有答案。

And like you said, Doug, I really appreciate the questions and your interest in the Company. Thanks. Thanks for calling.

就像您說的那樣，道格，我非常感謝您對公司的問題和興趣。謝謝。感謝您致電。

Have a good day.

祝你有美好的一天。

Thank you. And once again, if you would like to ask a question, simply press star followed by the number one on your telephone keypad.

謝謝。再一次，如果您想問一個問題，只需按Star，然後在電話鍵盤上排名第一。

Yes, I don't think we're going to have any more questions. So thank you everybody for dialing in that I close with just a few reminders. A replay of our call will be available online later this morning. Also post a transcript on our website when it becomes available.

是的，我認為我們不會再有任何問題。因此，感謝大家撥打的，我只提醒了幾個。我們的電話重播將於今天早上晚些時候在線上。也可以在我們的網站上發布一個成績單。

If you have any questions, please reach out to me. You can reach me at the phone number on the press release and I hope you enjoy the rest of your day. And now I'll turn it back to ready to conclude the call.

如果您有任何疑問，請與我聯絡。您可以在新聞稿中的電話號碼上與我聯繫，希望您享受剩下的一天。現在，我將其回去準備好總結。

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

謝謝，克里斯蒂。女士們和先生們，這是今天的電話會議。感謝您的參與。您現在可以斷開連線。