May 8th, 2026

The quarter showed meaningful operational and pricing improvements—higher metallurgical realizations, stronger adjusted EBITDA and materially higher operating cash flow—supported by a solid contracted book and CapEx-driven growth (Wildcat ramp). However, these positives were balanced by lower volumes, higher cost of coal sales, rising SG&A, reduced liquidity, and notable market dislocations (index divergences, oversupplied high-vol market and diesel/freight inflation). Management retains cautious guidance flexibility given geopolitical risks and inflationary pressures.

Company Guidance

Management reiterated 2026 cost guidance of $95–$101 per ton and said that, with expected improved operational performance in volumes and cost of coal sales for the balance of 2026, they still believe it is possible to finish the year at the top end of that range, though they may adjust guidance upward if the Iran conflict and related inflation persist. At the midpoint of guidance, 48% of metallurgical tonnage is committed and priced at an average $132.03/ton, another 43% is committed but unpriced, and the thermal-byproduct portion is fully committed and priced at $74.53/ton; Wildcat development is expected to conclude in Q2 with a production ramp in Q3–Q4. Management noted Q1 metrics (met cost of coal sales $107.98/ton; met realizations $124.39/ton; weighted metallurgical realization $128.40/ton; Q1 sales 3.6M tons; adjusted EBITDA $30M), said diesel use of ~22–23M gallons could add a couple dollars per ton to costs, reported Q1 CapEx of $40.7M, and total liquidity of $476.2M with $184.3M unused ABL availability (no ABL borrowings, $40.7M letters of credit outstanding).