Arch Resources, Inc. (ARCH) Q4 2022 Earnings Call Transcript

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Arch Resources, Inc. (NYSE:ARCH) Q4 2022 Earnings Conference Call February 16, 2023 10:00 AM ET

Company Participants

Deck Slone - Vice President, Strategy

Paul Lang - Chief Executive Officer

John Drexler - Chief Operating Officer

Matt Giljum - Chief Financial Officer

Conference Call Participants

Lucas Pipes - B. Riley Securities

David Gagliano - BMO

Nathan Martin - The Benchmark Company

Michael Dudas - Vertical Research Partners

Chris LaFemina - Jefferies


Good time and invited to nan Fourth Quarter 2022 Arch Resources Earnings Conference Call. All participants will beryllium successful a listen-only mode. [Operator Instructions] Please statement this arena is being recorded.

I would now for illustration to move nan convention complete to Deck Slone, Vice President of Strategy. Please spell ahead.

Deck Slone

Good greeting from St. Louis, and acknowledgment for joining america today. Before we begin, fto maine punctual you that definite statements made during this call, including statements relating to our expected early business and financial performance, whitethorn beryllium considered forward-looking statements according to nan Private Securities Litigation Reform Act. Forward-looking statements, by their nature, reside matters that are to different degrees uncertain.

These uncertainties, which are described successful much item successful nan yearly and quarterly reports that we record pinch nan SEC whitethorn origin our existent early results to beryllium materially different than those expressed successful our forward-looking statements. We do not undertake to update our forward-looking statements, whether arsenic a consequence of caller information, early events aliases otherwise, isolated from arsenic whitethorn beryllium required by law.

I'd besides for illustration to punctual you that you tin find a reconciliation of nan non-GAAP financial measures that we scheme to talk this greeting astatine nan extremity of our property release, a transcript of which we person posted successful nan Investors conception of our website astatine

Also participating connected this morning's telephone will beryllium Paul Lang, our CEO; John Drexler, our COO; and Matt Giljum, our CFO. After our general remarks, we'll beryllium happy to return questions.

With that, I'll now move nan telephone complete to Paul. Paul?

Paul Lang

Thanks Deck and bully greeting everyone. We admit your liking in Arch and are gladsome you could subordinate america connected nan telephone today. I'm pleased to study that nan Arch squad delivered different beardown operating and financial capacity successful Q4 pinch adjusted EBITDA of $256.5 cardinal owed successful ample portion to our halfway metallurgical conception that had importantly improved income volumes, portion costs, and rate margins. In short, our Q4 results served arsenic nan capstone to an exceptional twelvemonth for Arch Resources.

During 2022, nan Arch squad achieved a grounds financial performance, delivering afloat twelvemonth nett income of much than $1.3 cardinal aliases $63.88 per diluted share, generating adjusted EBITDA of $1.3 cardinal and reporting operating rate flows of much than $1.2 billion.

We besides strengthened nan equilibrium sheet, repaying much than 70% of our indebtedness, returning america to a nett rate affirmative position little than 1 twelvemonth aft completing our Leer South maturation task and expanding nan equilibrium successful our industry-first thermal excavation reclamation money to nan first target level of $136 million.

Finally, we relaunched our superior return program, deploying astir $900 cardinal complete nan past year, which included almost $515 cardinal successful quarterly dividends and avoiding nan dilution of astir 2.9 cardinal shares done buybacks and nan colony of much than 90% of our convertible debt.

I'm pleased to study that nan squad continued standards agelong opinionated manufacture activity and environmental, social, and governance capacity during 2022. Setting nan modular for ESG excellence successful my position is 1 of nan keys for occurrence and portion of our societal contract.

Noting conscionable a fewer highlights successful this arena, we achieved nan champion information grounds successful nan history of nan company, which was astir 4 times amended than nan manufacture average. We received conscionable 1 SMCRA usurpation crossed our operating portfolio versus an mean of 12 by our peers. And we received nan 2022 Excellence and Reclamation award, nan State of Wyoming's highest reclamation grant for nan extended and exemplary activity conducted astatine Coal Creek, wherever we've now completed astir 75% of nan last reclamation activity astatine that cognition successful little than 2 years.

Well, these are a important database of accomplishments. The activity nan squad did successful 2022 to laic nan instauration for continued occurrence successful 2023 and beyond is arsenic important. As grounds of that progress, we're guiding to markedly higher income volumes successful our halfway coking ember franchise successful 2023, arsenic good arsenic markedly little portion costs for nan segment. We added 7 world people Asian steelmaking customers successful 2022 for 2023 shipments, frankincense mounting nan shape for semipermanent occurrence successful that accelerated increasing region.

We've now contracted astir 75% of our projected 2023 coking ember output, inclusive of caller sales, and astatine nan midpoint of our guidance, and we further augment astatine nan income book for our bequest thermal franchise and are now entering into nan twelvemonth successful an efficaciously sold retired position pinch a important statement book successful nan outer years arsenic well.

Before I move on, I'd for illustration to return a infinitesimal to talk our superior return program, which we relaunched successful February 2022. As indicated, we've already utilized that programme to reward shareholders successful a very important manner, deploying almost $900 cardinal complete nan past year.

As a reminder, nether nan program's allocation model, we target nan return of 50% of nan anterior quarters, discretionary rate travel via dividends, and nan usage of nan 2nd 50% of discretionary rate travel connected a paper of different worth driving options, including stock buybacks. In our view, some nan superior return programme and nan allocation model, stay appropriate, durable and good aligned pinch shareholder interests and preferences. Given this, we afloat expect these programs to stay nan centerpiece of our worth proposition arsenic good arsenic our efforts to maximize worth for our shareholders.

Now, fto maine return a fewer minutes to remark connected nan ember markets earlier turning nan telephone complete to John to supply immoderate further colour connected nan operations, starting pinch nan seaborne metallurgical markets. In nan past world basking metallic accumulation has acted arsenic a superior driver for coking ember markets, which makes sense, higher basking metallic output intends accrued request for coking coal. And that's what makes nan existent marketplace conditions truthful interesting.

At present, coking ember prices look good supported, moreover though world basking metallic production, excluding China was down 8.8% successful 2022, coupled pinch nan truth that astir 20% of nan world blast furnace capacity excluding China is idle. Today, nan value for premium coking ember FOB nan alloy successful Queensland, now stands astatine $385 per metric ton, and nan value of High-Vol A coking ember disconnected nan U.S. East Coast is being assessed astatine $325 per metric ton.

Moreover, alloy marketplace dynamics are starting to show signs of betterment pinch basking rolled coil prices up astir 25% successful nan world's awesome alloy markets, [indiscernible].

At nan aforesaid time, nan world's idle blast furnace capacity is starting to move backmost connected successful nan look of gradually rebounding alloy demand, which is besides providing further support for coking ember markets.

Arch continues to position nether finance successful caller and switch pinch ember supplies arsenic nan azygous astir compelling support system for nan existent constructive ember marketplace dynamics. In 2022, Australian ember – coking ember exports were down 5%, aliases much than 9 cardinal metric tons erstwhile compared to nan already anemic levels of 2021. Meanwhile, nan 2nd and 3rd largest world suppliers of precocious value coking coal, nan United States and Canada were up only modestly versus 2021. Despite beardown pricing passim nan people of past year, and some countries proceed to importantly undershoot their pre-pandemic accumulation levels.

On apical of these fundamentals, nan warfare successful Ukraine continues to constrain Russian products successful nan broader market, while injecting greater uncertainty into wide world ember supplies. Added to this, we position nan evident reopening of nan Chinese marketplace to Australian coals, aft 2 years of lockout is simply a mostly affirmative development.

While this alteration successful position by nan Chinese will surely trigger immoderate existent – a seaborne waste and acquisition flows backmost to their earthy markets. It does look to beryllium portion of a larger rebalancing of nan world coking ember proviso request equation.

On nan thermal broadside of nan business, world markets person corrected importantly successful caller weeks, pinch Asian pricing continuing to clasp up amended than European indices connected a comparative basis. We judge overmuch of this diminution successful Europe is attributable to moderating request for thermal ember successful nan look of mild winter, anemic economical activity, wide power conservation efforts, and nan expanding readiness of LNG imports. At nan aforesaid time, Asian request remains strong, and nan New Castle scale is presently trading astatine $220 per metric ton, which is good supra nan humanities average.

In summary, pinch nan steps we took past year, Arch is prepared to negociate done a play of marketplace weakness should world economical conditions deteriorate further, but conscionable arsenic importantly, we're besides exceptionally good positioned to capitalize connected nan business erstwhile nan macro situation strengthens, world maturation accelerates, and alloy markets rebound. In addition, we proceed to position nan intermediate to longer word ember marketplace dynamics arsenic constructive – fixed nan ongoing nether finance successful nan space.

Heading into 2023, we scheme to support our oculus squarely connected a clear, concise, and actionable scheme for worth creation. Intend to leverage our competitory coking ember portfolio, pinch its expanding customer guidelines successful Asia, on pinch nan use of our rate generating bequest thermal assets to again supply important amounts of discretionary rate done 2023 and beyond.

With this, we scheme to usage that rate to proceed to reward stockholders done nan intelligibly articulated tenants of our superior return program.

With that, I'll now move nan telephone complete to John Drexler. John?

John Drexler

Thanks, Paul, and bully morning, everyone. As Paul conscionable discussed, nan Arch squad capped disconnected nan twelvemonth successful awesome manner delivering beardown operating results, exceptional advancement connected our strategical scheme successful manufacture starring execution connected our cardinal ESG metrics. Moreover, nan squad group nan shape for further worth creation successful 2023 by driving important productivity gains successful our halfway metallurgical segment, managing costs efficaciously successful nan look of important inflationary pressures, and expanding our statement book successful a strategical and advantageous way.

And location could beryllium thing much important than our information and biology performance. Our team's usage an worker driven information process, nan cornerstone of which is peer-to-peer observations and we are group to execute a captious milestone erstwhile we grounds our 2 cardinal observations sometime successful nan first quarter. Those 2 cardinal observations achieved complete nan program's 16 years are a existent testament to nan difficult activity of nan full Arch team.

I couldn't beryllium prouder of nan focus, passion and dedication our workforce gives to information and biology stewardship. On behalf of nan full guidance team, I want to convey nan Arch workforce for their awesome and ongoing contributions to nan company's capacity and success.

Let's move now to a chat of nan cardinal drivers successful our 4th fourth operating performance, starting pinch our halfway metallurgical segment. As anticipated, nan metallurgical conception operated astatine a overmuch improved productivity level successful Q4, driving a 16% sequential summation successful shipping volumes, and conscionable arsenic importantly, a 13% sequential simplification successful mean portion costs.

Of course, nan continued maturation of nan Leer – of Leer South factored importantly into these improvements. During Q4, Leer South achieved materially higher long-wall precocious rates erstwhile compared to Q3, capitalizing connected overmuch improved geologic conditions and making steady, systematic improvements successful wide execution crossed a wide scope of fronts.

The squad has sharply focused connected maintaining nan beardown upward momentum successful 2023. And done nan first half of Q1, that is precisely what we're seeing from nan Leer South team. As you good person noted, our 2023 guidance reflects coking ember accumulation levels of 9.3 cardinal tonnes astatine nan midpoint, owed successful ample portion to nan continued advances astatine Leer South.

As we person indicated successful nan past, we judge nan eventual normalized tally complaint for our coking ember portfolio will beryllium astir 10 cardinal tonnes, which we expect to execute starting successful 2024. We’re besides guiding to per tonne coking ember costs of $84 astatine nan midpoint versus nan $86.83 per tonne we reported for Q4 and $93.61 per tonne for nan afloat twelvemonth of 2022. While this is simply a important improvement, we expect these costs figures to proceed to inclination little successful 2024 arsenic well, successful keeping pinch nan projected higher accumulation levels.

As indicated successful nan release, we expect our metallurgical shipping volumes to approximate 4th fourth shipping levels earlier expanding incrementally during 2023s remaining quarters. Our bequest thermal conception besides made a important publication to our Q4 results, though that segments results were dampened considerably by further deterioration successful occidental obstruction work during nan quarter.

As a consequence of that mediocre obstruction performance, income volumes declined 2.3 cardinal tonnes connected a sequential ground and undershot our customers nominations for obstruction movements still further. Those reduced measurement levels besides served to unit portion costs higher, which accrued astir $1 per ton successful Q4 comparative to Q3.

Even pinch these headwinds, nan segment's still generated conception level EBITDA of $63.2 cardinal for nan quarter, reflecting some nan spot of our statement book and nan difficult activity nan squad has done to heighten our operational elasticity successful nan look of measurement changes.

As a reminder, nan bequest thermal conception has now generated a full of astir $1.3 cardinal successful conception level EBITDA complete nan people of nan past 25 quarters, while expending conscionable $138.6 cardinal successful capital, underscoring yet again nan powerfulness and effectiveness of our harvest strategy.

As you are aware, nan ember manufacture is limited connected obstruction work to execute connected our plans. The mediocre obstruction capacity complete nan past twelvemonth successful nan West has been an utmost disappointment and dampened our results. We've continued to activity pinch nan railroads costly, and it will beryllium important that they win successful addressing their challenges successful bid for america to afloat execute connected our scheme for our thermal conception successful 2023.

Turning to our statement book, successful summation to nan beardown operational execution, nan Arch’s squad made further advances successful expanding and strengthening some our metallurgical and thermal statement book during Q4.

First our metallurgical book, inclusive of caller contracts signed during nan first respective weeks of this year, we person now entered into commitments for astir 75% of our expected 2023 coking ember accumulation astatine nan midpoint of guidance via an advantageous operation of scale based and fixed value contracts.

Importantly, and arsenic Paul noted, nan coking ember books Asian waiting continues to summation arsenic well. During nan people of 2023, we signed first-time commitments pinch 7 starring alloy producers successful Asia that we could easy foresee becoming stalwarts successful our statement book long-term. That’s important of course, because Asia is almost definite to beryllium nan superior maturation driver for alloy accumulation complete nan adjacent respective decades. By becoming portion of these alloy producers coke making blends and demonstrating nan tremendous worth successful usage of our precocious value coking ember products, we are building a strong, durable and beneficial outlet for our early metallurgical output.

The trading squad made awesome strides successful continuing to build retired nan thermal statement book arsenic well. As a result, we ended nan twelvemonth successful an efficaciously sold retired position for 2023 pinch our occidental operations. Importantly, we already person a important look of thermal business motion for 2024 and a coagulated commencement to contracting successful nan retired years.

While, we are facing immoderate headwinds successful nan thermal conception from still anemic obstruction service, anemic earthy state pricing, and nan caller pullback successful world prices. We believe, we are still positioned for different beardown twelvemonth of EBITDA procreation from our thermal assets.

As noted successful our guidance array for nan year, we person already locked successful an charismatic separator for our thermal conception and would expect that separator to grow further arsenic we fastener successful pricing connected incremental export volumes. However, it's important to constituent retired that nan Western obstruction work remains a important mobility people and is apt to constrain our full export opportunity for nan year.

Our existing guidance includes 750,000 tons of priced exports from West Elk. As we beryllium present today, we are reasonably assured that we will export an incremental 500,000 tons of West Elk ember that is not presently reflected successful nan guidance array and dream that location is meaningful upside to that number. Based connected today's marketplace prices, we would expect that those 500,000 tons unsocial would adhd different dollar per ton to nan projected mean separator for nan conception arsenic a whole. Of people if nan rails tin facilitate further export volumes beyond that level, nan separator description for nan conception would beryllium greater steel.

In summary, while we are pleased pinch nan occurrence achieved complete nan people of 2022, we are squarely focused connected nan early and connected nan opportunity ahead. We afloat intend to leverage our level of debased costs operations and our portfolio of committed income to again make important worth successful rate travel successful 2023 and beyond.

With that, I will now move nan telephone complete to Matt for further chat connected our financial capacity and results. Matt?

Matt Giljum

Thanks, John. Good morning, everyone. I'll statesman pinch a fewer comments connected nan 4th fourth financial results, which were a beardown extremity to an outstanding year.

EBITDA for nan play totaled $256.5 million, an betterment of much than 15% from Q3 levels. Net income for nan 4th was $470 cardinal and included an income taxation use of $253 cardinal from nan merchandise of nan valuation allowance connected our national nett operating losses.

As we discussed previously, nan merchandise of nan valuation allowance is simply a non-cash point and was owed to nan important betterment successful our income levels and expectations for afloat utilizing nan national NOLs.

From a rate travel perspective, operating rate flows for nan 4th totaled $194 million, which contempt nan betterment successful net was our lowest quarterly full for nan year. We had an summation successful moving superior during nan quarter, a inclination that we expected and discussed successful item successful past quarter's call.

Included successful nan operating rate flows is simply a astir $6 cardinal publication to nan thermal excavation reclamation fund, including liking that was earned connected nan funds. We completed nan planned accelerated backing earlier successful nan twelvemonth and would now expect only humble contributions inclusive of earned liking arsenic we target keeping nan money successful statement pinch nan Black Thunder ARO liability.

Capital spending for nan 4th totaled $78 million. This was nan highest quarterly full for nan twelvemonth and resulted from nan transportation of respective items that had been delayed by proviso concatenation issues. As we move into 2023, we would expect nan quarterly tally complaint to revert to a much ratable cadence.

I'll talk nan superior return activities for nan twelvemonth successful much item shortly, but discretionary rate travel for nan 4th fourth was $116 cardinal and accordant pinch nan superior return formula, our Board has declared a dividend of 50% of that amount, aliases $3.11 per share. The dividend will beryllium paid connected March 15th to stockholders of grounds connected February 28th.

The extremity of nan twelvemonth pinch rate connected manus of $273 cardinal and full liquidity of $401 million, including readiness nether our in installments facilities. Cash and liquidity astatine twelvemonth extremity were fundamentally astatine target levels.

Turning now to nan superior return program. As we previewed successful October, we came into nan 4th fourth pinch rate levels that were good supra our targets and an anticipation to usage that excess rate to ramp up superior returns.

As you tin see, we intelligibly followed done connected those expectations, deploying astir $352 cardinal during nan quarter. That breaks down arsenic follows; $192 cardinal of dividends paid, $101 cardinal to repurchase astir 690,000 shares, and finally, $59 cardinal to discontinue convertible bonds.

Paul has already mentioned nan afloat twelvemonth dividend, but I wanted to supply immoderate further item connected nan 2nd 50% of nan program, including nan simplification successful nan diluted stock count that he mentioned.

For nan afloat year, we deployed astir $367 cardinal connected banal and convertible enslaved repurchases pinch $208 cardinal utilized to discontinue convertible bonds and nan remainder for stock buybacks.

Prior to launching nan superior return program, our afloat diluted stock count was astir 21.6 cardinal shares. Notably, had we not bought backmost shares aliases settled convertible bonds during nan year, that number would really person accrued by 1.2 cardinal shares to almost 22.8 cardinal shares by twelvemonth end.

That's principally because absent nan steps we took to settee nan bonds, we would person incurred further dilution, stemming from nan 2022 dividend payments because those payments consequence successful an summation to nan conversion complaint for nan convertible enslaved holders. That's why successful a nutshell, we prioritize nan colony of nan convertible bonds alternatively than stock buybacks astatine nan motorboat of nan return program. We knew that successful doing truthful we would not only trim nan diluted stock count astatine nan clip of nan enslaved repurchases, but that we would besides debar nan further dilution resulting from nan dividend payments passim nan people of nan year.

And that's precisely what happened. In some, nan $367 cardinal we usage for banal and enslaved repurchases, translated into a simplification successful nan year-end diluted stock count of much than 2.9 cardinal shares pinch nan simplification of 1.1 cardinal shares from buybacks -- stock buybacks and nan remainder attributable to nan enslaved repurchases. On a per stock ground that has efficaciously an mean value of $125 per share.

In comparison, had we focused our efforts solely connected stock repurchases that aforesaid magnitude of superior would person bought backmost little than 2.4 cardinal shares astatine much than $154 per share. So while nan magnitude of superior return successful 2022 is awesome connected its own, nan measurement successful which nan superior was deployed successful nan sequency of that deployment has besides importantly benefited shareholders.

Before moving on, I wanted to touch connected 2 last points related to nan convertible bonds. First, pinch nan repurchases that we completed successful nan 4th quarter, we now person conscionable $13 cardinal of main that stay outstanding. That represents conscionable 8.5% of nan original issuance.

Second, nan capped telephone that we purchased astatine nan clip nan bonds were issued remains outstanding successful afloat and has an intrinsic worth of $62 million, representing astir 425,000 shares astatine yesterday's closing banal price.

Turning now to 2023 and starting pinch nan first quarter, we are intelligibly encouraged by what we're seeing successful nan met marketplace truthful acold this year, pinch higher scale pricing 4th to-date comparative to Q4. While we expect to seizure that use connected our first 4th earnings, nan rate travel timing is apt to beryllium delayed. We expect a important build successful accounts receivable this quarter.

As galore of our agents shipments are initially billed astatine a provisional value from past quarter, pinch nan last existent up yet to beryllium received successful Q2. Additionally, speech from these pricing dynamics, we typically spot an finance successful moving superior successful nan first 4th and we expect that to beryllium nan lawsuit again this year.

Before turning nan telephone complete for questions, I wanted to supply immoderate little comments connected a fewer of nan financial guidance items successful nan release. First, our superior spending this twelvemonth will beryllium successful nan scope of $150 cardinal to $160 cardinal and consists wholly of attraction superior pinch complete 80% of that related to nan Core Metallurgical segment. Despite nan inflationary environment, we person maintained nan superior guidance successful statement year-over-year.

Second, you'll statement that we expect nett liking disbursal of little than $5 million, reflecting our tremendous advancement successful reducing indebtedness during 2022. Notably, liking income connected our rate and short-term investments will mostly offset nan liking connected our remaining debt.

Finally, pinch respect to income taxes, now that we person released nan valuation allowance, we expect to person a much normal taxation proviso connected nan income connection pinch a scope of 10% to 15% of pre-tax income. For 2023, we expected rate taxation payments will beryllium little than 5% of pre-tax income, arsenic we proceed to use from nett operating nonaccomplishment transportation forwards. As you exemplary years beyond 2023, we would expect nan taxation proviso and taxation payments to beryllium much intimately aligned successful that 10% to 15% range, arsenic we will person utilized astir of nan NOLs.

With that, we are fresh to return questions. Operator, I will move nan telephone backmost complete to you.

Question-and-Answer Session


We will now statesman nan question-and-answer session. [Operator Instructions] The first mobility coming comes from Lucas Pipes pinch B. Riley Securities. Please spell ahead.

Lucas Pipes

Thank you very much, operator, and bully greeting everyone. Also I wanted to adhd – bully occupation connected nan – connected nan advancement astatine Leer and Leer South connected nan costs side. That's really impressive. I want to walk my first mobility present connected nan Met broadside and conscionable get a small spot much consciousness for nan cadence of shipments passim nan year. Is it beautiful readable? Do we expect possibly a small spot much present successful nan beginning, aliases is it backmost extremity weighted? If you could supply immoderate colour connected that? I would admit it. Thank you.

John Drexler

Hey, Lucas, John Drexler, really are you? As acold arsenic nan cadence connected nan – connected nan volumes arsenic we indicated successful nan release, arsenic we beryllium present coming we're looking for illustration we're going to beryllium level from Q4 to Q1. And past if you return nan midpoint of nan guidance and benignant of administer that pinch nan quality of what we vessel successful – successful nan first quarter. Right now, nan expected cadence would beryllium benignant of ratable for astir 3 quarters of nan year. So, we're happy pinch nan advancement that we've been capable to make it Leer and Leer South and thrilled pinch nan summation successful nan volumes that we expect to execute complete nan people of 2023. So that's benignant of our position connected nan cadence correct now.

Lucas Pipes

That's helpful. Thank you. And past switching to nan thermal side, John, you made immoderate comments successful nan prepared remarks. I deliberation it was 500,000 tons could move nan full separator successful nan thermal business by $1. If you could conscionable punctual us, what nan dynamics are location and past nan income guidance for nan year, I deliberation from nan debased into nan precocious extremity astir 8 cardinal tons. What is – what are nan cardinal drivers there? Would admit – admit that color.

And past arsenic you look retired to 2024, really is nan normal income book position coming and what's your outlook successful ray of nan weaker state value environment? Thank you very much.

John Drexler

Yeah. Thanks, Lucas. You know, arsenic we beryllium present today, nan – and we talked astir it passim nan people of nan prepared remarks. The challenges that we've had really had been obstruction complete nan people of 2022 it's importantly constricted our opportunity, present a ember into nan export market. As we beryllium present today, that ember going into nan export marketplace moreover pinch immoderate of nan unit that we've seen connected immoderate of those world pricing, still nets backmost to a very patient separator for us. And truthful those 500,000 tons that we're looking astatine correct now, we're reasonably assured we're going to beryllium capable to get those exported. They're not priced correct now, intelligibly though, successful today's marketplace value those will beryllium leveraging and would adhd $1 per ton to nan margin.

More importantly though, we deliberation there's a larger upside connected nan exports arsenic well. If nan rails perform, we could proceed to heighten that thermal separator significantly, if we person nan opportunity to get much ember disconnected nan coasts.

Paul Lang

Lucas, those volumes that stack, those volumes are principally disconnected nan westbound seashore and truthful you're looking astatine a Newcastle value of $220. If you look astatine nan spot and truthful astatine those prices, that's what that would construe into fixed our expected costs astatine West Elk. So you tin you tin spot that 500,000 tons is it's still rather leveraging. It's little than we'd for illustration to ship. It's little than we dream to ship, but it's nan magnitude we consciousness – we consciousness assured astir astatine this point. And still it's a important uplift successful nan mean realization and past nan mean publication and nan full publication for nan thermal segment.

John Drexler

From a thermal perspective, astatine slightest arsenic nan wide scope successful nan guidance that we provided nan 8 cardinal tones, truthful overmuch of that is driven by wherever nan – wherever nan rails are going to perform. We are sold retired fundamentally astatine nan midpoint of nan guidance. And I want to spell each nan measurement backmost to nan opening of 2022. But if you remember, arsenic we activity done nan people of 2022, because of nan important obstruction challenges we had, we ended up shifting little ember past we had committed complete nan people of nan year.

Right now our guidance, benignant of aligns pinch what we were capable to vessel successful 2022. We're hopeful that nan rails proceed to improve, which would springiness america immoderate further opportunity, particularly pinch deleveraging export tonnes that we conscionable discussed.

Deck Slone

And look, it’s again, Deck. It's – for 2024, we're astir apt not fresh to spell location yet. It's premature for america to talk astir nan income book and quantify that successful a important measurement but we do person a very coagulated instauration we person built, we consciousness really bully astir wherever we are and nan pricing we've achieved.

So you know, we would expect nan beardown pricing you've seen present aliases expect to spot successful 2023 to rotation into 2024 arsenic well. But we're not fresh to springiness precise volumes arsenic yet. We would only opportunity again, it's a really rather coagulated foundation, we consciousness rather bully astir our position for 2024 arsenic well.

Lucas Pipes

That's a batch of color. I really admit that and champion of luck.

Paul Lang

Thanks, Lucas.

John Drexler

Thank you, Lucas.


The adjacent mobility comes from David Gagliano pinch BMO. Please spell ahead.

David Gagliano

Hi. Thanks for taking my questions. I conscionable person a mates of speedy ones. I deliberation you benignant of talked astir a small spot but I was wondering if I could conscionable inquire directly, what's nan divided successful nan – you cognize nan guy, nan mean value is 1750 a tonne for wide US thermal. What's nan divided betwixt PRB and West Elk embedded successful that?

Paul Lang

So Dave, it's astir caught 1525 aliases truthful it's benignant of nan PRB value connected nan 65 cardinal tonnes aliases truthful that John referenced and past West Elk, evidently provides nan – nan uplift from that level for nan mean – for nan mean committed pricing connected rather frankly, again, reasonably humble export tonnes.

John Drexler

And nan measurement splits astir 65.5?

Paul Lang

Correct. Absolutely.

David Gagliano

Okay. All right. helpful. Thank you. And past conscionable connected – location was a remark earlier astir imaginable moving superior build successful nan first quarter. I conscionable wanted to inquire if that tin beryllium quantified, obviously, conscionable to thief pinch nan calibration of nan estimate of nan adaptable dividend?

Matt Giljum

Yes, Dave. This is Matt, you know, 1 of nan things John highlighted successful his chat was nan occurrence we've had connected nan Asian customers. You know, nan bully of that is that you know, those are immoderate awesome customers that hopefully will beryllium semipermanent folks that will waste to and beryllium successful their book for a agelong time.

The downside if you want to look astatine it is successful a rising value environment. We will bent up much of those receivables connected nan equilibrium expanse and truthful that's what we're expecting this 4th arsenic you spot nan PRB value emergence passim nan quarter. The measurement immoderate of nan pricing useful location is nan provisional value that will measure astatine and cod successful nan 4th but that true-up to nan higher pricing will travel adjacent quarter.

So erstwhile you look astatine – astatine nan receivables I deliberation we'll spot a reasonably important built successful receivables, overmuch much truthful than what we saw successful Q4. And past location are immoderate emblematic seasonal moving superior items that we faced successful Q1, inventory build related to nan Lake play business, typically immoderate of nan payables will diminution from year-end levels to nan extremity of first quarter. As I look astatine it, I deliberation we could spot successful moving superior build this 4th of astatine slightest $100 million. And, obviously, astir of that we'll get backmost later successful nan twelvemonth and a batch of it successful Q2, but present successful Q1 expect to spot a beautiful important headwind.

Paul Lang

This is Paul, and I deliberation I said past quarter, I deliberation nan biggest astonishment of immoderate of america is really lumpy nan moving superior tin be. And my conjecture is we're going to spot a corresponding effect connected dividends successful 2023, wherever they're conscionable not going to beryllium ratable, they're going to beryllium up and down. But, obviously, complete nan people of nan twelvemonth it's going to evened retired till it each activity out.

David Gagliano

Great, that's very helpful. Thank you. And past sticking pinch nan superior allocation, conscionable connected nan buybacks, obviously, bully number this quarter. And aft adjusting for moving capital, immoderate logic to expect connected a quarterly basis, nan 50/50 divided to move that overmuch successful 1 guidance aliases nan different betwixt specials and buybacks?

Paul Lang

I mean, correct now David, I deliberation nan measurement nan programme is group up for nan allocation model, we're going to instrumentality pinch 50% of nan discretionary rate travel to dividends, it's very simple, group understand it. Absent moving superior changes, it's very simple.

What's a small much lumpy is going to beryllium nan repurchases and what we do pinch nan different 50% but, David I deliberation we judge nan programme is moving well. It's been well-received by our shareholders. And our scheme correct now is to instrumentality pinch things.

Matt Giljum

David, it's a reasonably elemental formula, but arsenic Paul said, we're going to -- because we paid nan dividend successful arrears and nan measurement we salary it, it's going to beryllium lumpy, but our wide position is 10 quarters from now, erstwhile you look backmost complete what's been paid retired for nan first 50 to 2nd 50. They're going to beryllium comparatively equal, because again, it's conscionable math.

Having said that, we are going to spot lumpiness quarter-to-quarter. So we effort to supply guidance astir that, not ever imaginable to supply precision. But again, it's nan 50/50 will hold, it conscionable whitethorn not clasp successful immoderate fixed quarter.

David Gagliano

Perfect, convey you. It’s very helpful. Last question, I know, I’m going to beryllium quick, but not that quick, really quickly now past question. Can you talk a small spot astir nan customers connected nan US thermal side? I cognize it's early days, nan numbers haven't been bully connected nan request side. Can you conscionable speak done nan imaginable arsenic we get into nan twelvemonth for possibly deferrals and really overmuch is unfastened for re-openings and worldly for illustration that, positive aliases minus really overmuch successful nan committed volumes for 2023? Thanks.

Paul Lang

Good question. David. As we beryllium present today, and we look astatine nan book for 2023, right, location are immoderate headwinds, we referenced those. But astatine nan aforesaid time, arsenic we're talking and looking astatine customers and nan inventories that they have, we proceed to spot that there's request for rebuild that needs to hap from an inventory level. That we judge will proceed to play itself done complete nan people of nan year. We'll proceed to measure things arsenic we move forward, but we person bully assurance that for what our committed levels are that we expect to vessel those complete nan people of nan year.

Matt Giljum

So Dave, I mean, if you'll callback past twelvemonth 2022, location was an atrocious batch of ember conservation going connected because of mediocre obstruction performance. And truthful generators would person been burning much coal, and they conscionable didn't person nan inventory. They couldn't get nan volumes. And truthful arsenic a result, they are focused connected rebuilding those inventories.

Now, clearly, it's been a slow commencement to nan wintertime successful position of upwind and request had been down, earthy state value is very low. So that will person an effect connected burn, but truthful acold we're not proceeding from immoderate of our customers, that they don't want to proceed to receive, their afloat amount, their afloat allocation, and rather frankly, still, they're still struggling to get nan benignant of obstruction work that they that they expect.

So, if it's a mild summertime arsenic well, you know, possibly we commencement to spot that push backmost but correct now, we don't expect it to spot that. We deliberation this is going to beryllium a twelvemonth of, benignant of, rebuilding of these inventories and much -- to much normal levels.

Paul Lang

David, I deliberation Deck touched connected nan vexation of immoderate of our customers connected obstruction service. And I deliberation if you guidelines backmost and look, nan Eastern rails had nan aforesaid rumor that we perceive astir successful nan west. These 2 obstruction services fundamentally settled their problems successful astir 4 aliases 5 months. Frankly, nan occidental obstruction work has gotten worse successful nan 4th quarter. I mean it's extraordinarily disappointing what they're doing and their expertise to bounce backmost and that vexation has travel done from our customers. And I deliberation if they tin get nan obstruction service, I consciousness a small much optimistic this twelvemonth astir them taking what they contracted.

David Gagliano

Okay, great, very helpful. Thank you.

Paul Lang

Thank you, David.


The question, Nathan Martin, from The Benchmark Company. Please spell ahead.

Nathan Martin

Hey, bully morning, guys. Thanks for taking my questions.

Paul Lang

Good greeting Nate.

Nathan Martin

I deliberation astir of them person been addressed astatine this point, but possibly conscionable drilling down a small spot much than expected shipment cadence. I cognize John had immoderate bully comments there, but possibly connected nan met side, and he planned agelong haul moves to beryllium mindful of?

Paul, you conscionable said it sounds for illustration eastbound obstruction services is moving on reasonably well. But arsenic Curtis Bay backmost up to moving it 100% again? And past connected nan thermal side, again, obstruction work continues to beryllium poor. It sounds for illustration really do you expect that possibly to impact nan cadence aliases timing of shipments connected nan thermal business?

John Drexler

So, Nate, from a agelong haul move perspective, our operations person gotten exceptionally bully and businesslike astatine moving nan walls from panel-to-panel. Leer South conscionable correct astatine nan opening of January of this year, had a very successful move from Panel 2 to Panel 3. We sewage respective moves scheduled complete nan people of nan twelvemonth depending connected beforehand rates, thing mightiness get pulled into 2023 aliases push retired to 2024. But each of that is incorporated into nan guidance and our teams person precocious assurance connected nan expertise to execute connected nan scheme that's retired location and don't spot immoderate important impacts aliases variability to benignant of nan lawsuit of our accumulation complete nan people of nan year.

Paul Lang

And look -- sorry, Nate, it's been a slow commencement obviously, connected nan obstruction side. I mean you do person emblematic seasonality. Q2 tends to beryllium a lesser play because of upwind successful nan PRB connected nan thermal side. Q3 tends to beryllium a beardown shipping quarter. So, location surely could beryllium immoderate level of lumpiness. But again, we started retired Q1 astatine a reasonably slow pace. So, enactment tuned.

John Drexler

I deliberation if you look astatine nan cadence, if you were conscionable to make it ratable complete nan people of nan twelvemonth to that midpoint of 70 cardinal tonnes, it'd beryllium 17.5 cardinal tonnes a quarter. As Deck indicated, there's typically immoderate seasonality and successful a accepted year, but past erstwhile you've sewage nan obstruction impacts and challenges, we do expect betterment from Q4, but astir apt not connected a existent ratable ground successful Q1 for nan afloat twelvemonth nan 70 cardinal tonne midpoint of nan guidance for nan twelvemonth if that if that helps.

Nathan Martin

Yes, no. That's very adjuvant guys. And conscionable existent speedy Curtis Bay, is that benignant of backup to moving usually astatine this point?

John Drexler

Yes Nate. We -- complete nan people of nan twelvemonth things -- they reside nan rumor that started successful January of 2022 and activity to benignant of repair nan facility. The logistics squad present did an outstanding occupation of managing that rumor complete nan people of nan year. As Curtis Bay continued to make repairs our opportunity to participate continued to summation location and Curtis Bay and arsenic we rolled into nan extremity of nan twelvemonth there. We're not seeing immoderate issues pinch Curtis Bay arsenic we spell forward.

Paul Lang

Okay, I'll conscionable opportunity Nat that CSX efficaciously did what they said, they delivered connected nan operating side, they sewage Curtis Bay backmost up and running. No complaints connected nan east.

Nathan Martin

Great to perceive guys. And past they did it relates to nan afloat twelvemonth 2023 met conception costs per ton guidance, what nett value you benignant of embedding successful your $79 to $89 ton scope there?

Matt Giljum

So, Nat, arsenic portion of nan logic for that a wide scope is simply a batch of those different variables that are retired there, including income price, punctual everyone that fixed nan ownership structures of nan reserves that we person retired successful nan eastbound wherever we ain a mostly of those reserves, our income delicate costs and comparative position are a reasonably humble benignant of we guideline to astir a 7% scope type of income delicate costs numbers. So we're not going to supply a circumstantial guidance connected what nan marketplace scope was, but erstwhile again, it's each incorporated successful into nan guidance that we person retired there.

Paul Lang

And, Nat, conscionable a reminder that 7%, 5% of that is severance taxation we started to salary nan State of West Virginia, which I deliberation underscores further nan spot of our position and nan truth that we ain nan immense mostly of our reserves and fees. So we really are successful a rather a bully position and consciousness very comfortable that while judge higher prices will person immoderate effect connected our costs. It's reasonably humble and truthful not that difficult for america to encompass those sorts of summation prices wrong nan scope we provide.

Nathan Martin

Got it. I admit that guys. And possibly conscionable finally, a bigger image mobility and conscionable timely reports retired this morning, tech mightiness beryllium looking to denote a rotation disconnected of its met ember business arsenic early arsenic adjacent week according to Bloomberg. I cognize you guys evidently can't comment, specifically connected deals, but really would you possibly qualify nan existent ember M&A landscape? Would you person immoderate liking successful adding immoderate precocious value met ember assets?

Paul Lang

You know, Nat, arsenic we've said successful nan past, we'll look astatine everything and see astir it, thing but it's a very difficult situation to do a deal. And you talk astir what is nan situation well, it's efficaciously frozen. There's tons of reasons for that and I deliberation anybody aliases everybody should work together that if location is simply a woody retired location that lowers costs, and successful our lawsuit does not wounded america connected a value basis, we'd astir apt return a batch of liking successful it, but absent that it's difficult to put a woody together correct now. And we'll support looking, we'll support considering but frankly, we're successful a bully position. We're connected nan debased extremity of nan costs curve. Frankly, we're good beneath nan mean costs curve for nan remainder of US and if our downside cases simply harvesting rate and move it backmost shareholders, that's fine.

Nathan Martin

Appreciate those comments, Paul, I'll time off it there. Best of luck to you guys successful 2023.

Paul Lang

All right. Nat, convey you very much.

Matt Giljum

Nat, thanks.


The adjacent mobility comes from Michael Dudas pinch Vertical Research Partners. Please spell ahead.

Michael Dudas

Good morning, gentlemen.

Paul Lang

Good morning, Michael.

Michael Dudas

So adding those 7 Asian customers, you tin put that successful discourse comparative to your comments and your prepared remarks of utilization starting to amended immoderate basking metallic coming back. Is that helping your merchandise benignant of get noticed successful nan marketplace? And, and pinch respect to looking astatine nan champion nett backmost worth for, our existent agelong word is, yeah, really important you deliberation Asia will beryllium going forward? Is location going to beryllium important trading of nan tons that you person successful nan marketplace for export customers that sounds that's for illustration what you'd for illustration to do if nan economics of that makes sense?

Paul Lang

Yeah, Mike, I'll commencement disconnected broadly and spot if Deck aliases John would adhd in. Literally, our reasoning has been successful nan past mates of years is to grow our customer guidelines successful Asia. And, nan logic is reasonably simple. Both nan US and European blast furnaces are slowing down aliases for a assortment of reasons, starting to move distant and nan existent maturation connected nan – earthy steel, nan basking rolled alloy is successful Asia. So, we person purposely done this jump to nan Asian markets, and spent a batch of clip and effort successful there.

Deck Slone

And so, Mike, I'd say, look, we we've now crossed complete 40% of our volumes moving into Asia, we deliberation that's really important and strategic, that is wherever nan maturation is going to be, arsenic Paul said, nan Europeans are looking astatine immoderate migration distant from integrated alloy accumulation towards much EAF and possibly DRI pinch EAF. The Asian marketplace is not, nan Asian marketplace is afloat velocity up connected caller integrated alloy capacity being added and station COVID. The projects that person were put connected pause, person now started backmost and are moving guardant pinch awesome momentum.

As we look retired betwixt now and 2030. We could spot 70 cardinal tons of further basking metallic accumulation manifest itself successful Southeast Asia, including India, and that – that's a immense marketplace opportunity for us. The immense mostly of that will beryllium served via nan seaborne market, and truthful we perfectly judge its strategic, would besides adhd that look we deliberation we've sewage nan perfect merchandise for that marketplace, because we've got, pinch our Leer and Leer South product. We've sewage nan precocious CSR that Australia provides. The 70 CSR benignant of – benignant of merchandise on pinch nan plastics properties that make it awesome for blending and, you're looking astatine you know, alloy makers that are – that are weighing their options. And trying to find blends of aggregate products, while adding our High-Vol A merchandise really makes those blends truthful overmuch much effective, because of those plastics properties, nan somesthesia range, nan fluidity.

So we are – we do judge we're getting traction location and a amended knowing of nan worth of nan product. These 7 customers are suggestive of that. But certainly, arsenic we look forward, we expect Asia to correspond an expanding percent of our mix.

John Drexler

And Michael, I'll adhd conscionable to admit nan trading squad and nan tremendous activity that they've done to spell retired into unafraid further business successful these Asian markets. We've talked astir it for immoderate time, nan Deck conscionable alluded to, nan qualities of nan merchandise that we're producing and wanting to get introduced into a increasing area for illustration that. The trading squad has done an outstanding occupation of – of getting those relationships, getting opportunities to person nan merchandise tested and past executing connected nan expertise to participate into contracts.

So it's been a large triumph each around. And, conscionable to benignant of wrap-up that discussion, successful summation to nan increasing request there, and we've hinted connected this a mates of different times. It's there's conscionable a complete deficiency of finance globally successful caller production, and truthful we spot a tremendous opportunity present arsenic we move forward. And deliberation we're positioned very well.

Michael Dudas

That's – that's very good said gentlemen. Just a follow-up possibly connected your – connected your past remark there, John, do you deliberation US tin contribute? What do you deliberation US tin lend to export met successful 2023? And moreover successful adjacent 2024 and 2025 is location nan expertise to benignant of support those numbers it's still aliases I would presume there's still going to beryllium these struggles.

Deck Slone

Yes, Mike, it’s Deck. And look we – we are comfortable pinch nan truth that you know, request could slack successful if nan macro situation continues to slow and weaken, we're successful a awesome position to benignant of thrust retired immoderate benignant of trough, truthful I want to opportunity that first. So, you know, we're not we're not making this projection for nan market, you know, for awesome marketplace spot unbroken, and that nan extremity of nan business cycle.

We will opportunity this, you know, correct now you're right, you've sewage alloy accumulation and basking metallic accumulation now starting to show signs of kicking backmost up aft declining by astir 9% past twelvemonth successful nan world, excluding China. And yet, proviso broadside continues to beryllium nether a batch of pressure.

So Australia was down astir 9 cardinal tonnes successful position of accumulation successful 2022, coking ember exports successful 2022. They are nan large equine successful nan seaborne market, arsenic you know, but they are – they're now down 30 cardinal tonnes from nan highest twelvemonth of 2016. They ended nan twelvemonth astatine astir 158 cardinal tonnes versus nan highest twelvemonth of 188 cardinal tonnes successful 2016. So you proceed to spot that – nan nether finance that John mentioned, manifests itself successful a very important way.

The US, is really nan aforesaid story, you've sewage degradation and depletion of nan reserve base. You've sewage comparatively constricted finance and truthful contempt nan truth that past twelvemonth and 2022 mean High Vol A value was $350. US exports accrued by 1 cardinal tones,

Canadian exports accrued by 2 cardinal tonnes past twelvemonth and those are nan 3 biggest suppliers successful position of precocious value coking coal.

So yes, we proceed to spot unit connected proviso and judge that is going to proceed successful 2023, which suggests that nan marketplace could clasp this spot for immoderate play of time. Again, we don't request it to, we tin do good successful a marketplace that is little robust than nan 1 that persists correct now, but nan fundamentals do proceed to look strong.

John Drexler

Michael, nan different point you know, related to this, you know, we utilized to ever talk astir what we request is an mean of astir $150 East Coast value for nan world to work. You know, you deliberation astir that now and nan guidance that you're proceeding from a batch of nan US producers. $150 is breakeven. That number has moved up dramatically. And arsenic Deck said, look, we don't request it to beryllium $200 aliases $300 to do well. But it is absorbing wherever it's settling successful that.

Look, I don't deliberation $150 arsenic a normal going guardant value structure. Our costs – our value building is going to beryllium nan norm going forward.

Michael Dudas

Well said John, I admit those observations. Thank you.

John Drexler

Thank you, Mike.


The adjacent mobility comes from Chris LaFemina pinch Jefferies. Please spell ahead.

Chris LaFemina

Hi. Thanks, operator. Hey, guys, acknowledgment for taking my question. And I apologize. I mean, you touched connected immoderate of this already. But, Deck, you were talking astir benignant of nan structural proviso problems successful nan successful nan successful nan seaborne ember market, which are not going to get solved easily. And, you know, we went done a twelvemonth past twelvemonth erstwhile Chinese request for metcoal lease was very, very weak. And Chinese home ember accumulation accrued to us, truthful beautiful astonishing erstwhile you see really bad China was past year, really beardown successful nan ember markets aliases anyway.

So nan statement now that we're proceeding from a batch of investors is whether aliases not this China betterment will beryllium alloy intensive. And I deliberation nan overwhelming statement position is that it's going to beryllium consumer-driven. It's not going to beryllium astir steel, but we're proceeding from immoderate of nan large robust ore miners that they're already seeing grounds of pickup successful activity successful existent property and construction. And you know, there's been a batch of argumentation shifts successful nan China lodging marketplace that could thrust perchance a beautiful beardown betterment successful alloy for construction, which I deliberation nan marketplace is astir apt not really expecting.

So my first mobility is, are you guys seeing immoderate grounds yet of an summation successful request successful nan Chinese alloy market? And past secondly, if that does so play out, and you get a stronger than expected betterment successful Chinese alloy demand, what does that do to nan met ember market? I mean, again, coming disconnected of a twelvemonth wherever Chinese request was horrific, what happens is that does a spot of a V shaped recovery. How does nan world lick that problem for a deficiency of met coal? Thank you.

Deck Slone

Chris, it’s Deck, it’s specified a bully question, and arsenic indicated look, past year, basking metallic accumulation was measurement down and that's nan cardinal driver successful coking ember markets and yet coking ember markets were very robust. And truthful China -- if China continues to import 40 cardinal tons of seaborne coking ember that surely supports nan benignant of marketplace we're in, if that does successful truth ratchet up, you're right. That's further pressure.

We saw successful November, you had 25 cardinal tons aliases truthful of European alloy mill capacity that was idle, 10 cardinal tons of that has now travel back. So again, we're seeing signs of pickup elsewhere arsenic well. And truthful China weighed backmost into this marketplace successful a important way. It surely could supply further support, and truthful we work together nan marketplace continues to ply, it continues to look very tight, it's not wholly evident wherever nan volumes are going to travel from.

There are a batch of variables I mean, connected nan different broadside of nan equation pinch thermal prices down, you're going to spot little crossover times. But that's comparatively humble compared to nan driver represented by accrued basking metallic production. So location are batch of puts and takes here, but we besides spot a beautiful constructive marketplace situation arsenic we caput into 2023.

Chris LaFemina

Great. Thank you.


The adjacent mobility comes from Lucas Pipes pinch B. Riley Securities. Please spell ahead.

Lucas Pipes

Thank you very overmuch for taking my follow-up question. I first wanted to touch connected nan first target being reached astatine nan reclamation fund. Should we expect minimal contributions this twelvemonth aliases not? And if so, what could beryllium possibly nan contributions longer term? Thank you very much.

Matt Giljum

Yeah, Lucas. We fundamentally arsenic we noted, it's really completed nan accelerated backing during 2022 And what we're really going to target now is conscionable to make judge that arsenic changes successful that early responsibility return spot that we're continuing to effort and lucifer what nan eventual responsibility will beryllium pinch what's successful nan fund.

So I deliberation this year, you tin spot that money turn by location successful nan vicinity of $20 million. Some of that's going to beryllium liking that's conscionable accruing connected what's there. Some of that will beryllium humble contributions that we'll make complete nan people of nan year. And then, look, arsenic we look astatine it successful nan liking complaint situation that we're in, aft this year, I'm not judge we'll person to make overmuch successful nan measurement of further contributions arsenic nan liking accrues connected that money that we've already sewage successful place. So, I deliberation we're going to beryllium successful very bully style to person nan responsibility afloat funded.

Paul Lang

I deliberation for modeling, Matt, nan champion measurement to look astatine it's astir 5 cardinal a quarter.

Matt Giljum


Lucas Pipes

Very helpful. Thank you, and Matt, I do want to congratulate you connected nan stock repurchases. That was astir $20 per stock of amended pricing things to nan convert, acquisitions you did, truthful good done there. Matt, tin you punctual america what nan stock count is today?

Matt Giljum

So nan diluted stock count coming is -- telephone it conscionable nether 20 cardinal shares that includes each of what's underlying nan remaining convertible bonds, nan warrants that are outstanding, and nan worker shares. The basal shares today, telephone it conscionable astir 17.5 cardinal shares.

Lucas Pipes

Very helpful. Thank you for taking my follow-up questions and again, champion of luck.

Paul Lang

Thank you, Lucas.


This concludes our question-and-answer session. I'd for illustration to move nan convention backmost complete to Paul Lang, CEO and President for immoderate closing remarks.

Paul Lang

I want to convey you again for your liking successful Arch. 2022 was a twelvemonth of tremendous accomplishments for nan institution successful position of ESG execution, financial performance, shareholder returns, and critically, building nan instauration for moreover a stronger future.

With our clear strategical direction, debased costs, beardown book of business, and talented team, I'm assured that we're poised for ongoing occurrence arsenic we move into 2023 and beyond. With that usability we'll reason nan telephone and we look guardant to reporting to nan group successful precocious April. Stay safe and patient everyone.


The convention has now concluded. Thank you for attending today's presentation. You whitethorn now disconnect.

Editor: Naga

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