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| Statement |
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| So – if I look at PRB in particular, a fantastic year for you guys from that segment, guiding to sales that are maybe only down 1 million or 2 tons, I think, at the midpoint year-over-year |
| Newcastle Coal is in -- is in solid demand |
| And while this financial strength comes at a cost of additional liquidity, we continue to benefit from lower surety bonding fees, lower FX hedging costs as well as lower D&O premium |
| And we took an opportunity to solidify our financial resiliency, pretty inevitable dips in the market with this new revolving credit facility |
| Yes, we're real pleased with the 8 million tons for the full year 2024, really stepping up 1 million tons and really based on good production from Shoal Creek |
| It did have an absolutely fantastic fourth quarter |
| Lucas, for 2025, our domestic book right now, if we look at the PRB and we gauge it against the midpoint of the guidance this year, we're better than 60% committed |
| For the full year 2023, our operations performed as expected, delivering another year of strong results, allowing us to further enhance shareholder value |
| In summary, Peabody delivered another year of consistently strong results and generated substantial EBITDA and most importantly, free cash flow |
| So it's an encouraging start getting us through stronger through the end of this decade, and we'll see where it leads to from there |
| The steel sector outside of China showed growth in crude steel output during the 3 months ended December 31, 2023, led mainly by India and its ongoing strong economic expansion |
| The outlook for the Metallurgical coal market remains positive with seaborne supply remaining below historical levels, combining with strong Indian purchase interest and new import demand for steelmaking coal within Southeast Asia |
| For the full year, adjusted EBITDA was $154 million, more than double last year, as we continue to benefit from the sales book we built during 2021 and 2022 where we favored longer-term contracts with improved pricing over shorter-term contracts at spot pricing levels |
| The PRB mines shipped 23.6 million tons, our highest quarterly volume since 2019, a testament to our team's full recovery from the midyear tornado disruption, putting themselves in a position to seize an opportunity to load additional trains |
| After repaying the last of our secured debt in 2022, last year, we prefunded all future mine closure and reclamation obligations, further enhancing the company's financial strength and flexibility |
| Export shipments increased to 10 million tons, and the segment achieved adjusted EBITDA margins of 43% |
| In the PRB shipments of 23.6 million tons were better than anticipated |
| And we also are encouraged in the metallurgical coal space by very constrained supply |
| But look, we think the prospects for Newcastle thermal coal, and that's the coal that we really put into the export market to improve as we move through the year |
| We had quite a strong supply growth out of East Coast Australia during Q4 |
| We entered the new year with a diverse platform that gives us the stability and consistency to deliver results, allowing us to return cash to shareholders and advance major projects as we re-weight our portfolio to more seaborne coal |
| Our Seaborne met segment shipments were 2.1 million tons in the quarter, in line with expectations, while total segment costs were better than anticipated at $108 per ton |
| Coming off our annual global injury rate in company history last year, this year, we achieved our second best annual global injury rate and a record low injury rate in Australia for a calendar year |
| In December, we were able to successfully commence new long-haul production at Shoal Creek in the newly developed L panel district ahead of schedule |
| The Seaborne Metallurgical segment generated $166 million of adjusted EBITDA in the fourth quarter, more than double the prior quarter's result as both shipments and realized prices were substantially higher |
| We continue to advance development of our Centurion premium hard coking coal project and successfully put the new longwall at Shoal Creek into production ahead of schedule |
| So we're optimistic about the rest of the year |
| Advancing Centurion, our Tier 1 premium hard coking coal development project and delivering value to our shareholders through our previously announced shareholder return program |
| When it comes to the seaborne met market, we are quite encouraged by what we saw during Q4 with increased crude steel production rates outside of China, and we expect those rates to continue during Q1 and into Q2 |
| We had a really good start to the quarter |
| Statement |
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| thermal shipments were 3.7 million tons, slightly below our expectations as we had a few customers reduce their demand due to high inventories and natural gas pricing |
| Production was impacted by the planned longwall move at 20 miles and lower volumes from certain customers reduced shipments below guidance |
| Tons shipped were less than anticipated, primarily due to a rail issue in the mainline, which limited Wilen Young shipments and moved costs toward the higher end of guidance |
| Total crude steel output during the period, however, contracted because of a sharp decline in Chinese production, where steel producers reported thin margins and slower domestic demand |
| Our seaborne thermal fourth quarter coal volumes came in at 3.7 million tons, which was lower than anticipated, primarily due to a trained development on the main language serves our Wilpinjong mine |
| The near-term demand outlook is anticipated to be challenged by comparatively high generator inventories as we transition into the post winter shoulder season |
| In United States, electricity generation from thermal coal has declined year-on-year due to low gas prices and the impacts of renewable generation |
| Maybe over to the met segment quickly, forecasting a quarter-over-quarter drop there in shipments, I think, to $1.4 million from $2.1 million in the fourth quarter |
| Jim Grech Mike, the discussions we have with our customers is -- one of the things that we've noticed is now desires to have longer-term contracts put in place because of the combination of the concern about the reliability of supply and the potential for plants having longer lives than was originally thought to be the case |
| And we still see supply challenge moving through 2024 |
| Premium hard coking coal indices finished the quarter marginally lower, around $323 a ton |
| But just where they're at in the mines in the pit, there will be lower production coming in the first quarter |
| Seaborne metallurgical volumes are expected to be lower than ratable at 1.4 million tons, with costs temporarily elevated at $130 to $140 per ton, primarily due to a longwall move at Metropolitan and mine sequencing at the CMJV |
| However, we have seen several of our customers delay the retirement of some of their plants in order to ensure grid reliability |
| Elevated cold natural gas inventories in the Northern Hemisphere have continued to weigh on demand for high-energy thermal coal, coupled with an increased supply from the East Coast of Australia, resulting in Newcastle coal trading within a range of $120 to $150 a ton |
| Segment costs per ton were at the high end of our range due to the lower shipments |
| thermal volume is expected to be 15 million tons, down slightly from 2023 as we transition from the El Segundo to Lee Ranch reserves out west |
| And it showed kind of lower volume starting this year |
| Really, there's a longwall move at Metro that's bringing down some first quarter volumes |
| We will not risk the company's financial strength |
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