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- **Operational Resilience**: Despite West Elk and Leer South challenges, Q3 free cash flow utilization reached 100%, with $218M returned to shareholders.
- **Strategic Growth**: Verified REE concentrations in PRB and Eastern operations, with feasibility studies underway to leverage PAMC's scale for cost-effective extraction.
- **Market Momentum**: U.S. thermal coal demand driven by data centers (22% 2025 grid power increase) and policy support, with PAMC and PRB segments well-positioned for long-term growth.
- **Cost Management**: West Elk transition to B-seam expected to reduce costs to low $30s/ton in 2026, while Metallurgical segment aims to stabilize cash costs at $93-97/ton.

**【CEO Summary Section】**
- **Operational Performance**: Q3 coal production faced challenges at West Elk (transition to B-seam) and Leer South (fire recovery delays), but Pennsylvania Mining Complex (PAMC) outperformed expectations. Total High CV Thermal segment production was 7.6 million tons, down 5% QoQ due to West Elk issues, while Metallurgical segment produced 2.3 million tons, down 4% QoQ.
- **Rare Earth Elements (REE) Discovery**: Verified notable REE concentrations in PRB and Eastern operations, with PAMC's high flow rates offering potential for cost-effective extraction. Feasibility studies and RFPs are underway.
- **Free Cash Flow Utilization**: Returned 100% of YTD free cash flow ($218M) to shareholders via buybacks ($19M) and dividends ($5M). Q3 free cash flow was $39M, with 75% targeted for buybacks.
- **2026 Contracting**: Secured 26 million tons of forward sales, including 17 million tons for High CV Thermal and 40 million tons for PRB, providing revenue visibility.

**【CFO Financial Commentary】**
- **Financial Results**: Q3 net income of $32M ($0.61 EPS), adjusted EBITDA of $141M, and free cash flow of $39M. Insurance recoveries offset $18M in Leer South fire costs, with $19M advanced payments received.
- **Segment Margins**: High CV Thermal cash costs rose to $40.53/ton (vs. $39.25/ton Q2), PRB cash costs declined to $13.04/ton (vs. $13.42/ton Q2), and Metallurgical cash costs were $94.18/ton (stable QoQ).
- **Liquidity**: Total liquidity of $995M, up $47M QoQ, driven by refinanced AR securitization facility with broader customer base.
- **2025 Outlook Adjustments**: Raised PRB sales guidance to 47-49 million tons, reduced Metallurgical sales to 4.4-7.8 million tons due to Leer South delays, and lowered High CV Thermal price range to $60-61/ton.

**【Q&A Highlights】**
- **West Elk Recovery**: Methane issues resolved, mine expected to resume full production by early Q4, with potential to reduce costs to low $30s/ton in 2026.
- **Leer South Insurance**: Total claims could exceed $100M, with $15-25M additional costs in Q4. Business interruption claims being finalized.
- **Domestic Thermal Demand**: Data center growth (22% 2025 grid power increase) driving 12% YTD coal-fired generation growth, with PAMC well-positioned to benefit.
- **Rare Earth Potential**: PRB operations show higher REE concentrations, with PAMC's scale enabling cost-effective extraction. Government engagement on financing and policy support is ongoing.
- **Merger Synergies**: 50% of $150-170M target achieved YTD, with full run rate expected in Q2 2026 as IT systems and SG&A optimizations take effect.

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