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- **Resilient Cash Flow**: $42 million Q3 free cash flow despite challenging markets; $190 million over 12 months.
- **Debt Reduction Progress**: Retired $130 million debt, $70 million remaining; targeting no permanent debt by Q3 2026.
- **Distribution Outlook**: $0.75 per unit for Q3; potential increase in Q3 2026 if market conditions improve.
- **Lithium Opportunity**: Active in Smackover region, though revenue timing uncertain.
- **Thermal Coal Risk**: Long-term secular decline expected, despite data center demand hopes.

**【CEO/COO Summary Section】**
- Generated $42 million free cash flow in Q3 2025, with $190 million over 12 months despite challenges in metallurgical coal, thermal coal, and soda ash markets.
- Coal lessees operating near cost of production; soda ash prices at decade lows due to oversupply and weak demand.
- Retired $130 million debt over 12 months, leaving $70 million outstanding; targeting fortress balance sheet with no permanent debt and $30 million cash.
- Expect to increase distributions in Q3 2026, contingent on market conditions.

**【CFO Financial Commentary】**
- Q3 2025: $31 million net income, $41 million operating cash flow, $42 million free cash flow.
- Mineral Rights segment net income flat YoY, with declines in operating cash flow due to weaker metallurgical coal prices.
- Soda Ash segment net income down $11 million YoY, driven by lower international sales prices and new Chinese supply.
- No distributions from soda ash joint venture (Sisecam Wyoming) in Q3; third quarter unit distribution of $0.75 per unit announced.

**【Q&A Key Highlights】**
- **Lithium Mining Leasing**: Active in Smackover formation (Southern Arkansas/Northeast Texas), though terms not disclosed.
- **Operating Expenses**: Cost management through zero-based budgeting; property taxes and royalties significant components.
- **Fortress Balance Sheet**: Targeting no permanent debt and $30 million cash; may repurchase units at material discounts to intrinsic value.
- **Thermal Coal Infrastructure**: Potential need for capital investment to meet data center demand, but specifics unclear.


Natural Resource Partners L.P. Common Units (NRP) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NRP

NRP fundamentals

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