In This Article:
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Net Income: $42 million or $0.80 per diluted share for Q3 2024, compared to $85 million or $1.64 per diluted share in Q3 2023.
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Adjusted Net Income: $0.80 per diluted share for Q3 2024, compared to $1.85 per diluted share in Q3 2023.
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Sales Volume: 1.9 million short tons, a 17.5% decrease from the comparable quarter last year.
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Production Volume: 1.9 million short tons, a 3.8% decrease from Q3 2023.
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Total Revenues: $328 million for Q3 2024, compared to $423 million in Q3 2023.
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Average Net Selling Price: $172 per short ton in Q3 2024, compared to $185 per short ton in Q3 2023.
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Adjusted EBITDA: $79 million for Q3 2024, compared to $146 million in Q3 2023.
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Adjusted EBITDA Margin: 24% for Q3 2024, compared to 34% in Q3 2023.
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Cash Cost of Sales: $230 million or 72% of mining revenues for Q3 2024, compared to $259 million or 62% in Q3 2023.
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Cash Margin per Ton: $48 per short ton in Q3 2024, compared to $70 per short ton in Q3 2023.
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Capital Expenditures: $123 million in Q3 2024, including $94 million on Blue Creek development.
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Free Cash Flow: Negative $61 million for Q3 2024.
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Total Available Liquidity: $746 million at the end of Q3 2024.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Warrior Met Coal Inc (NYSE:HCC) produced the first development tons from the Blue Creek growth project on time and within budget.
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The company is strategically managing spot opportunities and exercising patience with certain geographies to optimize market conditions.
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Despite weak global demand, Warrior Met Coal Inc (NYSE:HCC) achieved a consolidated gross price realization of 93% in the third quarter.
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The Blue Creek project is progressing well, with significant advancements in infrastructure and development, remaining on schedule for completion.
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Warrior Met Coal Inc (NYSE:HCC) maintains a strong liquidity position with $746 million available, ensuring the ability to complete the Blue Creek project within budget.
Negative Points
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Global steel prices have been under pressure due to excess Chinese steel exports and weak demand, impacting Warrior Met Coal Inc (NYSE:HCC)'s markets.
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The third quarter sales volume decreased by 17.5% compared to the same quarter last year, reflecting weaker market conditions.
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The company experienced a 7% lower average net selling price, reducing cash margin per ton to $48 from $70 in the previous year.
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Warrior Met Coal Inc (NYSE:HCC) reported a decrease in net income and adjusted EBITDA compared to the same quarter last year, driven by lower sales volume and pricing.
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The current pricing environment for steelmaking coal is not sustainable for extended periods, with some producers experiencing realizations below total cash costs.