NYSE:NC NACCO Industries Q2 2023 Earnings Report $33.50 +0.37 (+1.11%) Closing price 03:59 PM EasternExtended Trading$33.67 +0.17 (+0.52%) As of 05:52 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History NACCO Industries EPS ResultsActual EPS$0.34Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ANACCO Industries Revenue ResultsActual Revenue$61.35 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ANACCO Industries Announcement DetailsQuarterQ2 2023Date8/2/2023TimeN/AConference Call DateThursday, August 3, 2023Conference Call Time8:30AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by NACCO Industries Q2 2023 Earnings Call TranscriptProvided by QuartrAugust 3, 2023 ShareLink copied to clipboard.There are 3 speakers on the call. Operator00:00:00Ladies and gentlemen, thank you for standing by, and welcome to NACCO Industries Q2 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. Christina Kmetko, Investor Relations, you may begin your conference. Speaker 100:00:32Thank you. Good morning, everyone, Welcome to our 2023 Second Quarter Earnings Call. Thank you for joining us this morning. I'm Christina Kmetko, and I'm responsible for Investor Relations at NACCO Industries. Joining me today are J. Speaker 100:00:45C. Butler, President and Chief Executive Officer and Elizabeth Loveman, Senior Vice President and Controller. Yesterday, we published our Q2 2023 results and filed our 10 Q. This information is available on our website. Today's call is also being webcast. Speaker 100:01:00The webcast will be on our website later this afternoon and available for approximately 12 months. Our remarks that follow, including answers to your questions, contain forward looking statements. These statements are subject to several risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements made here today. These risks include, among others, matters that we've described in our earnings release, 10 Q and other SEC filings. We may not update these forward looking statements until our next quarterly earnings conference call. Speaker 100:01:32We'll also be discussing non GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non GAAP measures can be found in our earnings release and on our website. With the formalities out of the way, I'll turn the call over to J. C. For some opening remarks. Speaker 100:01:50J. C? C. Speaker 200:01:51Durrant:] Thank you, Christy, and good morning, everyone. Christy will go into more detail about our 2nd quarter earnings I'll provide an overview of our outlook in a minute. But first, let me provide a few thoughts on the quarter and our future expectations. It's clear that our Q2 2023 results were much lower than last year, but that was as expected and discussed last quarter as well as at year end. So the decline shouldn't come as a surprise. Speaker 200:02:19A significant portion of the decrease was because 2022 results included $30,900,000 of pre tax income received from the termination of Falkirk's contract with Great River Energy. The absence of these 2022 termination payments, however, was not the only reason for our earnings decrease. I'll discuss our results business by business. First, on our North American Mining segment, operating profit increased substantially year over year and over the Q1 of 2023. The aggregates mining part of this segment struggled during 2022. Speaker 200:02:56I mentioned the last quarter that we were implementing changes to drive improved future financial results and it's encouraging to see these improvements. That said, we're still early in this process It is too soon to judge the full effect of these initiatives, but this is a good start. We still want to see profit improvements incurring on a constant basis, I'm optimistic North American Mining can build upon this momentum. The decrease in Caddo Creek reclamation income is Partly offsetting the improvement in results of North American Mining's aggregates business, we are no longer recognizing reclamation income at Caddo Creek Because we purchased the membership interest at the Marshall Mine in March 2023, where Caddo Creek had been performing mine reclamation work, We are considering development of a utility scale solar project at this location. Wrapping up my North American Mining comments, let me quickly mention Sawtooth Mining, which is the exclusive contract mining for Miners for Lithium Americas Thacker Pass Lithium Project in Northern Nevada. Speaker 200:04:07Construction at Thacker Pass commenced last quarter And our customer tells us that they expect to begin Phase 1 lithium production in the second half of twenty twenty six. We began acquiring equipment for the project earlier this year. We're also currently recognizing income related to this project and expect to continue to recognize moderate income through 2025 with higher levels of income expected when our customer starts production in 2026. Moving to our Mitigation Resources of North America business. This team continues to advance existing mitigation projects and build on the substantial foundation As established over the past several years, I'm pleased to report that Mitigation Resources recognized income associated with credit sales this quarter, which contributed to a year over year earnings increase of $2,400,000 in the 20 20 3, 2nd quarter. Speaker 200:05:05Mitigation Resources results were included within unallocated results. I'm very pleased with the level of growth Mitigation Resources has in its 1st 5 years and I'm very pleased with their prospects. This business is achieving real success and growing faster than we'd expected when we started it just a few years ago. The increases I just discussed were not large enough To offset the decrease in earnings we experienced on our Coal Mining and Minerals Management segments in the 2023 Q2 compared to 2022. During our last two earnings calls, we've discussed that we expected 2023 results to decrease significantly. Speaker 200:05:45I'll first address the Coal Mining segment. At Mississippi Lignite Mining Company, we're experiencing operational efficiencies as we complete final mining at the existing mine area And we're also incurring significant costs associated with moving to a new mine area. MLMC's Red Hills mine has also had to contend with significant rainfall to continue into the Q3, but then begin to moderate during the Q4 when we anticipate being fully operational in the new mine area. You'll recall that we've invested significant capital to open up this new mine area, which is necessary to access coal needed for the remainder of the contract term. These capital investments have resulted in increased depreciation expense that will continue over the remainder of the contract term. Speaker 200:06:41The added depreciation will affect reported operating profit, but those effects are excluded from EBITDA, which we think is a better way to look at this part of our business We don't expect MLMC to open additional mine areas through the remaining contract term. Mine development capital expenditures It should moderate from 2024 through the end of the contract in 2,032. Shifting to Minerals Management, Substantially lower natural gas and oil prices led to a significant decrease in the Q2 2023 results compared with the 2022 Q2. You remember that natural gas and oil prices were very high in 2022. We utilized market forecasts for natural gas and oil prices, which projects prices to remain below 2022 levels. Speaker 200:07:31Of course, commodity prices are inherently volatile And changes in natural gas and oil prices could result in adjustments to our current forecast. The team at Catapult Minerals Partners continues to look for opportunities to expand our portfolio through acquisitions of mineral and royalty interests, while also promoting development of our existing mineral and royalty interests. The group is targeting additional investments of up to $20,000,000 in 2023. On the upside, the development of new wells on existing owned reserves beyond our forecasts or new investments could be accretive to future results. Overall, I expect 2023 to be a year of unfavorable comparisons for the reasons I discussed. Speaker 200:08:16Despite this, I'm still very optimistic about our outlook as we move beyond 2023. I have a lot of confidence in our team and I'm pleased with the way all of these businesses continue to advance their strategies, including efforts to protect our coal mining business. With that, I'll turn the call back over to Kristi to cover our results for the quarter and our 2023 outlook in more detail. Christy? Speaker 100:08:40Thank you, JC. I'll start with some high level comments on our consolidated second quarter financial results and then add detail on our individual segments. On a consolidated basis, income before tax decreased to $3,300,000 from $45,100,000 in the prior year. Consolidated net income decreased to $2,500,000 or $0.34 per compared with net income of $37,200,000 or $5.07 per share last year. EBITDA decreased to $9,200,000 from $21,000,000 in 2022. Speaker 100:09:15These decreases were primarily due to significantly lower coal mining and Minerals Management earnings and as J. C. Discussed, the absence of the 2022 contract termination settlement. These lower results were partly offset by the improvements in mitigation resources and North American Mining's earnings as well as lower unallocated employee related expenses and higher other investment income. The Coal Mining's 2nd quarter 2023 operating profit Segment adjusted EBITDA decreased significantly compared with the Q2 2022, primarily due to the substantial decrease in Mississippi Lignite Mining Company results as well as lower earnings at the unconsolidated operations. Speaker 100:09:58These declines were partly offset by lower employee related costs. A decrease in Mississippi Lignite Mining Company results was driven by a significant increase in the cost per ton sold due to the inefficiencies additional costs incurred to establish the new mine area J. C. Mentioned. A $1,800,000 write down of on-site coal inventory to net realizable value also contributed to the significant increase in the cost per ton. Speaker 100:10:24A number of factors contributed to the lower earnings of unconsolidated operations compared with 2022. Cataw earnings decreased due to lower volumes and pricing Falkirk earnings declined due to lower customer requirements and a decrease in the per ton management fee And Sabine earnings decreased because coal deliveries ceased on March 31st and mine reclamation activities commenced on April 1st. These lower earnings were partly offset by improved results at Coyote Creek due to increased customer requirements. As J. C. Speaker 100:10:54Already discussed, the primary reason behind the decline in Mineral Management's results is significantly lower prices. To put this more in context, Current natural gas prices as measured by the Henry Hub Natural Gas spot price declined 71% from 2022 And oil prices, as measured by the West Texas Intermediate average crude oil spot price, decreased 32% from the prior year. North American Mining 2nd quarter 2023 operating profit and segment adjusted EBITDA improved over 76% and 48 This improvement was primarily due to an increase in parts sales and lower employee related expenses. Overall, consolidated results are expected to continue to decrease in the 3rd quarter before improving in the 4th quarter. The improvement in Q4 2023 results will not offset the anticipated 3rd quarter decline. Speaker 100:11:50Therefore, earnings in the second Half of the year are expected to be lower than both the first half of twenty twenty three and the second half of twenty twenty two, primarily driven by the items we've already discussed. In addition, we expect the earnings of unconsolidated operations to decrease and contribute to the decline in coal mining operating profit. This is primarily due to the early retirement of the Perky power plant. Sabine is receiving compensation for providing final mine reclamation services, but at a lower rate than during active mining. Funding for Sabine's mine reclamation is the responsibility of the customer. Speaker 100:12:26A decrease in earnings at Falkirk and Coteau is also expected to contribute to the lower earnings of unconsolidated operations. Shifting to North American Mining, we expect to continue a continuation of improved operating results and segment Adjusted EBITDA for the remainder of 2023 as well as for the full year compared with the prior year period. The second half increase is primarily because the second half 2022 included an $800,000 charge for a voluntary retirement program. However, these results are expected to decrease from the first half of twenty twenty three. Looking beyond 2023, we continue to remain optimistic about our long term outlook. Speaker 100:13:07The Coal Mining segment expects increased profitability due in part to improvements at Falkirk once their temporary price concessions end and as Mississippi Lignite Mining Company moves to the new mine area. As J. C. Previously mentioned, opportunities for growth remain strong in the Minerals Management and Mitigation Resources businesses. In addition, earnings from the Sauteus Mining Lithium Project are also expected to contribute to improved results in 2024 2025 and more significantly when production commences at Thacker Pass in 2026. Speaker 100:13:42Lastly, from a liquidity standpoint, we ended the quarter with consolidated cash of $117,000,000 and debt of $24,000,000 In addition, we had availability of $117,000,000 under our revolving credit facility. For the 2023 full year, we expect cash flow before financing activities to remain positive, but Operator00:14:40There are currently no questions at this time. I'll turn the call back to Christina Kmetko for closing remarks. Speaker 100:14:46Thank you very much. I'll close with just a few reminders. A replay of our call will be available later this morning. We'll also post a transcript on the Investor Relations website when it becomes available. If you do have any questions, please reach out to me. Speaker 100:15:00You can reach me at the phone number on the press release. I hope you enjoy the rest of your day and I'll turn the call Josh, to conclude the call. Operator00:15:09Thank you. A digital recording of this conference will be available for replay in approximately 2 hours. The recording may be accessed until August 10, 2023 at 11:59 pm Eastern Time. To access the recording, please dial 1-eight hundred 770-two thousand and thirty. Again, that's 1-eight hundred-seven 70two thousand and thirty and enter the conference ID number to join the replay. Operator00:15:36Thank you very much. This does conclude today's call. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallNACCO Industries Q2 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) NACCO Industries Earnings HeadlinesNACCO Industries Inc (NC) Q1 2025 Earnings Call Highlights: Strong Coal Mining Performance and ...May 2, 2025 | finance.yahoo.comNACCO Industries, Inc. (NC) Q1 2025 Earnings Conference Call TranscriptMay 1, 2025 | seekingalpha.comHere’s How to Claim Your Stake in Elon’s Private Company, xAII predict this single breakthrough could make Elon the world’s first trillionaire — and mint more new millionaires than any tech advance in history. And for a limited time, you have the chance to claim a stake in this project, even though it’s housed inside Elon’s private company, xAI.May 7, 2025 | Brownstone Research (Ad)NACCO INDUSTRIES ANNOUNCES FIRST QUARTER 2025 RESULTSApril 30, 2025 | prnewswire.comNACCO INDUSTRIES ANNOUNCES DATES OF 2025 FIRST QUARTER EARNINGS RELEASE AND CONFERENCE CALLApril 22, 2025 | prnewswire.comNacco Industries rises 14.1%April 11, 2025 | markets.businessinsider.comSee More NACCO Industries Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like NACCO Industries? Sign up for Earnings360's daily newsletter to receive timely earnings updates on NACCO Industries and other key companies, straight to your email. Email Address About NACCO IndustriesNACCO Industries (NYSE:NC), together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.View NACCO Industries ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Disney Stock Jumps on Earnings—Is the Magic Sustainable?Archer Stock Eyes Q1 Earnings After UAE UpdatesFord Motor Stock Rises After Earnings, But Momentum May Not Last Broadcom Stock Gets a Lift on Hyperscaler Earnings & CapEx BoostPalantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release? 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There are 3 speakers on the call. Operator00:00:00Ladies and gentlemen, thank you for standing by, and welcome to NACCO Industries Q2 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. Christina Kmetko, Investor Relations, you may begin your conference. Speaker 100:00:32Thank you. Good morning, everyone, Welcome to our 2023 Second Quarter Earnings Call. Thank you for joining us this morning. I'm Christina Kmetko, and I'm responsible for Investor Relations at NACCO Industries. Joining me today are J. Speaker 100:00:45C. Butler, President and Chief Executive Officer and Elizabeth Loveman, Senior Vice President and Controller. Yesterday, we published our Q2 2023 results and filed our 10 Q. This information is available on our website. Today's call is also being webcast. Speaker 100:01:00The webcast will be on our website later this afternoon and available for approximately 12 months. Our remarks that follow, including answers to your questions, contain forward looking statements. These statements are subject to several risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements made here today. These risks include, among others, matters that we've described in our earnings release, 10 Q and other SEC filings. We may not update these forward looking statements until our next quarterly earnings conference call. Speaker 100:01:32We'll also be discussing non GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non GAAP measures can be found in our earnings release and on our website. With the formalities out of the way, I'll turn the call over to J. C. For some opening remarks. Speaker 100:01:50J. C? C. Speaker 200:01:51Durrant:] Thank you, Christy, and good morning, everyone. Christy will go into more detail about our 2nd quarter earnings I'll provide an overview of our outlook in a minute. But first, let me provide a few thoughts on the quarter and our future expectations. It's clear that our Q2 2023 results were much lower than last year, but that was as expected and discussed last quarter as well as at year end. So the decline shouldn't come as a surprise. Speaker 200:02:19A significant portion of the decrease was because 2022 results included $30,900,000 of pre tax income received from the termination of Falkirk's contract with Great River Energy. The absence of these 2022 termination payments, however, was not the only reason for our earnings decrease. I'll discuss our results business by business. First, on our North American Mining segment, operating profit increased substantially year over year and over the Q1 of 2023. The aggregates mining part of this segment struggled during 2022. Speaker 200:02:56I mentioned the last quarter that we were implementing changes to drive improved future financial results and it's encouraging to see these improvements. That said, we're still early in this process It is too soon to judge the full effect of these initiatives, but this is a good start. We still want to see profit improvements incurring on a constant basis, I'm optimistic North American Mining can build upon this momentum. The decrease in Caddo Creek reclamation income is Partly offsetting the improvement in results of North American Mining's aggregates business, we are no longer recognizing reclamation income at Caddo Creek Because we purchased the membership interest at the Marshall Mine in March 2023, where Caddo Creek had been performing mine reclamation work, We are considering development of a utility scale solar project at this location. Wrapping up my North American Mining comments, let me quickly mention Sawtooth Mining, which is the exclusive contract mining for Miners for Lithium Americas Thacker Pass Lithium Project in Northern Nevada. Speaker 200:04:07Construction at Thacker Pass commenced last quarter And our customer tells us that they expect to begin Phase 1 lithium production in the second half of twenty twenty six. We began acquiring equipment for the project earlier this year. We're also currently recognizing income related to this project and expect to continue to recognize moderate income through 2025 with higher levels of income expected when our customer starts production in 2026. Moving to our Mitigation Resources of North America business. This team continues to advance existing mitigation projects and build on the substantial foundation As established over the past several years, I'm pleased to report that Mitigation Resources recognized income associated with credit sales this quarter, which contributed to a year over year earnings increase of $2,400,000 in the 20 20 3, 2nd quarter. Speaker 200:05:05Mitigation Resources results were included within unallocated results. I'm very pleased with the level of growth Mitigation Resources has in its 1st 5 years and I'm very pleased with their prospects. This business is achieving real success and growing faster than we'd expected when we started it just a few years ago. The increases I just discussed were not large enough To offset the decrease in earnings we experienced on our Coal Mining and Minerals Management segments in the 2023 Q2 compared to 2022. During our last two earnings calls, we've discussed that we expected 2023 results to decrease significantly. Speaker 200:05:45I'll first address the Coal Mining segment. At Mississippi Lignite Mining Company, we're experiencing operational efficiencies as we complete final mining at the existing mine area And we're also incurring significant costs associated with moving to a new mine area. MLMC's Red Hills mine has also had to contend with significant rainfall to continue into the Q3, but then begin to moderate during the Q4 when we anticipate being fully operational in the new mine area. You'll recall that we've invested significant capital to open up this new mine area, which is necessary to access coal needed for the remainder of the contract term. These capital investments have resulted in increased depreciation expense that will continue over the remainder of the contract term. Speaker 200:06:41The added depreciation will affect reported operating profit, but those effects are excluded from EBITDA, which we think is a better way to look at this part of our business We don't expect MLMC to open additional mine areas through the remaining contract term. Mine development capital expenditures It should moderate from 2024 through the end of the contract in 2,032. Shifting to Minerals Management, Substantially lower natural gas and oil prices led to a significant decrease in the Q2 2023 results compared with the 2022 Q2. You remember that natural gas and oil prices were very high in 2022. We utilized market forecasts for natural gas and oil prices, which projects prices to remain below 2022 levels. Speaker 200:07:31Of course, commodity prices are inherently volatile And changes in natural gas and oil prices could result in adjustments to our current forecast. The team at Catapult Minerals Partners continues to look for opportunities to expand our portfolio through acquisitions of mineral and royalty interests, while also promoting development of our existing mineral and royalty interests. The group is targeting additional investments of up to $20,000,000 in 2023. On the upside, the development of new wells on existing owned reserves beyond our forecasts or new investments could be accretive to future results. Overall, I expect 2023 to be a year of unfavorable comparisons for the reasons I discussed. Speaker 200:08:16Despite this, I'm still very optimistic about our outlook as we move beyond 2023. I have a lot of confidence in our team and I'm pleased with the way all of these businesses continue to advance their strategies, including efforts to protect our coal mining business. With that, I'll turn the call back over to Kristi to cover our results for the quarter and our 2023 outlook in more detail. Christy? Speaker 100:08:40Thank you, JC. I'll start with some high level comments on our consolidated second quarter financial results and then add detail on our individual segments. On a consolidated basis, income before tax decreased to $3,300,000 from $45,100,000 in the prior year. Consolidated net income decreased to $2,500,000 or $0.34 per compared with net income of $37,200,000 or $5.07 per share last year. EBITDA decreased to $9,200,000 from $21,000,000 in 2022. Speaker 100:09:15These decreases were primarily due to significantly lower coal mining and Minerals Management earnings and as J. C. Discussed, the absence of the 2022 contract termination settlement. These lower results were partly offset by the improvements in mitigation resources and North American Mining's earnings as well as lower unallocated employee related expenses and higher other investment income. The Coal Mining's 2nd quarter 2023 operating profit Segment adjusted EBITDA decreased significantly compared with the Q2 2022, primarily due to the substantial decrease in Mississippi Lignite Mining Company results as well as lower earnings at the unconsolidated operations. Speaker 100:09:58These declines were partly offset by lower employee related costs. A decrease in Mississippi Lignite Mining Company results was driven by a significant increase in the cost per ton sold due to the inefficiencies additional costs incurred to establish the new mine area J. C. Mentioned. A $1,800,000 write down of on-site coal inventory to net realizable value also contributed to the significant increase in the cost per ton. Speaker 100:10:24A number of factors contributed to the lower earnings of unconsolidated operations compared with 2022. Cataw earnings decreased due to lower volumes and pricing Falkirk earnings declined due to lower customer requirements and a decrease in the per ton management fee And Sabine earnings decreased because coal deliveries ceased on March 31st and mine reclamation activities commenced on April 1st. These lower earnings were partly offset by improved results at Coyote Creek due to increased customer requirements. As J. C. Speaker 100:10:54Already discussed, the primary reason behind the decline in Mineral Management's results is significantly lower prices. To put this more in context, Current natural gas prices as measured by the Henry Hub Natural Gas spot price declined 71% from 2022 And oil prices, as measured by the West Texas Intermediate average crude oil spot price, decreased 32% from the prior year. North American Mining 2nd quarter 2023 operating profit and segment adjusted EBITDA improved over 76% and 48 This improvement was primarily due to an increase in parts sales and lower employee related expenses. Overall, consolidated results are expected to continue to decrease in the 3rd quarter before improving in the 4th quarter. The improvement in Q4 2023 results will not offset the anticipated 3rd quarter decline. Speaker 100:11:50Therefore, earnings in the second Half of the year are expected to be lower than both the first half of twenty twenty three and the second half of twenty twenty two, primarily driven by the items we've already discussed. In addition, we expect the earnings of unconsolidated operations to decrease and contribute to the decline in coal mining operating profit. This is primarily due to the early retirement of the Perky power plant. Sabine is receiving compensation for providing final mine reclamation services, but at a lower rate than during active mining. Funding for Sabine's mine reclamation is the responsibility of the customer. Speaker 100:12:26A decrease in earnings at Falkirk and Coteau is also expected to contribute to the lower earnings of unconsolidated operations. Shifting to North American Mining, we expect to continue a continuation of improved operating results and segment Adjusted EBITDA for the remainder of 2023 as well as for the full year compared with the prior year period. The second half increase is primarily because the second half 2022 included an $800,000 charge for a voluntary retirement program. However, these results are expected to decrease from the first half of twenty twenty three. Looking beyond 2023, we continue to remain optimistic about our long term outlook. Speaker 100:13:07The Coal Mining segment expects increased profitability due in part to improvements at Falkirk once their temporary price concessions end and as Mississippi Lignite Mining Company moves to the new mine area. As J. C. Previously mentioned, opportunities for growth remain strong in the Minerals Management and Mitigation Resources businesses. In addition, earnings from the Sauteus Mining Lithium Project are also expected to contribute to improved results in 2024 2025 and more significantly when production commences at Thacker Pass in 2026. Speaker 100:13:42Lastly, from a liquidity standpoint, we ended the quarter with consolidated cash of $117,000,000 and debt of $24,000,000 In addition, we had availability of $117,000,000 under our revolving credit facility. For the 2023 full year, we expect cash flow before financing activities to remain positive, but Operator00:14:40There are currently no questions at this time. I'll turn the call back to Christina Kmetko for closing remarks. Speaker 100:14:46Thank you very much. I'll close with just a few reminders. A replay of our call will be available later this morning. We'll also post a transcript on the Investor Relations website when it becomes available. If you do have any questions, please reach out to me. Speaker 100:15:00You can reach me at the phone number on the press release. I hope you enjoy the rest of your day and I'll turn the call Josh, to conclude the call. Operator00:15:09Thank you. A digital recording of this conference will be available for replay in approximately 2 hours. The recording may be accessed until August 10, 2023 at 11:59 pm Eastern Time. To access the recording, please dial 1-eight hundred 770-two thousand and thirty. Again, that's 1-eight hundred-seven 70two thousand and thirty and enter the conference ID number to join the replay. Operator00:15:36Thank you very much. This does conclude today's call. You may now disconnect.Read morePowered by