The following is a summary of the Warrior Met Coal, Inc. (HCC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Warrior Met Coal's Q1 2024 net income was reported to be $137 million or $2.62 per diluted share, a decrease from Q1 2023 due to lower average net selling prices and higher cost of sales.
Total revenues were relatively steady at $504 million due to a balance between lower selling prices and increased sales volume.
Adjusted EBITDA was $200 million, a decrease from last year's $259 million with EBITDA margin also showing a drop from 51% to 40% on a y-o-y comparison basis.
Business Progress:
Warrior Met Coal reported a 9% uptick on sales volumes on a year-over-year basis primarily due to enhanced production.
An investment of $69 million was pumped into the Blue Creek growth project in Q1 2024, contributing to the total project spend which is now $435 million. Significant progress on the project is expected to transform the company's operations.
The company is also planning to begin hiring for the Blue Creek Mine starting Q2 2024. Operational activities, particularly in relation to the Blue Creek project, are progressing as per the company's planned schedule.
There are plans to kickstart their prep plant in H2 2025 and transition to a train loadout model from trucks.
Incremental volume from the Blue Creek project is expected to be contracted next year, avoiding entry into the spot market.
More details: Warrior Met Coal IR
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