[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Warrior Met Coal experienced a significant decline in Q2 2025 net income and Adjusted EBITDA due to weaker steelmaking coal markets, despite achieving first commercial sales from Blue Creek mine [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) Q2 2025 saw a sharp decline in net income and Adjusted EBITDA due to weaker coal prices, offset by early Blue Creek mine sales Q2 2025 vs Q2 2024 Financial Overview | Metric | Q2 2025 | Q2 2024 | Change | | :---------------- | :------ | :------ | :----- | | Net Income | $5.6M | $70.7M | -92.1% | | Diluted EPS | $0.11 | $1.35 | -91.8% | | Adjusted EBITDA | $53.6M | $115.9M | -53.8% | - Average index price for premium low-vol steelmaking coal was **24% lower year-over-year**[3](index=3&type=chunk) - First commercial sales of Blue Creek steelmaking coal were achieved ahead of schedule[1](index=1&type=chunk)[4](index=4&type=chunk) [Key Operational and Financial Highlights](index=1&type=section&id=Key%20Operational%20and%20Financial%20Highlights) Blue Creek mine achieved first commercial sales and accelerated longwall startup, contributing to increased volumes and reduced cash costs - Achieved first commercial sales of **239 thousand short tons** of steelmaking coal from the Blue Creek mine ahead of schedule[4](index=4&type=chunk) - Produced **348 thousand short tons** from continuous miner development on the first longwall panel at Blue Creek[4](index=4&type=chunk) - Announced the acceleration of the longwall startup at Blue Creek to **early first quarter of 2026**[4](index=4&type=chunk) Q2 2025 Operational Highlights | Metric | Value | YoY Change | | :-------------------------------- | :-------------------- | :--------- | | Total Sales & Production Volumes | 6% increase | +6% | | Cash Cost of Sales (FOB port) per short ton | $101.17 | -18% | | Cash Provided by Operating Activities | $37.5 million | N/A | [CEO Commentary](index=2&type=section&id=CEO%20Commentary) CEO highlighted strong operations and positive cash flows despite market headwinds, with Blue Creek sales marking a key revenue milestone - Warrior delivered strong operational results, maintained positive cash margins, and generated positive operating cash flows despite headwinds in the global steelmaking industry[5](index=5&type=chunk) - The first commercial sales from the Blue Creek mine represent a critical inflection point, marking the beginning of a transition from capital investment to revenue generation[5](index=5&type=chunk) - The Blue Creek mine's inherently low-cost structure reinforces confidence in its long-term value and role in driving sustainable shareholder returns[5](index=5&type=chunk) [Company Information](index=1&type=section&id=Company%20Information) Warrior Met Coal is a leading U.S. producer and exporter of high-quality steelmaking coal for the global steel industry [About Warrior Met Coal](index=1&type=section&id=About%20Warrior%20Met%20Coal) Warrior Met Coal is a premier U.S. producer and exporter of high-quality non-thermal metallurgical coal for global steel production - Warrior is the leading dedicated U.S.-based producer and exporter of high-quality steelmaking coal for the global steel industry[2](index=2&type=chunk) - The company is dedicated entirely to mining non-thermal metallurgical (met) steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia[25](index=25&type=chunk) - Warrior produces premium quality met coal (hard-coking coal, HCC) from the Blue Creek coal seam, which contains very low sulfur and has strong coking properties, making it ideally suited as a base feed coal for steel makers[25](index=25&type=chunk) [Second Quarter 2025 Financial and Operating Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operating%20Results) Q2 2025 results show increased volumes from Blue Creek, but lower revenues and net income due to weaker coal prices [Operating Results](index=2&type=section&id=Operating%20Results) Q2 2025 saw a 6% increase in sales and production volumes year-over-year, primarily driven by the Blue Creek mine Q2 2025 Operating Volumes | Metric | Q2 2025 (k short tons) | Q2 2024 (k short tons) | YoY Change | | :---------------- | :--------------------- | :--------------------- | :--------- | | Tons Sold | 2,219 | 2,098 | +6% | | Tons Produced | 2,308 | 2,172 | +6% | - The increase in sales and production volumes was primarily attributable to Blue Creek, which produced **348 thousand short tons**[6](index=6&type=chunk)[7](index=7&type=chunk) - Inventory levels remained consistent at **1.2 million short tons** as of June 30, 2025, compared to March 31, 2025[7](index=7&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Total revenues and net income declined significantly in Q2 2025 due to lower selling prices, despite cost control efforts [Revenues and Selling Prices](index=2&type=section&id=Revenues%20and%20Selling%20Prices) Total revenues decreased by 25% in Q2 2025, driven by a 30.1% drop in average net selling price per short ton Q2 2025 Revenues and Selling Prices | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total Revenues | $297.5M | $396.5M | -25.0% | | Average Net Selling Price per Short Ton | $130.01 | $186.09 | -30.1% | - The average gross selling price realization was approximately **80%** of the Platts Premium Low Vol FOB Australian index price for Q2 2025, primarily driven by a higher sales mix of high-vol A steelmaking coal and a lower price index relativity to premium low-vol[8](index=8&type=chunk) [Costs and Expenses](index=2&type=section&id=Costs%20and%20Expenses) Cost of sales decreased, with cash cost of sales per short ton falling 18% due to lower prices and Blue Creek's low-cost structure Q2 2025 Costs and Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Cost of Sales | $226.4M | $261.3M | -13.3% | | Cash Cost of Sales (FOB port) per Short Ton | $101.17 | $123.78 | -18.2% | | Selling, General and Administrative Expenses | $11.9M | $15.5M | -23.2% | | Depreciation and Depletion | $43.3M | $38.2M | +13.4% | - The decrease in cash cost of sales per short ton was driven primarily by lower steelmaking coal prices and its effect on Warrior's variable cost structure (wages, transportation, royalties), combined with disciplined cost control, operational efficiency, and the sales mix of Blue Creek coal and its inherent lower cost structure[9](index=9&type=chunk) - Depreciation and depletion expenses increased primarily due to depreciation expense recognized on additional assets placed into service at Blue Creek and higher sales volumes[11](index=11&type=chunk) [Net Income and EPS](index=1&type=section&id=Net%20Income%20and%20EPS) Net income and diluted EPS saw substantial declines in Q2 2025, primarily due to weaker market conditions and lower selling prices Q2 2025 Net Income and EPS | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------- | :------ | :------ | :--------- | | Net Income | $5.6M | $70.7M | -92.1% | | Diluted EPS | $0.11 | $1.35 | -91.8% | [Cash Flow and Liquidity](index=3&type=section&id=Cash%20Flow%20and%20Liquidity) Operating cash flows decreased significantly, resulting in negative free cash flow, while total liquidity remained robust Q2 2025 Cash Flow Summary | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Net Cash Provided by Operating Activities | $37.5M | $147.0M | -74.5% | | Capital Expenditures and Mine Development | $94.3M | $121.6M | -22.4% | | Free Cash Flow | -$56.7M | $25.4M | N/A (negative shift) | - Capital expenditures for Q2 2025 included **$51.8 million** for the continued development of Blue Creek, bringing the project-to-date total to **$823.5 million**[13](index=13&type=chunk) - Total liquidity as of June 30, 2025, was **$545.0 million**, consisting of cash and cash equivalents (**$383.3M**), short-term investments (**$38.1M**), long-term investments (**$10.1M**), and available liquidity under its ABL Facility (**$113.5M**)[15](index=15&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) Warrior's Board declared a regular quarterly cash dividend of $0.08 per share, payable in August 2025 [Dividends](index=3&type=section&id=Dividends) A regular quarterly cash dividend of $0.08 per share was declared on July 29, 2025, payable in August - A regular quarterly cash dividend of **$0.08 per share** was declared on July 29, 2025[16](index=16&type=chunk) - The dividend is payable on August 15, 2025, to stockholders of record as of August 8, 2025[16](index=16&type=chunk) [Company Outlook](index=3&type=section&id=Company%20Outlook) Warrior Met Coal updated its full-year 2025 guidance, projecting coal sales and production volumes, and capital expenditures [Full Year 2025 Guidance](index=4&type=section&id=Full%20Year%202025%20Guidance) Full-year 2025 guidance includes projected coal sales of 8.8-9.5 million short tons and significant capital expenditures for Blue Creek Full Year 2025 Guidance | Metric | Range | | :---------------------------------- | :-------------------------- | | Coal Sales | 8.8 - 9.5 million short tons | | Coal Production | 8.3 - 9.1 million short tons | | Cash Cost of Sales (FOB port) | $110 - $120 per short ton | | Capital Expenditures for Sustaining Existing Mines | $90 - $100 million | | Capital Expenditures for Blue Creek Project | $225 - $250 million | | Mine Development Costs for Blue Creek Project | $85 - $100 million | | Depreciation and Depletion | $185 - $210 million | | Selling, General and Administrative Expenses | $65 - $75 million | | Interest Expense | $10 - $15 million | | Interest Income | $15 - $20 million | - The 2025 production and sales guidance includes approximately **1.0 million short tons** of High Vol A steelmaking coal from the Blue Creek continuous miner units, expected to be sold primarily in the second half of 2025[19](index=19&type=chunk) [Key Factors Affecting Outlook](index=4&type=section&id=Key%20Factors%20Affecting%20Outlook) The 2025 outlook is influenced by longwall moves, HCC index pricing, sales geography, trade policies, and inflationary pressures - Key factors that may affect the full year 2025 outlook include: one longwall move in Q2 and three planned longwall moves before year-end (two in Q3 and one in Q4), HCC index pricing, geography of sales and freight rates, trade and tariff policies, exclusion of other non-recurring costs, new labor contract, and inflationary pressures[22](index=22&type=chunk) - Capital expenditures consist of approximately **$90-$100 million** for sustaining existing mines and **$225-$250 million** for the development of the Blue Creek reserves[20](index=20&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section explains and reconciles non-GAAP financial measures like Adjusted EBITDA and free cash flow to GAAP equivalents [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures provide supplemental insights into performance and aid comparisons, but may not be comparable across entities - Non-GAAP financial measures are provided as supplemental information for financial measures prepared in accordance with GAAP, offering additional insights into company performance and aiding in comparisons against other companies[22](index=22&type=chunk)[23](index=23&type=chunk) - The company does not provide reconciliations of its outlook for cash cost of sales (free-on-board port) to GAAP cost of sales due to the unreasonable efforts exception, as certain non-cash and non-recurring items are difficult to predict[21](index=21&type=chunk) [Reconciliation of Cash Cost of Sales (Free-on-Board Port) to GAAP Cost of Sales](index=8&type=section&id=Reconciliation%20of%20Cash%20Cost%20of%20Sales%20%28Free-on-Board%20Port%29%20to%20GAAP%20Cost%20of%20Sales) This reconciliation details the adjustments from GAAP cost of sales to arrive at the non-GAAP cash cost of sales (FOB port) Reconciliation of Cash Cost of Sales (FOB Port) to GAAP Cost of Sales (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------- | :------- | | Cost of Sales (GAAP) | $226,412 | $261,305 | $472,147 | $546,892 | | Asset Retirement Obligation Accretion | (966) | (703) | (1,931) | (1,405) | | Stock Compensation Expense | (942) | (912) | (1,684) | (1,625) | | **Cash Cost of Sales (FOB Port) (Non-GAAP)** | **$224,504** | **$259,690** | **$468,532** | **$543,862** | - Cash cost of sales (free-on-board port) is a non-GAAP measure that includes items such as freight, royalties, labor, fuel, and other production and sales cost items, adjusted for certain GAAP classifications[34](index=34&type=chunk) [Reconciliation of Adjusted EBITDA to GAAP Net Income](index=9&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20to%20GAAP%20Net%20Income) Adjusted EBITDA is reconciled from net income by adding back non-cash and non-operating items, showing a significant Q2 2025 decline Reconciliation of Adjusted EBITDA to GAAP Net Income (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------- | :------- | | Net Income (Loss) | $5,606 | $70,711 | $(2,562) | $207,700 | | Interest Income, Net | (2,195) | (8,327) | (5,380) | (15,360) | | Income Tax Expense (Benefit) | 4,310 | 8,519 | (1,720) | 27,641 | | Depreciation and Depletion | 43,255 | 38,150 | 88,532 | 78,173 | | Asset Retirement Obligation Accretion | 1,331 | 1,298 | 2,662 | 2,595 | | Stock Compensation Expense | 2,045 | 5,040 | 10,098 | 14,187 | | Other Non-Cash Accretion | 495 | 451 | 989 | 902 | | Non-Cash Mark-to-Market (Gain) Loss on Gas Hedges | (1,303) | — | 415 | — | | Business Interruption | 24 | 101 | 22 | 302 | | **Adjusted EBITDA (Non-GAAP)** | **$53,568** | **$115,943** | **$93,056** | **$316,140** | - Adjusted EBITDA margin decreased to **18.0%** in Q2 2025 from **29.2%** in Q2 2024[36](index=36&type=chunk) - Adjusted EBITDA per short ton decreased to **$24.14** in Q2 2025 from **$55.26** in Q2 2024[36](index=36&type=chunk) [Reconciliation of Adjusted Net Income to GAAP Net Income](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20to%20GAAP%20Net%20Income) Adjusted net income is derived from GAAP net income by adjusting for business interruption expenses, net of tax Reconciliation of Adjusted Net Income to GAAP Net Income (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------- | :------- | | Net Income (Loss) | $5,606 | $70,711 | $(2,562) | $207,700 | | Business Interruption, Net of Tax | 14 | 89 | 13 | 267 | | **Adjusted Net Income (Loss) (Non-GAAP)** | **$5,620** | **$70,800** | **$(2,549)** | **$207,967** | - Adjusted net income (loss) per share—diluted was **$0.11** in Q2 2025, compared to **$1.35** in Q2 2024[37](index=37&type=chunk) [Reconciliation of Free Cash Flow to GAAP Net Cash Provided by Operating Activities](index=10&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow%20to%20GAAP%20Net%20Cash%20Provided%20by%20Operating%20Activities) Free cash flow, a non-GAAP measure, is calculated by subtracting purchases of property, plant and equipment and mine development costs from net cash provided by operating activities Reconciliation of Free Cash Flow (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------- | :------- | | Net Cash Provided by Operating Activities | $37,546 | $146,975 | $48,463 | $251,033 | | Purchases of Property, Plant and Equipment and Mine Development Costs | (94,251) | (121,619) | (173,598) | (223,309) | | **Free Cash Flow (Non-GAAP)** | **$(56,705)** | **$25,356** | **$(125,135)** | **$27,724** | - Free cash flow conversion was **-105.9%** in Q2 2025, compared to **21.9%** in Q2 2024[40](index=40&type=chunk) [Condensed Financial Statements](index=7&type=section&id=Condensed%20Financial%20Statements) This section presents the condensed statements of operations, cash flows, and balance sheets for Q2 2025 [Condensed Statements of Operations](index=7&type=section&id=Condensed%20Statements%20of%20Operations) The condensed statements of operations show total revenues of $297.5 million for Q2 2025, down from $396.5 million in Q2 2024 Condensed Statements of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------- | :------- | | Total Revenues | $297,523 | $396,524 | $597,466 | $900,036 | | Operating Income (Loss) | $7,723 | $70,904 | $(9,661) | $219,982 | | Net Income (Loss) | $5,606 | $70,711 | $(2,562) | $207,700 | | Diluted Net Income (Loss) Per Share | $0.11 | $1.35 | $(0.05) | $3.97 | [Quarterly Supplemental Financial Data](index=8&type=section&id=Quarterly%20Supplemental%20Financial%20Data) Supplemental data highlights increased volumes but decreased average net selling price and cash margin per ton in Q2 2025 Quarterly Supplemental Financial Data | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------- | :------- | | Tons Sold (k short tons) | 2,219 | 2,098 | 4,391 | 4,227 | | Tons Produced (k short tons) | 2,308 | 2,172 | 4,562 | 4,223 | | Average Net Selling Price ($/short ton) | $130.01 | $186.09 | $132.87 | $210.18 | | Cash Cost of Sales (FOB port) per Short Ton ($/short ton) | $101.17 | $123.78 | $106.70 | $128.66 | | Cash Margin per Ton ($/short ton) | $28.84 | $62.31 | $26.17 | $81.52 | [Condensed Statements of Cash Flows](index=10&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly decreased, leading to a net decrease in cash for Q2 2025 Condensed Statements of Cash Flows (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------- | :------- | | Net Cash Provided by Operating Activities | $37,546 | $146,975 | $48,463 | $251,033 | | Net Cash Used in Investing Activities | $(94,332) | $(121,619) | $(172,097) | $(223,309) | | Net Cash (Used in) Provided by Financing Activities | $(14,819) | $(10,191) | $15,490 | $(56,898) | | Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | $(71,605) | $15,165 | $(108,144) | $(29,174) | | Cash, Cash Equivalents and Restricted Cash at End of Period | $390,988 | $709,023 | $390,988 | $709,023 | [Condensed Balance Sheets](index=11&type=section&id=Condensed%20Balance%20Sheets) Total assets and liabilities increased as of June 30, 2025, primarily due to property, plant, and equipment additions Condensed Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total Assets | $2,645,402 | $2,591,516 | | Total Liabilities | $565,117 | $500,699 | | Total Stockholders' Equity | $2,080,285 | $2,090,817 | | Cash and Cash Equivalents | $383,251 | $491,547 | | Property, Plant and Equipment, Net | $1,675,295 | $1,549,470 | [Additional Information](index=5&type=section&id=Additional%20Information) This section provides details on the conference call, forward-looking statements, and company contact information [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Warrior Met Coal held a conference call on August 6, 2025, to discuss its second quarter 2025 financial results - A conference call to discuss second quarter 2025 results was held on August 6, 2025, at 4:30 p.m. ET[24](index=24&type=chunk) - Access to the live event, archived recording, and telephone playback details were provided for investors and analysts[24](index=24&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements subject to various risks and uncertainties that could alter actual results - Forward-looking statements include those regarding 2025 guidance, sales and production growth, ability to maintain cost structure, demand, pricing trends, management of liquidity, cash flows, expenses, expected capital expenditures, and the development of the Blue Creek project[26](index=26&type=chunk) - These statements are subject to risks, uncertainties, and other factors, many outside the Company's control, that could cause actual results to differ materially, including fluctuations in coal pricing/demand, trade policies, inflation, geopolitical events, operational issues, and regulatory changes[26](index=26&type=chunk)[27](index=27&type=chunk) - The Company does not undertake any obligation to update or revise any forward-looking statement, except as required by law[28](index=28&type=chunk) [Contacts](index=6&type=section&id=Contacts) Contact information for investor relations and media inquiries is provided for further communication - For Investors: Dale W. Boyles, 205-554-6129, dale.boyles@warriormetcoal.com[29](index=29&type=chunk) - For Media: D'Andre Wright, 205-554-6131, dandre.wright@warriormetcoal.com[29](index=29&type=chunk)

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the analyst in any of the mentioned companies, nor are there plans to initiate such positions in the near future [1]. - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2]. - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [2].

Company Overview - Tempest Therapeutics, Inc. is a clinical-stage biotechnology company focused on developing first-in-class targeted and immune-mediated therapeutics for cancer treatment [1][8] - The company is headquartered in Brisbane, California, and has a diverse portfolio of small molecule product candidates [8] Drug Development and Designations - The European Medicines Agency (EMA) has granted Orphan Drug Designation (ODD) to amezalpat (TPST-1120), an oral, small molecule, selective PPAR⍺ antagonist for hepatocellular carcinoma (HCC) [1][6] - Earlier in the year, the FDA also granted ODD and Fast Track Designation (FTD) to amezalpat for the same indication, highlighting the urgent need for new treatment options [2][6] - Amezalpat has shown positive outcomes in a global randomized Phase 1b/2 clinical study, demonstrating a six-month improvement in median overall survival (OS) with a hazard ratio (HR) of 0.65 when combined with standard-of-care therapies [2][4] Disease Context - Hepatocellular carcinoma (HCC) is an aggressive cancer with over 900,000 new diagnoses globally each year, projected to become the third leading cause of cancer death by 2030 [3] - The majority of HCC cases are linked to chronic liver diseases, with a high recurrence rate of 70-80% even after early-stage diagnosis [3][4] Mechanism of Action - Amezalpat is designed to target tumor cells directly while also modulating immune suppressive cells and angiogenesis within the tumor microenvironment [4] - The drug has shown clinical superiority across multiple study endpoints, including overall survival in both the entire population and key subpopulations compared to standard care [4][6] Regulatory Benefits - The EMA's ODD provides benefits such as potential 10 years of market exclusivity following regulatory approval in the EU, reduced regulatory fees, and a centralized EU approval process [7]

Core Insights - The partnership between Susan G. Komen, Tokio Marine HCC (TMHCC), and Nelly Korda aims to raise awareness and funds for breast cancer research and support [1][5][6] Group 1: Partnership and Contributions - TMHCC will donate $5,000 for every birdie and $10,000 for every eagle scored by Nelly Korda during the tournament, with a guaranteed minimum donation of $50,000 [3] - Additional donations from TMHCC include $25,000 for a hole in one, $100,000 for a three-stroke win, $500,000 for a four-stroke win, and $1 million for a five or more stroke win [4] Group 2: Breast Cancer Statistics - An estimated 316,950 women in the U.S. will be diagnosed with invasive breast cancer for the first time in 2025, with 42,170 expected to succumb to the disease [2] Group 3: Organizational Background - TMHCC is part of the Tokio Marine Group, which has a market capitalization of $74 billion as of March 31, 2025, and holds strong financial ratings from S&P Global Ratings, AM Best, and Fitch Ratings [8] - Susan G. Komen is the leading nonprofit organization focused on breast cancer, providing comprehensive support and advocacy for patients while driving research for breakthroughs [10]

Core Insights - Hepion Pharmaceuticals has entered into a binding letter of intent with New Day Diagnostics to in-license diagnostic tests for various diseases, including celiac disease and hepatocellular carcinoma [1][2][3] - The combined addressable market for these diagnostic tests exceeds $15 billion, with significant growth projections across multiple segments [2] Company Developments - The diagnostic tests include CE-marked products that are eligible for sale in Europe, allowing Hepion to generate near-term revenues through existing distributor networks [3] - Hepion's primary asset, Rencofilstat, is a potent inhibitor of cyclophilins, which has shown efficacy in reducing liver fibrosis and tumor burden in experimental models [4] - The company previously announced the winding down of its ASCEND-NASH clinical trial, which was paused in April 2023 after randomizing 151 subjects [5][6] Market Opportunities - The Respiratory Panel RT-PCR Multiplex CE-IVD targets a $5.6 billion market, growing at 6.6% annually through 2029, while the H. pylori test addresses a $700 million market with a 6.0% growth rate projected through 2032 [2] - The celiac disease screening test operates in a $457 million market, expected to grow at 10.4% annually through 2034, and the mSEPT9 assay for HCC detection serves an $8.7 billion market with a 6.7% growth rate projected through 2030 [2]

Company Overview - Warrior Met Coal (NYSE: HCC) is a U.S. metallurgical coal mining company focused on the export market [1] - The company operates two mines and is developing the Blue Creek project, all located in Alabama [1] Management and Operations - The company is noted for its good management team and consistent operations [1] - Quality of operations is emphasized, indicating a strong operational foundation [1] Investment Strategy - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 2-3 years [2] - Emphasis on value investing provides good downside protection while allowing for significant upside potential [2] - The portfolio has achieved a compounded annual growth rate of 26% over the last 6 years [2]

Financial Performance - Warrior Met Coal reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, and a significant decline from earnings of $2.63 per share a year ago, representing an earnings surprise of -220% [1] - The company posted revenues of $299.94 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 8.98%, but down from $503.51 million in the same quarter last year [2] - Over the last four quarters, Warrior Met Coal has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Warrior Met Coal shares have declined approximately 10.3% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $284.04 million, and for the current fiscal year, it is $2.06 on revenues of $1.41 billion [7] Industry Context - The coal industry, to which Warrior Met Coal belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Warrior Met Coal's stock performance [5][6]

Financial Performance - Revenue decreased by 40% to $299.9 million in Q1 2025, compared to $503.5 million in Q1 2024[15] - Net loss was $8.2 million in Q1 2025, a 106% decrease compared to a net income of $137.0 million in Q1 2024[15] - Adjusted EBITDA decreased by 80% to $39.5 million in Q1 2025, compared to $200.2 million in Q1 2024[15] - Free cash flow was negative $68.4 million in Q1 2025, a 2,950% decrease compared to $2.4 million in Q1 2024[15] - Average net selling price decreased by 42% to $135.79 per short ton in Q1 2025, compared to $233.91 per short ton in Q1 2024[15] Production and Sales - Production volumes increased by 10% to 2,254 thousand short tons in Q1 2025, compared to 2,051 thousand short tons in Q1 2024, attributable to Blue Creek[11, 15] - Sales volumes increased by 2% to 2,172 thousand short tons in Q1 2025, compared to 2,129 thousand short tons in Q1 2024[11, 15] Blue Creek Project - $55.3 million was invested in the Blue Creek project in Q1 2025, bringing the total project-to-date capital expenditures to $771.8 million[11] - Blue Creek produced 251 thousand short tons in Q1 2025[11, 24] - Longwall startup at Blue Creek is expected no later than Q2 2026[8, 11, 24, 33] - Total capital expenditure estimate for Blue Creek project reiterated in a range of $995 million to $1.075 billion[30]

Financial Performance - Total revenues for Q1 2025 were $299,943, a decrease of 40.4% compared to $503,512 in Q1 2024[14] - Net loss for Q1 2025 was $8,168, compared to a net income of $136,989 in Q1 2024, representing a significant decline[14] - Basic and diluted net loss per share for Q1 2025 was $0.16, down from $2.63 in Q1 2024[14] - Segment profit for Q1 2025 was $49,198,000, down 76.8% from $212,411,000 in Q1 2024[76] - Segment Adjusted EBITDA for Q1 2025 was $49,198,000, a decline of 76.8% compared to $212,411,000 in Q1 2024[80] - Interest income for Q1 2025 was $3,186,000, a decrease of 54.7% from $7,033,000 in Q1 2024[80] Cash and Assets - Cash and cash equivalents at the end of Q1 2025 were $454,933, a decrease from $491,547 at the end of Q4 2024[17] - Total assets increased to $2,623,894 as of March 31, 2025, compared to $2,591,516 at the end of 2024[17] - The company's total inventories, net, decreased to $197.645 million as of March 31, 2025, from $207.590 million as of December 31, 2024[37] - Total assets increased to $2,623,894,000 in Q1 2025 from $2,478,591,000 in Q1 2024, reflecting a growth of 5.9%[76] Liabilities and Debt - Total liabilities rose to $547,128 as of March 31, 2025, compared to $500,699 at the end of 2024[17] - The company's total long-term debt as of March 31, 2025, was $153.767 million, slightly up from $153.612 million as of December 31, 2024[41] - The estimated fair value of the company's outstanding debt was approximately $159.8 million as of March 31, 2025[72] Expenses - Dividends paid in Q1 2025 were $5,184, down from $30,638 in Q1 2024[19] - The company reported a depreciation and depletion expense of $45,277 in Q1 2025, compared to $40,023 in Q1 2024[19] - Coal royalty expenses for the three months ended March 31, 2025, were $22.3 million, down from $42.9 million in the same period of 2024[57] - Cash cost of sales for mining in Q1 2025 was $244,028,000, a decrease of 14.1% from $284,172,000 in Q1 2024[76] - Capital expenditures for Q1 2025 were $68,510,000, down 31.3% from $99,703,000 in Q1 2024[76] Investments and Financial Position - As of March 31, 2025, short-term investments totaled $33.1 million, an increase from $14.6 million as of December 31, 2024[31] - The company had $113.5 million of availability under the ABL Facility as of March 31, 2025, with no loans outstanding[46] - The company had finance lease payments totaling $19.464 million, with a present value of lease liabilities amounting to $18.525 million as of March 31, 2025[50] - Finance lease right-of-use assets, net, were valued at $53.972 million as of March 31, 2025, down from $56.702 million as of December 31, 2024[48] Operational Focus and Risks - Warrior Met Coal is focused on mining non-thermal steelmaking coal, primarily for the global steel industry, with operations based in Alabama[23] - The company continues to face risks including substantial indebtedness, compliance with covenants, and geopolitical events impacting operations[11] - The company is exposed to commodity price risk due to fluctuations in market pricing for steelmaking coal[162] - The estimated allowance for credit losses was immaterial as of March 31, 2025, indicating a stable credit risk profile[166] Labor Relations - The company continues to engage in negotiations with the labor union to reach a new Collective Bargaining Agreement, which expired on April 1, 2021[25] Shareholder Actions - The company repurchased 500,000 shares under its stock repurchase program for approximately $10.6 million, leaving $59.4 million available for future repurchases as of March 31, 2025[61] Environmental Compliance - The company believes it is in compliance with environmental laws and has no accruals for environmental matters other than asset retirement obligations as of March 31, 2025[53] - The company has no recorded liabilities for minimum throughput requirements as of March 31, 2025[56]

Financial Data and Key Metrics Changes - For Q1 2025, the company recorded a net loss of $8 million or $0.16 per diluted share, compared to a net income of $137 million or $2.62 per diluted share in Q1 2024, primarily due to a 42% decrease in realized average net selling prices [27][28] - Adjusted EBITDA for Q1 2025 was $40 million, down from $200 million in the same quarter last year, with an adjusted EBITDA margin of 13% compared to 40% in Q1 2024 [27][28] - Total revenues decreased to $300 million in Q1 2025 from $504 million in Q1 2024, driven by lower average gross selling prices [28] Business Line Data and Key Metrics Changes - Sales volume increased by 2% to 2.2 million short tons in Q1 2025 from 2.1 million short tons in the same quarter last year, with production volume rising by 10% to 2.3 million short tons [14][15] - The company achieved a gross price realization of 83% for Q1 2025, slightly below the targeted range of 85% to 90% [12][28] Market Data and Key Metrics Changes - Average premium low vol index prices dropped by 40% to $168 per short ton in Q1 2025 from $280 per short ton in Q1 2024 [8] - The primary index, the POV FOB Australia, ended Q1 2025 at $153 per short ton, down $25 from the end of Q4 2024 [12] - Global pig iron production decreased by 0.2% in Q1 2025 compared to the prior year, with iron production in China growing by 0.8% [13] Company Strategy and Development Direction - The company is focused on operational efficiency and cost management to navigate weak market conditions, while continuing to progress on the Blue Creek project, which is on budget and schedule [6][21] - The Blue Creek project is expected to produce 1 million short tons in 2025, with a long-term capacity of 6 million short tons [23][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing weak market conditions but expressed confidence in operational performance and the ability to manage costs effectively [6][34] - The company anticipates that weak market conditions may persist, impacting steelmaking coal prices, but expects stable demand from contracted customers [34][36] Other Important Information - The company spent $79 million on capital expenditures and mine development in Q1 2025, with $69 million allocated to CapEx [16][21] - Total available liquidity at the end of Q1 2025 was $617 million, providing sufficient funds to complete the Blue Creek project [32][21] Q&A Session Summary Question: Pricing realization expectations - Management indicated that pricing realization could remain between 80% to 85% in the current market environment [38] Question: Cost sustainability in the near term - Management confirmed that the current cost level of $120 per ton is sustainable if prices remain stable [42] Question: Impact of tariffs on longwall shields - Management clarified that there would be no tariff impacts on the longwall shields being imported [43] Question: Factors driving lower price realizations - Management explained that transportation differentials and market conditions in Asia are significant factors affecting price realizations [48] Question: Production outlook and potential curtailments - Management acknowledged the challenges in the U.S. met coal market and indicated that some production curtailments may occur [52] Question: Capital expenditures for Blue Creek - Management detailed that the remaining CapEx for Blue Creek would primarily cover final construction and labor costs [56] Question: Working capital trends - Management indicated that working capital is expected to build in the second quarter due to production at Blue Creek [60] Question: U.S. pricing reflection of the market - Management expressed confidence that U.S. prices are reflective of current market conditions, with expectations for the discount to tighten over time [65]