Alpha Metallurgical Resources, Inc. · NYSE:AMR
Alpha Metallurgical Resources — Investor Presentation (June 2022)
26 slides from Alpha Metallurgical Resources's investor presentation, Jun 6, 2022
Slide 1: Investor Presentation June 2022
Investor Presentation June 2022
Slide 2: Forward Looking Statements
2 Forward Looking Statements This document includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. Th
Slide 3: Table of Contents
3 Vision, Execution & Leadership 4 Company Overview – Alpha Advantages 9 Operations and Financial Update 14 Market Analysis – Macro Environment Remains Positive 18 Conclusion: Alpha Well-Positioned for the Future 21 Appendix 23 Table of Contents
Slide 4: Vision, Execution & Leadership
Vision, Execution & Leadership
Slide 5: Alpha Investment Thesis
5 Alpha Investment Thesis • Largest and Most Quality Diverse Metallurgical Coal Producer in U.S. • Portfolio of Long-Lived Metallurgical Mines and Substantial Organic Reserve Growth Opportunities • Operational Excellence: Cost Control, Safety, Environmental • Advantaged Sales & Logistics Platform Se
Slide 6: Pathway to a Pure Metallurgical Coal Portfolio
6 Pathway to a Pure Metallurgical Coal Portfolio 20182017 52% 86% 14% 18% 82% 2016 94% 48% 90% 55% 45% 2019 61% Thermal 2022 39% 2020 83% 17% 2021 10% 6% 2023 Met (1) Based on midpoint of guidance. (2) Targeted goal. Metallurgical Coal Shipments Expected to Account for More than 90% of the Total Vol
Slide 7: Cost-Efficient, Well-Managed and Robust Operating Portfolio
7 Cost-Efficient, Well-Managed and Robust Operating Portfolio Note: Production, reserves, resources and list of mines as of 12/31/21. * Contractor mine ** Surface mine
Slide 8: Experienced Leadership Team Streamlining Decision-Making
8 Experienced Leadership Team Streamlining Decision-Making
Slide 9: Company Overview – Alpha Advantages
Company Overview – Alpha Advantages
Slide 10: Alpha Snapshot
10 Alpha Snapshot (1) NYSE: AMR (1) Metrics as of 12/31/21 unless otherwise noted. (2) Alpha Natural Resources, Inc. founded in 2003. (3) See slide 7 for list of mines and preparation plants. (4) Measured in tons. (5) See map on slide 13 for specific countries. (6) Since 2016.
Slide 11: Alpha Advantages – Most Diverse Domestic Metallurgical Producer
11 13.9 7.0 6.9 6.3 2.2 Alpha Peer 2 Peer 1 Peer 3 Peer 4 Alpha Advantages – Most Diverse Domestic Metallurgical Producer 0 HVA 35% HVB 27% MV 24% LV 14% Largest Domestic Met Producer (1)(2) Domestic 24% Export 76% Source: Public Company Filings (1) Includes only U.S. sourced met coal shipments. (2)
Slide 12: Strong Safety and Environmental Performance Continues
12 Strong Safety and Environmental Performance Continues - Maintained 99.9% water quality compliance rate since 2016 - Reclaimed ~6,700 acres and planted ~3.2 million trees since 2016 - Multiple operations in both VA and WV received awards for safety and reclamation performance - Safety and environm
Slide 13: Alpha Advantages – Largest Domestic Met Producer & Exporter
13 Alpha Advantages – Largest Domestic Met Producer & Exporter Note: Map reflects the 25 countries that received Alpha shipments in 2021. Port of Hampton Roads (Newport News, Virginia) 65% Owned by Alpha (35% by Arch) 22 million tons of capacity (14.3 million attributable to Alpha) 1.7 milli
Slide 14: Operations and Financial Update
Operations and Financial Update
Slide 15: Multi-Faceted Shareholder Value Creation Program
15 Multi-Faceted Shareholder Value Creation Program ▪ Since the start of 3Q 2021, Alpha has reduced its term loan by $550 million and the remaining balance was extinguished with a $99.4 million payment on June 3, 2022. ▪ To further enhance shareholder value, on March 7, 2022, Alpha announced a $150
Slide 16: 2022 Capital Expenditures – Investing in Alpha's Future
16 $81.9 $192.4 $154.0 $83.3 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2018A 2019A 2020A 2021A 2022E* 2022 Capital Expenditures – Investing in Alpha’s Future *Midpoint of Guidance $175 million* expected 2022 capex In m illi on s $55 Million* Project Investment $120 Million* Maintenance Capex
Slide 17: 2022 Anticipated Capex Investment Projects
17 2022 Anticipated Capex Investment Projects In addition to the table below of mine development projects, the list of anticipated projects includes various upgrades at the following Alpha prep plants: • Kepler Plant (built in 1968) • Plans include updating the fine coal circuitry to better accommod
Slide 18: Market Analysis – Macro Environment Remains Positive
Market Analysis – Macro Environment Remains Positive
Slide 19: Met Pricing Strength Continues into 2022
19 Met Pricing Strength Continues into 2022 Sources: Bloomberg and Platts $ / m et ric to n $90.00 $190.00 $290.00 $390.00 $490.00 $590.00 $690.00 $790.00 Metallurgical Coal Indices US High Vol A US High Vol B US Low Volatile Premium Low Vol HCC
Slide 20: Global Steel Demand Growth Expected to Continue
20 Global Steel Demand Growth Expected to Continue Sources: World Steel Association & Wood Mackenzie 1,775 1,881 1,800 1,600 1,900 1,650 1,700 1,750 1,850 2020 2021 2022E 2023E 1,8401,834 +2% Global Steel Demand Projected Crude Steel Production in India through 2050 140 80 180 120 100 160 200 280 22
Slide 21: Conclusion: Alpha Well-Positioned for the Future
Conclusion: Alpha Well-Positioned for the Future
Slide 22: Conclusion: Alpha Plans to Harvest Benefits of Disciplined Planning
22 Conclusion: Alpha Plans to Harvest Benefits of Disciplined Planning 4 Has assembled a leading management team to take advantage of Alpha’s key strengths, capture market opportunities, and overcome challenges 3 Favorable asset and market position with majority DTA ownership and ability to reliably
Slide 23: Appendix
Appendix
Slide 24: 2022 Guidance
24 2022 Guidance Shipments (million tons) Low High Metallurgical 14.0 15.0 Non-Metallurgical By-Product 0.8 1.2 Met Segment 14.8 16.2 All Other 0.6 0.8 Total Shipments 15.4 17.0 Committed / Priced Volumes(1)(2)(3) % Committed Average Price ($/ton) Metallurgical – Domestic $189.22 Metallurgical – Exp
Slide 25: Federal Net Operating Losses (NOL) and Usage Limitations
25 Federal Net Operating Losses (NOL) and Usage Limitations Year Generated Year Expires Estimated Gross NOL Carryforward at 12/31/2021 Estimated NOL Deduction Available for Utilization in 2022 2015(1) 2035 $ 1,008.0 $ 1.0 2017(1) 2037 270.0 18.7 2019(2) N/A 79.5 79.5 2020(2) N/A 185.9 185.9 Total(3)
Slide 26: Cash-Related Outflows Expected to Materially Decrease After 2022
26 Cash-Related Outflows Expected to Materially Decrease After 2022 Cash Outlays (US$ millions) 2022 2023 2024 2025 Acquisition Related Obligations $6.6 $ -- $ -- $ -- Contingent Revenue Obligations (1) 29.4 5.1 -- -- Reorganization & Transaction-related Cash Outlays $36.0 $5.1 $-- $-- Asset Retirem
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