Alpha Metallurgical Resources, Inc. · NYSE:AMR
Alpha Metallurgical Resources — Investor Presentation (August 2022)
17 slides from Alpha Metallurgical Resources's investor presentation, Aug 8, 2022
Slide 1: Metallurgical Resources Investor Presentation
METALLURGICAL RESOURCES INVESTOR PRESENTATION
Slide 2: Forward Looking Statements
August 2022 FORWARD LOOKING STATEMENTS 2 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 expe
Slide 3: Alpha safely produces a critical product used in building modern society
August 2022 ALPHA SAFELY PRODUCES A CRITICAL PRODUCT USED IN BUILDING MODERN SOCIETY 3
Slide 4: Global steel demand growth expected to continue
August 2022 4 India has accounted for ~25% of Alpha’s export sales over the past 4 years Sources: World Steel Association & Wood Mackenzie 1,775 1,834 1,881 1,600 1,650 1,800 1,750 1,850 1,700 1,900 2023E20212020 2022E 1,840 +2% Global Steel Demand In 0 00 s of m et ric to ns Projected Crude Steel P
Slide 5: Alpha at a Glance - Select Numerical Highlights
August 2022 ALPHA AT A GLANCE - SELECT NUMERICAL HIGHLIGHTS 5 Note: Metrics as of 12/31/21 unless otherwise noted. Employee data as of 6/30/22. Mine and plant data as of 8/8/22. See slide 7 for map of specific countries that received Alpha coal. See slide 8 for list of mines and preparation plants.
Slide 6: Alpha positioned to deliver long term value
August 2022 ALPHA POSITIONED TO DELIVER LONG TERM VALUE 6 LARGEST U.S. MET PRODUCER SHAREHOLDER VALUE EXCELLENCE & RELIABILITY LEADERSHIP VISION Alpha accounts for nearly a quarter of total U.S. met coal production. Diverse portfolio of coal qualities and majority ownership of DTA export facility in
Slide 7: Largest and most diverse domestic metallurgical coal supplier
August 2022 7 76% 24% Export Domestic 35% 27% 24% 14% MV HVA HVB LV LARGEST AND MOST DIVERSE DOMESTIC METALLURGICAL COAL SUPPLIER Well-Balanced Met Quality Mix (2) Diversified Revenue Mix (2) (1) Source: Energy Ventures Analysis Coal Production Report. (2) For full-year 2021 shipments. 21% 79% 100%
Slide 8: Diversified mine portfolio provides optionality and longevity
August 2022 DIVERSIFIED MINE PORTFOLIO PROVIDES OPTIONALITY AND LONGEVITY 8 Note: Production, reserves and resources as of 12/31/21. List of mines as of 8/8/22. * Contractor mine ** Surface mine
Slide 9: Multi-faceted shareholder value creation
August 2022 MULTI-FACETED SHAREHOLDER VALUE CREATION 9 ▪ Since the start of 3Q 2021, Alpha has reduced its term loan by $550 million and the remaining balance was eliminated with a $99.4 million payment on June 3, 2022. ▪ To further enhance shareholder value, on March 7, 2022, Alpha announced a $150
Slide 10: Disciplined capital expenditures with ability to adjust to market needs
August 2022 DISCIPLINED CAPITAL EXPENDITURES WITH ABILITY TO ADJUST TO MARKET NEEDS 10 $82 $154 $83 $55 $100 $0 $50 $150 $200 In m ill io ns 2018A 2019A 2020A 2021A 2022E* $192 $175 $120 $55 Million* Project Investment $120 Million* Maintenance Capex GLEN ALUM MINE PREPARATION PLANT EFFICIENCIES CED
Slide 11: Safety is our cultural foundation and driver toward continuous improvement
August 2022 SAFETY IS OUR CULTURAL FOUNDATION AND DRIVER TOWARD CONTINUOUS IMPROVEMENT 11 3.01 3.14 2.88 3.22 2.47 1.94 2020 2021 2022 YTD* Coal Industry Average TRIR Alpha TRIR Total Reportable Incident Rate (TRIR) 2.25 2.35 2.112.18 1.71 0.97 2020 2021 2022 YTD* Coal Industry Average NFDL Alpha NF
Slide 12: Alpha's leadership team prioritizes long-term strength of the business
August 2022 ALPHA’S LEADERSHIP TEAM PRIORITIZES LONG-TERM STRENGTH OF THE BUSINESS 12Note: Alpha’s Board appointed Todd Munsey to serve as EVP & Chief Financial Officer, effective August 9, 2022.
Slide 13: Conclusion - Alpha positioned for continued success
August 2022 CONCLUSION – ALPHA POSITIONED FOR CONTINUED SUCCESS 13
Slide 14: Appendix
We. 11 STH =F- T il Bal i AALPHA i ™~ METALLURGICAL RESOURCES. APPENDIX
Slide 15: 2022 Guidance
August 2022 2022 GUIDANCE 15 (1) Based on committed and priced coal shipments as of July 22, 2022. Committed percentage based on the midpoint of shipment guidance range. (2) Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight
Slide 16: Federal Net Operating Losses (NOL) and usage limitations
August 2022 FEDERAL NET OPERATING LOSSES (NOL) AND USAGE LIMITATIONS 16 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 270.0 138.7 2019(2) N/A 79.5 79.5 2020(2) N/A 185.9 1
Slide 17: Cash-related outflows expected to materially decrease after 2022
August 2022 CASH-RELATED OUTFLOWS EXPECTED TO MATERIALLY DECREASE AFTER 2022 17 Cash Outlays (US$ millions) 2022 2023 2024 2025 Acquisition Related Obligations $6.6 $ -- $ -- $ -- Contingent Revenue Obligations (1) 32.1 6.3 -- -- Reorganization & Transaction-related Cash Outlays $38.7 $6.3 $-- $-- A
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