Alpha Metallurgical Resources, Inc. · NYSE:AMR
Alpha Metallurgical Resources — Investor Presentation (November 2021)
27 slides from Alpha Metallurgical Resources's investor presentation, Nov 5, 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 2021
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 93% 48% 90% 55% 45% 2019 61% Thermal 2022 39% 2020 82% 18% 2021 10% 7% 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 and reserves information as of 12/31/20. List of active mines as of 9/30/21. * 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 12/31/20 unless otherwise noted. (2) Alpha Natural Resources, Inc. founded in 2003. (3) As of 9/30/21. See slide 7 for list of mines and preparation plants. (4) See map on slide 13 for specific countries. (5) Since 2016.
Slide 11: Alpha Advantages – Most Diverse Domestic Metallurgical Producer
11 12.2 7.9 6.8 5.6 1.7 0.6 Alpha Peer 3 Peer 2 Peer 1 Peer 5 Peer 4 Alpha Advantages – Most Diverse Domestic Metallurgical Producer HVA 39% HVB 24% MV 24% LV 13% Largest Domestic Met Producer (1)(2) Domestic 29% Export 71% Source: Public Company Filings (1) Includes only U.S. sourced met coal produ
Slide 12: Strong Safety and Environmental Performance Continues
12 Strong Safety and Environmental Performance Continues - Maintained 99.9% compliance rate with all federal and state water quality standards since 2016 - Reclaimed ~4,800 acres and planted ~2.7 million trees since 2016 - Multiple operations in both VA and WV received awards for safety and reclamat
Slide 13: Alpha Advantages – Largest Domestic Met Producer & Exporter
13 Alpha Advantages – Largest Domestic Met Producer & Exporter Note: Map reflects the 23 countries that received Alpha shipments in 2020, plus China, a new addition in 2021. Port of Hampton Roads (Newport News, Virginia) 65% Owned by Alpha (35% by Arch) 22 million tons of capacity (14.3 millio
Slide 14: Operations and Financial Update
Operations and Financial Update
Slide 15: Met Segment Cost of Coal Sales Bridge
15 Met Segment Cost of Coal Sales Bridge With higher sales prices, our Met segment cost of coal sales are expected to increase due to royalties and taxes based on sales price. Additionally, higher labor and benefits, alongside increased costs for certain materials such as steel used in roof support
Slide 16: 2022 Capital Expenditures – Investing in Alpha's Future
16 $81.9 $192.4 $154.0 $93.0 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2018A 2019A 2020A 2021E* 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: Pricing Momentum Intensifies Through 2021
19 Pricing Momentum Intensifies Through 2021 Sources: Bloomberg and Platts $ / m et ric to n $90.00 $140.00 $190.00 $240.00 $290.00 $340.00 $390.00 $440.00 Metallurgical Coal Indices US High Vol A US High Vol B US Low Volatile Premium Low Vol HCC
Slide 20: Solid Global Steel Demand Growth Expected in 2021 and Beyond
20 Solid Global Steel Demand Growth Expected in 2021 and Beyond Sources: World Steel Association & Wood Mackenzie 2021E 1,874 1,767 1,772 1,800 1,700 1,600 1,750 1,650 1,850 20202019 2022E 1,925 +6% Global Steel Demand Projected Crude Steel Production in India through 2050 180 220 100 320 360 80 160
Slide 21: Conclusion: Alpha Well-Positioned for the Future
Conclusion: Alpha Well-Positioned for the Future
Slide 22: Conclusion: Alpha Plans to Harvest Benefits of Disciplined Planning
22 Conclusion: Alpha Plans to Harvest Benefits of Disciplined Planning 4 Has assembled a leading management team to take advantage of Alpha’s key strengths, capture market opportunities, and overcome challenges 3 Favorable asset and market position with majority DTA ownership and ability to reliably
Slide 23: Appendix
Appendix
Slide 24: 2021 Guidance
24 2021 Guidance Shipments (million tons) Low High Metallurgical 13.0 14.0 Non-Metallurgical By-Product 1.3 1.8 Met Segment 14.3 15.8 All Other 1.3 1.7 Total Shipments 15.6 17.5 Committed / Priced Volumes(1)(2)(3) % Committed Average Price ($/ton) Metallurgical – Domestic $88.55 Metallurgical – Expo
Slide 25: 2022 Guidance
25 2022 Guidance Shipments (million tons) Low High Metallurgical 14.0 15.0 Non-Metallurgical By-Product 0.8 1.2 Met Segment 14.8 16.2 All Other 0.6 0.8 Total Shipments 15.4 17.0 Committed / Priced Volumes(1)(2)(3) % Committed Average Price ($/ton) Metallurgical – Domestic $192.29 Metallurgical – Exp
Slide 26: Federal Net Operating Losses (NOL) and Usage Limitations
26 Federal Net Operating Losses (NOL) and Usage Limitations Year Generated Year Expires Estimated Gross NOL Carryforward at 12/31/2020 Estimated NOL Deduction Available for Utilization in 2021 Estimated NOL Deduction Available for Utilization in 2022 2015(1) 2035 $ 1,011.0 $ 3.0 $ 1.0 2017(1) 2037 3
Slide 27: Cash-Related Outflows Expected to Materially Decrease After 2022
27 Cash-Related Outflows Expected to Materially Decrease After 2022 Cash Outlays (US$ millions) 2021 2022 2023 2024 Acquisition Related Obligations $8.2 $4.2 $ -- $ -- Contingent Revenue Obligations(1) 14.1 21.7 5.6 -- LCC Obligations(2) 20.4 -- -- -- Reorganization & Transaction-related Cash Outlay
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