What changed in this filing

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Item 2. Properties

2025-02-13 compared with 2024-02-14 · 27 added, 52 removed, 277 unchanged (22% of the section changed)

16 unchanged sentences

Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein.

Reference should be made to the full text of the TRSs, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

Reference should be made to the full text of each TRS, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

With regard to Mine No.

7 and Mine No.

4, there have been no material changes in the mineral reserves or mineral resources from the TRSs filed for Mine No.

7 and Mine No.

4 as Exhibits 96.1 and 96.2, respectively, to the Amendment No.

4 there have been no material changes in the mineral reserves or mineral resources from the TRS filed as Exhibit 96.2 to Amendment No.

1 on Form 10-K/A to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Mine No.

7 and Mine No.

The Company is therefore not filing new TRSs for Mine No.

7 and Mine No.

4 in connection with this Annual Report and is incorporating the 2023 Mine No.

7 and Mine No.

4 TRSs herein by reference.

With regard to Blue Creek there have been no material changes in the mineral reserves or resources from the TRS filed as Exhibit 96.3 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Blue Creek TRS").

The Company is therefore not filing a new TRS for Mine No.

4 nor Blue Creek in connection with this Annual Report and is incorporating the 2022 Mine No.

4 TRS and 2023 Blue Creek TRS herein by reference.

Overview and Highlights

1 unchanged sentence

4 and Mine No.

7, our two operating mines, had approximately 82.9 million metric tons of recoverable reserves and our undeveloped

Blue Creek mine contained 67.6 million metric tons of recoverable reserves and 39.7 million metric tons of in-place mineral resources exclusive of reserves, which total 107.3 million metric tons.

7, our two operating mines, had approximately 82.4 million metric tons of recoverable reserves and our Blue Creek mine contained 69.0 million metric tons of recoverable reserves and 39.7 million metric tons of in-place mineral resources exclusive of reserves.

The following map shows the major locations of our mining operations.

7 unchanged sentences

All of our operations receive power provided by Alabama Power Company.

Our operations also are well serviced by major mining equipment manufacturers,

rebuild facilities, and mine supply vendors.

Our operations also are well serviced by major mining equipment manufacturers, rebuild facilities, and mine supply vendors.

Specialized mining service providers including slope, shaft, and preparation plant construction companies are located in the immediate area.

5 unchanged sentences

7 4,780 4,664 4,314

Blue Creek 190 — —

Total Alabama 7,482 6,936 5,729

18 unchanged sentences

Blue Creek (6)

Development 43.3 24.3 67.6 11.3 49.2 10.0 0.7 32

Production 43.6 25.4 69.0 11.2 57.8 10.0 0.7 32.0

Various 6.4 — 6.4 6.3 0.1 3.2 - 23.5 0.7 - 6.01 N/A

1 unchanged sentence

Total Warrior Met Coal 116.0 41.8 157.8 17.8 140.0

(1) The price used and the time frame and point of reference used is discussed in the description of each mine below.

(1) The price used and the time frame and point of reference used are discussed in the description of each mine below.

(2) 1 metric ton is equivalent to 1.102311 short tons.

10 unchanged sentences

The categories for proven and probable coal reserves are based on distances from valid points of measurement as determined by the qualified person for the area under consideration.

Measured resources, which may convert to proven reserves, is based on a 0.25 mile radius from a valid point of observation.

Measured resources, which may convert to proven reserves, are based on a 0.25-mile radius from a valid point of observation.

The distance between 0.25 and 0.75 of a mile radius was selected to define indicated resources.

18 unchanged sentences

The proven and probable mineral reserves for these properties were prepared by McGehee Engineering Corporation.

The following table provides the location and quality of our measured, indicated and inferred mineral resources, exclusive of reserves, as of December 31, 2023.

The following table provides the location and quality of our Blue Creek measured, indicated and inferred mineral resources, exclusive of reserves, as of December 31, 2024.

Summary of Mineral Resources Exclusive of Reserves as of December 31, 2024 (1)

8 unchanged sentences

Total Warrior Met Coal — 39.7 39.7 —

(1) The price used and the time frame and point of reference used is discussed in the description of Blue Creek below.

(1) The price used and the time frame and point of reference used are discussed in the description of Blue Creek below.

(2) 1 metric ton is equivalent to 1.102311 short tons.

6 unchanged sentences

following information are based on assumptions, qualifications and procedures that are not fully described herein.

Reference should be made to the full text of the TRSs, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

Reference should be made to the full text of the TRS, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

The following table provides a comparison of our material proven and probable mineral reserves as of December 31, 2024 and December 31, 2023:

24 unchanged sentences

4 and Mine No.

7 change in proven and probable mineral reserves and quality is primarily attributable to production and incorporation of additional exploration drilling and associated coal quality data.

7 change in proven and probable mineral reserves and quality is primarily attributable to production, incorporation of additional exploration drilling and associated coal quality data and changes in property control.

The Blue Creek change in proven and probable mineral reserves is primarily due to results from additional exploration and changes in property control.

The following table provides a comparison of our material mineral resources exclusive of reserves as of December 31, 2023 and December 31, 2022:

The following table provides a comparison of our Boue Creek material mineral resources exclusive of reserves as of December 31, 2024 and December 31, 2023:

Summary of Material Mineral Resources as of December 31, 2024 as compared to December 31, 2023

7 unchanged sentences

(1) 1 metric ton is equivalent to 1.102311 short tons.

The Blue Creek change in coal resources exclusive of reserves is primarily due to results from additional exploration and labratory testing.

4 was opened by Jim Walter Resources in 1974 and has been in operation since.

5 unchanged sentences

Steel, The Pittsburgh & Midway Coal Mining Company and Walter Energy, Inc.

of the drilling was accomplished by means of conventional core hole exploration and air rotary drilling with geophysical logging for coalbed methane wells.

The majority of the drilling was accomplished by means of conventional core hole exploration and air rotary drilling with geophysical logging for coalbed methane wells.

The following shows the current property and facilities layout of Mine No 4.

Mine No 4 is located at approximately 87°19’32” latitude and 33°19’49”N longitude which is approximately 20 miles east of Tuscaloosa, Alabama and 30 miles southwest of Birmingham, Alabama.

Mine No 4 is located at approximately 33°19’49”N latitude and 87°19’32”W longitude which is approximately 20 miles east of Tuscaloosa, Alabama and 30 miles southwest of Birmingham, Alabama.

Access to Mine No.

34 unchanged sentences

7 was opened by Jim Walter Resources in 1974 and has been in operation since.

In connection with the acquisition of certain assets of Walter Energy, we acquired the mineral rights for Mine No.

In connection with the acquisition of certain assets of Walter Energy, we acquired mineral rights for Mine No.

7 in April 2016.

3 unchanged sentences

The following shows the current property and facilities layout of Mine No 7.

Mine 7 is located at approximately 87°14’46” latitude and 33°19’35”N longitude which is approximately 20 miles east of Tuscaloosa, Alabama and 30 miles southwest of Birmingham, Alabama.

Mine 7 is located at approximately 33°19’35”N latitude and 87°14’46”W longitude which is approximately 20 miles east of Tuscaloosa, Alabama and 30 miles southwest of Birmingham, Alabama.

Access to Mine No.

4 unchanged sentences

7 also uses the No.

5 preparation plant via an

overland conveyor.

5 preparation plant

via an overland conveyor.

7 preparation plant has a capacity to process 1,260 raw metric tons per hour and the Mine No.

29 unchanged sentences

There are no significant title encumbrances to the property.

We believe that Blue Creek represents one of the few remaining untapped reserves of premium High Vol A steelmaking coal in the United States and that it has the potential to provide us with meaningful growth.

We believe that the combination of a low production cost and the high quality of the High Vol A steelmaking coal mined from Blue Creek, assuming we achieve our expected price realizations, will generate some of the highest steelmaking coal margins in the U.S., generate strong investment returns for us and achieve a rapid payback of our investment across a range of steelmaking coal price environments.

Based on the current schedule, we expect the first development tons from continuous miner units to occur in the third quarter of 2024 with the longwall scheduled to start in the second quarter of 2026.

We initially expected to invest approximately $650.0 to $700.0 million over five years to develop Blue Creek.

These costs include, among others, costs to construct a preparation plant and coal handling facility, longwall and continuous miner equipment, belts and advancement material, outside facilities and related matters.

Beyond the initial investment, additional capital will be required for sustaining production.

This includes rebuilds and replacement of equipment, mine development and multiple bleeder, intake and return shafts.

More than a year after the relaunch of the Blue Creek mine development in May 2022, Warrior has initiated important and highly beneficial project scope changes that will require incremental capital expenditures over the life of the project while lowering operating costs, increasing flexibility to manage risks, and making better use of multi-channel transportation methods.

Most of these scope changes are transportation and logistics-related, with additional amounts related to inflation for these changes only.

These scope changes are expected to increase total capital expenditures for the Blue Creek mine by approximately $120 - $130 million over the remainder of the project development period.

While the Company originally planned on a single channel to transport coal from the Blue Creek mine via an overland belt to a third-party owned and operated barge loadout facility, it now plans to build a belt conveyor system to a railroad loadout to transport the majority of the coal.

We expect this change to de-risk the single channel to market, lower operating cost and move volumes faster to the port.

Warrior will also build and operate a barge loadout itself rather than utilizing a third-party provider.

The Company believes that the potential economic benefits associated with these scope changes should provide Warrior with an inherently robust and cost competitive outbound logistics model that will provide additional flexibility to manage alternative transportation methods.

The inclusion of the benefits and incremental capital expenditures relating to these specific scope changes did not have a material impact to the project economic metrics of net present value and internal rate of return.

In addition, the Company has experienced inflationary cost increases ranging from 25 to 35 percent in both operating expenses and capital expenditures for its existing mining operations since late 2021.

The Company is also experiencing inflationary pressures at Blue Creek, especially in relation to labor, construction materials and certain equipment, that is expected to continue during the remainder of the project development period.

As a number of key material contracts are currently being negotiated, and due to uncertainty regarding future inflation rates, the Company is not providing an estimate of the impact of inflation at this time.

However, as the Company negotiates and enters into contracts for the larger project components, the Company expects that more information will become available to allow it to provide revised guidance.

While cost inflation has impacted the cost of the project, these inflationary pressures are expected to be offset by an inflationary increase in the long-term price assumption for steelmaking coal.

We believe that Blue Creek represents one of the last remaining untapped reserves of premium High Vol A steelmaking coal in the United States and that it has the potential to provide us with meaningful growth.

We believe that the combination of a low production cost and the premium quality of the High Vol A steelmaking coal mined from Blue Creek, assuming we achieve our expected price realizations, will generate some of the highest steelmaking coal margins in the U.S., generate strong investment returns and achieve a rapid payback of our investment across a range of steelmaking coal price environments.

The Blue Creek mine will be a similar operation to our currently active operations, Mine No.

1 unchanged sentence

The net book value of property, plant and equipment associated with Blue Creek as of December 31, 2024, was $736.6 million.

The mine property is located approximately 87°26’35” latitude and 33°35’21”N longitude.

The mine property is located approximately 33°35’21”N latitude and 87°26’35”W longitude.

Access to the Blue Creek property is by State Route 69, a well-maintained, paved, two-lane road with interstate access in close proximity to both the north and south.

1 unchanged sentence

We believe we will have the ability to add a second longwall subsequent to finalization of development.

The project includes surface facilities to be constructed at multiple locations in close proximity.

The project includes surface facilities to be constructed at multiple locations in close

Rail transportation for the proposed mine site is a major rail line and river transportation is available on the Black Warrior River.

37 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties