Lucas Pipes: Very helpful. I appreciate the color. I’ll turn it over for now. Thank you.
Jimmy Brock: Thank you, Lucas.
Operator: The next question comes from Nathan Martin with The Benchmark Company. Please go ahead.
Nathan Martin: Hey thanks operator. Good morning guys. Congrats on a strong finish to the year and thanks for taking my questions.
Jimmy Brock: Thanks Nathan.
Nathan Martin: Bob, let me stick with you just for a minute. Lucas pretty much touched on most of my 2024 questions. But if we look to 2025, you added 1 million-plus tons there as well. It looks like you’re at 13 million tons now. Could we kind of give a breakdown of those tons as well? And maybe where you see pricing — average pricing on those?
Bob Braithwaite: Sure. So, the 13 million tons we have now, which I believe is an increase about 2.2 million tons since our last earnings call. We have just over 8 million tons domestically, of which 2.5 million of those are linked to power, the balance being export, all our index linked to-date and all do have ceilings and floors. We modeled 2025. We did also model a $105 API2 price, and sitting here today, we’re mid-60s across the portfolio for the sold tons.
Nathan Martin: Okay, got it. Very helpful there. I appreciate that. Maybe shifting gears over to Itmann. You’ve got some guidance there. Sales, 600,000 to 800,000 tons, cash cost per ton, $120 to $140. Let’s start with the costs. Again, higher than your peers, obviously, you mentioned you’re still ramping things up. So, do you think there will be opportunities to improve on that cost range once you get up to more of a traditional run rate? And then maybe, as it relates to sales, in that 600,000 to 800,000 ton number, does that include third-party sales? Maybe you can remind us of throughput capacity at the terminal — excuse me, at the prep plant there as well? And then any breakdown, I think you called out 571,000 contracted tons for Itmann. Any breakdown would be helpful, domestic versus export and kind of where you expect to sell the remainder of those tons?
Jimmy Brock: Okay. I’ll take the first part of it, Nate. First, let’s talk about the cost side, the $120 to $140 guidance that we give. Certainly, a little higher number than we want. But keep in mind, I think as we continue to ramp up in our mains development down to there, we’re having to cut additional rock for high — for ventilation purposes for long-term, which slows down the mining rates a little bit. I think the cost we’ve seen thus far at Itmann is pretty much reflected for two things. One is volume. Volume Is certainly going to help that cost number as we get more. And we’ve seen some signs of improvement there, and we think we will begin to improve on that. The second thing is some of these inflationary pressures that we’re seeing.
And for us, it’s pretty much in the equipment, those equipment delays that we’ve had is not allowing us to run as efficient as we would like to, whereas if we have the new equipment, we think we’re going to get more tons per man-hour to come out of that. The labor has been challenging down there, as we’ve mentioned before. But I think that’s beginning to stabilize. We had a management change there at the top. And we think that as we go forward, that’s going to be helpful as well, a very experienced and low mining, and those things should help us there. Getting back to the potential of running — ramping up to full speed. I think as we were very close to being able to turn one of the three sections off into a panel that will give us — we’ll be able to mine at lower highs.
We’ll see what those volumes are coming out of there. And I look for that to be a better number that helps our overall cost and we’ll get to that sooner. But it’s going to be pretty much the first half of this year before we have all three of those sections that are running in what we call the mining hub that we plan for, mining and seeing, which has the cost at the prep plant as well. The throughput volume at the plant, it’s a 600 ton an hour plant, we think we can put 3 million tons plus through there and the guys are making great improvements there. So, we’re looking forward to what our yield is going to look like there. And we’re located in a position down there to whereas we’ll have opportunities for third-party coal, which will help the cost of that prep plant as we knew that when we put it in, and that’s why we put the upsized plant in.
Bob Braithwaite: Yes. And then on the marketing side, Nate, it’s very exciting. We’ve got a lot of interest for the Itmann product. As we mentioned, we got 571,000 tons already sold for 2024. We also concluded a two-year deal with an export customer, so we actually have coal already secured for 2025. I think it just goes to show the attractiveness of the product and the quality of the product. When you look at the breakdown so far, the 571,000, it’s almost an equal split between domestic and export to-date. I would tell you that the balance of the volume that we’re going to sell will be in the export market, looking at where US, East Coast, low-vol TSI bases are today, I would expect that portfolio average to be somewhere in that $170 to $180 range.
