Nick Giles: This is actually Nick asking a follow-up here. I believe the question was asked earlier related to the price Hoosier is paying through 2025. And I’m just seeing in the 10-K here, so I want to clarify that I’m reading that Hallador shale sell and Hoosier shale buy at least 70% of the delivered quantities through 2025 at a price which is $34 per megawatt. Am I confusing this with something else? Or is this the contract price? Thank you for any color.
Larry Martin: So when you’re reading the 70%, when Brent says that we sold 20% to Hoosier from ’23 beyond. So we have to deliver 70% of that 20% to stay in contract. So that’s our minimum. So it’s available. So, we’ve sold 20% of the power if available, but the minimum we have to do per year, I believe, is 70% of that 20%, if that makes sense.
Nick Giles: That’s clear, Larry. Thank you for clarifying that. Appreciate that. And then I just wanted to ask one more, just kind of on cost expectations for 2023. I believe in your prepared remarks, you said that you do expect costs to come down. Would you be able to put some numbers around that? How — and maybe the cadence of costs throughout the year?
Brent Bilsland: Yes. I think we’ve seen our productivity numbers for Q1 improve. And I think we’ll see commodity price as things steel limestone and other things like that, diesel. Some of that pricing has come down in the market, but it hasn’t. Our suppliers have contracts, too, right? So we don’t — those prices don’t step down immediately. I think we’ll start to see some commodity input price back off throughout the year, right, as our vendors hedges roll off and those prices eventually flow through or discounted prices eventually flow through to us. So that’s why we feel comfortable that we believe our cost of production will be improved going into 2023 or at least levelized. Last year was kind of a crazy time where we saw dramatic price increases.
First of all, it was twofold. One, you had commodity input prices and second of all, everyone in the industry was trying to ramp up to take advantage of the increased prices, right? A high-margin business and so it got very difficult to get supplies, things like roof bolts that you run out of roof bolts or you run out of glue for the roof bolts production stops period, right? And it just seemed like there was a run on a different item every week. That has calmed down, right? So, the industry is taking its foot off the gas a little bit as coal inventories have increased, which has just taken the pressure off all the supply lines. So we’re seeing pressure come off the supply line. So I don’t think our vendors will be able to demand the pricing they were able to demand last year, plus their costs will reduce, which eventually flows through to us as their commodity hedges get repriced at lower prices.
So that’s why we think from a cost perspective, we think things are trending in a better direction.
Nick Giles: Got it. Well, that’s good to hear. Brent. Appreciate all the color and continued best of luck.
Brent Bilsland: Thank you, Nick, and I won’t through too much at Lucas for having you asked the last question of the call on St. Patrick’s Day while tournament basketball is ongoing. So I hope you’re allowed to have a green beer later today.
Operator: This concludes our Q&A. I’ll now hand back to Brent Bilsland, CEO, for any closing remarks.
