Shantanu Agrawal: Thanks, Nathan. Yes, I mean, so we do have a take-or-pay at CMT with our customer for coal, which is for 4 million tons. So we’re going to be handling a little bit in excess — our guidance contemplates handling a little bit in excess of that minimum take-or-pay. On the other product side, the guidance is a little bit lower than last year but not significantly lower. So — obviously, as Katherine mentioned in our prepared remarks, one of our initiatives for this year is to kind of continue to look for opportunities at CMT and continue to look for other products, additional products at CMT. And that’s what we are going to focus on this year.
Nathan Martin: Appreciate that, Shantanu. And then just to confirm, is this the last year for the take-or-pay on the coal side of the business?
Katherine Gates: The contract can be extended and Javelin is obviously a customer of ours, and we’re in continuous dialogue with them.
Nathan Martin: Got it. Thank you, Katherine. And then maybe just one more. On the Domestic Coke side of the business. You mentioned 3.6 million tons contracted already for this year remaining going to the foundry and the spot market. I think it would be helpful to get some more color from you guys on the health of both the foundry and even the export coke market today. And just how you see that shaping out — shaping up for the rest of 2024?
Katherine Gates: Yes, absolutely. So we’re sold out for the first quarter on our spot coke sales. And as we’ve said, we finalized a substantial portion of the foundry and the blast sales. We expect to run full as we have in the past, but we have to remember that the seaborne markets don’t contract a year out. So there’s obviously — we expect to sell out, but we’re just going to be doing that in due course. And then on the foundry, the foundry markets are strong, and those sales are substantially finalized for 2024. So we feel good looking out ahead.
Nathan Martin: All right, great. Appreciate the comment. Thanks for your time. I’ll leave it there. Best of luck in ’24.
Katherine Gates: Thank you.
Operator: We now have a follow-up question from Lucas Pipes of B. Riley Securities. The line is yours.
Lucas Pipes: Thank you again, operator. Thank you for taking my follow-on question. I’m sorry if I missed it, but what is the amount of coke business that is not fixed or committed at this point?
Shantanu Agrawal: That’s the 650,000 tons, Lucas, it’s same as last year, right? And we mentioned and it’s the mix, the whole — that’s a 650,000 blast coke equivalent, right, and that’s what we are selling into the foundry and spot blast coke market.
Lucas Pipes: Got it. And that’s equivalent. So that’s some amount of foundry, some amount of blast, and I guess you take the foundry times to make it equivalent. And so the way to think about it is that those tons would be kind of open to price movements starting Q2 than through the rest of the year.
Shantanu Agrawal: The spot piece is foundry sales, the way it works is more or less, as Katherine said, we have finalized the sales of the foundry coke throughout the year, and the price for those are fixed at the start of the year. It’s the spot side, which can fluctuate on the pricing Q2 and beyond.
Lucas Pipes: And is that also 650,000 tons? Or is that a different number?
Shantanu Agrawal: No. I don’t know the total of foundry and spot blast is 650,000.
Lucas Pipes: And what is the amount subject to spot price variations?
Shantanu Agrawal: That is — again, I think just going back to what we said before, Lucas, we do not — are not in a position to disclose the differential between the foundry and the spot blast coke because of the small nature of both the foundry and the spot blast coke markets. So — but you can think about, right, like out of the 650,000, there is a portion of foundry and there’s a portion of spot. So the amount is not significant.
Lucas Pipes: Okay. So a couple of hundred thousand tons is probably the right way to think about it, that’s subject to price and price…
Shantanu Agrawal: Not — I cannot comment on that.
Lucas Pipes: And put differently, have you purchased — have you committed a price for all the coal to convert into this coke? Are you locked in on the inside?
Shantanu Agrawal: No. No, Lucas, we haven’t — since we started doing this spot blast — spot sales, we have kind of aligned our coal purchases to go with the spot blast sales, right? As spot blast sales don’t sell out more than three to six months in advance, we try to tie our coal purchases with that. Now obviously — we are doing a mix of spot and foundry, so we have to kind of think about that. But we haven’t fully bought our 2024 coal needs because there’s some sales of spot blast coke outstanding in the later half of the year.
Lucas Pipes: Got it. Got it. So essentially, if you would try to kind of match that up in real time on the supply side…
Shantanu Agrawal: Exactly.
