Quarterly results missed expectations, mainly due to lower-than-expected shipment volumes and costs dragged by higher diesel and materials prices.

Q2 adjusted EBITDA $25.6M (down quarter-over-quarter); shipments 3.5M tons; Met cost $103.07/ton (improved quarter-over-quarter).

A stacker-reclaimer at the DTA terminal was damaged by a storm, cutting full-year shipment guidance by 1 million tons; the new Wildcat mine is ramping up, which will raise the share of low-volatile shipments and improve the product mix.

Full-year shipment guidance lowered to 14.2–15.4M tons; cost guidance raised to $103–107/ton, reflecting higher diesel prices and reduced DTA efficiency.

Risks: weak met coal market, sharp pullback in Australian PLV prices, and price pressure; bright spot: solid US domestic blast furnace demand, which could support next year's negotiations.