Core Natural Resources Inc (CNR) Q3 2025 Earnings Call Highlights: Resilience Amidst Challenges …

This article first appeared on GuruFocus.

Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Core Natural Resources Inc (NYSE:CNR) generated free cash flow despite weak commodity prices and operational challenges.

• The company secured 26 million tons of future business and nearly finalized plans with ISA to recover and reposition equipment at the Learout mine.

• CNR received the first tranche of insurance recovery for the Learsouth fire mitigation efforts.

• The presence of noteworthy levels of rare earth elements and critical minerals was verified at flagship operations in both the eastern and western United States.

• CNR returned more than 60% of its Q3 2025 free cash flow to shareholders through share repurchases and dividends.

• Coal production in the high CV thermal segment decreased to 7.6 million tons in Q3 2025 from 8 million tons in the prior quarter.

• Operational challenges at the West Elk mine led to elevated cash costs and are expected to continue partly through Q4 2025.

• The metallurgical segment incurred $18 million of costs associated with the LearSouth fire and related expenses.

• Uncertainty surrounds the timing of re-entry at Lear South due to a government shutdown affecting personnel availability.

• The international thermal market faces near-term demand challenges due to a prolonged monsoon season and weakness in the Indian rupee.

Q: Can you provide more details on the methane issues at the West Elk mine and its impact on costs and production for 2026? A: (Jimmy Brock, CEO) We had some methane issues at West Elk, but they were managed without safety concerns. Ventilation adjustments have resolved the issue, and we expect West Elk to be back up and running soon. We anticipate improved productivity and lower costs moving forward, with most problems behind us for the remainder of the year.

Q: Could you break down the committed and priced high CV coal volumes for 2026 and provide insights on pricing? A: (Bob Braithwaite, SVP of Marketing and Sales) For 2026, we have 17 million tons of high CV coal committed, with 14 million tons for domestic use and 3 million tons for export. The export volumes are mostly index-linked, providing upside potential if prices rise. Current pricing is in the upper $50s, with potential increases if market conditions improve.

Q: What is the status of insurance recoveries related to the Lear South fire, and what can we expect in terms of timing and amounts? A: (Patesh Dhakar, President and CFO) We have incurred about $75 million in costs so far, with an additional $15 to $25 million expected in Q4. We are optimistic about the insurance claims, which are being submitted as costs are incurred. The business interruption claim will take longer, but we expect significant recoveries.

Q: How confident are you in maintaining low costs at the PAMC Longwall operations, and what improvements can be expected? A: (Jimmy Brock, CEO) We aim to maintain cash costs at PAMC between $37 to $39 per ton. West Elk’s costs should decrease to the low $30s once operations stabilize, which will positively impact the overall cost structure of our high CV segment.

Q: Can you provide an update on the potential for rare earth elements and critical minerals at your operations? A: (Jimmy Brock, CEO) We are evaluating the potential to recover rare earth elements and critical minerals at our operations. The key question is whether we can cost-effectively extract these materials. Our large-scale operations provide a significant advantage, and we are working with technical partners to explore this opportunity further.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.