INVENTORIES

3 Months Ended

Mar. 31, 2020

INVENTORIES

INVENTORIES

7.INVENTORIES

Inventories consist of the following:

	March 31,		December 31,
	2020		2019
	(in thousands)
Coal	$	86,871	$	63,645
Supplies (net of reserve for obsolescence of $5,839 and $5,555, respectively)		37,645		37,660
Total inventories, net	$	124,516	$	101,305

During the three months ended March 31, 2020, we recorded a lower of cost or net realizable value adjustment of $5.4 million to our coal inventories as a result of lower coal sale prices resulting from challenging market conditions and higher cost per ton primarily attributed to various factors lowering production and thus impacting our fixed costs per ton in addition to the impact of challenging market conditions on our production levels.  The lower of cost or net realizable value adjustments were primarily attributable to the Hamilton mining complex.