Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

LEASES:

The Company has operating leases for mining and other equipment used in operations and office space. Many leases include one or more options to renew, some of which include options to extend, the leases, and some leases include options to terminate or buy out the leases within a set period of time. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for inflation and/or changes in other indexes. Many of the Company's operating lease payments for mining equipment contain a variable component which is calculated based upon production metrics such as feet of advance or raw tonnage mined. While most of the Company's leases contain clauses regarding the general condition of the equipment upon lease termination, they do not contain residual value guarantees.

The Company determines if an arrangement is an operating or finance lease at inception of the applicable lease. For leases where the Company is the lessee, Right of Use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives received, and costs which will be incurred in exiting a lease. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the interest method of recognition. Further, the Company made an accounting policy election not to apply the recognition and measurement requirements to short-term leases, defined as leases with an initial term of twelve months or less. The Company will recognize those lease payments in the Consolidated Statements of Income over the lease term. For the years ended December 31, 2024 and 2023, these short-term lease expenses were not material to the Company's financial statements.

For the years ended December 31, 2024 and 2023, the components of operating lease expense were as follows:

	December 31,
	2024		2023
Fixed operating lease expense	$	4,850	$	6,447
Variable operating lease expense	6,373		8,358
Total operating lease expense	$	11,223	$	14,805

Supplemental cash flow information related to the Company's operating leases for the years ended December 31, 2024 and 2023 was as follows:

	December 31,
	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,787	$	6,148

The following table presents the lease balances within the Consolidated Balance Sheets, weighted average lease term, and the weighted average discount rate related to the Company's operating leases at December 31, 2024 and 2023:

		December 31,
Lease Assets and Liabilities	Classification	2024			2023
Assets:
Operating Lease ROU Assets	Other Assets	$	5,513		$	14,658
Liabilities:
Current:
Operating Lease Liabilities	Operating Lease Liabilities	$	612		$	4,769
Long-Term:
Operating Lease Liabilities	Operating Lease Liabilities	$	5,466		$	10,385
Total Operating Lease Liabilities		$	6,078		$	15,154
Weighted average remaining lease term (in years)		7.92			4.46
Weighted average discount rate		7.74		%	7.21		%

The Company also enters into finance leases for mining equipment and automobiles. Assets arising from finance leases are included in property, plant and equipment-net and the liabilities are included in current portion of long-term debt and long-term debt in the accompanying Consolidated Balance Sheets.

For the years ended December 31, 2024 and 2023, the components of finance lease expense were as follows:

	December 31,
	2024		2023
Amortization of right of use assets	$	9,814	$	25,400
Interest expense	1,079		1,712
Total finance lease expense	$	10,893	$	27,112

The following table presents the weighted average lease term and weighted average discount rate related to the Company's finance leases as of December 31, 2024 and 2023:

	December 31, 2024		December 31, 2023
Weighted average remaining lease term (in years)	2.93		1.64
Weighted average discount rate	6.59	%	6.68	%

The following table presents the future maturities of the Company's operating and finance lease liabilities, together with the present value of the net minimum lease payments, at December 31, 2024:

	Finance Leases		Operating Leases
2025	$	10,241	$	1,058
2026	7,527		932
2027	7,318		967
2028	1,661		975
2029	102		995
Thereafter	—		3,312
Total minimum lease payments	26,849		8,239
Less amount representing interest	2,654		2,161
Present value of minimum lease payments	$	24,195	$	6,078

Leases

LEASES:

The Company has operating leases for mining and other equipment used in operations and office space. Many leases include one or more options to renew, some of which include options to extend, the leases, and some leases include options to terminate or buy out the leases within a set period of time. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for inflation and/or changes in other indexes. Many of the Company's operating lease payments for mining equipment contain a variable component which is calculated based upon production metrics such as feet of advance or raw tonnage mined. While most of the Company's leases contain clauses regarding the general condition of the equipment upon lease termination, they do not contain residual value guarantees.

The Company determines if an arrangement is an operating or finance lease at inception of the applicable lease. For leases where the Company is the lessee, Right of Use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives received, and costs which will be incurred in exiting a lease. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the interest method of recognition. Further, the Company made an accounting policy election not to apply the recognition and measurement requirements to short-term leases, defined as leases with an initial term of twelve months or less. The Company will recognize those lease payments in the Consolidated Statements of Income over the lease term. For the years ended December 31, 2024 and 2023, these short-term lease expenses were not material to the Company's financial statements.

For the years ended December 31, 2024 and 2023, the components of operating lease expense were as follows:

	December 31,
	2024		2023
Fixed operating lease expense	$	4,850	$	6,447
Variable operating lease expense	6,373		8,358
Total operating lease expense	$	11,223	$	14,805

Supplemental cash flow information related to the Company's operating leases for the years ended December 31, 2024 and 2023 was as follows:

	December 31,
	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,787	$	6,148

The following table presents the lease balances within the Consolidated Balance Sheets, weighted average lease term, and the weighted average discount rate related to the Company's operating leases at December 31, 2024 and 2023:

		December 31,
Lease Assets and Liabilities	Classification	2024			2023
Assets:
Operating Lease ROU Assets	Other Assets	$	5,513		$	14,658
Liabilities:
Current:
Operating Lease Liabilities	Operating Lease Liabilities	$	612		$	4,769
Long-Term:
Operating Lease Liabilities	Operating Lease Liabilities	$	5,466		$	10,385
Total Operating Lease Liabilities		$	6,078		$	15,154
Weighted average remaining lease term (in years)		7.92			4.46
Weighted average discount rate		7.74		%	7.21		%

The Company also enters into finance leases for mining equipment and automobiles. Assets arising from finance leases are included in property, plant and equipment-net and the liabilities are included in current portion of long-term debt and long-term debt in the accompanying Consolidated Balance Sheets.

For the years ended December 31, 2024 and 2023, the components of finance lease expense were as follows:

	December 31,
	2024		2023
Amortization of right of use assets	$	9,814	$	25,400
Interest expense	1,079		1,712
Total finance lease expense	$	10,893	$	27,112

The following table presents the weighted average lease term and weighted average discount rate related to the Company's finance leases as of December 31, 2024 and 2023:

	December 31, 2024		December 31, 2023
Weighted average remaining lease term (in years)	2.93		1.64
Weighted average discount rate	6.59	%	6.68	%

The following table presents the future maturities of the Company's operating and finance lease liabilities, together with the present value of the net minimum lease payments, at December 31, 2024:

	Finance Leases		Operating Leases
2025	$	10,241	$	1,058
2026	7,527		932
2027	7,318		967
2028	1,661		975
2029	102		995
Thereafter	—		3,312
Total minimum lease payments	26,849		8,239
Less amount representing interest	2,654		2,161
Present value of minimum lease payments	$	24,195	$	6,078