SELF INSURANCE

3 Months Ended

Mar. 31, 2025

SELF INSURANCE

SELF INSURANCE

(10) SELF-INSURANCE

We self-insure our non-leased underground mining equipment. Such equipment was allocated among four mining units dispersed over seven miles, at March 31, 2025 and December 31, 2024. The historical cost of such equipment was approximately $160.8 million and $227.8 million as of March 31, 2025, and December 31, 2024.

We also self-insure for workers’ compensation claims under a guaranteed cost program. Under this program, we are responsible for the first $1.0 million per claim up to an aggregate of $4.0 million annually. Restricted cash of $3.3 million and $3.4 million as of March 31, 2025, and December 31, 2024, respectively, represents cash held and controlled by a third party and is restricted primarily for future workers’ compensation claim payments. The Company had $4.8 million and $4.3 million of workers’ compensation reserve as of March 31, 2025 and December 31, 2024, respectively, in “accounts payable and accrued liabilities” on the condensed consolidated balance sheets.