Core Natural Resources : DRAFT CNR Investor Presentation Final

Published: 2025-03-31 09:42:13 ET CNR

Core Natural Resources Investor Presentation

March 24, 2025

CORE AT A GLANCE

A Premier North American Natural Resource Company Focused on Global Markets

5,000+

employees

Decades

of high-quality reserves that will support low-cost mining at flagship longwall operations through 2050

~25

Number of countries - located on five continents - to which Core sells

$4.7 bn

2024 Revenue1

~30 mm

tons of high calorific value thermal coal sales per year

~12 mm

tons of metallurgical and crossover coal sales per year on a normalized2 basis

First Quartile

on cost curve among U.S. metallurgical and seaborne thermal coal suppliers

No. 1

supplier of High-Vol A metallurgical coal globally

High C.V. Coal

Highest calorific value thermal coal supplied to the seaborne marketplace

75%

of exports directed to steelmakers, cement manufacturers, and other infrastructure providers

90%

of projected export seaborne volumes from low-cost, world-class longwall mines

Industry Leader

in sustainability, with safety and environmental compliance record at industry forefront

1 2024 CONSOL Energy Inc. ("CONSOL") revenue of $2,236 million; 2024 Arch revenue of $2,496 million, including interest and other income to conform Arch's historical financial information to that of CONSOL

2 "Normalized" is defined as the expected run rate on an annualized basis post the resumption of longwall production at Leer South

LEADING METALLURGICAL & HIGH C.V. THERMAL PORTFOLIOS SUPPORTED BY STRATEGIC LOGISTICAL NETWORK

Vancouver Long Beach

CONSOL Marine Terminal ("CMT")

Dominion Terminal Associates ("DTA") (35% interest)

Core Natural Resources headquarters

Accessible terminal capacity

Source: SEC Filings

Houston

TWO COMPLEMENTARY, CORE LINES OF BUSINESS SERVING MULTIPLE GROWTH MARKETS & GEOGRAPHIES

CORE NATURAL RESOURCES UNDERPINNED BY TWO HIGH-QUALITY COAL PORTFOLIOS - METALLURGICAL AND HIGH C.V. THERMAL

BROAD-BASED SET OF METALLURGICAL COALS SERVING STEEL PRODUCERS GLOBALLY

IN-DEMAND HIGH CALORIFIC VALUE SEABORNE THERMAL COALS SERVING GLOBAL INDUSTRIAL, INFRASTRUCTURE, AND ENERGY CUSTOMERS

CORE SEGMENTS SERVE MULTIPLE GROWTH MARKETS AND GEOGRAPHIES WITH COMPELLING SECULAR FUNDAMENTALS

Scarcity Value

Ultra-high-calorific-value thermal coals such as those produced by Core represent just 2% of seaborne thermal coal trade

>75%

Percentage of global cement market centered in Asia, where cement makers rely heavily on high calorific value thermal coal

>4 bn

The world uses >4bn tons of cement annually, and that figure is projected to climb

Essential

Supplier to global steel and cement industry, which is critical to global decarbonization aspirations

Source: Wood Mackenzie, United Nations, U.S. Department of Transportation, International Energy Agency, World Steel Association, EIA, Vestas and Internal

>50%

Projected annual increase in global seaborne met coal demand by 2050, per consensus

1 billion

The global automotive fleet is projected to grow by ~1 billion vehicles by 2050

>100 mm Record

Tons of new, annual Demand blast furnace capacity planned for India and Southeast Asia by 2030

65%

of export volume sold into fast-growing Asian marketplace The world consumed ~8.8 billion tons of coal in 2024, an all-time high

New and planned data centers are driving increases in baseload power generation requirements in the U.S. - particularly in

Core's primary market area

CLEAR STRATEGY TO DRIVE GROWTH & CREATE SHAREHOLDER VALUE

Build on global leadership positions in two core lines of business - metallurgical and high calorific value thermal segments

• Position Core to capitalize on the rising demand for critical resources and energy around the world, with a focus on inputs for steelmaking and infrastructure development

• Focus on large, highly productive, low-cost mining operations capable of generating substantial levels of cash in a wide range of market environments

• Leverage exceptional logistical network anchored by ownership positions in two large, East Coast export terminals, as well as via strategic relationships on the West Coast and Gulf as well as at other East Coast ports

• Capture already identified synergies of $110 to $140 million while pursuing additional synergy identification and capture thereafter

Sustain ample liquidity and a well-fortified balance sheet

• Capitalize on substantial cash-generating capabilities

• Maintain financial flexibility through a combination of strong liquidity and modest debt level

• Target net debt neutral balance sheet

Execute robust capital return program

• Board views a strong capital return program as central to Core's value proposition

• Targeting return of 75% of free cash flow with vast majority of cash directed towards share repurchases complemented by a sustaining quarterly dividend of $0.10 per share

• Board has authorized $1 billion in share repurchases to support new framework

Build on longstanding position as a leader in sustainability

• Operate and manage through our core values - SAFETY, Compliance, and Continuous Improvement

• Maintain longstanding track record of excellence in mine safety and environmental compliance

Core is strategically positioned to serve two constructive and growing segments of the global coal

market

GLOBAL SEABORNE DEMAND FOR METALLURGICAL COAL IS EXPECTED TO GROW STEADILY & CONSISTENTLY THROUGH MID-CENTURY

Projected Global Seaborne Metallurgical Imports, Through 2050

(in millions of metric tons)

500

400

300

200

100

8 Source: Wood Mackenzie, AME, Internal

• Global seaborne coking coal demand is expected to continue to climb through 2050, buoyed by continued economic development and urbanization in India and the rest of Southeast Asia

• Approximately 60% of the world's population lives in Asia, where metallurgical coal demand is centered and where indigenous sources of metallurgical coal are limited

• Based on the consensus estimate, demand - in aggregate - is expected to total more than 11 billion tons between now and 2050, which will significantly strain supply availability

PROJECTED STEEL CAPACITY GROWTH IN SOUTHEAST ASIA

IS PROJECTED TO BE SIGNIFICANT & LARGELY BLAST FURNACE DRIVEN

(in millions of metric tons)

Source: Public Information, Company Filings, Internal, Wood Mackenzie, World Steel Association

Planned Steel Capacity Additions, By Technology

Wood Mackenzie estimates that Southeast Asia's steel production will grow by more than 55% from 2024 to 2030 - from 59 million tons to 93 million tons - mostly via the blast furnace route

METALLURGICAL SEGMENT

LONG-RUN METALLURGICAL COAL PRICING HAS SHIFTED HIGHER

The average long-run coking coal price continues to shift higher in the face of limited new investment, ESG pressures, and supportive long-term demand

• The coking coal benchmark has averaged $243 per metric ton on an inflation-adjusted basis since 2005

• Core expects volatility to continue, but potentially with an upward bias as mining costs increase over time due to ongoing under-investment coupled with reserve degradation and depletion and policy measures

Annual Average Hard Coking Coal Price

(US$ per metric ton, inflation adjusted)

$400

$300

$200

$100

2005

2007

2009

2024 US$

2011

2013

2015

Mean Price 2020 - 2024

2017

2019

2021

Mean Price 2005 - 2024

2023

Source: Bloomberg, Public Information, BLS, Internal Note: 2024 real dollars

Disclaimer

Core Natural Resources, Inc. published this content on March 31, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on March 31, 2025 at 13:41 UTC.