Core Natural Resources has resumed longwall operations at its Leer South metallurgical mine in Barbour County, West Virginia, after a combustion event that forced the mine to shut down on January 13, 2025. The company recovered 209 hydraulic shields, the face conveyor, shearer, stage loader, crusher, and power system, and permanently sealed the affected area to eliminate future risks.
The restart is expected to restore the mine’s full production capacity, cut idling costs, and improve cash flow. In the first quarter of 2025 the company reported a net loss of $69.3 million and adjusted EBITDA of $123.5 million on revenue of $1.017 billion. The outage at Leer South contributed to the loss, but the metallurgical segment performed as expected, with 2.3 million tons sold during the quarter.
Core’s West Elk longwall mine in Colorado is now operating at consistent productivity levels after transitioning to the B‑Seam. The shift, completed in early 2025, is expected to sustain the mine’s output and support the company’s 2025 production outlook.
Management emphasized the strategic importance of the restart. Chairman and CEO Jimmy Brock said, “Leer South is a highly strategic asset, and we fully expect this world‑class operation to execute at a high level in 2026 and beyond.” CEO Paul Lang highlighted progress in integrating the merged businesses, while CFO Mitesh Thakkar noted that the company’s liquidity remains strong, with $858.3 million on hand at the end of March 2025 and a capital return program targeting 75 % of free cash flow.
The operational restart will add an estimated 0.5 million tons of production in 2026, reduce idling costs by an estimated $10 million annually, and support a projected increase in free cash flow. Insurance recoveries related to the combustion event are expected to exceed $100 million, further offsetting the outage’s impact. Core reaffirmed its full‑year 2025 guidance in May 2025, raising revenue guidance and maintaining an adjusted EBITDA target that reflects the company’s confidence in its operational resilience.
The event signals Core’s ability to recover from a significant incident and maintain momentum in its post‑merger integration, reinforcing investor confidence in the company’s long‑term execution strategy.
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