The following is a summary of the Natural Resource Partners L.P. Common Units (NRP) Q3 2024 Earnings Conference Call Transcript:

Financial Performance:

• NRP generated a third quarter free cash flow of $55 million and a year-to-date total of $263 million.

• Net income for the third quarter was $39 million with operating cash flow also at $55 million.

• They managed to pay off the remaining $32 million of preferred securities and currently have total remaining financial obligations solely of debt at $181 million, decreased by 44% compared to last year.

• NRP intends to continue paying down debt with internally generated cash, aiming towards no competing claims on the partnership's free cash flow from common unitholders.

Business Progress:

• Reduced debt burden significantly with future plans to entirely eliminate debt to increase free cash flow available to common unitholders.

• Closed a new five-year bank credit facility, extending the revolver's maturity to October 2029, enhancing financial flexibility.

• Soda Ash business and mineral rights sectors generated substantial free cash, though face short-term pricing pressures.

Opportunities:

• NRP is exploring leasing opportunities for CO2 sequestration and renewable energy production such as lithium extraction, and solar and geothermal energy generation, as part of their carbon-neutral initiatives.

Risks:

• Persistent low prices for metallurgical and thermal coal and soda ash due to global production overcapacity and soft demand, which may continue to impact revenues negatively in the near-to-medium term.

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