SUNCOKE ENERGY: Administration Dialogue and Evaluation of Monetary Place and Working Outcomes (Kind 10-Okay)

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This Annual Report on Kind 10-Okay incorporates sure forward-looking statements of
anticipated future developments, as outlined within the Non-public Securities Litigation
Reform Act of 1995. This dialogue incorporates forward-looking statements about
our enterprise, operations and business that contain dangers and uncertainties, such
as statements relating to our plans, aims, expectations and intentions. Our
future outcomes and monetary situation might differ materially from these we
at present anticipate on account of the components we describe below "Cautionary
Assertion Regarding Ahead-Trying Statements" and "Threat Elements."
At present, such dangers and uncertainties additionally embrace, amongst others: SunCoke's
potential to handle its enterprise throughout and after the COVID-19 pandemic; the
affect of the COVID-19 pandemic on SunCoke's outcomes of operations, revenues,
earnings and money flows; SunCoke's potential to cut back prices and capital spending
in response to the COVID-19 pandemic; SunCoke's stability sheet and liquidity
all through and following the COVID-19 pandemic; SunCoke's prospects for
monetary efficiency and achievement of strategic aims following the
COVID-19 pandemic; capital allocation technique following the COVID-19 pandemic;
and the final affect on our business and on the U.S. and international financial system
ensuing from COVID-19, together with actions by home and overseas governments
and others to include the unfold, or mitigate the severity, thereof.
This Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of
Operations ("MD&A") is predicated on monetary information derived from the monetary
statements ready in accordance with United States ("U.S.") usually accepted
accounting ideas ("GAAP") and sure different monetary information that's ready
utilizing a non-GAAP measure. For a reconciliation of the non-GAAP measure to the
most comparable GAAP part, see "Non-GAAP Monetary Measures" on the finish of
this Merchandise and Word 20 to our consolidated monetary statements.
Our MD&A is offered along with the accompanying consolidated monetary
statements and notes to help readers in understanding our outcomes of
operations, monetary situation and money flows. Our outcomes of operations
embrace reference to our enterprise operations and market situations, that are
additional described in Half I of this doc.
2020 Overview
Our consolidated outcomes of operations in 2020 had been as follows:
                                             Yr Ended December 31, 2020
                                                ({Dollars} in tens of millions)
Internet earnings                                  $                        8.8
Internet money offered by working actions   $                      157.8
Adjusted EBITDA                             $                      205.9


With the brand new challenges of the COVID-19 pandemic, the Firm revised our key
aims in 2020 and delivered towards these aims, together with:
•Efficiently navigated by the continuing COVID-19 pandemic. On March 11,
2020, the World Well being Group declared the outbreak of COVID-19 a
pandemic. Our services continued to function in the course of the COVID-19 pandemic due
to our inclusion within the Vital Manufacturing Sector as outlined by the U.S.
Division of Homeland Safety and the designation as a vital enterprise by
state and native authorities authorities.
Our high precedence has been and continues to be the security and well being of our
staff and contractors. In response to the outbreak, we established an
inner job pressure of subject material specialists, initiated enhanced well being and
security measures throughout our services and enacted a earn a living from home program for
all qualifying personnel. We've applied screening procedures constant
with U.S. Facilities for Illness Management and Prevention ("CDC") suggestions,
which can embrace screening questionnaires and temperature checks for workers,
contractors, or different service suppliers. Moreover, to make sure worker
security, we've additionally adopted protocols in line with CDC, state, and native
steering, which embrace however will not be restricted to elevated cleansing and
disinfection, social distancing, bodily separations, masks necessities,
contact tracing and quarantine.
We proceed to intently monitor the affect of the outbreak of COVID-19 on all
facets of our enterprise, together with the way it has and can affect our suppliers. We
haven't skilled any vital impacts or interruptions with respect to
our potential to acquire coal on account of COVID-19, and we'll proceed to
intently monitor our stock ranges to mitigate the chance of any potential
provide interruptions.
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•Achieved revised monetary aims. Because of the discount in coke
volumes throughout 2020 additional mentioned beneath, in August 2020, we revised our 2020
steering vary for Adjusted EBITDA from $235 million to $245 million to $190
million to $200 million in addition to our steering for money generated from
working actions from roughly $170 million to $180 million to
roughly $116 million to $136 million. We delivered Adjusted EBITDA of
$205.9 million, and generated $157.8 million of working money stream, each of
which exceeded our revised steering, and internet earnings of $8.8 million. Robust
efficiency from our Home Coke operations, coupled with wonderful
company-wide price administration drove the monetary efficiency in extra of the
revised steering. See Word 20 in our consolidated monetary statements for each
the definition of Adjusted EBITDA and the reconciliation from GAAP to the
non-GAAP measurement.
•Supported buyer base and executed profitable aid negotiations.
Steelmaking clients confronted a difficult setting in 2020. In response to
the decline in finish consumer demand in addition to in an effort to gradual the unfold of
COVID-19, finish consumer producers started idling vegetation, which immediately and
adversely impacted our clients. In an effort to assist navigate by this
difficult setting, SunCoke labored with our clients to supply near-term
coke provide aid in trade for extending sure contracts. The actions we
have taken, along with our clients, addressed all of the near-term contracts
that had been approaching expiration, additional strengthened our long-term buyer
relationships and add significant certainty and stability to our enterprise. See
additional dialogue of the main points of those contract amendments in "Objects
Impacting Comparability."
In December 2020, CMT entered right into a long-term, take-or-pay supplies dealing with
and storage settlement with Javelin World Commodities (UK) Ltd ("Javelin"),
which incorporates 4 million tons in 2021 and three million tons in 2022.
•Continued to pursue balanced capital allocation. We returned significant capital
to shareholders by the repurchase of 1.6 million shares throughout 2020 for
$7.0 million and the declaration and cost of a dividend of $0.06 per share
throughout every quarter of 2020. Moreover, we diminished our complete debt by
roughly $110 million in 2020, and we stay targeted on additional
strengthening our stability sheet.
•Maintained asset integrity for long-term viability. We've ensured that our
belongings are safeguarded all through the COVID-19 pandemic to attenuate any
potential damaging monetary affect within the long-term, and we ensured our asset
base was correctly maintained, whilst working ranges fluctuated.
Our Focus and Outlook for 2021
Throughout 2021, our main focus will likely be to:
•Ship operations excellence and optimize asset base. We proceed to count on
sturdy operational and security efficiency whereas optimizing asset utilization, as
effectively as efficiently executing on our 2021 capital plan. We plan to spend
roughly $80 million on capital expenditures in 2021, which is barely
greater than regular expectations for on-going capital expenditure ranges.
•Help full capability utilization by way of export and foundry gross sales. We are going to work
in the direction of securing extra commitments and clients for our foundry coke and
export gross sales agreements, enabling our Home Coke fleet to function at full
capability in 2021.
•Place coke enterprise and CMT for long-term success. We proceed to deal with
revitalizing CMT with new product and buyer combine. CMT is a sexy
terminal for varied varieties of clients because it is among the largest export
terminals on the U.S. Gulf Coast and gives strategic entry to seaborne
markets. Repositioning CMT from primarily a coal export terminal to a
broad-based and diversified terminal will likely be important for the continued success
of our logistics enterprise.
With profitable aid negotiations and contract extensions executed with our
coke clients in 2020, we'll work in the direction of additional enhancing our buyer
contracts and offering long-term stability to our coke operations.
•Additional stabilize and strengthen SunCoke capital construction. In 2020, we made
vital progress on our capital allocation priorities by decreasing our debt,
investing in our belongings and returning capital to our shareholders. Our
priorities in 2021 stay unchanged.
•Obtain monetary aims. We count on to ship Adjusted EBITDA of between
$215 million and $230 million and working money stream of between $160 million
and $180 million. The anticipated progress in Adjusted EBITDA is pushed primarily
from the Home Coke fleet working at full capability in 2021, in addition to
greater volumes at our Logistics services, primarily pushed by our new coal
dealing with settlement between Javelin and CMT.

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Objects Impacting Comparability
•Buyer Contract Amendments. Because of the market challenges offered by
the present COVID-19 international pandemic, SunCoke executed contract amendments with
its steelmaking clients to supply near-term coke provide aid in trade
for extending sure contracts.
In July 2020, SunCoke reached an settlement with Cliffs Metal for a provide
discount of 200 thousand tons of coke in 2020, together with a 125 thousand ton
discount at Haverhill II and a 75 thousand ton discount at Middletown, in
trade for extending the Haverhill II contract from December 31, 2021 to June
30, 2023. Subsequent to those amendments, in October 2020, the Haverhill II
contract was additional prolonged to June 30, 2025. Key provisions of the settlement,
together with pass-through of coal prices, reimbursement of working and upkeep
bills topic to sure metrics, and pricing stay unchanged.
Additionally in July 2020, SunCoke reached an settlement with AM USA, now often known as Cliffs
Metal, to cut back provide by roughly 300 thousand coke tons in 2020 in
trade for extending the Haverhill I and Jewell contracts to December 31,
2025. Beneath the brand new contracts, SunCoke will produce a mixed 800 thousand tons
for the 2021 contract yr and a mixed 400 thousand tons on an annualized
foundation for the 2022 by 2025 contract years.
These buyer contract amendments resulted in a discount of anticipated 2020
Adjusted EBITDA of roughly $20 million, internet of price financial savings.
•Simplification Transaction. The Partnership, a wholly-owned subsidiary of
SunCoke, owns our Haverhill, Middletown, and Granite Metropolis cokemaking services
and Convent Marine Terminal ("CMT"), Kanawha River Terminal ("KRT") and SunCoke
Lake Terminal ("Lake Terminal"). Previous to June 28, 2019, SunCoke owned a 60.4
p.c restricted companion curiosity within the Partnership, a then publicly traded
grasp restricted partnership, in addition to our 2.0 p.c normal companion curiosity.
The remaining 37.6 p.c restricted companion curiosity within the Partnership was held
by public unitholders. On June 28, 2019, the Firm acquired all 17,727,249
excellent widespread items of the Partnership not already owned by SunCoke in
trade for twenty-four,818,149 newly issued SunCoke widespread shares within the Simplification
Transaction. Moreover, the ultimate pro-rated quarterly Partnership
distribution was settled with 635,502 newly issued SunCoke widespread shares.
Following the completion of the Simplification Transaction, the Partnership
turned a wholly-owned subsidiary of SunCoke. As of January 1, 2020, the
Partnership merged with and into SunCoke Power Companions Finance Corp., which is
additionally a wholly-owned subsidiary of the Firm.
The Simplification Transaction was accounted for as a non-cash fairness
transaction, and no acquire or loss was acknowledged in our Consolidated Statements
of Operations for this transaction. The Firm incurred transaction prices
totaling $11.0 million, of which $5.4 million had been incurred by SunCoke and had been
capitalized as a discount to extra paid-in capital on the Consolidated
Stability Sheets. The remaining transaction prices had been incurred by the Partnership
leading to $4.9 million and $0.4 million of expense included in promoting,
normal and administrative bills on the Consolidated Statements of Operations
for the years ended December 31, 2019, and 2018, respectively. Subsequent to the
closing of the Simplification Transaction, SunCoke incurred $0.3 million of
authorized and consulting prices, which had been included in promoting, normal and
administrative bills on the Consolidated Statements of Operations. All
transaction prices had been excluded from Adjusted EBITDA.
With the closing of the Simplification Transaction, the earnings beforehand
attributable to noncontrolling curiosity within the Partnership turned one hundred pc
attributable to SunCoke and, due to this fact, and is now taxable to the Firm.
•Antagonistic Logistics Buyer Developments. A good portion of our logistics
enterprise has traditionally been from long-term, take-or-pay contracts with Murray
American Coal, Inc. ("Murray") and Foresight Power LLC ("Foresight"), which
had been adversely impacted by declining coal export costs and home demand.
Murray filed for Chapter 11 chapter on October 29, 2019. Foresight engaged
outdoors counsel and monetary advisors to evaluate restructuring choices throughout
2019 and subsequently filed for Chapter 11 chapter on March 10, 2020. Each
Murray and Foresight's contracts with CMT had been subsequently rejected by the
chapter courts.
Because of these developments, throughout 2019, the Firm recorded non-cash,
pre-tax impairment expenses to the Logistics phase on the Consolidated
Statements of Operations of $247.4 million, of which $73.5 million represented a
full write-down of the Logistics goodwill stability, in addition to a $113.3 million
impairment of CMT's long-lived intangible belongings and a $60.6 million impairment
of CMT's properties, vegetation and gear.
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See Word 8 to our consolidated monetary statements. These non-cash impairment
expenses resulted in a $69.1 million earnings tax profit in 2019.
Consolidated Outcomes of Operations
The next part consists of year-over-year evaluation of consolidated outcomes
of operations for the yr ended December 31, 2020 as in comparison with the yr ended
December 31, 2019. See "Evaluation of Section Outcomes" later on this part for
additional particulars of those outcomes. Confer with Administration's Dialogue and Evaluation
of Monetary Situation and Outcomes of Operations in our 2019 Annual Report on
Kind 10-Okay for the year-over-year evaluation of consolidated outcomes of operations
for the yr ended December 31, 2019 as in comparison with the yr ended December 31,
2018.
                                                                         Years Ended December 31,
                                                                                                                         Improve
                                                                         2020                    2019                   (Lower)
                                                                             ({Dollars} in tens of millions)
Revenues
Gross sales and different working income                                $     1,333.0$ 1,600.3$     (267.3)
Prices and working bills
Price of merchandise offered and working bills                           1,048.2                 1,277.6                      (229.4)
Promoting, normal and administrative bills                              81.4                    75.8                         5.6
Depreciation and amortization expense                                    133.7                   143.8                       (10.1)
Lengthy-lived asset and goodwill impairment(1)                                  -                   247.4                      (247.4)
Whole prices and working bills                                     1,263.3                 1,744.6                      (481.3)
Working earnings (loss)                                                   69.7                  (144.3)                      214.0
Curiosity expense, internet                                                     56.3                    60.3                        (4.0)
Achieve on extinguishment of debt, internet                                       (5.7)                   (1.5)                       (4.2)
Revenue (loss) earlier than earnings tax expense (profit)                         19.1                  (203.1)                      222.2
Revenue tax expense (profit)                                              10.3                   (54.7)                       65.0
Internet earnings (loss)                                                          8.8                  (148.4)                      157.2
Much less: Internet earnings attributable to noncontrolling pursuits                  5.1                     3.9                         1.2
Internet earnings (loss) attributable to SunCoke Power, Inc.           $         3.7               $  (152.3)$      156.0


(1)See year-over-year modifications described in "Objects Impacting Comparability."
Gross sales and Different Working Income and Prices of Merchandise Bought and Working
Bills. Gross sales and different working income and prices of merchandise offered and
working bills decreased in 2020 as in comparison with 2019, primarily because of the
pass-through of decrease coal costs in addition to the affect of quantity aid
offered to our clients impacted by the COVID-19 pandemic in our Home Coke
phase. Revenues additional declined on account of decrease volumes in our Logistics
phase.
Promoting, Common and Administrative Bills. The rise in promoting, normal
and administrative expense was pushed by analysis and improvement prices associated
to foundry coke manufacturing of $3.9 million, greater expense of $2.0 million as a
results of revaluing sure legacy liabilities in addition to prices incurred to
resolve sure authorized issues. These will increase had been partly offset by decrease
worker associated bills throughout 2020 as in comparison with 2019 in addition to the absence
of $4.9 million of transaction prices incurred throughout 2019.
Depreciation and Amortization Expense. The lower in depreciation and
amortization expense throughout 2020 was partly pushed by the impairment of our
Logistics belongings throughout 2019, which lowered the carrying worth of these belongings
and decreased the associated depreciation expense, in addition to the absence of
accelerated depreciation related to upgrades to sure warmth restoration steam
turbines, which was recorded in 2019. These decreases had been partially offset by
depreciation in 2020 on belongings newly positioned in service, primarily associated to the
completion of rebuilt ovens at Indiana Harbor close to the top of 2019, which
elevated depreciation $8.1 million in 2020 as in comparison with 2019.
Curiosity Expense, internet. Weighted common debt balances throughout 2020 and 2019 had been
$785.8 million and $845.0 million, respectively. Weighted common rates of interest
throughout 2020 and 2019 had been 6.74 p.c and seven.16 p.c, respectively, ensuing
in associated curiosity expense of $52.9 million and $60.5 million, respectively. A
discount in LIBOR-based rates of interest and decrease rates of interest on our
revolving facility on account of the restructuring within the third quarter of
2019, in addition to
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decrease balances on our greater rate of interest debt because of the repurchases of our
Senior Notes in 2020 resulted in decrease weighted common rates of interest in 2020
as in comparison with 2019.
Revenue Taxes. The earnings tax expense recorded was $10.3 million in 2020 in contrast
to an earnings tax advantage of $54.7 million in 2019. Sure discrete gadgets, such
as pre-tax impairment expenses recorded to our Logistics belongings mentioned in
"Objects Impacting Comparability" and the revaluation of sure deferred tax
belongings mentioned in Word 5 to our consolidated monetary statements impacted
comparability between intervals.
Noncontrolling Curiosity. Revenue attributable to noncontrolling curiosity
represents the widespread public unitholders' curiosity within the Partnership previous to
the closing of the Simplification Transaction in addition to a third-party curiosity
in our Indiana Harbor cokemaking facility. The next desk gives particulars
into internet earnings attributable to noncontrolling curiosity.

Years accomplished the thirty first of December,

                                                                                 2020                2019

Internet earnings attributable to the participation of third events in our Indiana Harbor coker manufacturing facility

$ 5.1 1.3 USD
Internet earnings attributable to widespread public unitholders of the restricted partnership

                                                                            -               2.6
Internet earnings attributable to noncontrolling curiosity

$ 5.1 $ 3.9

The completion of the Indiana Harbor oven rebuild venture throughout 2019 improved
working outcomes, leading to a rise in internet earnings attributable to
third-party curiosity in our Indiana Harbor cokemaking facility.
Outcomes of Reportable Enterprise Segments
We report our enterprise outcomes by three segments:
•Home Coke consists of our Jewell facility, situated in Vansant, Virginia,
our Indiana Harbor facility, situated in East Chicago, Indiana, our Haverhill
facility, situated in Franklin Furnace, Ohio, our Granite Metropolis facility situated
in Granite Metropolis, Illinois, and our Middletown facility situated in Middletown,
Ohio.
•Brazil Coke consists of operations in Vitória, Brazil, the place we function the
ArcelorMittal Brazil cokemaking facility.
•Logistics consists of Convent Marine Terminal ("CMT"), situated in Convent,
Louisiana, Kanawha River Terminal ("KRT"), situated in Ceredo and Belle, West
Virginia, SunCoke Lake Terminal ("Lake Terminal"), situated in East Chicago,
Indiana, and Dismal River Terminal ("DRT"), situated in Vansant, Virginia. Lake
Terminal and DRT are situated adjoining to our Indiana Harbor and Jewell
cokemaking services, respectively.
The operations of every of our segments are described in Half I of this doc.
Company bills that may be recognized with a phase have been included in
figuring out phase outcomes. The rest is included in Company and Different,
together with exercise from our legacy coal mining enterprise.
Administration believes Adjusted EBITDA is a crucial measure of working
efficiency and makes use of it as the first foundation for the chief working resolution
maker to guage the efficiency of every of our reportable segments. Adjusted
EBITDA shouldn't be thought-about an alternative to the reported outcomes ready
in accordance with GAAP. See Word 20 to our consolidated monetary statements.
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Section Working Information
The next desk units forth monetary and working information by phase for the
years ended December 31, 2020 and 2019:
                                                                   Years Ended December 31,
                                                                                                                Improve
                                                                   2020                 2019                   (Lower)
                                                                 ({Dollars} in tens of millions, besides per ton
                                                                               quantities)
Gross sales and different working income:
Home Coke                                                 $    1,265.4$ 1,489.1$     (223.7)
Brazil Coke                                                           31.6               38.4                        (6.8)
Logistics                                                             36.0               72.8                       (36.8)
Logistics intersegment gross sales                                          22.1               26.3                        (4.2)
Elimination of intersegment gross sales                                    (22.1)             (26.3)                        4.2
Whole gross sales and different working income                       $    1,333.0$ 1,600.3$     (267.3)
Adjusted EBITDA(1):
Home Coke                                                 $      217.0$   226.7$       (9.7)
Brazil Coke                                                           13.5               16.0                        (2.5)
Logistics                                                             17.3               42.6                       (25.3)
Company and Different, together with legacy prices, internet(2)                  (41.9)             (37.4)                       (4.5)
Adjusted EBITDA                                               $      205.9$   247.9$      (42.0)
Coke Working Information:
Home Coke capability utilization (%)                                  91                 98                          (7)
Home Coke manufacturing volumes (hundreds of tons)                 3,840              4,168                        (328)
Home Coke gross sales volumes (hundreds of tons)                      3,789              4,171                        (382)
Home Coke Adjusted EBITDA per ton(3)                      $      57.27$   54.35$       2.92

Brazilian coke manufacturing facility (in hundreds of tonnes)

                                                                1,396              1,641                        (245)
Logistics Working Information:
Tons dealt with (hundreds of tons)(4)                                 14,678             21,053                      (6,375)


(1)See Word 20 in our consolidated monetary statements for each the definition
of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement
for the years ended December 31, 2020, 2019 and 2018.
(2)Company and Different consists of the exercise from our legacy coal mining
enterprise, which incurred Adjusted EBITDA losses of $13.2 million and $11.2
million for the years ended December 31, 2020 and 2019, respectively.
Moreover, Company and Different consists of foundry associated analysis and
improvement prices of $3.9 million throughout 2020.
(3)Displays Home Coke Adjusted EBITDA divided by Home Coke gross sales
volumes.
(4)Displays inbound tons dealt with in the course of the interval.
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Evaluation of Section Outcomes
Home Coke
The next desk explains year-over-year modifications in our Home Coke
phase's gross sales and different working revenues and Adjusted EBITDA outcomes:
                                                    Gross sales and different
                                                   working income       Adjusted EBITDA
                                                      2020 vs 2019                                   2020 vs 2019
                                                            ({Dollars} in tens of millions)
Starting                                         $         1,489.1                               $         226.7
Volumes(1)                                                   (113.5)                                        (34.1)
Coal price restoration and yields(2)                             (116.7)                                         (0.3)
Working and upkeep prices(3)                              3.2                                          28.7
Power and different(4)                                             3.3                                          (4.0)
Ending                                            $         1,265.4                               $         217.0


(1)Improved efficiency from rebuilt ovens at our Indiana Harbor facility
elevated volumes, which elevated gross sales and different working revenues and
Adjusted EBITDA by $47.2 million and $14.1 million, respectively. This improve
was greater than offset by the amount aid offered to our clients impacted by
the COVID-19 pandemic starting in the course of the second quarter 2020.
(2)The move by of decrease coal costs resulted within the decline in revenues as
effectively as decrease coal-to-coke yields.
(3)Adjusted EBITDA benefited from decrease working and upkeep prices throughout
the fleet in addition to the absence of prices associated to the Indiana Harbor oven
rebuild initiative.
(4)Revenues benefited from foundry coke gross sales of $4.1 million in addition to the
move by of upper transportation prices. Revenues and Adjusted EBITDA
decreased with decrease power manufacturing ranges on account of quantity aid
mentioned above.
Logistics
The next desk explains year-over-year modifications in our Logistics phase's
gross sales and different working revenues and Adjusted EBITDA outcomes:
                                                   Gross sales and different
                                                  working income,
                                                     inclusive of
                                                  intersegment gross sales     Adjusted EBITDA
                                                     2020 vs 2019                                  2020 vs 2019
                                                           ({Dollars} in tens of millions)
Starting                                         $          99.1                               $          42.6
Transloading volumes(1)                                     (27.5)                                        (22.1)
Worth/margin affect of combine in transloading
companies                                                     (6.4)                                         (6.4)
Different(2)                                                     (7.1)                                          3.2
Ending                                            $          58.1                               $          17.3


(1)Decrease volumes had been primarily the results of decrease demand and depressed thermal
coal export pricing, which adversely impacted main logistics clients at CMT.
The COVID-19 pandemic additional impacted volumes.
(2)Ancillary revenues, primarily for prices handed by to the client,
declined with the lower in volumes. Adjusted EBITDA benefited from decrease
working and upkeep prices.
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Brazil Coke
Gross sales and different working income decreased $6.8 million, or 18 p.c, to
$31.6 million in 2020 in comparison with $38.4 million in 2019, reflecting decrease
volumes in addition to the affect of unfavorable modifications in overseas foreign money charges.
Adjusted EBITDA decreased $2.5 million, or 16 p.c, to $13.5 million in 2020
in comparison with $16.0 million in 2019, reflecting decrease volumes.
Company and Different
Company and Different bills, which embrace prices associated to our legacy coal
mining enterprise, elevated $4.5 million, or 12 p.c, to $41.9 million in 2020
as in comparison with $37.4 million in 2019. This improve was pushed by foundry
associated analysis and improvement prices of $3.9 million in addition to greater legacy
prices of roughly $2.0 million throughout 2020. These will increase to company
and different expense had been partly offset by decrease worker associated bills.
Liquidity and Capital Assets
Our main liquidity wants are to fund working capital, fund investments,
service our debt, preserve money reserves and substitute partially or absolutely
depreciated belongings and different capital expenditures. Our sources of liquidity
embrace money generated from operations, borrowings below our revolving credit score
facility and, once in a while, debt and fairness choices. We imagine our
present assets are enough to fulfill our working capital necessities for
our present enterprise for no less than the subsequent 12 months and thereafter for the
foreseeable future. Nonetheless, the Firm continues to guage whether or not any
borrowings or different actions are wanted to safeguard the enterprise amidst the
fluid market situations and the uncertainty across the magnitude and length of
the COVID-19 pandemic. As of December 31, 2020, we had $48.4 million of money and
money equivalents and $299.9 million of borrowing availability below our credit score
facility.
We might, once in a while, search to retire or buy extra quantities of our
excellent fairness and/or debt securities by money purchases and/or
exchanges for different securities, in open market purchases, privately negotiated
transactions or in any other case. Such repurchases or exchanges, if any, will rely on
prevailing market situations, our liquidity necessities, contractual
restrictions and different components. The quantities concerned could also be materials. Confer with
additional liquidity dialogue beneath in addition to to Word 12 to our consolidated
monetary statements and "Half I - Merchandise 5 - Marketplace for Registrant's Frequent
Fairness, Associated Stockholders Issues and Issuer Purchases of Fairness Securities."
Throughout the first quarter of 2020, the U.S. Division of Labor's Division of
Coal Mine Employees' Compensation ("DCMWC") requested SunCoke present extra
collateral of roughly $32 million to safe sure of its black lung
obligations. SunCoke exercised its proper to attraction the DCMWC's dedication and
offered extra data supporting the Firm's place in Could 2020.
If the Firm's attraction is unsuccessful, the Firm could also be required to supply
extra collateral to obtain its self-insurance reauthorization from the
DCMWC, which might probably cut back the Firm's liquidity. See additional
dialogue in Word 13 to our consolidated monetary statements.
Money Move Abstract
The next desk units forth a abstract of the web money offered by (utilized in)
working, investing and financing actions for the years ended December 31,
2020 and 2019:
                                                                       Years Ended December 31,
                                                                       2020                 2019
                                                                        ({Dollars} in tens of millions)
Internet money offered by working actions                        $       157.8$    181.9
Internet money utilized in investing actions                                    (75.3)             (109.8)
Internet money utilized in financing actions                                   (131.2)             (120.7)
Internet (lower) improve in money and money equivalents             $

(48.7) (48.6) $

Money Supplied by Working Actions
Internet money offered by working actions decreased by $24.1 million to $157.8
million in 2020 as in comparison with 2019, reflecting decrease working outcomes pushed
by decrease volumes. Main working capital, which is comprised of accounts
receivable, inventories and accounts payable, additionally resulted in a $5.8 million
lower in 2020 working money flows as in comparison with 2019, reflecting timing of
coal purchases within the fourth quarter of 2020.
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Money Utilized in Investing Actions
Internet money utilized in investing actions decreased $34.5 million to $75.3 million
in 2020 as in comparison with 2019 pushed by decrease capital spending additional mentioned
in Capital Necessities and Expenditures.
Money Utilized in Financing Actions
Internet money utilized in financing actions elevated $10.5 million to $131.2 million
in 2020 as in comparison with $120.7 million in 2019. In 2020, the Firm repurchased
$62.7 million face worth of excellent 2025 Senior Notes for $55.9 million of
money cost, in comparison with $50.0 million face worth of 2025 Senior Notes
repurchased for $46.6 million money funds in 2019. The Firm repurchased
shares for complete money funds of $7.0 million in 2020 in comparison with $36.3 million
in 2019 below the repurchase program mentioned in "Merchandise 5. Marketplace for
Registrant's Frequent Fairness, Associated Stockholders Issues and Issuer Purchases of
Fairness Securities", and paid dividends to stockholders of $19.9 million in 2020
in comparison with $5.1 million in 2019.
Moreover, in 2020, the Firm made internet repayments of $55.0 million on the
Revolving Facility, which was partially offset by $10.0 million of financing
obligation proceeds, additional mentioned in Word 12.
The prior interval additionally displays distribution funds made by the Partnership to
public unitholders of $14.2 million previous to the Simplification Transaction, and
extra funds of $5.1 million made in reference to the Simplification
Transaction. Moreover, the Revolving Facility refinancing within the third
quarter of 2019, which elevated borrowings on the revolver and paid down the
$43.3 million time period mortgage, had no internet affect on financing money flows.
Dividends
Throughout every quarter of 2020, SunCoke's Board of Administrators declared a quarterly
money dividend of $0.06 per share of the Firm's widespread inventory, see additional
dialogue in "Merchandise 5. Marketplace for Registrant's Frequent Fairness, Associated
Stockholders Issues and Issuer Purchases of Fairness Securities."
Share Repurchase Packages
In 2020, the Firm repurchased $7 million of our widespread inventory, or 1.6
million shares, within the open marketplace for a median share worth of $4.29, leaving
$96.3 million accessible below the present approved repurchase program as of
December 31, 2020. For additional element on our share repurchase packages see "Merchandise
5. Marketplace for Registrant's Frequent Fairness, Associated Stockholders Issues and
Issuer Purchases of Fairness Securities."
Covenants
As of December 31, 2020, we had been in compliance with all relevant debt
covenants. We don't anticipate a violation of those covenants nor can we
anticipate that any of those covenants will prohibit our operations or our
potential to acquire extra financing. See Word 12 to the consolidated
monetary statements for particulars on debt covenants.
Credit score Score
In March 2020, S&P World Scores reaffirmed our company credit standing of BB-
(steady). In April 2020, Moody's Buyers Service reaffirmed our company
credit standing of B1 and adjusted the score outlook to damaging.
Contractual Obligations
As of December 31, 2020 vital contractual obligations associated to debt had been
$690.5 million of principal borrowings and $205.2 million of associated curiosity,
which will likely be repaid by 2025. Projected curiosity prices on variable charge
devices had been calculated utilizing market charges at December 31, 2020. See Word 12
to our consolidated monetary statements. We even have contractual obligations
for leases, together with land, workplace house, gear, railcars and locomotives.
See Word 14 to our consolidated monetary statements.
Capital Necessities and Expenditures
Our operations are capital intensive, requiring vital funding to
improve or improve current operations and to fulfill environmental and operational
rules. The extent of future capital expenditures will rely on varied
components, together with market situations and buyer necessities, and should differ
from present or anticipated ranges. Materials modifications in capital expenditure
ranges might affect monetary outcomes, together with however not restricted to the quantity of
depreciation, curiosity expense and restore and upkeep expense.
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Our capital necessities have consisted, and are anticipated to consist, primarily
of:
•Ongoing capital expenditures required to keep up gear reliability, the
integrity and security of our coke ovens and steam turbines and to adjust to
environmental rules. Ongoing capital expenditures are made to exchange
partially or absolutely depreciated belongings as a way to preserve the prevailing
working capability of the belongings and/or to increase their helpful lives and in addition
embrace new gear that improves the effectivity, reliability or effectiveness
of current belongings. Ongoing capital expenditures don't embrace regular repairs
and upkeep bills, that are expensed as incurred;
•Environmental remediation venture expenditures required to implement design
modifications to make sure that our current services function in accordance with
current environmental permits; and
•Growth capital expenditures to amass and/or assemble complementary belongings
to develop our enterprise and to broaden current services in addition to capital
expenditures made to allow the renewal of a coke gross sales settlement and/or
logistics service settlement and on which we count on to earn an affordable return.
The next desk summarizes ongoing, environmental remediation venture and
growth capital expenditures:
                                              Years Ended December 31,
                                                 2020                 2019
                                               ({Dollars} in tens of millions)
Ongoing capital(1)                     $       59.5$  94.2
Environmental remediation venture(2)              -                    15.9
Growth capital(3)                           14.4                       -
Whole capital expenditures(4)          $       73.9$ 110.1


(1)Contains $34.8 million of capital expenditures in reference to the oven
rebuild initiative at our Indiana Harbor facility for the yr ended December
31, 2019. This initiative was accomplished on the finish of 2019.
(2)Contains $2.3 million of curiosity capitalized in reference to the Granite
Metropolis gasoline sharing venture for the yr ended December 31, 2019. The gasoline sharing
tasks had been accomplished in June 2019.
(3)Contains capital spending in reference to the foundry cokemaking progress
venture, together with $0.2 million of curiosity capitalized for the yr ended
December 31, 2020.
(4)Displays precise money funds in the course of the intervals offered for our capital
necessities.
In 2021, we count on our capital expenditures to be roughly $80 million.
Vital Accounting Insurance policies
A abstract of our vital accounting insurance policies is included in Word 2 to the
consolidated monetary statements. Our administration believes that the applying
of those insurance policies on a constant foundation allows us to supply the customers of our
monetary statements with helpful and dependable details about our working
outcomes and monetary situation. The preparation of our consolidated monetary
statements requires administration to make estimates and assumptions that have an effect on the
reported quantities of belongings, liabilities, revenues and bills, and the
disclosures of contingent belongings and liabilities. Important gadgets which are
topic to such estimates and assumptions encompass: (1) black lung profit
obligations and (2) accounting for impairments of goodwill and long-lived
belongings. Though our administration bases its estimates on historic expertise and
varied different assumptions which are believed to be affordable below the
circumstances, precise outcomes might differ to some extent from the estimates on
which our consolidated monetary statements have been ready at any level in
time. Regardless of these inherent limitations, our administration believes the
"Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of
Operations" and consolidated monetary statements and footnotes present a
significant and honest perspective of our monetary situation.
Black Lung Profit Liabilities
The Firm has obligations associated to coal employees' pneumoconiosis, or black
lung, advantages to sure of our former coal miners and their dependents. Such
advantages are offered for below Title IV of the Federal Coal Mine and Security Act
of 1969 and subsequent amendments, in addition to for black lung advantages offered
within the states of Virginia, Kentucky and West Virginia pursuant to employees'
compensation laws. The Affected person Safety and Reasonably priced Care Act
("PPACA"), which was applied in 2010, amended earlier laws associated
to coal employees' black lung obligations. PPACA gives for the automated
extension of awarded lifetime advantages to surviving spouses and modifications the
authorized standards used to
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assess and award claims. We act as a self-insurer for each state and federal
black lung advantages and alter our legal responsibility every year primarily based upon actuarial
calculations of our anticipated future funds for these advantages.
Our unbiased actuarial consultants calculate the current worth of the
estimated black lung legal responsibility yearly primarily based on actuarial fashions using our
inhabitants of former coal miners, historic payout patterns of each the Firm
and the business, actuarial mortality charges, incapacity incidence, medical
prices, dying advantages, dependents, low cost charges and the present federally
mandated payout charges. The estimated legal responsibility could also be impacted by future modifications
within the statutory mechanisms, modifications by courtroom selections and modifications in
submitting patterns pushed by perceptions of success by claimants and their
advisors, the affect of which can't be estimated.
The next desk summarizes low cost charges utilized, energetic claims and the
complete black lung liabilities:
                                                           December 31,
                                                        2020         2019
Low cost charge(1)                                         2.0  %       2.9  %
Lively claims                                            309          324

Whole legal responsibility for black lungs (in tens of millions of {dollars}) (2) $ 64.6$ 55.1

(1)The low cost charge is decided primarily based on a portfolio of high-quality
company bonds with maturities which are in line with the estimated length
of our black lung obligations. A lower of 25 foundation factors within the low cost
charge would have elevated black lung expense by $1.6 million in 2020.
(2)The present portion of the black lung legal responsibility was $4.6 million at each
December 31, 2020 and 2019, respectively, and was included in accrued
liabilities on the Consolidated Stability Sheets.

The next desk summarizes the annual funds and bills for black lungs:

                                           Years Ended December 31,
                                         2020              2019       2018
                                            ({Dollars} in tens of millions)
                     Funds     $      6.0$  5.2$ 6.3
                     Expense(1)   $     15.4$ 10.9$ 5.4


(1)Bills incurred in extra of annual accretion of the black lung legal responsibility
primarily replicate the affect of modifications in low cost charges in addition to will increase
in anticipated future claims on account of greater refiling and approval charge
assumptions.
Accounting for Impairments
Goodwill
Goodwill, which represents the surplus of the acquisition worth over the honest worth
of internet belongings acquired, is assessed for impairment as of October 1 of every yr,
or when occasions happen or circumstances change that will, extra seemingly than not,
cut back the honest worth of a reporting unit to beneath its carrying worth.
A good portion of our logistics enterprise has traditionally been from
long-term, take-or-pay contracts with Murray American Coal, Inc. ("Murray") and
Foresight Power LLC ("Foresight"), which had been adversely impacted by declining
coal export costs and home demand. Murray filed for Chapter 11 chapter
on October 29, 2019. Foresight engaged outdoors counsel and monetary advisors to
assess restructuring choices throughout 2019 and subsequently filed for Chapter 11
chapter on March 10, 2020. Each Murray and Foresight's contracts with CMT
had been subsequently rejected by the chapter courts.
The Firm concluded the affect of the occasions mentioned above might extra seemingly
than not cut back the honest worth of the Logistics reporting unit beneath its
carrying worth, requiring SunCoke to carry out its annual goodwill check as of
September 30, 2019. The honest worth of the Logistics reporting unit, which was
decided primarily based on a reduced money stream evaluation, didn't exceed the carrying
worth of the reporting unit. Key assumptions in our goodwill impairment check
included diminished forecasted volumes and diminished charges from Foresight, no additional
enterprise from Murray, incremental service provider enterprise and a reduction charge of 12
p.c, representing the estimated weighted common price of capital for this
enterprise line. In consequence, the Firm recorded a $73.5 million non-cash,
pre-tax impairment cost to the Logistics phase on the Consolidated
Statements of Operations throughout 2019, which represents a full impairment of the
Logistics goodwill stability.
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The Firm's complete goodwill stability as of December 31, 2020 was $3.4 million.
Please see Word 8 to our consolidated monetary statements for additional
dialogue on the present goodwill stability.
Lengthy-lived Property
Lengthy-lived belongings are comprised of properties, vegetation and gear in addition to
our long-lived intangible belongings, comprised of buyer contracts, buyer
relationships, and permits.
Lengthy-lived belongings are reviewed for impairment at any time when occasions or modifications in
circumstances point out that the carrying quantity of the belongings will not be
recoverable. An extended-lived asset, or group of belongings, is taken into account to be
impaired when the undiscounted internet money flows anticipated to be generated by the
asset are lower than its carrying quantity. Such estimated future money flows are
extremely subjective and are primarily based on quite a few assumptions about future operations
and market situations. The impairment acknowledged is the quantity by which the
carrying quantity exceeds the honest market worth of the impaired asset, or group of
belongings. It is usually troublesome to exactly estimate honest market worth as a result of
quoted market costs for our long-lived belongings will not be available.
Due to this fact, honest market worth is mostly primarily based on the current values of
estimated future money flows utilizing low cost charges commensurate with the dangers
related to the belongings being reviewed for impairment. No impairments on
long-lived belongings had been recorded in 2020.
Because of our logistics clients' occasions mentioned above, CMT's long-lived
belongings, together with buyer contracts, buyer relationships, permits and
properties, plant and gear, had been additionally assessed for impairment as of
September 30, 2019. The Firm re-evaluated its projections for throughput
volumes, pricing and buyer efficiency towards the prevailing long-term,
take-or-pay contracts. The ensuing undiscounted money flows had been decrease than the
carrying worth of the asset group. Due to this fact, the Firm assessed the honest
worth of the asset group to measure the quantity of impairment. The honest worth of
the CMT long-lived belongings was decided to be $112.1 million primarily based on
discounted money flows, asset alternative price and changes for capability
utilization, that are thought-about Stage 3 inputs within the honest worth hierarchy as
outlined in Word 18 to our consolidated monetary statements. Key assumptions in
our discounted money flows included diminished forecasted volumes and diminished charges
from Foresight, no additional enterprise from Murray, incremental service provider enterprise
and a reduction charge of 11 p.c, representing the estimated weighted common
price of capital for this asset group. In consequence, throughout 2019, the Firm
recorded a complete non-cash, pre-tax long-lived asset impairment cost of $173.9
million included in long-lived asset and goodwill impairment on the Consolidated
Statements of Operations, all of which was attributable to the Logistics
phase. The cost included an impairment of CMT's long-lived intangible belongings
of $113.3 million and of CMT's property, plant and gear of $60.6 million.
Current Accounting Requirements
See Word 2 to our consolidated monetary statements.
Non-GAAP Monetary Measures
Along with the GAAP outcomes offered within the Annual Report on Kind 10-Okay, we
have offered a non-GAAP monetary measure, Adjusted EBITDA. Our administration, as
effectively as sure traders, makes use of this non-GAAP measure to research our present and
anticipated future monetary efficiency. This measure just isn't in accordance with,
or an alternative to, GAAP and could also be completely different from, or inconsistent with,
non-GAAP monetary measures utilized by different corporations. See Word 20 in our
consolidated monetary statements for each the definition of Adjusted EBITDA and
the reconciliation from GAAP to the non-GAAP measurement for 2020, 2019 and
2018.

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Under is a reconciliation of 2021 Adjusted EBITDA steering from its closest GAAP
measure:
                                                                                  2021
                                                                             Low       Excessive

Internet earnings                                                                 $  15$  35
Add:
Depreciation and amortization expense                                        137        133
Curiosity expense, internet                                                         55         50
Revenue tax expense                                                             8         12
Adjusted EBITDA                                                            $ 215$ 230
Subtract: Adjusted EBITDA attributable to noncontrolling curiosity(1)           9          9
Adjusted EBITDA attributable to SunCoke Power, Inc.

$ 206$ 221

(1)Displays non-controlling curiosity in Indiana Harbor.
Guarantor Monetary and Non-Monetary Disclosures
The Firm has an current shelf registration assertion, which was filed on
November 8, 2019, upon the expiration of the prior shelf registration assertion,
for the providing of debt and/or securities on a delayed or steady foundation and
is presenting these guarantor monetary and non-financial disclosures in
connection therewith. The next data has been ready and offered
pursuant to amended SEC Rule 3-10 of Regulation S-X and new SEC Rule 13-01 of
Regulation S-X, which had been adopted by the SEC on March 2, 2020.
For functions of the next data, SunCoke Power, Inc. is referred to
as "Issuer." All one hundred pc owned subsidiaries of the Firm, together with
Finance Corp. and its consolidated subsidiaries, are anticipated to function
guarantors of obligations ("Guarantor Subsidiaries") included within the shelf
registration assertion, aside from the Indiana Harbor partnership and sure of
the Firm's company financing, worldwide and legacy coal mining
subsidiaries ("Non-Guarantors"). These ensures will likely be full and unconditional
(topic, within the case of the Guarantor Subsidiaries, to customary launch
provisions as described beneath) and joint and a number of other.
The assure of a Guarantor Subsidiary will terminate upon:
•a sale or different disposition of the Guarantor Subsidiary or of all or
considerably all of its belongings;
•a sale of nearly all of the capital inventory of a Guarantor Subsidiary to a
third-party, after which the Guarantor Subsidiary is now not a "Restricted
Subsidiary" in accordance with the indenture governing the notes;
•the liquidation or dissolution of a Guarantor Subsidiary as long as no
"Default" or "Occasion of Default", as outlined below the indenture governing the
notes, has occurred in consequence thereof;
•the designation of a Guarantor Subsidiary as an "unrestricted subsidiary" in
accordance with the indenture governing the notes;
•the necessities for defeasance or discharge of the indenture governing the
notes having been happy; or
•the discharge, aside from the discharge by funds by a Guarantor
Subsidiary, from different indebtedness that resulted within the obligation of the
Guarantor Subsidiary below the indenture governing the notes.

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The next tables current summarized monetary data for the Issuer and
the Guarantor Subsidiaries on a mixed foundation after intercompany balances and
transactions between the Issuer and Guarantor Subsidiaries have been eradicated
and excluding funding in and fairness in earnings from the Non-Guarantor
Subsidiaries:
Statements of Operations           Issuer and Guarantor Subsidiaries
                                      Yr Ended December 31, 2020
                                         ({Dollars} in tens of millions)
Revenues                          $                            962.6
Prices and working bills                                   906.6
Working earnings                                                56.0
Internet loss                          $                             (6.6)



                                                                        Issuer and Guarantor
Stability Sheets                                                              Subsidiaries
                                                                         December 31, 2020
                                                                       ({Dollars} in tens of millions)
Property:
Money                                                                  $                44.6
Present receivables from Non-Guarantor subsidiaries                                    14.2
Different present belongings

162.1

Properties, vegetation and gear, internet                                               1,176.7
Different non-current belongings                                                               54.8
Whole belongings                                                          $             1,452.4
Liabilities:
Present liabilities                                                   $               126.5
Lengthy-term debt and financing obligations

673.9

Lengthy-term payable to Non-Guarantor subsidiaries                                       189.4
Different long-term liabilities                                                           240.6
Whole liabilities                                                     $             1,230.4




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           CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
We've made forward-looking statements on this Annual Report on Kind 10-Okay,
together with, amongst others, within the sections entitled "Enterprise," "Threat Elements,"
"Quantitative and Qualitative Disclosures About Market Threat" and "Administration's
Dialogue and Evaluation of Monetary Situation and Outcomes of Operations." Such
forward-looking statements are primarily based on administration's beliefs and assumptions and
on data at present accessible. Ahead-looking statements embrace, however are
not restricted to, the knowledge regarding our expectations relating to the longer term
affect of COVID-19 and the associated financial situations on our enterprise,
monetary situation and outcomes of operations, attainable or assumed future
outcomes of operations, enterprise methods, financing plans, aggressive
place, potential progress alternatives, potential working efficiency, the
results of competitors, the anticipated growth into the foundry coke market
and the results of future laws or rules. Ahead-looking statements
embrace all statements that aren't historic details and could also be recognized by
the usage of forward-looking terminology such because the phrases "imagine," "count on,"
"plan," "intend," "anticipate," "estimate," "predict," "potential," "proceed,"
"might," "will," "ought to" or the damaging of those phrases or related expressions.
Specifically, statements on this Annual Report on Kind 10-Okay regarding future
dividend declarations are topic to approval by our Board of Administrators and can
be primarily based upon circumstances then current.
Ahead-looking statements contain dangers, uncertainties and assumptions. Precise
outcomes might differ materially from these expressed in these forward-looking
statements. You shouldn't put undue reliance on any forward-looking statements.
We don't have any intention or obligation to replace any forward-looking
assertion (or its related cautionary language), whether or not on account of new
data or future occasions, after the date of this Annual Report on Kind 10-Okay,
besides as required by relevant legislation.
The danger components mentioned in "Threat Elements" might trigger our outcomes to vary
materially from these expressed within the forward-looking statements made on this
Annual Report on Kind 10-Okay. There additionally could also be different dangers which are at present
unknown to us or that we're unable to foretell at the moment. Such dangers and
uncertainties embrace, with out limitation:
•the potential working and monetary impacts on our operations, or these of
our clients and suppliers, and the final affect on our business and on the
U.S. and international financial system, ensuing from COVID-19 or another widespread
contagion, together with actions by overseas and home governments and others to
include the unfold, or mitigate the severity, thereof;
•volatility and cyclical downturns within the metal business and in different industries
through which our clients and/or suppliers function;
•modifications within the market which will have an effect on our cokemaking enterprise, together with
the availability and demand for our coke merchandise, in addition to elevated imports of
coke from overseas producers;
•volatility, cyclical downturns and different change within the enterprise local weather and
marketplace for coal, affecting clients or potential clients for our logistics
enterprise;
•modifications within the market which will have an effect on our logistics enterprise, together with
the availability and demand for thermal and metallurgical coal;
•extreme monetary hardship or chapter of a number of of our main clients,
or the prevalence of a buyer default or different occasion affecting our potential to
gather funds from our clients;
•our potential to restore growing old coke ovens to keep up operational efficiency;
•age of, and modifications within the reliability, effectivity and capability of the varied
gear and working services utilized in our cokemaking operations, and within the
operations of our subsidiaries main clients, enterprise companions and/or
suppliers;
•modifications within the anticipated working ranges of our belongings;
•modifications within the stage of capital expenditures or working bills, together with
any modifications within the stage of environmental capital, working or remediation
expenditures;
•modifications in ranges of manufacturing, manufacturing capability, pricing and/or margins
for coal and coke;
•modifications in product specs for the coke that we produce or the coals we
combine, retailer and transport;
•our potential to fulfill minimal quantity necessities, coal-to-coke yield requirements
and coke high quality requirements in our coke gross sales agreements;
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•variation in availability, high quality and provide of metallurgical coal used within the
cokemaking course of, together with on account of non-performance by our suppliers;
•results of geologic situations, climate, pure disasters and different inherent
dangers past our management;
•results of opposed occasions referring to the operation of our services and to
the transportation and storage of hazardous supplies or regulated media
(together with gear malfunction, explosions, fires, spills, impoundment failure
and the results of extreme climate situations);
•the existence of hazardous substances or different environmental contamination on
property owned or utilized by us;
•required permits and different regulatory approvals and compliance with contractual
obligations and/or bonding necessities in reference to our cokemaking,
logistics operations, and/or former coal mining actions;
•the provision of future permits authorizing the disposition of sure
mining waste and the administration of reclamation areas;
•dangers associated to environmental compliance;
•our potential to adjust to relevant federal, state or native legal guidelines and
rules, together with, however not restricted to, these referring to environmental
issues;
•dangers associated to labor relations and office security;
•availability of expert staff for our cokemaking, and/or logistics
operations, and different office components;
•our potential to service our excellent indebtedness;
•our indebtedness and sure covenants in our debt paperwork;
•our potential to adjust to the covenants and restrictions imposed by our
financing preparations;
•modifications within the availability and price of fairness and debt financing;
•impacts on our liquidity and skill to boost capital on account of modifications in
the credit score scores assigned to our indebtedness;
•competitors from different steelmaking and different applied sciences which have the
potential to cut back or get rid of the usage of coke;
•our dependence on, relationships with, and different situations affecting our
clients and/or suppliers;
•consolidation of main clients;
•nonperformance or pressure majeure by, or disputes with, or modifications in contract
phrases with, main clients, suppliers, sellers, distributors or different enterprise
companions;
•results of opposed occasions referring to the enterprise or industrial operations of
our clients and/or suppliers;
•modifications in credit score phrases required by our suppliers;
•our potential to safe new coal provide agreements or to resume current coal
provide agreements;
•results of railroad, barge, truck and different transportation efficiency and
prices, together with any transportation disruptions;
•our potential to enter into new, or renew current, long-term agreements upon
favorable phrases for the sale of coke, steam, or electrical energy, or for dealing with
companies of coal and different aggregates (together with transportation, storage and
mixing);
•our potential to enter into new, or renew current, agreements upon favorable
phrases for logistics companies;
•our potential to efficiently implement home and/or worldwide progress
methods;
•our potential to establish acquisitions, execute them below favorable phrases, and
combine them into our current enterprise operations;
•our potential to comprehend anticipated advantages from investments and acquisitions;
•our potential to enter into joint ventures and different related preparations below
favorable phrases;
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•our potential to consummate belongings gross sales, different divestitures and strategic
restructuring in a well timed method upon favorable phrases, and/or understand the
anticipated advantages from such actions;
•our potential to consummate investments below favorable phrases, together with with
respect to current cokemaking services, which can make the most of by-product
expertise, and combine them into our current companies and have them
carry out at anticipated ranges;
•our potential to develop, design, allow, assemble, begin up, or function new
cokemaking services within the U.S. or in overseas international locations;
•disruption in our data expertise infrastructure and/or lack of our
potential to securely retailer, preserve, or transmit information on account of safety breach by
hackers, worker error or malfeasance, terrorist assault, energy loss,
telecommunications failure or different occasions;
•the accuracy of our estimates of reclamation and different environmental
obligations;
•dangers associated to obligations below mineral leases retained by us in connection
with the divestment of our legacy coal mining enterprise;
•dangers associated to the power of the assignee(s) to carry out in compliance with
relevant necessities below mineral leases assigned in reference to the
divestment of our legacy coal mining enterprise;
•proposed or closing modifications in current, or new, statutes, rules, guidelines,
governmental insurance policies and taxes, or their interpretations, together with these
referring to environmental issues and taxes;
•proposed or closing modifications in accounting and/or tax methodologies, legal guidelines,
rules, guidelines, or insurance policies, or their interpretations, together with these
affecting inventories, leases, post-employment advantages, earnings, or different
issues;
•modifications in federal, state, or native tax legal guidelines or rules, together with the
interpretations thereof;
•claims of noncompliance with any statutory or regulatory necessities;
•modifications in insurance coverage markets impacting price, stage and/or varieties of protection
accessible, and the monetary potential of our insurers to fulfill their obligations;
•insufficient safety of our mental property rights;
•volatility in overseas foreign money trade charges affecting the markets and
geographic areas through which we conduct enterprise; and
•historic consolidated monetary information will not be dependable indicators of future
outcomes.
The components recognized above are believed to be essential components, however not
essentially all the essential components, that might trigger precise outcomes to
differ materially from these expressed in any forward-looking assertion made by
us. Different components not mentioned herein additionally might have materials opposed results
on us. All forward-looking statements included on this Annual Report on Kind
10-Okay are expressly certified of their entirety by the foregoing cautionary
statements.
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