NACCO Industries reported a decrease in Q1 2024 revenue for its coal segment primarily due to fewer tons delivered at Mississippi Lignite Mining Co. The power plant served by the mine has been operating with only one of its two boilers since December 2023. Repairs to the affected boiler are expected to be completed during the second half of 2024.

The company reported an overall decline in operating results for its coal segments citing lower earnings from its unconsolidated operations, which was primarily attributed to reduced customer requirements at Coteau.

In 2024, the NACCO said it expects overall coal deliveries to increase modestly from 2023 levels primarily due to anticipated higher deliveries at Coteau and Falkirk. These improvements are expected to be partly offset by reduced deliveries at Mississippi Lignite Mining Co., due to the ongoing boiler issue, and the cessation of coal deliveries from the company’s Sabine mine in April 2023.

Strong operating profit compared with a significant 2023 operating loss, which included a $60.8 million impairment charge, and substantially higher Segment Adjusted EBITDA are expected in 2024. These anticipated increases are primarily due to an expected improvement in results at Mississippi Lignite Mining Co. and higher earnings at Falkirk and Coteau in the second half of 2024.

Mississippi Lignite Mining Co. expects to incur a loss in 2024, albeit significantly less than in 2023, mainly as a result of fewer tons delivered. While total production costs at Mississippi Lignite Mining Co. are anticipated to decrease substantially from 2023 levels, they are expected to remain above historical levels throughout 2024 until deliveries return to normal and a pit extension is completed later this year. In addition, the effect of the impairment charge taken in 2023 will result in lower depreciation and amortization expense and contribute to the lower production costs.

An anticipated increase in 2024 earnings at the unconsolidated coal mining operations is driven primarily by an expectation for increased deliveries at Coteau and Falkirk, as well as a higher per-ton management fee at Falkirk beginning in June 2024 when temporary price concessions end.

Capital expenditures for 2024 are expected to total approximately $13 million.