v3.26.1
Impairment of Assets
 3 Months Ended
Mar. 31, 2026
Impairment of Assets [Abstract]  
Impairment of Assets
4. Impairment of assets
On
March
27,
2026,
management
idled
operations
at
the
Logan
mine
complex
within
the
Company’s
U.S.
Operations in response to sustained weakness
in the U.S. domestic Met coal
markets. The idling represented
a
triggering
event
under
Accounting
Standards
Codification,
or
ASC,
360
–
Property,
Plant
and
Equipment
,
requiring the Company to assess
the recoverability of the relevant
asset groups. The Company determined
that
the estimated undiscounted pre-tax future cash flows of the Logan asset group did not exceed its carrying value.
Accordingly,
the Company
measured the
fair value
of the
asset group
and recorded
an impairment
charge
of
$
159.8
million against long-lived
assets, including property, plant and
equipment, to write
down the carrying
value
of the asset group to its estimated
fair value. The impairment charge is
included in “Impairment of assets”
in the
accompanying
unaudited
Condensed
Consolidated
Statements of
Operations
and Comprehensive
Income
for
the three months ended March 31, 2026.
The estimated fair value was determined using Level 3 inputs such as indicative offers, comparable transactions
and estimates of future cashflows based on a combination of historical results adjusted to reflect the Company’s
best estimate
of future
market and
operating conditions,
including the
mine’s life
of mine
plan. The
life of
mine
plan includes assumptions
in relation to future
coal prices, projected
mine production volumes,
operating costs,
capital costs and discount rate.