...October 29, 2024 After restarting its Quintette mine in September, we believe Conuma Resources Ltd.'s execution of the production ramp-up will be a key near-term credit risk. For 2024, Conuma's capital expenditures are on track to be about C$445 million, which is more than double what we had expected this time last year. The increase stems primarily from an increase in the scope of work required to restart Quintette (Tumbler Ridge, BC.) with a capacity of about 4 million metric tons per year (mt/year). We expect the expanded restart plan will provide the company with excess capacity to process coal from adjacent neighboring mines to Quintette. Since the initial purchase, Conuma has spent more than half a billion dollars on the mine, which commenced production on Sept. 5, 2024, about 24 years after being put on care and maintenance. We believe sustainability of the company's capital structure depends highly on the successful ramp up of production and profitability at Quintette, as its Wolverine...
