The Company enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has certain finance leases for mining equipment that expire over various contractual periods. These leases have remaining lease terms of one to ten years and include an option to renew. Amortization expense for finance leases is included in depreciation and depletion expense.

Supplemental balance sheet information related to leases was as follows (in thousands):


	June 30, 2026			December 31, 2025
Finance lease right-of-use assets, net(1)	$	138,521		$	141,853
Finance lease liabilities
Current		32,038			29,669
Noncurrent		49,203			54,492
Total finance lease liabilities	$	81,241		$	84,161

Weighted average remaining lease term - finance leases (in months)		60.3			62.0
Weighted average discount rate - finance leases(2)		6.99	%		6.99	%

(1)

Finance lease right-of-use assets are recorded net of accumulated amortization of $80.4 million and $64.4 million and are included in property, plant and equipment, net in the Condensed Balance Sheets as of June 30, 2026 and the Balance Sheets as of December 31, 2025, respectively.

(2)

When an implicit discount rate is not readily available in a lease, the Company uses its incremental borrowing rate based on information available at the commencement date when determining the present value of lease payments.

The components of lease expense were as follows (in thousands):


	For the three months ended June 30,				For the six months ended June 30,
	2026		2025		2026		2025
Operating lease cost(1):	$	7,833	$	6,233	$	13,610	$	12,679
Finance lease cost:
Amortization of leased assets		9,294		5,733		18,701		11,457
Interest on lease liabilities		1,320		1,858		3,646		3,167
Net lease cost	$	18,447	$	13,824	$	35,957	$	27,303

(1)

Includes leases that are for periods of 12 months or less.

Maturities of lease liabilities for the Company's finance leases as of June 30, 2026 were as follows (in thousands):


	Finance Leases(1)
2026		20,709
2027		28,851
2028		21,833
2029		10,703
2030		1,672
Thereafter		7,384
Total		91,152
Less: amount representing interest		(9,911	)
Present value of lease liabilities	$	81,241

(1)

Finance lease payments include $8.6 million of future payments required under signed lease agreements that have not yet commenced.

Supplemental cash flow information related to the Company's leases was as follows (in thousands):


	For the six months ended June 30,
	2026		2025
Cash paid (received) for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	3,646	$	3,167
Financing cash flows from finance leases	$	18,576	$	(34,284	)
Non-cash right-of-use assets obtained in exchange for lease obligations:
Finance leases	$	15,656	$	73,309