The Company primarily 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 in accordance with the Company's accounting policy election described in Note 2. 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 options 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):


	December 31, 2025			December 31, 2024
Finance lease right-of-use assets, net(1)	$	141,853		$	56,702
Finance lease liabilities
Current		29,669			13,208
Noncurrent		54,492			6,217
Total finance lease liabilities	$	84,161		$	19,425

Weighted average remaining lease term - finance leases (in months)		62.0			17.9
Weighted average discount rate - finance leases(2)		6.99	%		7.25	%

(1)

Finance lease right-of-use assets, recorded net of accumulated amortization of $64.4 million and $50.3 million, are included in property, plant and equipment, net in the Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024, respectively. See Note 5 for additional disclosure.

(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 year ended December 31,
	2025		2024
Operating lease cost(1):	$	23,400	$	34,877
Finance lease cost:
Amortization of leased assets		26,586		22,184
Interest on lease liabilities		7,790		4,613
Net lease cost	$	57,776	$	61,674

(1)

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

Maturities of lease liabilities are as follows (in thousands):


	Finance Leases(1)
2026	$	34,158
2027		23,702
2028		18,812
2029		9,948
2030		1,672
Thereafter		7,384
Total		95,676
Less: amount representing interest		(11,515	)
Present value of lease liabilities	$	84,161

(1)

Finance lease payments include $4.5 million of future payments required under signed lease agreements that have not yet commenced. These finance leases will commence during fiscal year 2026 with lease terms between one to two years.

Supplemental cash flow information related to leases was as follows (in thousands):


	For the year ended December 31,
	2025			2024
Cash paid (received) for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	7,790		$	4,613
Financing cash outflows from finance leases	$	36,942		$	17,414
Financing cash inflows from finance leases	$	(48,771	)	$	(4,503	)
Non-cash right-of-use assets obtained in exchange for lease obligations:
Finance leases	$	92,679		$	12,147