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INVENTORIES

3 Months Ended

Mar. 31, 2024

5.INVENTORIES

Inventories consist of the following:


	March 31,		December 31,
	2024		2023

	(in thousands)

Coal	$	88,108	$	56,549
Finished goods (net of reserve for obsolescence of $745 and $728, respectively)		4,174		3,908
Work in process		562		791
Raw materials		2,097		2,144
		94,941		63,392
Supplies (net of reserve for obsolescence of $7,719 and $7,439, respectively)		67,256		64,164
Total inventories, net	$	162,197	$	127,556

During the three months ended March 31, 2024, we recorded lower of cost or net realizable value adjustments of $7.3 million to our coal inventories. These adjustments are a result of lower coal sale prices and higher cost per ton primarily due to a longwall move at Hamilton County Coal, LLC ("Hamilton") and ongoing development activities at the Henderson County mine at our River View Coal, LLC ("River View") mining complex.

Certain of our subsidiaries, primarily consisting of Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), manufacture a variety of products for our mining operations and third parties. These products are primarily consumed internally by our mining operations with associated inventory historically presented as supplies inventory. Recently Matrix Group has been increasing its production of

products with the intention to increase third-party sales. We have therefore presented our manufactured goods inventories in the table above separately from our historical presentation of supplies inventory.