our plan is to complete development of our remaining projects and grow production to more than 4.0 million clean tons of metallurgical coal over the next three to four years depending on the rate at which we are able to deploy capital . we may make acquisitions of reserves or infrastructure that continue our focus on advantaged geology and lower costs . during 2018 , we sold 2.1 million tons of coal , which represents a 253 % increase from our 2017 sales volume . of this , 65 % was sold in north american markets and 35 % was sold in export markets principally to europe and asia . in 2016 and through april 2017 , we processed raw coal for third parties at our knox creek preparation plant and loading facility under arrangements that have been cancelled . beginning in late 2016 , we began purchasing coal from third parties for sale for our own account . the overall outlook of the metallurgical coal business is dependent on a variety of factors such as pricing , regulatory uncertainties and global economic conditions . coal consumption and production in the u.s. have been driven in recent periods by several market dynamics and trends , such as the global economy , a strong u.s. dollar and accelerating production cuts . in march 2018 , president trump signed a proclamation imposing a 25 % global tariff on imports of certain steel products , effective march 31 , 2018. generally , we are experiencing signs of some increase in domestic demand for metallurgical coal as a result of the proclamations . our export customers include foreign steel producers who may be negatively affected by the tariffs to the extent their production is imported into the u.s. some countries have also threatened retaliatory tariffs on u.s. products including metallurgical coal . at this time , it is too early to know the impact these tariffs will have on longer-term demand or pricing , if any . in 2018 , our capital expenditures totaled approximately $ 48 million . we completed the development and opening of one new deep mine at our elk creek mining complex . we continued to invest in infrastructure and mine equipment at our elk creek mining complex . we also continued development mining at our berwind property and continued third-party coal purchases which augment our sales . on november 5 , 2018 , one of our three raw coal storage silos that feed our elk creek plant in west virginia experienced a partial structural failure . the prep plant at our elk creek mining complex was idled for approximately three weeks due to the partial structural failure of the silo . in late november 2018 , we completed a temporary conveying system at our elk creek mining complex . the temporary conveying system allowed us to bypass the damaged raw coal storage silo , which has since been demolished , and allowed for the immediate processing and shipping of coal at approximately 80 % of the entire plant capacity , throughout december 2018. in february 2019 , we completed the fabrication of a higher capacity bypass system to provide a secondary conveyance system , which operates at greater than 80 % of processing capacity with increased reliability compared to the initial bypass system . we anticipate completion of the silo rehabilitation in the second quarter of 2019 at which point we expect the prep plant to return to full processing capacity . our insurance carrier has disputed our claim for coverage based on certain exclusions to the applicable policy . we are still evaluating whether we will be fully insured against all losses or liabilities that could arise from this incident . 46 results of operations replace_table_token_3_th our revenue producing activities for 2018 consisted of the sale of coal we produced and coal we purchased from third parties for our own account . we began commercial production of coal in january 2017. starting as new mine projects , we developed and opened four mines at our elk creek mining complex and completed construction of the preparation plant and rail load-out facility during 2017 and 2018. we also began development mining in 2017 at our berwind property , which continued during 2018. in 2016 , revenue consisted principally of the sale of purchased coal and revenue for processing coal for third parties , which processing contracts were terminated in april 2017. our first revenues commenced in mid-2016 with completion of the knox creek acquisition ( as later defined ) . before this acquisition , our activities were limited to acquiring geologically advantaged coal reserve properties and to advancing those properties toward coal production through exploration , the delineation of reserves ; assessment and mine planning ; permitting ; and the development of access for mining . direct costs associated with preparation of future mine sites for mining were capitalized . operating expenditures including certain professional fees and overhead costs are not capitalized but are expensed as incurred . year ended december 31 , 201 8 compared to year ended december 31 , 201 7 revenue . for the year ended december 31 , 2018 , we had revenue of $ 227.6 million from the sale of coal . during 2018 , we sold 2.1 million tons of coal including 0.4 million tons of purchased coal . for the year ended december 31 , 2017 , we had revenue of $ 58.8 million from the sale of coal and $ 2.2 million from the processing of coal for third parties . during 2017 , we sold 0.6 million tons of coal including 0.2 million tons of purchased coal . story_separator_special_tag of these committed sales , approximately 1.5 million tons , or about 75 % , are committed to domestic customers at fixed prices averaging $ 113 , approximately 100,000 tons are committed to export markets at prices averaging $ 122 and approximately 350,000 tons are committed at prices based upon an index determined near the time of shipment . story_separator_special_tag changes in the metallurgical coal markets that would reduce the expected cash flow from operations . capital requirements our primary use of cash currently includes capital expenditures for mine development and for ongoing operating expenses . during 2018 we spent $ 48 million primarily for the purchase of mining equipment , infrastructure and development of mines at our elk creek and berwind mining complexes . we anticipate capital expenditures of $ 35 million to $ 40 million in 2019 for mine equipment and development . management believes that current cash on hand , cash flow from operations and available liquidity under our revolving credit facility will be sufficient to meet its capital expenditure and operating plans . we expect to fund any new reserve acquisitions from cash on hand , cash from operations and potential future issuances of debt or equity securities . if future cash flows are insufficient to meet our liquidity needs or capital requirements , we may reduce our expected level of capital expenditures and or fund a portion of our capital expenditures through the issuance of debt or equity securities , the entry into debt arrangements or from other sources , such as asset sales . 52 contractual obligations the following table summarizes our contractual obligations as of december 31 , 2018 : replace_table_token_10_th off-balance sheet arrangements as of december 31 , 2018 , we had no off-balance sheet arrangements . critical accounting policies and estimates the preparation of consolidated financial statements in conformity with u.s. gaap requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenues and expenses reported for the period then ended . mine development costs . mine development costs represent the costs incurred to prepare future mine sites for mining . these costs include costs of acquiring , permitting , planning , research , and establishing access to identify mineral reserves and other preparations for commercial production as necessary to develop and permit the properties for mining activities . operating expenditures , including certain professional fees and overhead costs , are not capitalized but are expensed as incurred . amortization of mine development costs , with respect to a specific mine , commences when mining of the related reserves begins . amortization is computed using the units-of-production method over the proven and probable reserves dedicated to the specific mine . asset retirement obligations . we recognize as a liability an asset retirement obligation , or aro , associated with the retirement of a tangible long-lived asset in the period in which it is incurred or becomes determinable , with an associated increase in the carrying amount of the related long-lived asset . the initially recognized asset retirement cost is amortized using the same method and useful life as the long-lived asset to which it relates . amortization begins when mining of the specific mineral property begins . accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value . estimating the future aro requires management to make estimates and judgments regarding timing and existence of a liability , as well as what constitutes adequate restoration . inherent in the fair value calculation are numerous assumptions and judgments including the ultimate costs , inflation factors , credit adjusted discount rates , timing of settlement and changes in the legal , regulatory , environmental and political environments . to the extent future revisions to these assumptions impact the fair value of the existing aro liability , a corresponding adjustment is made to the related asset . impairment of long-lived assets . we review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . these events and circumstances include , but are not limited to , a current expectation that a long-lived asset will be disposed of significantly before the end of its previously estimated useful life , a significant adverse change in the extent or manner in which we use a long-lived asset or a change in its physical condition . when such events or changes in circumstances occur , a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying amount . if the projected undiscounted cash flows are less than the carrying amount , an impairment is recorded for the excess of the carrying amount over the estimated fair value . we make various assumptions , including assumptions regarding future cash flows in our assessments of long-lived assets for impairment . the assumptions about future cash flows and growth rates are based on the current and long-term business plans related to the long-lived assets . 53 equity -based compensation expense . compensation cost for equity incentive awards is based on the fair value of the equity instrument generally on the date of grant and is recognized over the requisite service period . the fair value of restricted stock awards is determined using the publicly-traded price of our common stock on the grant date . the fair value of option awards is calculated using the black-scholes option-pricing model . the black-scholes model requires us to make assumptions and judgments about the variables used in the calculation , including the expected term , expected volatility , risk-free interest rate , dividend rate and service period . income taxes . we provide for deferred income taxes for temporary differences arising from differences between the financial

liquidity and capital resources our primary source of cash is proceeds from the sale of our coal production to customers . our primary uses of cash include the cash costs of coal production , capital expenditures , royalty payments and other operating expenditures . cash flow information is as follows : replace_table_token_9_th net cash provided by operating activities in the year ended december 31 , 2018 reflects a significant increase in net income as compared to the loss incurred in the prior year . net cash used in operating activities in the year ended december 31 , 2017 reflects higher costs associated with the commencement and expansion of our operations . the cash used in operating activities in 2016 was primarily the result of net losses incurred in preparing the company for operations . net cash used in investing activities was $ 42.9 million for 2018 as compared with $ 19.8 million for 2017. our capital expenditures totaled $ 48.1 million , $ 75.0 million and $ 16.7 million in 2018 , 2017 and 2016 , respectively . in 2016 , we invested a portion of the proceeds of the issuance of our series a preferred units into investment securities , the maturity of which was timed to coincide with anticipated capital expenditures . we received proceeds from those investment securities of $ 5.2 million and $ 55.2 million in 2018 and 2017 , respectively . net cash from financing activities was $ 7.9 million for 2018 as compared with $ 29.3 million for 2017. during 2018 , we borrowed $ 16.0 million through short-term notes payable .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our primary source of cash is proceeds from the sale of our coal production to customers . our primary uses of cash include the cash costs of coal production , capital expenditures , royalty payments and other operating expenditures . cash flow information is as follows : replace_table_token_9_th net cash provided by operating activities in the year ended december 31 , 2018 reflects a significant increase in net income as compared to the loss incurred in the prior year . net cash used in operating activities in the year ended december 31 , 2017 reflects higher costs associated with the commencement and expansion of our operations . the cash used in operating activities in 2016 was primarily the result of net losses incurred in preparing the company for operations . net cash used in investing activities was $ 42.9 million for 2018 as compared with $ 19.8 million for 2017. our capital expenditures totaled $ 48.1 million , $ 75.0 million and $ 16.7 million in 2018 , 2017 and 2016 , respectively . in 2016 , we invested a portion of the proceeds of the issuance of our series a preferred units into investment securities , the maturity of which was timed to coincide with anticipated capital expenditures . we received proceeds from those investment securities of $ 5.2 million and $ 55.2 million in 2018 and 2017 , respectively . net cash from financing activities was $ 7.9 million for 2018 as compared with $ 29.3 million for 2017. during 2018 , we borrowed $ 16.0 million through short-term notes payable .
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 Suspicious Activity Report : our plan is to complete development of our remaining projects and grow production to more than 4.0 million clean tons of metallurgical coal over the next three to four years depending on the rate at which we are able to deploy capital . we may make acquisitions of reserves or infrastructure that continue our focus on advantaged geology and lower costs . during 2018 , we sold 2.1 million tons of coal , which represents a 253 % increase from our 2017 sales volume . of this , 65 % was sold in north american markets and 35 % was sold in export markets principally to europe and asia . in 2016 and through april 2017 , we processed raw coal for third parties at our knox creek preparation plant and loading facility under arrangements that have been cancelled . beginning in late 2016 , we began purchasing coal from third parties for sale for our own account . the overall outlook of the metallurgical coal business is dependent on a variety of factors such as pricing , regulatory uncertainties and global economic conditions . coal consumption and production in the u.s. have been driven in recent periods by several market dynamics and trends , such as the global economy , a strong u.s. dollar and accelerating production cuts . in march 2018 , president trump signed a proclamation imposing a 25 % global tariff on imports of certain steel products , effective march 31 , 2018. generally , we are experiencing signs of some increase in domestic demand for metallurgical coal as a result of the proclamations . our export customers include foreign steel producers who may be negatively affected by the tariffs to the extent their production is imported into the u.s. some countries have also threatened retaliatory tariffs on u.s. products including metallurgical coal . at this time , it is too early to know the impact these tariffs will have on longer-term demand or pricing , if any . in 2018 , our capital expenditures totaled approximately $ 48 million . we completed the development and opening of one new deep mine at our elk creek mining complex . we continued to invest in infrastructure and mine equipment at our elk creek mining complex . we also continued development mining at our berwind property and continued third-party coal purchases which augment our sales . on november 5 , 2018 , one of our three raw coal storage silos that feed our elk creek plant in west virginia experienced a partial structural failure . the prep plant at our elk creek mining complex was idled for approximately three weeks due to the partial structural failure of the silo . in late november 2018 , we completed a temporary conveying system at our elk creek mining complex . the temporary conveying system allowed us to bypass the damaged raw coal storage silo , which has since been demolished , and allowed for the immediate processing and shipping of coal at approximately 80 % of the entire plant capacity , throughout december 2018. in february 2019 , we completed the fabrication of a higher capacity bypass system to provide a secondary conveyance system , which operates at greater than 80 % of processing capacity with increased reliability compared to the initial bypass system . we anticipate completion of the silo rehabilitation in the second quarter of 2019 at which point we expect the prep plant to return to full processing capacity . our insurance carrier has disputed our claim for coverage based on certain exclusions to the applicable policy . we are still evaluating whether we will be fully insured against all losses or liabilities that could arise from this incident . 46 results of operations replace_table_token_3_th our revenue producing activities for 2018 consisted of the sale of coal we produced and coal we purchased from third parties for our own account . we began commercial production of coal in january 2017. starting as new mine projects , we developed and opened four mines at our elk creek mining complex and completed construction of the preparation plant and rail load-out facility during 2017 and 2018. we also began development mining in 2017 at our berwind property , which continued during 2018. in 2016 , revenue consisted principally of the sale of purchased coal and revenue for processing coal for third parties , which processing contracts were terminated in april 2017. our first revenues commenced in mid-2016 with completion of the knox creek acquisition ( as later defined ) . before this acquisition , our activities were limited to acquiring geologically advantaged coal reserve properties and to advancing those properties toward coal production through exploration , the delineation of reserves ; assessment and mine planning ; permitting ; and the development of access for mining . direct costs associated with preparation of future mine sites for mining were capitalized . operating expenditures including certain professional fees and overhead costs are not capitalized but are expensed as incurred . year ended december 31 , 201 8 compared to year ended december 31 , 201 7 revenue . for the year ended december 31 , 2018 , we had revenue of $ 227.6 million from the sale of coal . during 2018 , we sold 2.1 million tons of coal including 0.4 million tons of purchased coal . for the year ended december 31 , 2017 , we had revenue of $ 58.8 million from the sale of coal and $ 2.2 million from the processing of coal for third parties . during 2017 , we sold 0.6 million tons of coal including 0.2 million tons of purchased coal . story_separator_special_tag of these committed sales , approximately 1.5 million tons , or about 75 % , are committed to domestic customers at fixed prices averaging $ 113 , approximately 100,000 tons are committed to export markets at prices averaging $ 122 and approximately 350,000 tons are committed at prices based upon an index determined near the time of shipment . story_separator_special_tag changes in the metallurgical coal markets that would reduce the expected cash flow from operations . capital requirements our primary use of cash currently includes capital expenditures for mine development and for ongoing operating expenses . during 2018 we spent $ 48 million primarily for the purchase of mining equipment , infrastructure and development of mines at our elk creek and berwind mining complexes . we anticipate capital expenditures of $ 35 million to $ 40 million in 2019 for mine equipment and development . management believes that current cash on hand , cash flow from operations and available liquidity under our revolving credit facility will be sufficient to meet its capital expenditure and operating plans . we expect to fund any new reserve acquisitions from cash on hand , cash from operations and potential future issuances of debt or equity securities . if future cash flows are insufficient to meet our liquidity needs or capital requirements , we may reduce our expected level of capital expenditures and or fund a portion of our capital expenditures through the issuance of debt or equity securities , the entry into debt arrangements or from other sources , such as asset sales . 52 contractual obligations the following table summarizes our contractual obligations as of december 31 , 2018 : replace_table_token_10_th off-balance sheet arrangements as of december 31 , 2018 , we had no off-balance sheet arrangements . critical accounting policies and estimates the preparation of consolidated financial statements in conformity with u.s. gaap requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenues and expenses reported for the period then ended . mine development costs . mine development costs represent the costs incurred to prepare future mine sites for mining . these costs include costs of acquiring , permitting , planning , research , and establishing access to identify mineral reserves and other preparations for commercial production as necessary to develop and permit the properties for mining activities . operating expenditures , including certain professional fees and overhead costs , are not capitalized but are expensed as incurred . amortization of mine development costs , with respect to a specific mine , commences when mining of the related reserves begins . amortization is computed using the units-of-production method over the proven and probable reserves dedicated to the specific mine . asset retirement obligations . we recognize as a liability an asset retirement obligation , or aro , associated with the retirement of a tangible long-lived asset in the period in which it is incurred or becomes determinable , with an associated increase in the carrying amount of the related long-lived asset . the initially recognized asset retirement cost is amortized using the same method and useful life as the long-lived asset to which it relates . amortization begins when mining of the specific mineral property begins . accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value . estimating the future aro requires management to make estimates and judgments regarding timing and existence of a liability , as well as what constitutes adequate restoration . inherent in the fair value calculation are numerous assumptions and judgments including the ultimate costs , inflation factors , credit adjusted discount rates , timing of settlement and changes in the legal , regulatory , environmental and political environments . to the extent future revisions to these assumptions impact the fair value of the existing aro liability , a corresponding adjustment is made to the related asset . impairment of long-lived assets . we review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . these events and circumstances include , but are not limited to , a current expectation that a long-lived asset will be disposed of significantly before the end of its previously estimated useful life , a significant adverse change in the extent or manner in which we use a long-lived asset or a change in its physical condition . when such events or changes in circumstances occur , a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying amount . if the projected undiscounted cash flows are less than the carrying amount , an impairment is recorded for the excess of the carrying amount over the estimated fair value . we make various assumptions , including assumptions regarding future cash flows in our assessments of long-lived assets for impairment . the assumptions about future cash flows and growth rates are based on the current and long-term business plans related to the long-lived assets . 53 equity -based compensation expense . compensation cost for equity incentive awards is based on the fair value of the equity instrument generally on the date of grant and is recognized over the requisite service period . the fair value of restricted stock awards is determined using the publicly-traded price of our common stock on the grant date . the fair value of option awards is calculated using the black-scholes option-pricing model . the black-scholes model requires us to make assumptions and judgments about the variables used in the calculation , including the expected term , expected volatility , risk-free interest rate , dividend rate and service period . income taxes . we provide for deferred income taxes for temporary differences arising from differences between the financial

