Paringa Signed A Third Coal Sales Agreement With Big Rivers Electric Corporation

PNL

Paringa Resources Limited (ASX: PNL) is in the energy sector. It is into the business of development and exploration of mineral resource properties in the United States. The company has an interest In the Buck Creek Mine Complex situated in Illinois coal basin.

On 31 January 2019, the company announced that it has signed a sales agreement with Big Rivers Electric Corporation (BREC). The agreement states that Paringa will sell up to 1,400,000 tons of coal from 2019 to 2023 from its Poplar Grove Mine. The sales agreement with BREC takes Paringa’s total 5-year contracted sales position to 6,800,000 tons, including existing sales agreements with LG&E and KU and OVEC-IKEC. 

Big Rivers Electric Corporation is a wholesale electric power and services provider company, providing its service to three distribution cooperative members across twenty-two counties.

The Poplar Grove Mine has direct barge access to the Green and Ohio River systems. This access provides the company with a significant transportation cost advantage over many other coal operations in the region since BREC has its two plants R.D. Green and D.B. Wilson which is located very close to Paringa on the Green River.

As per the coal sales agreement, Paringa has a contract to deliver a minimum of 1,280,000 tons and a maximum of 1,400,000 tons of 11,250 btu/lb product from its Poplar Grove Mine, with a minimum of 220,000 tons and a maximum of 250,000 tons in the year 2020. The contract to deliver however is over a 5-year span at annual fixed pricing and on a mutually agreeable delivery schedule. The pricing terms are in line with Paringa’s existing sales contract with LG&E and KU.

The Chief Executive Officer of the company, Mr. Egan Antill, the company is delighted to enter into a coal sales agreement with a high quality, locally owned organization such as Big Rivers Electric Corporation. This will complement the existing coal sales agreements of the company with LG&E and KU and OVEC-IKEC. The company has expanded its contract positions with three high-quality customers to 6.7 million tons, which provides clear revenue visibility for a significant portion of their production over the next five years to a diversified customer base. The coal sales contracts of the future are focused on delivery from 2020 onwards.

Now let us quickly have a glance at the Paringa Resources Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.170 and increased with a market capitalization of $77.9 million. The stock opened at $0.170 with its day low at the same price; however, the day’s high price touched $0.180. The stock has generated negative returns of 24.44%, 15.0% and 10.53% over the last six months, three months and one-month period respectively. It has a 52-week high price of $0.393 and a 52-week low of $0.150, with an average volume of 200,724 approximately.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Top 25 Dividend Stocks report for April

People prefer a dividend stock in their portfolio as it possesses the feature of compounding. Compounding means that the earning which is generated through these dividend stock will get reinvested and will eventually create earnings from earning. More precisely, the dividend generated from these dividend stock will get reinvested to buy another set of a share of the dividend stock which results in giving a higher dividend.

Click here to download your top 25 dividend stocks report!

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report