Paringa Supplies First Coal in Western Kentucky from Poplar Grove Operation                

  • Apr 29, 2019 AEST
  • Team Kalkine
Paringa Supplies First Coal in Western Kentucky from Poplar Grove Operation                
On 29 April 2019, the producer of high-quality coal Paringa Resources Limited (ASX: PNL) announced that it had supplied its first coal in western Kentucky region from the Poplar Grove operation work. On 26 April 2019, an initial shipment of 1,500 tons was loaded into the barges at PNL’s Ainsworth Dock on the Green River to cornerstone consumer, Louisville Gas and Electric Company and Kentucky Utilities Company (LG&E and KU), which forms a part of the PPL Corporation (NYSE: PPL). Coal is sold by Paringa on a free-on-board (FOB) basis, and the onus lies with the company’s customers to transport it. The above-mentioned supply of coal underwent the required sampling process and further analysis at the Ainsworth Dock, wherein it surpassed the key contract specifications, validating the coal preparation handling plant ramp-up performance. As an outcome, sales volumes are expected to soar in the upcoming weeks, with the further mining device being positioned. Besides, the second continuous miner has been deployed, after the permanent ventilation system has been established. Moreover, the slope conveyor has been stationed and is carrying RoM coal from the lower part of the slope. Paringa has been doing the build-up work on a solid forward sales book. The company is sold out for this year and is roughly 70 percent booked for 2020 with leading regional power utilities. Commenting on the same, Mr. Egan Antill, Paringa’s Managing Director stated, that the sales from the Poplar Grove operation work are the main landmark for PNL turning into a notable coal producer in western Kentucky region. Committing to this success, the company aims to remain focussed to increase its operations towards nameplate capacity throughout this year. The company is also happy to work with the local businesses and contribute in generous numbers towards direct and indirect employment opportunities in the region, and they are thankful to LG&E and KU for their continued support extended as being the Company’s introductory customer towards this drive. Last month, on 20 March 2019, Paringa announced that a term facility agreement for a US$56 million Term Loan Facility (TLF) with Tribeca Global Resources Credit Pty Limited had been sealed. The company had further stated that the earnings from this agreement would be used to refinance its present debt amount, sponsor the quick expansion of the Poplar Grove operation work and for general working capital. In March 2019, Paringa had published its Interim Financial Report for the six months period ended 31 December 2018, with the following highlights:
  1. The company sealed two additional sales contracts for 2,050,000 tons of coal between (2019 to 2023 period) with major local utilities, complementing the Company’s existing cornerstone coal sales agreement with LG&E and KU.
  2. There was an appointment of U.S. based Chief Executive Officer & Managing Director Mr. Egan Antill.
  3. The market conditions in the Illinois Coal Basin have improved, and coal prices have moved significantly higher in response.
  4. As of December 31, 2018, the company had cash reserves of US$11.9 million and gross debt of US$21.0 million along with the net debt of US$17.1 million.
Stock performance: The company’s stock traded flat during the day’s trading session and closed at a price of A$0.170 (as on 29 April 2019).

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.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK