Revenues Decline in Spite of Alliance Resource Selling More Coal in 2017

Alliance Resource Partners sold more coal in the second quarter of 2017 than a year ago, but its net income and total revenues declined because of anticipated decreases in coal sales prices. Joseph Craft, president and CEO of the Tulsa, Oklahoma-based company, told analysts during a July 31 phone conference that he expects electric utility coal purchases to pick up in the final months of 2017.

Alliance sold 8.5 million tons during the April-June period, up 6.3% from a year ago, due largely to good performances at its Hamilton longwall mine near McLeansboro, Illinois, its River View underground mine near Uniontown, Kentucky, and its Gibson South underground mine near Princeton, Indiana. Both River View and Gibson South are continuous miner operations.

Read the Whole Article in our Digital Edition

Warrior Met Continues to Improve Operations

In its second quarter earnings report, Warrior Met Coal reported net income of $129.9 million, compared to $108.3 million in the first quarter of 2017. The company reported adjusted EBITDA of $188.5 million in the second quarter of 2017, a 39% increase over the first quarter.

“Warrior’s highly successful second quarter validates our value proposition as the only publicly traded ‘pure-play’ hard coking coal operator in the U.S.,” commented Walt Scheller, CEO of Warrior. “Robust sales volume growth in a strong price environment resulted in a 167% increase in our free cash flow compared to the first quarter. We believe our ability to significantly grow our sales while maintaining our exceptionally low-cost structure will enable us to carry forward this strong performance over the remainder of the year.”

Read the Whole Article in our Digital Edition

Luminant to Retire Monticello Plant

Luminant recently announced its plan to retire its Monticello power plant in Titus County, Texas. In total, approximately 1,800 megawatts (MW) of power will be taken offline in January. The company estimates that approximately 200 employees will be impacted by Monticello’s retirement.

Read more ...

Exxaro Signs Long-term Agreement With Transnet

Exxaro Resource Ltd. signed a coal export transportation agreement with Transnet that will increase coal volumes from Waterberg to Richards Bay Coal Terminal (RBCT). The 10-year agreement between Exxaro and Transnet will allow for the transportation of a total of 7.8 million metric tons (mt) of export coal, of which 3 million mt will come from the Waterberg once all the projects are ramped up.

Read more ...

Mooiplaats Colliery Sold to MCH

At the end of September, Coal of Africa Ltd. (CoAL) sold the Mooiplaats Colliery to a consortium of investors, known as MCH, for R179.9 million ($13.2 million). MCH members include young black professionals, future Mooiplaats Colliery employees, communities, To The Point Growth Specialists Proprietary Ltd. and experienced coal mining executives, including Don Turvey. The consortium is funded by the newly established Last Mile Fund created by Africa Rainbow Capital, Bernard Swanepoel, Sipho Nkosi and Clinton Halsey, and MCH’s structure is compliant with the proposed requirements of the currently suspended third version of the South African Mining Charter.

Read more ...