Paringa Resources Optimistic About Illinois Basin Coal Operations Following Recent Consolidation
November 1, 2019 - Paringa Resources remains optimistic about its Illinois Basin operations given recent consolidation, the coal producer's third-quarter earnings report said Thursday.
"Recent industry consolidation in the Illinois Basin provides a strong environment for additional Paringa coal sales," the report said.
A prior release noted "in Paringa's sub-region of the ILB in western Kentucky, approximately 5.8 million st of supply capacity has recently been aggressively consolidated by Alliance Resource Partners, who acquired and then closed the Pennyrile Mine in September and closed the high-cost Dotiki mine in August."
Paringa delivered 136,000 st during Q3, up from about 26,000 st in the previous quarter. The producer also began coal sales to its second customer, Indiana-Kentucky Electric Corporation, at the end of September, and generated sales of about $5.7 million.
All sales and production came from Paringa's Buck Creek Complex in western Kentucky.
Salable coal production in Q3 totaled about 143,000 st, up from 26,700 st the prior quarter.
The realized sales per ton were $41.98/st in Q3, down from $42.35/st in the quarter before.
Paringa expects a sales increase in Q4 from Q3 as it continues ramping up operations.
Unit 1, the report said, achieved 85% productivity through the second half of September, while Unit 2 has been relocated away from a geological fault, allowing it to ramp up production.
In a previously reported guidance, Paringa said it is 100% sold for 2019, 75% for 2020 and 50% over the next five years.