NEW YORK, NY / ACCESSWIRE / October 30, 2019 / Paringa Resources Limited ("Paringa" or "Company") (NASDAQ:PNRL) (ASX:PNL) is pleased to present its quarterly report for the period ending September 30, 2019.
Highlights during, and subsequent to, the quarter include:
Coal sales
- Paringa delivered total coal shipments of 136 thousand tons ("Kt") during the September quarter, up from approximately 26Kt shipped during the June quarter.
- Commenced coal sales to its second customer and generated September quarter sales of approximately US$5.7 million.
- Paringa expects a further increase in sales during the December quarter as the operations continue to ramp up.
Mining & processing
- Unit 1 continues to ramp up and achieved ~85% of nameplate Mains productivity in the #1 West Main through the second half of September.
- Unit 2 has successfully been relocated to the #1 South Main, away from the geological fault, which will allow the Unit to continue to ramp up production.
Corporate
- Executed a term sheet with Tribeca Global Resources Credit Pty Limited to grant a royalty to Tribeca to raise US$9.0 million before costs, in addition to the US$10.0 million second tranche of the Company's Term Loan Facility.
- After quarter end, completed a 1 for 4 pro-rata institutional entitlement offer to raise approximately A$3.1 million and announced a new fully underwritten 1 for 5 pro-rata entitlement offer to raise approximately A$5.1 million.
- Recent industry consolidation in the Illinois Basin provides a strong environment for additional Paringa coal sales.
POPLAR GROVE PRODUCTION SUMMARY[1] | |||||||||||
| Quarter ended Sep. 30, 2019 | Quarter ended Jun. 30, 2019 | Change Quarter / Quarter | 3 months ended Sep. 30, 2019 | ||||||||
ROM production (kt) | 277.6 | 95.0 | 192% | 277.6 | |||||||
Saleable coal production (kt)[2] | 143.3 | 26.7 | 437% | 143.3 | |||||||
CCE - ROM inventory movement (kt)[3] | (2.7) | 4.6 | n/a | n/a | |||||||
ROM stockpiles (kt) | 3.7 | 9.3 | (5.7) | 3.7 | |||||||
Saleable coal stockpiles (kt) | 8.0 | 0.4 | 7.6 | 8.0 | |||||||
Saleable coal loaded (kt) | 140.3 | 26.3 | 434% | 140.3 | |||||||
Realized sales per ton (US$) | $41.98 | $42.35 | -1% | $41.98 | |||||||
[1] Units of mass in US tons
[2] Coal processed by the preparation plant
[3] Clean Coal Equivalent ("CCE") content of ROM mined but not processed
Figure 1: Barge loading at Paringa's Ainsworth Dock on the Green River
Figure 2: Underground continuous miner in operation at Poplar Grove
For further information, contact:
Egan Antill
Chief Executive Officer
eantill@paringaresources.com
Dominic Allen
Vice President, Finance
dallen@paringaresources.com
ABOUT PARINGA RESOURCES
Paringa Resources Limited operates the low cost, high quality Poplar Grove Mine, part of the Buck Creek Complex located in the Illinois Coal Basin in western Kentucky.
The Buck Creek Complex includes two fully permitted thermal coal mines: (1) the operating Poplar Grove Mine with production capacity ramping up to 2.8 Mtpa; and (2) the permitted Cypress Mine with planned production capacity of 3.8 Mtpa. Construction of the Poplar Grove Mine has been completed and production ramp-up is underway, with full production capacity targeted in late 2020. The Company also has plans to develop the Cypress Mine.
Western Kentucky is one of the world's best mining jurisdictions due to its access to low cost power, utilities, transportation and non-union labor pool. Mining conditions at Poplar Grove are similar to those encountered in neighboring mines, which rank as some of the most productive room-and-pillar operations in the world.
Forward looking statements
This report may include forward-looking statements. These forward-looking statements are based on Paringa's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Paringa, which could cause actual results to differ materially from such statements. Paringa makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.
Competent Persons statements
The information in this report that relates to Exploration Results, Coal Resources, Coal Reserves, Mining, Coal Preparation, Infrastructure, Production Targets and Cost Estimation was extracted from Paringa's ASX announcements dated May 17, 2018 entitled "Equity Raising Investor Presentation', March 28, 2017 entitled "Expanded BFS Results Confirms Development Pathway to A$850 million NPV' and December 2, 2015 entitled "BFS Confirms Buck Creek will be a Low Capex, High Margin Coal Mine' which are available to view on the Company's website at www.paringaresources.com.
Paringa confirms that: a) it is not aware of any new information or data that materially affects the information included in the original ASX announcements; b) all material assumptions and technical parameters underpinning the Coal Resource, Coal Reserve, Production Target, and related forecast financial information derived from the Production Target included in the original ASX announcements continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this announcement have not been materially modified from the original ASX announcement.
SOURCE: Paringa Resources Limited
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