PNL 0.00% 4.1¢ paringa resources limited

Looks like the Neighbours are doing well!

  1. 187 Posts.
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    http://www.********/investing/gener...-or-not-this-coal-company-just-raised-it.aspx

    Stumbled across this article which certainly drove home the quality of the Illinois Basin. The article is about Alliance Resource Partners which is the major player in the Illinois basin.

    Of particular interest from the article:

    Moreover, Alliance Resource produces coal largely from the Illinois Basin, where business conditions remain solid. Tons sold and price per ton increased 8% and 0.3%, respectively, quarter over quarter. Because of increased sales across the region, the company's coal sales volumes there rose 8% quarter over quarter, and EBIDTA expense per ton declined slightly both quarter over quarter and year over year. As a result, the EBITDA margin at the Illinois Basin expanded by 160 basis points last quarter versus the first quarter. The EBITDA margin per ton stood at $20.27 last quarter, which compares very well to $15.91 per ton at Alliance Resource's Appalachia operations.

    We are constantly hearing of Coal companies in the US going bankrupt but it seems the Illinois basin producers are not only growing production but taking market share.

    The fact that Paringas Buck Creek project is located in the heart of the Illinois Basin with coal quality up there with the highest in the region it seems only logical that Alliance would be a keen acquirer of the project.  

    It certainly appears as though Paringa are in the right place at the right time.
 
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