Coal Age

JUN 2013

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news continued Bradley Harris, the Columbus-based company's CFO, told analysts during a mid-May conference call to discuss first-quarter earnings that financial negotiations have taken a bit longer than expected because "our credit facility has 10 individual lenders in that. So it's a big group to get together in consensus." The credit facility that took effect in 2010 consists of a $115 million revolving credit line and a $60 million term loan. Oxford had outstanding borrowings of $137 million at the end of 2012. As of March 31, the company had $5.3 million in cash "with no available borrowing capacity on our revolving credit facility," Harris said. "We have been engaged in active negotiations addressing the upcoming maturity. We've been working diligently for several months and expect to announce a comprehensive resolution within the next few weeks." While Oxford remained current on all of its principal and interest payments, Harris said the company was "now in default of certain financial covenants. Accordingly, all the borrowings outstanding under our credit facility are presented as a current liability in our first quarter financial statements." Oxford obtained a "forbearance agreement" from its lenders that gave the company an additional 30 days to seek a financial remedy for the defaults, he added. m Oxford recorded a loss in the first three months of 2013, although the red ink was not as deep as a year ago. The company lost $6.2 million in the latest quarter, less than half of its year-ago loss of $15.7 million. Revenues totaled $88.7 million in the first quarter, including $84.8 million from Oxford's sale of 1.7 million tons of coal. In the first quarter of 2012, revenues totaled $97.9 million, including $94.8 million from the sale of 1.9 million tons of coal. Oxford, however, boosted its 2013 production outlook, saying it now expects to mine 6 million to 6.5 million tons of coal, compared with a previously announced range of 5.8 million to 6.3 million tons. The company attributed the increase in projected output to its remaining Illinois Basin operations—a surface mine in Muhlenberg County, Ky. The Rose France mine will continue in production for a few months longer this year than previously planned before it is idled. Two years ago, Oxford expanded into western Kentucky from its traditional Northern Appalachia base of Ohio, opening several surface mines in Muhlenberg County. But in early 2012, Big Rivers Electric Corp., a Henderson, Ky.-based generation and transmission co-op, terminated an 800,000 tpy contract with Oxford. Oxford responded by filing a breach of contract lawsuit PEOPLE IN THE NEWS Arch Coal announced its Arch Coal Asia-Pacific Pte. Ltd. subsidiary has established an office in Beijing's Chaoyang District and has appointed Zhang Shijie to lead the effort. Babcock International has appointed Robert Whetstone head of operations for mining and construction in North America. The Tennessee Valley Authority has appointed James R. "Bob" Dalrymple senior vice president of coal and gas operations. President Obama recently nominated William Ira Althen to join the Federal Mine Safety and Health Review Commission, a James Dalrymple panel that oversees mine safety enforcement. Althen started a consulting company, William I. Althen, which specializes in legal issues dealing with worker health and safety. He also served as an attorney with labor and employment firm Ogletree Deakins. If confirmed, Althen would replace Michael Duffy and serve a six-year term. Ralph Burton Harry, retired senior vice president and treasurer of the former National Coal Association, passed away May 12. After serving in the U.S. Navy and working for Rep. Burr P. Harrison of Virginia's 7th Congressional District, Harry joined the National Coal Association, which represented the nation's coal producing companies and allied organizations. Over his 36 years Ralph Harry with the association, Harry rose from administrative assistant to secretary and treasurer to president of finance. He retired in 1992 as senior vice president and treasurer. He also served as a corporate officer of affiliated associations for coal research and exports. During his career, Harry was active in the National Trade Association education and management programs, completing requirements for Certified Association Executive status conferred by the American Society of Association Executives. River Consulting has appointed Mark Collett director of mining and minerals. He will be based out of Salt Lake City, Utah. 18 Heather Wilson Former New Mexico Rep. Heather Wilson (R) has been appointed president of the South Dakota School of Mines & Technology. Wilson succeeds the late Robert Wharton, who died in September. She will begin her duties on the Rapid City campus in mid-June, and will become the first female president in the school's 128-year history. Richard Bishop, who earned his bachelor's in mining engineering at Virginia Tech in 2002, recently received Virginia Tech's College of Engineering Outstanding Young Alumnus Richard Bishop Award for 2013. Modular Mining Systems has appointed Greg Lanz general manager, North America. Greg Lanz Hardide Coatings has appointed Dan Wilson North American business development manager. GeoProMining has appointed Alexander Kopyakov CEO of Sarylakh-Surma and Zvezda, Yakutia-based assets of GeoProMining Group. Dan Wilson Guardvant, Inc. has appointed John Capehart vice president of global business development. John Capehart Atlas Copco Construction Mining Technique USA's Rock Drilling Tools business line has appointed Peter Redaelli product manager. June 2013

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