Coal Age

JUN 2018

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16 June 2018 news continued NMA's brief alleged that Washington has overstepped its con- stitutional authority, attempting to impose its anti-coal agenda on national foreign policy — policy that can be set by the federal government alone. It was to prevent intrastate meddling in foreign trade policy that the framers of the constitution saw fit to allocate exclusive authority over international trade and foreign policy to the feder- al government, the NMA said. "Washington's conduct in this case is inconsistent with that constitutional framework," the NMA said in its statement. "In this case, it is coal; in the next case, it could be agriculture or manufactured goods." Joining NMA as amici curiae in support of plaintiffs' motion for a preliminary injunction are the National Association of Man- ufacturers, American Farm Bureau Federation and American Fuel & Petrochemical Manufacturers. Hallador Secures New Credit Facility Hallador Energy entered into a new credit agreement with PNC Bank as the administrative agent, extending the term of the agree- ment through May 2022. The $267 million facility is comprised of a $147 million term loan and a $120 million revolver. In addition to extending the term of the facility, the loan substantially reduces debt service requirements and moves the loan from the Sunrise Coal level to the Hallador level, allowing for investments in Hour- glass Sands as opportunities arise. "We are happy to put our credit needs to bed for the next four years, and will continue our intense focus on debt reduction," said Brent Bilsland, president, CEO and chairman of Hallador Energy Co. "Since the original credit facility was established in August 2014, we have paid down $144 million of debt." Hallador is headquartered in Denver, Colorado, and through its wholly owned subsidiary, Sunrise Coal LLC produces coal in the Illinois Basin for the electric power generation industry. Rhino Reports Net Loss for Q1 2018 Rhino Resource Partners announced its financial and operating re- sults for the quarter ended March 31. For the quarter, the partner- ship reported a net loss of $2.8 million and Adjusted EBITDA of $4.5 million, compared to a net loss of $2 million and Adjusted EBITDA of $4.8 million in the first quarter of 2017. Diluted net loss per com- mon unit was $0.22 for the quarter compared to diluted net loss per common unit of $0.22 for the first quarter of 2017. Total revenues for the quarter were $54.8 million, with coal sales generating $54.3 million of the total, compared to total revenues of $51.5 million and coal revenues of $51.3 million in the first quarter of 2017. The partnership continued the suspension of the cash distribu- tion for its common units for the current quarter. No distributions have been paid for common or subordinated units for the quarter. "We continued to produce positive financial results in the first quarter of 2018 with strong cash flow from operations that exceeded $8.3 million," said Rick Boone, president and chief ex- ecutive officer of Rhino's general partner. "Market demand has remained solid, especially in Central Appalachia (CAPP), and met coal prices have held steady in the first part of this year. "Our continued focus on direct relationships with internation- al met coal customers has resulted in numerous spot sales in the first and second quarters of 2018. We expect these relationships will result in long-term sales agreements for our met coal that will pro- vide us with potential financial upside for the remainder of 2018. Boone said the company was adversely affected by weather conditions that caused delays in barging coal and poor rail ser- vice that affected export shipments. "The storms along the east coast created delays in getting vessels to port and created a back- log in rail service," he said. "Sales volumes were nearly 120,000 tons below forecast due to the items mentioned previously." The company expected to catch up on our barge shipments in the second quarter at the Pennyrile operation and conversa- tions with the railroads indicate that rail backlogs will be cleared by the end of the second quarter, which will help improve results for the Nothern Appalachia (NAPP) and CAPP operations, he said. "At our CAPP operations, we have contracted for all of our 2018 projected steam coal production and we have a small amount of 2018 met coal tons remaining to be booked," Boone said. "We continue to execute various spot sales with internation- al met coal customers at attractive prices and we have been nego- tiating with domestic utility and industrial customers for steam coal sales for 2019 and 2020." Production at Pennyrile and Castle Valley are completely sold out for 2018, he added. In NAPP, the Hopedale operation is sold out for the remainder of 2018. "Our positive financial results for the first quarter of 2018 de- spite reduced coal shipments shows our potential to bring value to our unitholders and we are confident the remainder of 2018 will be positive for Rhino," Boone said. c a l e n d a r o f e v e n t s September 10-14, 2018: Electra Mining Africa, Expo Centre Nasrec, Johannesburg, South Africa. Contact: Web: September 12-14, 2018: Coal Association of Canada 2018 Coal Conference, Westin Bayshore, Vancouver, British Columbia, Canada. Contact: Web: September 20-21, 2018: S&P Global Platts 41 st Annual Coal Marketing Days Conference, Westin Convention Center, Pittsburgh, Pennsylvania. Contact: Web: October 14-16, 2018: The World Coal Leaders Network 2018, Pullman Barcelona Skipper, Barcelona, Spain. Contact: Web: world-coal-conference/details.html. November 6-8, 2018: MetCoke World Summit 2018, Pittsburgh, Penn- sylvania. Contact: Web: Janaury 27-30, 2019: 45 th Annual Conference on Explosives and Blasting Techniques, Nashville, Tennessee. Contact: Web: February 24-27, 2019: SME Annual Conference & Expo, Denver, Colorado. Contact: Web: March 10-13, 2019: Haulage & Loading, Hilton El Conquistador Resort, Tucson, Arizona. Contact: Web: April 8-14, 2019: bauma, Messe Muenchen, Munich, Germany. Contact: Web: May 20-22, 2019: Longwall USA, David L. Lawrence Convention Center, Pittsburgh, Pennsylvania. Contact: Web:

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