Paringa Signs Third Coal Sales Agreement With a Major Utility for Up to 1.4 Million Tons
January 31 2019 - 8:00AM
HIGHLIGHTS:
Paringa Resources Limited (“Paringa” or “Company”) (ASX:
PNL, NASDAQ: PNRL) is pleased to advise that it has signed
a sales agreement with Big Rivers Electric Corporation
(
“BREC”) for coal sales from its Poplar Grove
Mine, totaling up to 1,400,000 tons of coal from 2019 to 2023. The
sales agreement with BREC takes Paringa’s total 5-year contracted
sales position to 6,800,000 tons, including existing sales
agreements with LG&E and KU and OVEC-IKEC.
The Poplar Grove Mine’s direct barge access to
the Green and Ohio River systems provides a significant
transportation cost advantage over many other coal operations in
the region, with BREC’s R.D. Green and D.B. Wilson plants located
in very close proximity to Paringa on the Green River.
Under the coal sales agreement, Paringa is
contracted to deliver a minimum of 1,280,000 tons and a maximum of
1,400,000 tons of 11,250 btu/lb product from its Poplar Grove Mine
over a 5-year period at annual fixed pricing and on a mutually
agreeable delivery schedule. Pricing terms are consistent with
Paringa’s existing sales contract with LG&E and KU.
Annual contracted volumes (t) |
Year |
Minimum volume |
Maximum volume |
2019 |
100,000 |
100,000 |
2020 |
220,000 |
250,000 |
2021 |
320,000 |
350,000 |
2022 |
320,000 |
350,000 |
2023 |
320,000 |
350,000 |
Total |
1,280,000 |
1,400,000 |
Figure 1: Paringa’s annual contracted volume
profile with BREC |
|
Figure 2 is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/17e0e1aa-451a-4fc8-b7e2-7101812eb3a4
Paringa’s Chief Executive Officer, Mr. Egan
Antill, said: “We are delighted to enter into a coal sales
agreement with a high quality, locally owned organisation such as
BREC, complementing our existing coal sales agreements with
LG&E and KU and OVEC-IKEC. We have expanded our contracted
position with three high quality customers to 6.7 million tons,
providing clear revenue visibility for a significant portion of our
production over the next 5 years to a diversified customer
base."
For further information, contact:Egan Antill
Chief Executive Officer
eantill@paringaresources.com
Dominic AllenVice President,
Financedallen@paringaresources.com
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 announcements.
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