NEW YORK, NY / ACCESSWIRE / April 29, 2019 / Paringa Resources Limited (''Paringa'' or ''Company'') (NASDAQ: PNRL, ASX: PNL) is pleased to present its quarterly report for the period ending March 31, 2019.
Highlights during, and subsequent to, the quarter include:
Coal sales
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The Company successfully produced washed coal and commenced barge operations at Poplar Grove.
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A maiden shipment was loaded into barges at Paringa's Ainsworth Dock on the Green River and delivered to cornerstone customer, Louisville Gas and Electric Company and Kentucky Utilities Company (''LG&E and KU''), part of the PPL Corporation (NYSE:PPL).
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Sales volumes will continue to ramp up in the coming weeks as coal production increases in line with additional mining equipment being deployed.
Mining and processing operations
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Underground mining significantly progressed during the quarter, with mining activities now fully transitioned to Paringa managed operations.
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The Company successfully commenced mining with its first continuous miner, installed and commissioned the slope conveyor and established the permanent ventilation system.
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Operations using the mine slope conveyor allowed the Company to commence a typical underground room and pillar mining sequence and enabled significantly increased production rates.
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All surface infrastructure at the mine site and dock is complete, commissioned and operating.
Debt financing
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US$56 million Term Loan Facility was executed with Tribeca Global Resources Credit Pty Limited.
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The Term Loan Facility will be used to refinance Paringa's existing US$21.7 million debt facility, fund accelerated expansion of the 3rd mining unit and provide additional working capital.
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The Term Loan Facility is an attractive funding package that provides low overall cost, low shareholder dilution and flexibility in relation to early repayment.
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Once the facility is fully drawn, Paringa will be funded to commence the expansion of production to 2.8 million tons per annum (''Mtpa'') at Poplar Grove.
Coal sales contracts
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Paringa executed a coal sales agreement with Big Rivers Electric Corporation ("BREC") to sell up to 1,400,000 tons of coal from 2019 to 2023.
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BREC operates two major local coal fired power stations, the Robert D Green and D.B. Wilson plants, located in very close proximity to Paringa on the Green River.
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The sales agreement with BREC takes Paringa's total 5-year contracted sales position to 6,800,000 tons.
Next Quarter
The key milestones for the next quarter include:
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Ramp-up of underground mining, including operation with both the first and second mining units.
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Ramp-up of the CHPP and materials handling infrastructure.
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Commencement of sales to Paringa's additional contracted customers, AEP and BREC.