Energy: Paringa just sent its first shipment of thermal coal to US customers
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New producer Paringa Resources (ASX:PNL) has sent a maiden shipment of thermal coal down a US river to a couple of key customers.
The 1500t cargo came from the company’s Poplar Grove operation in western Kentucky.
It was loaded onto barges at Paringa’s Ainsworth Dock on the Green River to be delivered to cornerstone customer, Louisville Gas and Electric Company, and Kentucky Utilities Company.
Paringa said the coal “exceeded key contract specifications”.
Stockhead has contacted the company to find out just how good its coal is and how much cash it expects to make from the shipment.
Paringa started production from the Poplar Grove mine in December last year and is in the process of ramping up to a capacity of 2.8 million tonnes per annum.
Despite the negative rhetoric around thermal coal, big resources funds still see potential in the market.
Last week Tribeca, which has around $1 billion invested in the resources space right now, agreed to loan Paringa $US56m ($79.5m).
Paringa says it has sold all of its coal production for 2019 and has so far sold about 70 per cent for 2020 with “leading regional power utilities”.
The company added that market conditions in the Illinois Basin remain strong, and it is in talks with existing and new customers regarding additional sales agreements.
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