Stable, Predictable Cash Flow
Our royalty structure generates stable production and cash flow. Our leases provide for royalty rates generally equal to the higher of a percentage of the gross sales price or a fixed price per ton of coal mined, subject to a minimum payment. This structure generally allows our production and cash flow to be stable and predictable in periods of low coal prices, while enabling us to benefit during periods of higher coal prices. Also, since we do not operate any mines, we do not directly bear any operational risks or production costs.
Experienced Lessees with a Diverse Customer Base
Our royalty income is 67 lessees, many of which are large public companies. They sell to a diverse group of utilities, steel companies and industrial users.
Strategically Located and Diverse Reserves
Our reserves are geographically diverse and cover a broad range of heat and sulfur content. By offering both metallurgical and steam coal, our coal reserves are marketable to a diverse customer base, thereby enabling our lessees to adjust to changing markets and sustain sales volumes and prices.
Well Positioned to Pursue Acquisitions
We have a strong volume sheet, a credit facility of $175 million, and the capacity to increase that to $300 million.
Experienced Management Team
We have a strong management team with a successful record of managing, leasing and acquiring coal properties. We are highly capable and experienced with the areas in which our lessees mine coal, the mining environment, and trends in the industry. Furthermore, we believe our management team has the necessary skills and experience to identify and integrate future acquisitions.
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Business Strengths |
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Stable, Predictable Cash Flow |
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Experienced Lessees with a Diverse Customer Base |
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Strategically Located and Diverse Reserves |
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Well Positioned to Pursue Acquisitions |
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Experienced
Management Team |
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