The US coal managing company, which holds 1.23 billion tons of proven and probable reserves located in three major coal producing areas, recorded an EBITDA of US$19.4 million for the quarter.
Third quarter 2003 sales by NRP's lessees generated US$20.8 million in coal royalty revenues based on sales volumes of 12.2 million tons, for an average coal royalty revenue of US$1.71 per ton. Acquisitions completed during the last year accounted for US$8.1 million of the increase in coal royalty revenues and 4.6 million tons of the increase in production.
"Our lessees generally performed as expected. However, some of our lessees opted to curtail production and sales this quarter in anticipation of higher sales prices of coal in the near future,” CEO Nick Carter said.
“The benefit of our July acquisition of PinnOak Resources was offset this quarter by traditionally weaker production and sales volumes by our lessees due to miners' vacations and milder weather," he said.
Carter said at this stage it was too early to tell what disruption the fire at Pinnacle, which has idled the mine since the start of September, would have on the fourth quarter.
“If Pinnacle does not sell any coal from the mine in the fourth quarter it would result in a loss of approximately US$1.6 million in coal royalty revenue. Pinnacle is working diligently with both federal and state agencies, as well as its employees' union, to get the mine safely back in production as soon as possible."
Due to Pinnacle, NRP has slightly revising its guidance for 2003, anticipating net income will be between US$36 and US$38 million.
