Pinnacle input lacks in year guidance

NATURAL Resource Partners announced it anticipated 2004 net income earnings of between US$64.1 and $66.6 million with no contribution from the sealed Pinnacle mine.

Angie Tomlinson

Due to the uncertainty as to when production from the Pinnacle mine will resume, the 2004 guidance does not include any production or revenue from the mine. The mine ceased output in early September when a fire broke out. The mine has not been re-entered since.

The company indicated it expected to generate between $64.1 and $66.6 million in distributable cash flow in 2004. This distributable cash flow is net of scheduled principal payments on NRP's senior notes.

Production volumes are projected to be slightly higher in the second and third quarters than in the first and fourth quarters.

Coal royalty production is expected to be between 48.8 and 50.6 million tons for the year, with the majority, between 43 and 44 million tons, generated from the Appalachia region.

At December 31, 2002, NRP controlled approximately 1.23 billion tons of coal reserves with a reserve life of approximately 40 years. Approximately 85% of the reserves are located in Appalachia, 76% of the reserves are located in underground mines and 64% are considered low sulfur. The reserves are located on 48 separate properties in eight states and are subject to 97 leases with 40 lessees.