"met coal market on the other hand is mired by oversupply".. Glad that NRP continues to diversify but met coal continues to be the highest percentage contributor to revenue and income. Till the met coal market turns around, NRP shares will remain under pressure.
m&a activity brought NRP shares back above $16. Headed much lower otherwise. Key to keeping NRP solvent remains with the met coal business. STILL NO IMPROVEMENT IN SIGHT WITH MET COAL.
As a CFO would you advise covering new acquisitions with NRP stock (dilution) or borrowed money (9.5% interest). Please use the return that NRP expects to get with the new venture when you answer. Thank you!.
Dow up 54. Big move up for most coal stocks. NRP up slightly on m&a activity. Dennis Gartman now recommending coal stocks. No fundamental reason. Says that coal represents 42% of global energy source (US too). Also says that some coal companies will bankrupt. Natural gas up 8 cents.
Did not know about the Pinnacle ownership although I think that you had written about it before.
Did "google' steel making. Using natural gas rather than coal, US Steel saves $8 per ton in manufacturing steel. Will save $135 million this year. Believe it's just certain steel products that can be made with the ng process (like pipe used with fracking. It is another serious blow to met coal miners.
Dow up 51. Most coal stocks up slightly including NRP. No reason. Coal stocks going lower including NRP. Natural gas dropping. Have heard some very big numbers re ng production from Marcellus Shale.
Take it that you mean that CLF would sell the part of the Pinnacle mine that they own. They could not sell the part that NRP owns. Does seem like most of the miners that lease from NRP are shutting their own mines and continuing to lease from NRP. Don't understand that. Am sure that they will not renew the leases unless NRP cuts rent to an amount that production is profitable.
About using natural gas for steel production. I have not read that ng can be used with virgin steel.
ALL of the US met miners that I follow are losing unsustainable amounts on met coal (ACI, ANR, WLT and CLF). Believe most will bankrupt if the met coal market doesn.t improve.
MY comments came from Seeking Alpha contributor, Dave Dierbing. Claims his info is from Moody's.
You can read by going to AOL "daily finance" and key Arch Coal (ACI)
One half miners that are in the met coal end of the coal business are LOSING MONEY. Means that one half of the miners in the met coal business are PROFITABLE. Means there is no short term improvement in the met coal business.
Dow up 26. Coal stocks continue to drop. Natural gas also falling ( down 9 cents)
The big banks continue to unload NRP shares. Credit Suisse recently sold 25% of their shares. Bank America and BB&T already sold ALL of their shares. NRP shares going lower.