67 WALL STREET, New York - April 14, 2014 - The Wall Street Transcript has just published its Metals & Mining Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Mining Safety and Environmental Concerns - Global Iron Ore Production - Emerging Market Infrastructure Construction - Chinese Demand for Industrial Metals - Zinc Supply Deficit - Demand Growth in Zinc - Accelerated Grid Spending in China - Copper Demand in China
Companies include: Natural Resource Partners LP (NRP) and many more.
In the following excerpt from the Metals & Mining Report, the President and COO of Natural Resource Partners L.P. (NRP) discusses company strategy and the outlook for this vital industry:
TWST: Generally, would you say that Wall Street has a good understanding of the company? Any misperceptions you're aware of?
Mr. Carter: I am not sure that Wall Street fully appreciates two things about the company: I am not sure that they fully appreciate the way that risk is mitigated by being primarily a company that owns reserves, as opposed to a producing company. We are very much more risk-averse than a producing company. The lessees hold the mining permits and are responsible for all operating costs as well as reclamation costs. They are also responsible for all the workers' compensation and health care liabilities of working coal miners. We receive our royalties based upon the greater of a percentage of the gross sales price or a fixed fee per ton.
The other thing that I am not sure that is fully understood are the tax advantages that NRP has as an owner principally of coal reserves - as opposed to some of the pipeline companies and the oil and gas infrastructure companies - where a significant portion of our income is offset by cost depletion that is not recaptured upon the sale of the units. Under the tax code, depreciation must be recaptured at the time of the sale, or a portion of depreciation has to be recaptured, whereas cost depletion does not have to be. So in general, most sales of NRP stock will be without recapture of the depletion.
Also, I don't believe there is a broad enough understanding that a good portion of the royalty revenues are taxed at capital gains rate. However, we continue to punch on those lines at investor meetings. But as you know, most investors don't attend investor meetings. So this is a great opportunity for us via The Wall Street Transcript to spread the word a little further so that more people understand those particular relationships.
TWST: What are the macro trends that could provide headwinds, or where might you find support for the company's future growth or stock market performance?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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