Paringa Resources (PNL) has raised $30.2m to fill a funding gap for the development of the Poplar Grove coal mine in Kentucky, US. Additional capex was required for a changed approach to coal seam access, weather related delays and a minimum cash balance for debt drawdown. The Company will now be fully funded to initial cashflows in 2019. While this was an unforeseen dilutive event, PNL still offers a compelling discount to our target price with near term coal production, contracted sales from 2018-2022 and strong market dynamics. Argonaut maintains a BUY recommendation with a revised target price of $0.80 (previously $1.50).
To access our review of Paringa Resources please log in under the Client Area Log In at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
+61 8 9224 6888
+852 3557 4888