Argonaut recently visited Paringa Resources’ (PNL) Poplar Grove thermal coal development project in Kentucky, US. Construction is nearing completion with the coal handling and preparation plant (CHPP) largely complete and the overland conveyer and barge loadout facility due for completion in the coming weeks. The mine decline/slope is expected to meet the coal face in 3-4 weeks and the first saleable barge lode is anticipated in mid-January. Poplar Grove will produce 2.8Mtpa and will be the first of two mines constructed within the greater Buck Creek Project, including the 3.8Mtpa Cypress mine. PNL is fortuitously commencing production in a period of record low coal inventories and uncompetitive gas prices. This should favour the signing of further sales contracts, beyond the 5.4Mt already contracted between 2019-2022. Argonaut maintains a BUY recommendation and a $0.80 target price.
Argonaut recently visited Paringa Resources’ (PNL) Poplar Grove thermal coal development project in Kentucky, US. Construction is nearing completion with the coal handling and preparation plant (CHPP) largely complete and the overland conveyer and barge loadout facility due for completion in the coming weeks. The mine decline/slope is expected to meet the coal face in 3-4 weeks and the first saleable barge lode is anticipated in mid-January. Poplar Grove will produce 2.8Mtpa and will be the first of two mines constructed within the greater Buck Creek Project, including the 3.8Mtpa Cypress mine. PNL is fortuitously commencing production in a period of record low coal inventories and uncompetitive gas prices. This should favour the signing of further sales contracts, beyond the 5.4Mt already contracted between 2019-2022. Argonaut maintains a BUY recommendation and a $0.80 target price.
