Low Capex

Located in one of the best serviced and infrastructure rich coal regions in the US, Poplar Grove's low capex of US$44.7 million (per Expanded Bankable Feasibility Study released in March 2017) is in line with the capital intensity of other recent mine developments in the Illinois Basin:

Capital Intensity of New Mine Developments in the Illinois Basin
(Capital Intensity = Capex plus leased equipment divided by nameplate production)

Low Risk

Paringa has significantly "de-risked" the development of the Poplar Grove and Cypress mines:

  • Fully permitted to start construction
  • Low cost coal seam access
  • Simple "room-and-pillar" operations
  • Simple coal processing techniques
  • Low cost barge transportation
  • US$205 million sales contract
  • Improving US energy regulatory outlook
  • Established local mining industry
  • First world business jurisdiction
  • Experienced US Team

High Returns

Strong potential to generate high returns from the low capital, low risk Poplar Grove and Cypress Mines:

Key Metrics of Developing Poplar Grove and Cypress Mines