Westmoreland Receives $52 Million Early Repayment of Genesee Mine Receivable
March 28 2017 - 04:02PM
Westmoreland Coal Company (Nasdaq:WLB) today announced that Capital
Power (TSX:CPX) (“Capital Power”), Westmoreland’s joint-venture
partner in the Genesee Mine, has paid Westmoreland $52 million,
representing an accelerated repayment of all receivables that would
otherwise have been due with respect to capital expenditures during
the term of the joint venture arrangement.
“The early repayment of this receivable is a positive for us. We
have the opportunity to deploy this cash strategically as part of
our goal to improve liquidity and lower our leverage, and it
provides greater protection with respect to the risks presented by
Alberta’s recent decisions regarding coal use. With this payment,
we have fully recovered our capital investments at the mine,” said
Kevin Paprzycki, Westmoreland’s Chief Executive Officer.
In operating the Genesee Mine, Westmoreland initially made 50%
of the capital expenditures and was subsequently reimbursed over
time by Capital Power. Westmoreland also charges a contract mining
fee to run the operations. While the receivable for capital
expenditures has been paid in full early, Westmoreland will
continue to receive the contract mining fees of between $2 million
to $3 million annually until the projected termination of
operations at the mine in 2030. Going forward, Capital Power
will be solely responsible for capital expenditures at the
mine.
About Westmoreland Coal Company
Westmoreland Coal Company is the oldest independent coal company
in the United States. Westmoreland’s coal operations include
surface coal mines in the United States and Canada, underground
coal mines in Ohio and New Mexico, a char production facility, and
a 50% interest in an activated carbon plant. Westmoreland
also owns the general partner of and a majority interest in
Westmoreland Resource Partners, LP, a publicly-traded coal master
limited partnership (NYSE:WMLP). Its power operations include
ownership of the two-unit ROVA coal-fired power plant in North
Carolina. For more information, visit
www.westmoreland.com.
For further information please contact
Gary Kohn Chief Financial Officer
1-720-354-4467gkohn@westmoreland.com
Cautionary Note Regarding Forward-Looking
Statements
Forward-looking statements are based on Westmoreland’s current
expectations and assumptions regarding its business, the economy
and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual results may differ materially
from those contemplated by the forward-looking statements.
Westmoreland cautions you against relying on any of these
forward-looking statements. They are statements neither of
historical fact nor guarantees or assurances of future
performance. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include political, economic, business, competitive,
market, weather and regulatory conditions.
Any forward-looking statements made by Westmoreland in this news
release speak only as of the date on which it was made.
Westmoreland undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future developments or otherwise, except as may be required by
law.