Stable, Predictable Cash Flow
Our royalty structure generates stable production and cash flow. Our leases provide for royalty rates generally equal to the higher of a percentage of the gross sales price or a fixed price per ton for our coal and aggregates mined, subject to a minimum payment. In addition most leases require a minimum payment either on an anuual or quarterly basis. This structure generally allows our production and cash flow to be stable and predictable in periods of low commodity prices, while enabling us to benefit during periods of higher commodity prices.
Experienced Lessees with a Diverse Customer Base
Our royalty income is generated by over 70 lessees, many of which are large public companies. They sell to a diverse group of utilities, steel companies and industrial users.
Strategically Located and Diverse Reserves
Our reserves are geographically diverse and include coal, aggregates, as well as oil and gas. Our coal reserves cover a broad range of heat and sulfur content. By offering both metallurgical and steam coal, our coal reserves are marketable to a diverse customer base, thereby enabling our lessees to adjust to changing markets and sustain sales volumes and prices.
Experienced Management Team
We have a strong management team with a successful record of managing, leasing and acquiring properties. We are highly capable and experienced with the areas in which our lessees mine, the mining environment, and trends in the industries. Furthermore, we believe our management team has the necessary skills and experience to identify and integrate future acquisitions.