Dallas, Texas 01/22/2014 (FINANCIALSTRENDS) – Oxford Resource Partners, LP (NYSE:OXF), the $28 million market capped mining firm which is into extraction and production of “value steam coal, and surface mined coal” announced on 17th January that its fully owned subsidiary Oxford Resource Partners, LP has successfully amended its agreement with AEP Generation Resources Inc.
It is relevant to note here that AEP Generation Resources Inc has been the successor of all the business and financial interests previous held by Ohio Power Company. Ohio Power Company was in its previous avatar known as Columbus Southern Power Company. The amendment highlighted above was arrived at by the two firms on the “Coal Purchase and Sale Agreement” dated 21st May2004 which was in vogue till this new amendment was affected.
The modified amendment will be effective from 1st January 1, 2014 and stipulates that the quantity of coal that has been annual contracted for supply for this year 2014 would be reduced by fifty thousand tons. The coal will be supplied by Oxford Resource Partners, LP (NYSE:OXF) to AEP Generation Resources Inc owned Conesville plant. As per the new rules of engagement under the relevant agreement, only 1,650,000 tons of coal will be supplied.
Interestingly, Oxford Resource Partners, LP (NYSE:OXF) was able to re route its fifty thousand coal supply to AEP under a separate and new contract they have signed to ship out “washed coal in January 2014 to the Conesville plant”. On the back of these developments, the markets have rewarded the stock handsomely as the 17 percent increase in its value during trading last week indicates. The stock is trading at $1.37 per share, up 26 percent from its 52 week low price points.
Over the trailing 12 months, the mining firm has managed to generate sales worth $350 million from its mining and production activities it pursues in 19 active mines that are managed as 8 mining complexes.