David Spier

David Spier asked for clarification on the capital contribution to the Soda Ash joint venture, specifically inquiring about the remaining bank debt and whether the JV is now debt-free. He also asked if the contribution was a requirement or an election.

Answer

Chris Zolas (CFO, Natural Resource Partners) stated that the JV is not debt-free and still has over $50 million in debt remaining after the contribution. Craig Nunez (President and Chief Operating Officer, Natural Resource Partners) added that there are no current plans for further contributions to pay down the remaining debt, though it remains a possibility if market conditions worsen. Craig Nunez also clarified that the contribution was an election, not a requirement.

David Spier with Nitor Capital Management inquired about the capital contribution to the Soda Ash joint venture, specifically asking about the outstanding bank debt and whether the JV is now debt-free after the investment. He also asked if further contributions to pay down debt are planned and if the recent contribution was mandatory.

Answer

CFO Chris Zolas clarified that the Soda Ash JV is not debt-free, with over $50 million in debt remaining. President and COO Craig Nunez added that while there are no current plans for additional contributions, the possibility exists if market conditions worsen, emphasizing that the recent $39 million investment was an elective decision, not a requirement.

David Spier inquired about the potential for acquiring additional royalty or soda ash assets once Natural Resource Partners is debt-free, given the current market weakness. He also asked about other non-carbon neutral opportunities on NRP's land, such as rare earth minerals.

Answer

President & COO Craig Nunez explained that while the mineral rights market is fragmented, opportunistic investments are the third priority for cash after achieving a 'fortress balance sheet,' following unitholder distributions and unit repurchases. Regarding other land opportunities, Nunez acknowledged the potential for future value across their vast footprint but confirmed there are no specific projects being evaluated at this time.

David Spier of Nitor Capital Management LLC asked about potential acquisition opportunities for royalty or soda ash assets once NRP becomes debt-free, and also inquired about other non-carbon neutral opportunities on NRP's land, such as rare earth minerals.

Answer

President & COO Craig Nunez explained that while the mineral rights market is fragmented and not highly active, opportunistic investments are the third priority for cash after deleveraging, following unitholder distributions and unit repurchases. Regarding other land opportunities, Nunez stated that while NRP may own 'call options on greatness,' there are no specific new mineral or deposit projects being evaluated at this time.

The analyst inquired about the potential for acquiring additional royalty or soda ash assets once the company becomes debt-free, and whether there are other untapped opportunities like rare earths on their land.

Answer

The company responded that once they achieve a 'fortress balance sheet,' their priorities for cash will be unitholder distributions, unit repurchases, and opportunistic investments. They acknowledged the potential for discovering new valuable minerals on their land but stated there are no specific projects currently being considered.