Hamilton Beach 2012 Annual Report Download - page 14

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Much of the development work at the new Liberty Mine in Mississippi involves assembling mining equipment, such as this dragline that will eventually be used to
remove overburden.
12
cash flow before financing activities
was actually negative at $6.1 million
predominantly due to several unique
transactions in 2012. These included
cash paid of $69.3 million to acquire
Reed Minerals, the purchase of two
draglines for $26.8 million, the sale of
two draglines for $31.2 million and the
receipt of $14.4 million in payment for
a long-term note related to a dragline
sold in 2009. Cash flow before financing
activities was $21.0 million in 2011.
Outlook for 2013. While NACoal
will work to integrate Reed Minerals
in 2013, the company will remain
focused on safety, environmental com-
pliance and continuous improvement
programs. These well-established
programs provide a solid foundation for
all of the company’s coal and limerock
mining operations. NACoal expects
steady operating performance at its
coal mining operations in 2013. Steam
coal tons delivered in 2013 are expected
to increase over 2012 at both the con-
solidated and unconsolidated mining
operations provided end-use customers
achieve currently planned power plant
operating levels. NACoal is optimistic
that the power plant served by MLMC
will build on its operating improvements
in 2012 and run more consistently in
2013. However, metallurgical coal sales
for Reed Minerals are expected to be
below the company
’
s initial expecta-
tions as demand for steel is down and
customers are reducing inventories.
Limerock deliveries are expected to
decrease in 2013 compared with 2012
as customer requirements are expected
to decline moderately because the large
construction project that increased
2012 requirements will be completed
in early 2013 and the overall Florida
construction market remains weak.
Demery Resources Company’s Five
Forks Mine commenced delivering coal
to its customer in 2012 and is expected
to increase production in 2013, with
full production levels expected to be
reached in late 2015 or 2016. Royalty
income is expected to be lower in 2013
compared with 2012.
NACoal expects to continue to
generate modest income in 2013 from
the four unconsolidated mines which