Hamilton Beach 2013 Annual Report Download - page 11

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2014. In particular, the company continues to move
forward to obtain a permit for its Otter Creek reserve
in North Dakota in preparation for construction of a
new mine.
Limerock deliveries in 2014 are expected to
be lower than 2013 as customer requirements are
expected to decline. Substantial declines in royalty and
other income are also expected in 2014 from the high
levels realized in 2013 and as a result, net income at
NACoal is expected to decrease significantly in 2014
compared with 2013.
The decrease in 2014 net income is expected to
occur largely in the first half of 2014 due to significant
losses at Reed in the first half of the year and substan-
tially lower royalty and other income. Productivity
improvements and increased mining efficiencies are
expected to result in a slight profit at Reed in the
second half of 2014 but are unlikely to offset the large
operating losses expected at Reed in the first half of
the year, fewer deliveries for the year at MLMC and
significantly lower royalty and other income. NACoal’s
cash flow before financing activities in 2014 is expected
to be positive compared with the negative cash flow
before financing activities in 2013.
Longer-Term Perspective
Over the longer term, NACoal’s goal is to
increase earnings of its unconsolidated mines by
approximately 50 percent over 2012 results over the
following five years through the development and
maturation of its new mines and normal escalation of
contractual compensation at its existing mines. Also,
NACoal has a goal of at least doubling the earnings
contribution of its consolidated mining operations