Paringa Resources Limited (NASDAQ: PNRL) was one of the biggest losers in yesterday’s trading session. The stock lost by 57.88% to close the day at $3.01. This drop came after it rallied from lows of $1 to over $8 in Thursday’s trading session. There wasn’t any major news from this company yesterday, which makes the drop a pure price action play, as traders moved to booked profits.
Prior to Friday’s drop, the stock was riding on news that it had granted a royalty of its Buck Creek Mining Complex to SP2 Royalty Co. LLC and raised $9 million before costs. The company announced that money from the deal that was first announced in September had been received, and that they would be channeled towards the Grove Mine and drive up its cash flow. The company also announced that it had acted upon a term loan with Tribeca. This move will see the company resize its loan to $10 million from a high of $16 million.
A month ago, the company released its quarterly results and the results were positive. For instance, it announced that in the quarter ending September 30th 2019, it had shipped 136 thousand tons of coal, an increase of 26Kt compared to the quarter that ended June 30th 2019. Sales increased as well to around $5.7 million.
Looking at the charts, the stock has been on a downtrend for the better part of the year. However, Thursday’s price action reversed all those losses, before Friday’s price action ate into some of the gains. In Friday’s session, the company’s volumes were quite high and stood at 1.43 million shares.
About Paringa Resources Limited
Paringa Resources Limited develops and operates coal mines in the U.S. The company has several mines in the U.S including the Coal Basin in Kentucky, the Poplar Grove Mine and is a part-owner of the Buck Creek Complex in Illinois. It has its headquarters in Rumsey, Kentucky.