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Case 1:20-bk-12043
<br />n c. f 1. k - :_:: 6 Fncrg'i
<br />Doc 281-1 Filed 08/26/20 Entered 08/26/20 10:01:13 Desc
<br />Exhibit A Publications Page 7 of 35
<br />Interested bidders may contact Energy Ventures
<br />Analysis - Seth Schwartz (::
<br />or Emily Medine (_ ; rcE 3.' _ o fi i ). Eligible
<br />parties may bid on any combination of the asset
<br />groups, including bidding on specific reserves.
<br />The early -on naming of a stalking horse bidder
<br />follows the modus operandi of other recent,
<br />similar Chapter 11 cases in the coal industry,
<br />which have included designating stalking horse
<br />bidders by agreement among the debtors, their
<br />senior lenders and other parties at the outset of the
<br />bankruptcy proceedings.
<br />Six asset categories
<br />Asset Group (AG)1 includes inventory at the
<br />mining operations of CAM Mining, Castle Valley
<br />Mining, Hopedale Mining and Jewell Valley
<br />Mining. AG 2 includes all assets associated with
<br />CAM, excluding inventory but including land,
<br />leasehold interest, mineral rights, equipment and
<br />reclamation liabilities.
<br />AG 3 includes all assets associated with Castle
<br />Valley (like those noted for CAM) excluding
<br />inventory. AG 4 and AG 5 are similarly grouped for
<br />Hopedale and Jewell Valley, respectively.
<br />AG 6 includes all other assets of the debtors,
<br />including but not limited to the Rhino Eastern
<br />reserve, Colorado property, Rich Mountain reserve,
<br />Hopedale Dock, Taylorsville reserve, Leesville
<br />reserve, Springdale reserve, McClane Canyon
<br />reserve and the Jewell Valley plant.
<br />Of note is that, for the Jewell Valley mining
<br />operations, there are disputed permits from
<br />Blackjewel's Chapter 11 sale process, "which the
<br />debtors vehemently dispute" and which Rhino has
<br />excluded from the stalking horse agreement.
<br />Class 1 railroads' weekly coal
<br />carloads drop 23.4%
<br />In what has surely become the trend for the
<br />pandemic -wracked 2020 economy, U.S. Class 1
<br />railroads' coal carloads continue to post weekly
<br />double-digit percentage drops from 2019. In the
<br />latest week ending Aug. 8, coal carloads are down
<br />by 23.4% to 59,328 from the year-ago week, the
<br />Association of American Railroads reports.
<br />Year to date, coal carloads total 1,806,596,
<br />averaging 56,456 carloads for the 32 weeks and
<br />down 27.4% from YTD 2019.
<br />The only freight category out of the 10 tracked by
<br />AAR to rise in the current week was grain, by 3.6%.
<br />Intermodal traffic, on which the nation's railroads
<br />are staking any hopes of growth this year, was up
<br />1.9% for the week.
<br />In categories that could influence metallurgical
<br />coal shipments, metallic ores and metals shipments
<br />were down 29.5% for the week and down 20.4%
<br />YTD. Motor vehicles and parts dropped by 1.7% in
<br />the latest week and those carloads are down by
<br />30.5% YTD from last year.
<br />For individual railroads, CSX Week 32 coal
<br />carloads dropped 22.8% to 11,070 from 14,337 in the
<br />year-ago week. Third quarter to date coal carloads
<br />are down by 33.5% to 57,507 from 86,422 QTD
<br />2019. YTD CSX coal carloads are down by 30.8% to
<br />344,644 from 498,289 YTD 2019.
<br />Norfolk Southern weekly coal carloads are down
<br />by 5,956, or 36.7%, to 10,297 from 16,253 a year ago.
<br />QTD coal carloads are down by 34,620, or 36.8%, to
<br />59,409 from 94,029 QTD 2019. YTD NS coal carloads
<br />are down by 244,281, or 43.3%, to 320,487 from
<br />564,768 YTD 2019.
<br />BNSF Railway's Week 32 coal carloads dropped by
<br />18.2% to 27,689 from 33,852 in the year-ago week.
<br />QTD coal carloads are down by 26.6% to 152,835
<br />from 208,227 QTD 2019. YTD BNSF coal carloads are
<br />down by 22.2% to 830,428 from 1,067,678 YTD 2019.
<br />Union Pacific Railroad's weekly coal carloads are
<br />down by 22% to 15,375 from 19,661 in the year-ago
<br />week. QTD coal carloads dropped by 22% to 90,850
<br />from 117,196 QTD 2019. YTD UP carloads are down
<br />by 24% to 450,667 from 592,040 YTD 2019.
<br />Westshore Q2 exports flat from Q1
<br />IHS Markit's Doyle Trading Consultants, lining up
<br />coal exports from Canada's Westshore Terminals in
<br />British Columbia, found that export levels are pretty
<br />much flat to rising slightly, compared with the first
<br />quarter and with 2019 volumes.
<br />Westshore exports totaled 7.68 million metric
<br />tonnes in the second quarter of 2020 with a mix of
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