Ciner Resources LP (the “Partnership”) (NYSE: CINR) announced that the
board of directors of its general partner approved today its quarterly
distribution. The quarterly distribution of $0.340 for the first quarter
of 2019 is payable on May 24, 2019, to unitholders of record on May 21,
2019.
“While we are still working on finalizing our capital plans for a new
expansion project that we anticipate will increase our capacity up to
approximately 3.5 million tons of soda ash per year, it is clear such
plans will require capital expenditures materially higher than have been
incurred by Ciner Wyoming in recent years. When considering
infrastructure improvements designed to increase our overall efficiency
plus the expansion, our plans could entail up to $400M of new capital
investment. We are committed to maintaining a disciplined financial
policy with a conservative capital structure, which means we intend to
pay for the investment in part through cash generated by the business
and in part through debt. As a result, we have made the decision
proactively to lower our cash distributions from Wyoming until we have
satisfied at least 50% of the funding for the project, which we expect
will take roughly 10-12 quarters depending upon business performance. We
intend to maintain the distribution at this level until such targets are
met. Afterward, we believe increased production levels from our
operations will materially improve our available cash and allow us to
resume growing our distributions again. This decision was not made
lightly or without considerable debate, however, we believe that this
decision will enable us the financial flexibility to build long-term
value for our unitholders,” said Kirk Milling, President and CEO Ciner
Resources LP.
ABOUT CINER RESOURCES LP
Ciner Resources LP, a master limited partnership, operates the trona ore
mining and soda ash production business of Ciner Wyoming LLC, one of the
largest and lowest cost producers of natural soda ash in the world,
serving a global market from its facility in the Green River Basin of
Wyoming. The facility has been in operation for more than 50 years.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. Statements
other than statements of historical facts included in this press release
may constitute forward-looking statements and are not guarantees of
future performance or results and involve a number of risks and
uncertainties. Actual results may differ materially from those in the
forward-looking statements as a result of a number of factors, including
those described in the Partnership's filings with the SEC. The
Partnership undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements speak only as of the date of
this press release.
Qualified Notice
This release is intended to be a qualified notice to nominees as
provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d).
Please note that 100 percent of the Partnership's distributions to
foreign investors are attributable to income that is effectively
connected with a United States trade or business. Accordingly, all of
the Partnership's distributions to foreign investors are subject to
federal income tax withholding at the highest effective tax rate for
individuals or corporations, as applicable. Nominees, and not the
Partnership, are treated as the withholding agents responsible for
withholding on the distributions received by them on behalf of foreign
investors.
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