Rhino Resource Partners (NYSE:RNO) is a limited partnership which operates coal mines. The company primarily makes money by selling its coal to utility companies which burn in their steam generators to make electricity. The company also sells its coal as metallurgical coal. This type of coal is used as an additive to make steel. Rhino Resource operates primarily in Appalachia, the Illinois Basin, and the Western Bituminous region. The company controls approximately 285.4M tons of proven or provable coal reserves.
The company's initial public offering of stock on the NYSE and occurred on September 29, 2010. Its initial price range was $19-$21, and the stock priced within the range at $20.50. The company sold 3.24M shares and raised $67M. The lead underwriters of the deal were Raymond James Financial (RJF), Royal Bank Of Canada (RY), and Stifel Nicolaus Weisel.
The company's 2009 revenue was $420M, which was a 4% decrease from its 2008 revenue of $439. The company's net income rose however during this period from $929K to $19.5M. This corresponds to a nearly 2,000% year over year increase in net income. However, this rise in net income is primarily due to a drop in freight and handling costs. These costs fell because of a decrease in the cost of fuel and new contracts which are far more favorable for Rhino.