NewLead Holdings Ltd. (NASDAQ: NEWL) announced that they have signed an agreement to supply 720,000 metric tons of thermal coal to a third party buyer, which is anticipated to generate revenues of $64.0 million over a 12-month period.
As quoted in the press release:
The contract provides for the sale of 60,000 metric tons of coal per month (720,000 metric tons annually) for the 12 months beginning February 4, 2013. All tonnage is subject to a variation of 10%. The price was established based on the prevailing market price for coal at the time the contract was entered into. The agreement is subject to satisfactory completion of a trial shipment of approximately 60,000 metric tons, expected to be completed in the first quarter of 2013.
New Lead’s President, Chairman and CEO, Michael Zolotas, said:
We have secured an additional contract to supply thermal coal to a third party creditworthy counterparty. This agreement further expands our commodities business.