Natural Resource Partners Appears To Be Approaching Fair Value

Summary

• Natural Resource Partners owns mineral rights to both steam and met coal assets, as well as a stake in a Wyoming soda ash plant.
• 2023 results were strong, leading to a rally in the units, but the cyclical nature of the coal and soda ash markets may start to limit further upside.
• The soda ash business performed well in 2023, with the highest annual distribution ever received by NRP, while management has shown robust capital allocation and incentives.
• Carbon-neutral projects have performed less well than I had hoped.