Sisecam Resources LP - Quarter Report: 2016 March (Form 10-Q)

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016



OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to ________

Commission file number: 001-36062

CINER RESOURCES LP

(Exact name of registrant as specified in its charter)



DELAWARE (State or other jurisdiction of Incorporation or Organization)	46-2613366 (I.R.S. Employer Identification No.)

Five Concourse Parkway

Suite 2500

Atlanta, Georgia 30328

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (770) 375-2300

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer ¨	Accelerated filer x	Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ¨ No x

The registrant had 9,877,873 common units, 9,775,500 subordinated units and 399,000 general partner units outstanding at April 29, 2016, the most recent practicable date.

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CINER RESOURCES LP

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

References in this Quarterly Report on Form 10-Q (“Report”) to the “Partnership,” “CINR,” “Ciner Resources,” “we,” “our,” “us,” or like terms refer to Ciner Resources LP and its subsidiary. References to “Ciner Wyoming” refer to Ciner Wyoming LLC, the consolidated subsidiary of the Partnership. References to “our general partner” or “Ciner GP” refer to Ciner Resource Partners LLC, the general partner of Ciner Resources LP and a direct wholly-owned subsidiary of Ciner Wyoming Holding Co. (“Ciner Holdings”), which is a direct wholly-owned subsidiary of Ciner Resources Corporation (“Ciner Corp”). Ciner Corp is a direct wholly-owned subsidiary of Ciner Enterprises Inc. (“Ciner Enterprises”), which is directly owned by Akkan Enerji ve Madencilik Anonim Şirketi (“Akkan”), which in turn is directly wholly-owned by Turgay Ciner, the Chairman of the Ciner Group (“Ciner Group”), a Turkish conglomerate of companies engaged in energy and mining (including soda ash mining), media and shipping markets.

We include cross references to captions elsewhere in this Report, where you can find related additional information. The following table of contents tells you where to find these captions.



	Page Number

Part I - Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2016 and December 31, 2015	3
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) for the three months ended March 31, 2016 and 2015	4
Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2016 and 2015	5
Condensed Consolidated Statements of Equity (Unaudited) as of March 31, 2016 and 2015	6
Notes to the Unaudited Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures about Market Risk	30
Item 4. Controls and Procedures	31

Part II - Other Information
Item 1. Legal Proceedings	32
Item 1A. Risk Factors	32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3. Defaults Upon Senior Securities	32
Item 4. Mine Safety Disclosures	32
Item 5. Other Information	32
Item 6. Exhibits	33
Signatures	34

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CINER RESOURCES LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



	As of
(In millions)	March 31, 2016			December 31, 2015

ASSETS
Current assets:
Cash and cash equivalents	$	22.9		$	20.4
Accounts receivable, net	34.2			33.8
Accounts receivable - ANSAC	47.6			52.2
Due from affiliates, net	8.1			11.9
Inventory	28.3			26.4
Other current assets	1.1			2.2
Total current assets	142.2			146.9
Property, plant and equipment, net	254.2			255.2
Other non-current assets	21.2			21.1
Total assets	$	417.6		$	423.2
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	14.6		$	13.4
Due to affiliates	3.1			4.6
Accrued expenses	29.6			25.2
Total current liabilities	47.3			43.2
Long-term debt	103.5			110.0
Other non-current liabilities	7.0			6.8
Total liabilities	157.8			160.0
Commitments and Contingencies
Equity:
Common unitholders - Public and Ciner Holdings (9.9 units issued and outstanding at March 31, 2016 and 9.8 units issued and outstanding at December 31, 2015)	110.3			110.8
Subordinated unitholders - Ciner Holdings (9.8 units issued and outstanding at March 31, 2016 and December 31, 2015, respectively)	42.8			43.3
General partner unitholders - Ciner Resource Partners LLC (0.4 units issued and outstanding at March 31, 2016 and December 31, 2015, respectively)	4.0			4.0
Accumulated other comprehensive loss	(2.7		)	(2.1		)
Partners’ capital attributable to Ciner Resources LP	154.4			156.0
Non-controlling interest	105.4			107.2
Total equity	259.8			263.2
Total liabilities and partners’ equity	$	417.6		$	423.2

See accompanying notes.

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CINER RESOURCES LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)



	Three Months Ended March 31,
(In millions, except per unit data)	2016			2015

Net sales	$	114.4		$	120.4
Operating costs and expenses:
Cost of products sold	80.2			82.4
Depreciation, depletion and amortization expense	6.2			5.6
Selling, general and administrative expenses	5.8			4.9
Total operating costs and expenses	92.2			92.9
Operating income	22.2			27.5
Other income/(expenses):
Interest expense, net	(0.9		)	(0.9		)
Other, net	(0.2		)	(0.1		)
Total other income/(expense), net	(1.1		)	(1.0		)
Net income	$	21.1		$	26.5
Net income attributable to non-controlling interest	11.0			13.7
Net income attributable to Ciner Resources LP	$	10.1		$	12.8
Other comprehensive income/(loss):
Income/(loss) on derivative financial instruments	(1.1		)	(2.0		)
Comprehensive income	20.0			24.5
Comprehensive income attributable to non-controlling interest	10.5			12.7
Comprehensive income attributable to Ciner Resources LP	$	9.5		$	11.8

Net income per limited partner unit:
Common - Public and Ciner Holdings (basic and diluted)	$	0.51		$	0.64
Subordinated - Ciner Holdings (basic and diluted)	$	0.51		$	0.64

Limited partner units outstanding:
Weighted average common units outstanding (basic and diluted)	9.8			9.8
Weighted average subordinated units outstanding (basic and diluted)	9.8			9.8

See accompanying notes.

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CINER RESOURCES LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Three Months Ended March 31,
(In millions)	2016			2015

Cash flows from operating activities:
Net income	$	21.1		$	26.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization expense	6.3			5.7
Equity-based compensation expense	—			0.1
Other non-cash items	0.2			0.2
Changes in operating assets and liabilities:
(Increase)/decrease in:
Accounts receivable, net	(0.4		)	4.1
Accounts receivable - ANSAC	4.6			5.3
Due from affiliates, net	3.8			0.1
Inventory	(2.1		)	(6.0		)
Other current and other non-current assets	1.0			0.4
Increase/(decrease) in:
Accounts payable	(0.3		)	2.9
Due to affiliates	(1.6		)	(2.4		)
Accrued expenses and other liabilities	4.2			(2.2		)
Net cash provided by operating activities	36.8			34.7
Cash flows from investing activities:
Capital expenditures	(4.4		)	(7.8		)
Net cash used in investing activities	(4.4		)	(7.8		)
Cash flows from financing activities:
Repayments on Ciner Wyoming credit facility	(6.5		)	—
Distributions to common unitholders	(5.5		)	(5.2		)
Distributions to general partner	(0.2		)	(0.2		)
Distributions to subordinated unitholders	(5.4		)	(5.2		)
Distributions to non-controlling interest	(12.3		)	(10.9		)
Net cash used in financing activities	(29.9		)	(21.5		)
Net increase/(decrease) in cash and cash equivalents	2.5			5.4
Cash and cash equivalents at beginning of period	20.4			31.0
Cash and cash equivalents at end of period	$	22.9		$	36.4

See accompanying notes.

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CINER RESOURCES LP

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)



	Common Units			Subordinated Units			General Partner			Accumulated Other Comprehensive Loss			Partners’ Capital Attributable to Ciner Resources LP Equity			Non-controlling Interests			Total Equity
(In millions)	Common Units			Subordinated Units			General Partner			Accumulated Other Comprehensive Loss			Partners’ Capital Attributable to Ciner Resources LP Equity			Non-controlling Interests			Total Equity
Balance at December 31, 2014	$	106.3		$	37.9		$	3.8		$	(0.4	)	$	147.6		$	100.9		$	248.5
Net income	6.3			6.3			0.2			—			12.8			13.7			26.5
Other comprehensive income/(loss)	—			—			—			(1.0		)	(1.0		)	(1.0		)	(2.0		)
Distributions	(5.2		)	(5.2		)	(0.2		)	—			(10.6		)	(10.9		)	(21.5		)
Balance at March 31, 2015	$	107.3		$	39.0		$	3.9		$	(1.4	)	$	148.8		$	102.8		$	251.6

Balance at December 31, 2015	$	110.8		$	43.3		$	4.0		$	(2.1	)	$	156.0		$	107.2		$	263.2
Net income	5.0			4.9			0.2			—			10.1			11.0			21.1
Other comprehensive income/(loss)	—			—			—			(0.6		)	(0.6		)	(0.5		)	(1.1		)
Distributions	(5.5		)	(5.4		)	(0.2		)	—			(11.1		)	(12.3		)	(23.4		)
Balance at March 31, 2016	$	110.3		$	42.8		$	4.0		$	(2.7	)	$	154.4		$	105.4		$	259.8

The sums of some of the rows and columns may not sum due to rounding.

See accompanying notes.

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CINER RESOURCES LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. CORPORATE STRUCTURE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

The unaudited condensed consolidated financial statements are composed of Ciner Resources LP (the “Partnership,” “CINR,” “Ciner Resources,” “we,” “us,” or “our”), a publicly traded Delaware limited partnership, and its consolidated subsidiary, Ciner Wyoming LLC (“Ciner Wyoming”), which is in the business of mining trona ore to produce soda ash. The Partnership’s operations consist solely of its investment in Ciner Wyoming. The Partnership was formed in April 2013 by Ciner Wyoming Holding Co. (“Ciner Holdings”), a wholly-owned subsidiary of Ciner Resources Corporation (“Ciner Corp”). Ciner Corp is a direct wholly-owned subsidiary of Ciner Enterprises Inc. (“Ciner Enterprises”), which is directly owned by Akkan Enerji ve Madencilik Anonim Şirketi (“Akkan”), which in turn is directly wholly-owned by Turgay Ciner, the Chairman of the Ciner Group, a Turkish conglomerate of companies engaged in energy and mining (including soda ash mining), media and shipping markets. The Partnership owns a controlling interest comprised of 51.0% membership interest in Ciner Wyoming. All our soda ash processed is sold to various domestic and European customers, and to American Natural Soda Ash Corporation (“ANSAC”) which is an affiliate for export sales. All mining and processing activities take place in one facility located in the Green River Basin of Wyoming.

Basis of Presentation and Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) applicable to interim period financial statements and reflect all adjustments, consisting of normal recurring accruals, which are necessary for fair presentation of the results of operations, financial position and cash flows for the periods presented. All significant intercompany transactions, balances, revenue and expenses have been eliminated in consolidation. The results of operations for the period ended March 31, 2016 are not necessarily indicative of the operating results for the full year.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Annual Report”). There has been no material change in the significant accounting policies followed by us during the three month period ended March 31, 2016 from those disclosed in the 2015 Annual Report.

Non-controlling interests

NRP Trona LLC, a wholly-owned subsidiary of Natural Resource Partners L.P. ("NRP"), currently owns a 49.0% membership interest in Ciner Wyoming.

Use of Estimates

The preparation of these unaudited condensed consolidated financial statements, in accordance with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the dates of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events

We have evaluated subsequent events through the filing date of this Quarterly Report on Form 10-Q.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. In August 2015, the amendments in ASU 2015-14 deferred the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application permitted only as of annual reporting period beginning after December 15, 2016, including interim reporting periods therein.We are currently assessing the impact the adoption of ASU No. 2014-09 will have on our condensed consolidated financial statements, as well as the available transition methods.

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In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires that inventory within the scope of this update be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Earlier application is permitted by all entities as of the beginning of an interim or annual reporting period. The amendments should be applied prospectively. We do not expect the adoption of ASU No. 2015-11 to have a material impact upon our financial condition or results of operations.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). The standard amends certain aspects of recognition, measurement, presentation, and disclosure of financial assets and liabilities. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. We are currently evaluating the potential impact the adoption of ASU No. 2016-01 will have on our condensed consolidated financial statements, as well as available transition methods.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The update amends existing standards for accounting for leases by lessees, with accounting for leases by lessors remaining largely unchanged from current guidance. The update requires that lessees recognize a lease liability and a right of use asset for all leases (with the exception of short-term leases) at the commencement date of the lease and disclose key information about leasing arrangements. The update is effective for interim and annual periods beginning after December 15, 2018 and must be adopted using a modified retrospective transition. The ASU No. 2016-02 provides for certain practical expedients and early adoption is permitted. The Partnership is evaluating the potential impact the adoption of ASU No. 2016-02 will have on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture calculations, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, however early adoption is permitted. The Partnership is currently evaluating the guidance to determine the Partnership’s adoption method and the effect, if any, it will have on the Partnership’s condensed consolidated financial statements.

2. NET INCOME PER UNIT AND CASH DISTRIBUTION

Allocation of Net Income

Net income per unit applicable to limited partners (including common and subordinated unitholders) is computed by dividing limited partners’ interest in net income attributable to Ciner Resources, after deducting the general partner’s interest and any incentive distributions, by the weighted average number of outstanding common and subordinated units. Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. Earnings in excess of distributions are allocated to the general partner and limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.

In addition to the common and subordinated units, we have also identified the general partner interest and incentive distribution rights (“IDRs”) as participating securities and use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Potentially dilutive and anti-dilutive units outstanding were immaterial for the three months ended March 31, 2016 and March 31, 2015, respectively.

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The net income attributable to limited partner unitholders and the weighted average units for calculating basic and diluted net income per limited partner units were as follows:



	Three Months Ended March 31,
(In millions, except per unit data)	2016		2015
Numerator:
Net income attributable to Ciner Resources LP	$	10.1	$	12.8
Less: General partner’s interest in net income	0.2		0.2
Total limited partners’ interest in net income	$	9.9	$	12.6

Denominator:
Weighted average limited parter units outstanding:
Common - Public and Ciner Holdings (basic and diluted)	9.8		9.8
Subordinated - Ciner Holdings (basic and diluted)	9.8		9.8
Weighted average limited partner units outstanding	19.6		19.6

Net income per limited partner units:
Common - Public and Ciner Holdings (basic and diluted)	$	0.51	$	0.64
Subordinated - Ciner Holdings (basic and diluted)	$	0.51	$	0.64

The calculation of limited partners’ interest in net income is as follows:



	Three Months Ended March 31,
(In millions, except per unit data)	2016			2015
Net income attributable to common unitholders:
Distributions (a)	$	5.6		$	5.3
(Distributions in excess of net income)/undistributed earnings	(0.6		)	1.0
Common unitholders’ interest in net income	$	5.0		$	6.3

Net income attributable to subordinated unitholders:
Distributions (a)	$	5.5		$	5.3
(Distributions in excess of net income)/undistributed earnings	(0.6		)	1.0
Subordinated unitholders’ interest in net income	$	4.9		$	6.3

(a) Distributions declared per unit for the period	$	0.564		$	0.538

Quarterly Distribution

On April 13, 2016, the Partnership declared its first quarter 2016 quarterly cash distribution of $0.5640 per unit. The quarterly cash distribution is payable on May 13, 2016 to unitholders of record on April 29, 2016.

Our general partner has considerable discretion in determining the amount of available cash, the amount of distributions and the decision to make any distribution. Although our partnership agreement requires that we distribute all of our available cash quarterly, there is no guarantee that we will make quarterly cash distributions to our unitholders at our current quarterly distribution level, at the minimum quarterly distribution level or at any other rate, and we have no legal obligation to do so. However, our partnership agreement does contain provisions intended to motivate our general partner to make steady, increasing and sustainable distributions over time.

Distributions from Operating Surplus During the Subordination Period

If we make a distribution from operating surplus for any quarter during the subordination period (beginning on September 18, 2013 and expiring on the first business day after the distribution to unitholders in respect of any quarter, beginning with the quarter ending September 30, 2016), our partnership agreement requires that we make the distribution in the following manner:


•	first, 98.0% to the common unitholders, pro rata, and 2.0% to our general partner, until we distribute for each common unit an amount equal to the minimum quarterly distribution for that quarter;

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•	second, 98.0% to the common unitholders, pro rata, and 2.0% to our general partner, until we distribute for each outstanding common unit an amount equal to any arrearages in the payment of the minimum quarterly distribution on the common units with respect to any prior quarters;


•	third, 98.0% to the subordinated unitholders, pro rata, and 2.0% to our general partner, until we distribute for each subordinated unit an amount equal to the minimum quarterly distribution for that quarter; and


•	thereafter, in the manner described in “General Partner Interest and Incentive Distribution Rights” below.

General Partner Interest and Incentive Distribution Rights

Our partnership agreement provides that our general partner initially will be entitled to 2.0% of all distributions that we make prior to our liquidation. Our general partner has the right, but not the obligation, to contribute up to a proportionate amount of capital to us in order to maintain its 2.0% general partner interest if we issue additional units. Our general partner’s approximate 2.0% interest, and the percentage of our cash distributions to which our general partner is entitled from such approximate 2.0% interest, will be proportionately reduced if we issue additional units in the future (other than (1) the issuance of common units upon conversion of outstanding subordinated units or (2) the issuance of common units upon a reset of the IDRs), and our general partner does not contribute a proportionate amount of capital to us in order to maintain its approximate 2.0% general partner interest. Our partnership agreement does not require that our general partner fund its capital contribution with cash. It may, instead, fund its capital contribution by contributing to us common units or other property.

IDRs represent the right to receive increasing percentages (13.0%, 23.0% and 48.0%) of quarterly distributions from operating surplus after we have achieved the minimum quarterly distribution and the target distribution levels. Our general partner currently holds the IDRs, but may transfer these rights separately from its general partner interest, subject to certain restrictions in our partnership agreement.

Percentage Allocations of Distributions from Operating Surplus

The following table illustrates the percentage allocations of distributions from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under the column heading “Marginal Percentage Interest in Distributions” are the percentage interests of our general partner and the unitholders in any distributions from operating surplus we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution per Unit Target Amount.” The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution also apply to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner (1) include its 2.0% general partner interest, (2) assume that our general partner has contributed any additional capital necessary to maintain its 2.0% general partner interest, (3) assume that our general partner has not transferred its IDRs and (4) assume there are no arrearages on common units.



		Marginal Percentage Interest in Distributions
	Total Quarterly Distribution per Unit Target Amount	Unitholders		General Partner
Minimum Quarterly Distribution	$0.5000	98.0	%	2.0	%
First Target Distribution	above $0.5000 up to $0.5750	98.0	%	2.0	%
Second Target Distribution	above $0.5750 up to $0.6250	85.0	%	15.0	%
Third Target Distribution	above $0.6250 up to $0.7500	75.0	%	25.0	%
Thereafter	above $0.7500	50.0	%	50.0	%

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3. INVENTORY

Inventory consisted of the following:



	As of
(In millions)	March 31, 2016			December 31, 2015
Raw materials	$	10.8		$	9.1
Finished goods	10.7			10.7
Stores inventory	27.6			27.1
Total	$	49.1		$	46.9
Less: Stores inventory reclassed to other non-current assets	(20.8		)	(20.5		)
Inventory - current	$	28.3		$	26.4

4. DEBT

Long-term debt consisted of the following:



	As of
(In millions)	March 31, 2016		December 31, 2015
Variable Rate Demand Revenue Bonds, principal due October 1, 2018, interest payable monthly, bearing an average monthly interest rate of 0.30% at March 31, 2016 and 0.11% December 31, 2015	$	11.4	$	11.4
Variable Rate Demand Revenue Bonds, principal due August 1, 2017, interest payable monthly, bearing an average monthly interest rate of 0.30% at March 31, 2016 and 0.11% December 31, 2015	8.6		8.6
Ciner Wyoming credit facility, unsecured principal expiring on July 18, 2018, variable interest rate was a weighted average of 2.11% at March 31, 2016 and 2.07% at December 31, 2015	83.5		90.0
Total debt	$	103.5	$	110.0
Current portion of long-term debt	—		—
Total long-term debt	$	103.5	$	110.0

Aggregate maturities required on long-term debt at March 31, 2016 are due in future years as follows:



(In millions)	Amount
2017	$	8.6
2018	$	94.9
Total	$	103.5

5. OTHER NON-CURRENT LIABILITIES

Other non-current liabilities consisted of the following:



	As of
(In millions)	March 31, 2016		December 31, 2015
Reclamation reserve	$	4.4	$	4.5
Derivative instruments and hedges, fair value liabilities	2.6		2.3
Total	$	7.0	$	6.8

A reconciliation of the Partnership’s reclamation reserve liability is as follows:



	For the period ended
(In millions)	March 31, 2016			December 31, 2015
Beginning reclamation reserve balance	$	4.5		$	4.2
Accretion expense	0.1			0.3
Reclamation adjustments	$	(0.2	)	$	—
Ending reclamation reserve balance	$	4.4		$	4.5

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6. EMPLOYEE COMPENSATION

The Partnership participates in various benefit plans offered and administered by Ciner Corp and is allocated its portions of the annual costs related thereto. As discussed in the 2015 Annual Report, Ciner Enterprise completed a stock purchase transaction, in October 2015, therefore, prior to this transaction the benefit plans were offered and administered by OCI Enterprises Inc. The specific plans are as follows:

Retirement Plans - Benefits provided under the pension plan for salaried employees and pension plan for hourly employees (collectively, the “Retirement Plans”) are based upon years of service and average compensation for the highest 60 consecutive months of the employee’s last 120 months of service, as defined. Each plan covers substantially all full-time employees hired before May 1, 2001. The funding policy is to contribute an amount within the range of the minimum required and the maximum tax-deductible contribution. The Partnership’s allocated portion of the Retirement Plan’s net periodic pension costs were $0.6 million and $2.2 million for the three months ended March 31, 2016 and 2015, respectively. The decrease in pension costs during the three months ended March 31, 2016 of $1.6 million was driven by lower overall pension cost at the Ciner Corp level as a result of the retirement plans being fair valued in connection with Ciner Enterprises’ acquisition of Ciner Corp.

Savings Plan - The 401(k) retirement plan (the “401(k) Plan”) covers all eligible hourly and salaried employees. Eligibility is limited to all domestic residents and any foreign expatriates who are in the United States indefinitely. The plan permits employees to contribute specified percentages of their compensation, while the Partnership makes contributions based upon specified percentages of employee contributions. Participants hired on or subsequent to May 1, 2001, will receive an additional contribution from the Partnership based on a percentage of the participant’s base pay. Contributions made to the 401(k) Plan for the three months ended March 31, 2016 and 2015 were $0.4 million and $0.3 million respectively.

Postretirement Benefits - Most of the Partnership’s employees are eligible for postretirement benefits other than pensions if they reach retirement age while still employed.

The postretirement benefits are accounted for on an accrual basis over an employee’s period of service. The postretirement plan, excluding pensions, are not funded, and Ciner Corp has the right to modify or terminate the plan. The post-retirement benefits had a benefits obligation of $22.3 million and $21.3 million at March 31, 2016 and December 31, 2015, respectively. The Partnership’s allocated portion of postretirement benefit costs were $0.4 million and $0.1 million for the three months ended March 31, 2016 and 2015, respectively.

7. EQUITY - BASED COMPENSATION

We grant various types of equity-based awards to participants, including time restricted unit awards and total return restricted performance unit awards (“TR Performance Unit Awards”). The key terms of our restricted unit awards and TR Performance Unit Awards, including all financial disclosures, are set forth in our Annual Report on Form 10-K for the year ended December 31, 2015.

All employees, officers, consultants and non-employee directors of us and our parents and subsidiaries are eligible to be selected to participate in the Ciner Resource Partners LLC 2013 Long-Term Incentive Plan (the “Plan” or “LTIP”). As of March 31, 2016, subject to further adjustment as provided in the Plan, a total of 845,519 common units were available for awards under the Plan. Any common units tendered by a participant in payment of the tax liability with respect to an award, including common units withheld from any such award, will not be available for future awards under the Plan. Common units awarded under the Plan may be reserved or made available from our authorized and unissued common units or from common units reacquired (through open market transactions or otherwise). Any common units issued under the Plan through the assumption or substitution of outstanding grants from an acquired company will not reduce the number of common units available for awards under the Plan. If any common units subject to an award under the Plan are forfeited, any common units counted against the number of common units available for issuance pursuant to the Plan with respect to such award will again be available for awards under the Plan.

Non-employee Director Awards

There were no grants of non-employee director awards during the three months ended March 31, 2016 and 2015, respectively.

Time Restricted Unit Awards

We grant restricted unit awards in the form of common units to certain employees which vest over a specified period of time, usually between one to three years, with vesting based on continued employment as of each applicable vesting date. Award recipients are entitled to distributions subject to the same restrictions as the underlying common unit. The awards are classified as equity awards, and are accounted for at fair value at grant date.

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The following table presents a summary of activity on the Time Restricted Unit Awards:



	Three Months Ended March 31, 2016			Three Months Ended March 31, 2015
(Units in whole numbers)	Number of Units	Grant-Date Average Fair Value per Unit ₍₁₎		Number of Units		Grant-Date Average Fair Value per Unit ₍₁₎
Unvested at the beginning of period	—	$	—	15,859		$	25.23
Granted	33,383	21.27		1,112		22.54
Vested	—	—		(2,552	)	25.70
Unvested at the end of the period	33,383	$	21.27	14,419		$	24.93

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. No estimated forfeiture rate was applied to the awards as of March 31, 2016, as all awards granted are expected to vest.

Total Return Performance Unit Awards

We grant TR Performance Unit Awards to certain employees. The TR Performance Unit Awards represent the right to receive a number of common units at a future date based on the achievement of market-based performance requirements in accordance with the TR Unit Performance Award agreement, and also include Distribution Equivalent Rights (“DERs”). DERs are the right to receive an amount equal to the accumulated cash distributions made during the period with respect to each common unit issued upon vesting. The TR Performance Unit Awards vest at the end of the performance period, usually between two to three years from the date of the grant. Performance is measured on the achievement of a specified level of total return, or TR, relative to the TR of a peer group comprised of other limited partnerships. The potential payout ranges from 0-200% of the grant target quantity and is adjusted based on our TR performance relative to the peer group. As of March 31, 2016, we had no TR Performance Unit Awards outstanding.

We utilized a Monte Carlo simulation model to estimate the grant date fair value of TR Performance Unit Awards, with market conditions, granted to employees. These type of awards require the input of highly subjective assumptions, including expected volatility and expected distribution yield. Historical and implied volatilities were used in estimating the fair value of these awards.

The following table presents a summary of activity on the TR Performance Unit Awards:



	Three Months Ended March 31, 2016			Three Months Ended March 31, 2015
(Units in whole numbers)	Number of Units	Grant-Date Average Fair Value per Unit ₍₁₎		Number of Units	Grant-Date Average Fair Value per Unit ₍₁₎
Unvested at the beginning of period	—	$	—	7,658	$	35.72
Unvested at the end of the period	—	$	—	7,658	$	35.72

(1) Determined by dividing the aggregate grate date fair value of awards by the number of awards issued.

Unrecognized Compensation Expense

A summary of the Partnership’s unrecognized compensation expense for its un-vested restricted time and performance based units, and the weighted-average periods over which the compensation expense is expected to be recognized are as following:



	Three Months Ended March 31, 2016			Three Months Ended March 31, 2015
	Unrecognized Compensation Expense (In millions)		Weighted Average to be Recognized (In years)	Unrecognized Compensation Expense (In millions)		Weighted Average to be Recognized (In years)
Time-based units	$	0.7	1.96	$	0.3	1.61
Performance-based units	—		N/A	0.2		1.76
Total	$	0.7		$	0.5

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8. ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated Other Comprehensive loss

Accumulated other comprehensive loss, attributable to Ciner Resources, includes unrealized gains and losses on derivative financial instruments. Amounts recorded in accumulated other comprehensive loss as of March 31, 2016 and December 31, 2015, and changes within the period, consisted of the following:



	Gains and Losses on Cash Flow Hedges

(In millions)

Balance at December 31, 2015	$	(2.1	)
Other comprehensive loss before reclassification	(0.9		)
Amounts reclassified from accumulated other comprehensive loss	0.3
Net current period other comprehensive loss	(0.6		)
Balance at March 31, 2016	$	(2.7	)

Other Comprehensive Income/(Loss)

Other comprehensive income/(loss), including portion attributable to non-controlling interest, is derived from adjustments to reflect the unrealized gains/(loss) on derivative financial instruments. The components of other comprehensive income/(loss) consisted of the following:



	Three Months Ended March 31,
(In millions)	2016			2015

Unrealized gain/(loss) on derivatives:
Mark to market adjustment on interest rate swap contracts	$	(0.5	)	$	(0.5	)
Mark to market adjustment on natural gas forward contracts	(0.4		)	(1.5		)
Mark to market adjustment on foreign exchange forward contracts	(0.2		)	—
Income/(loss) on derivative financial instruments	$	(1.1	)	$	(2.0	)

Reclassifications for the period

The components of other comprehensive income/(loss), attributable to Ciner Resources, that have been reclassified consisted of the following:



	Three Months Ended March 31,				Affected Line Items on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
	Three Months Ended March 31,
(In millions)	2016		2015
Details about other comprehensive income/(loss) components:
Gains and losses on cash flow hedges:
Interest rate swap contracts	$	0.1	$	0.3	Interest expense
Natural gas forward contracts	$	0.2	$	—	Cost of products sold
Total reclassifications for the period	$	0.3	$	0.3

9. COMMITMENTS AND CONTINGENCIES

From time to time we are party to various claims and legal proceedings related to our business. Although the outcome of these proceedings cannot be predicted with certainty, management does not currently expect any of the legal proceedings we are involved in to have a material effect on our business, financial condition and results of operations. We cannot predict the nature of any future claims or proceedings, nor the ultimate size or outcome of existing claims and legal proceedings and whether any damages resulting from them will be covered by insurance.

Off-Balance Sheet Arrangements

We have a self-bond agreement with the Wyoming Department of Environmental Quality under which we commit to pay directly for reclamation costs. The amount of the bond was $33.9 million as of March 31, 2016 and December 31, 2015, respectively, which is the amount we would need to pay the State of Wyoming for reclamation costs if we cease mining operations currently. The amount of this self-bond is subject to change upon periodic re-evaluation by the Land Quality Division.

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Ciner Wyoming’s revenue bonds require it to maintain stand-by letters of credit totaling $20.3 million as of March 31, 2016.

10. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES

Ciner Corp is the exclusive sales agent for the Partnership and through its membership in ANSAC, Ciner Corp is responsible for promoting and increasing the use and sale of soda ash and other refined or processed sodium products produced. All actual sales and marketing costs incurred by Ciner Corp are charged directly to the Partnership. Selling, general and administrative expenses also include amounts charged to the Partnership by its affiliates principally consisting of salaries, benefits, office supplies, professional fees, travel, rent and other costs of certain assets used by the Partnership. These transactions do not necessarily represent arm's length transactions and may not represent all costs if the Partnership operated on a stand alone basis. Prior to the closing of Ciner Enterprises’ indirect acquisition of OCI Enterprises Inc.’s (“OCI Enterprises”) approximately 73% limited partner interest in the Partnership, as well as its 2% general partner interest and related incentive distribution rights (the “Transaction”), under the Omnibus Agreement we reimbursed OCI Enterprises and its affiliates for the expenses incurred by them in providing services to us, and we also reimbursed OCI Enterprises for certain direct operating expenses they paid on our behalf. Subsequent to the closing of the Transaction, on October 23, 2015 the Partnership entered into a Services Agreement (the “Services Agreement”), among the Partnership, our general partner and Ciner Corp. Pursuant to the Services Agreement, Ciner Corp has agreed to provide the Partnership with certain corporate, selling, marketing, and general and administrative services, in return for which the Partnership has agreed to pay Ciner Corp an annual management fee and reimburse Ciner Corp for certain third-party costs incurred in connection with providing such services. In addition, under the joint venture agreement governing Ciner Wyoming, Ciner Wyoming reimburses us for employees who operate our assets and for support provided to Ciner Wyoming.

As a result of the Transaction, OCI Enterprises and subsidiaries, including OCI Alabama LLC, are no longer related parties of the Partnership as of the date of the Transaction. The following table includes transactions with OCI Enterprises and subsidiaries prior to the Transaction.

The total costs charged to the Partnership by affiliates were as follows:



	Three Months Ended March 31,
(In millions)	2016		2015
OCI Enterprises Inc.	$	—	$	2.2
Ciner Corp	3.9		1.0
ANSAC₍₁₎	0.7		0.8
Total selling, general and administrative expenses - Affiliates	$	4.6	$	4.0

(1) ANSAC allocates its expenses to its members using a pro rata calculation based on sales.

Cost of products sold includes logistics services charged by ANSAC. For the three months ended March 31, 2016 and 2015, these costs were $0.4 million and $2.6 million, respectively.

Net sales to affiliates were as follows:



	Three Months Ended March 31,
(In millions)	2016		2015
ANSAC	$	63.4	$	64.0
OCI Alabama LLC	—		1.4
Total	$	63.4	$	65.4

The Partnership had due from/to with affiliates as follows:



	As of
(In millions)	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
	Due from affiliates				Due to affiliates
Ciner Enterprises	$	0.1	$	—	$	—	$	—
Ciner Corp	5.4		7.1		1.9		1.9
Ciner Resources Europe NV	2.6		4.8		—		—
Other	—		—		1.2		2.7
Total	$	8.1	$	11.9	$	3.1	$	4.6

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11. MAJOR CUSTOMERS AND SEGMENT REPORTING

Our operations are similar in geography, nature of products we provide, and type of customers we serve. As the Partnership earns substantially all of its revenues through the sale of soda ash mined at a single location, we have concluded that we have one operating segment for reporting purposes.

The net sales by geographic area are as follows:



	Three Months Ended March 31,
(In millions)	2016		2015
Domestic	$	47.9	$	48.6
International
ANSAC	63.4		64.0
Other	3.1		7.8
Total international	66.5		71.8
Total net sales	$	114.4	$	120.4

12. FAIR VALUE MEASUREMENTS

The Partnership measures certain financial and non-financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs.

A three-level valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows:



Ÿ	Level 1-inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market.

Ÿ	Level 2-inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability.

Ÿ	Level 3-inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability.

Financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value because of the nature of such instruments. Our derivative financial instruments are measured at their fair value with Level 2 inputs based on quoted market values for similar but not identical financial instruments.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Derivative Financial Instruments

We have entered into interest rate swap contracts, designated as cash flow hedges, to mitigate our exposure to possible increases in interest rates. These contracts are for periods consistent with the exposure being hedged and will mature on July 18, 2018, the maturity date of the long-term debt under the Ciner Wyoming credit facility. These contracts had an aggregate notional value of $73.5 million and $74.0 million at March 31, 2016 and December 31, 2015, respectively.

We enter into natural gas forward contracts, designated as cash flow hedges, to mitigate volatility in the price of natural gas related to a portion of the natural gas we consume. These contracts generally have various maturities through 2021. These contracts had an aggregate notional value of $17.9 million and $15.8 million at March 31, 2016 and December 31, 2015, respectively.

In January 2016, we entered into foreign exchange forward contracts, designated as cash flow hedges. In December 31, 2015, we also had foreign exchange forward contracts, not designated as hedging instruments. These forward contracts were entered into to reduce exposure from certain firm commitments denominated in currencies other than the U.S. dollar. These contracts are for periods consistent with the underlying currency exposure and generally have maturities of one year or less. The forward contracts are predominantly used to purchase U.S. dollars and sell Euros. The forward contracts designated as cash flow hedges had an aggregate notional value of $3.6 million at March 31, 2016. We had no similar contracts outstanding as of December 31, 2015. The forward

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contracts not designated as hedging instruments had an aggregate notional value of $4.2 million at December 31, 2015. We had no similar foreign exchange forward contracts that were not designated as hedging instruments outstanding as of March 31, 2016.

The following table presents the fair value of derivative assets and liability derivatives and the respective balance sheet locations as of:



	Assets						Liabilities
	March 31, 2016			December 31, 2015			March 31, 2016			December 31, 2015
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value

Derivatives designated as hedges:
Interest rate swap contracts - current		$	—		$	—	Accrued Expenses	$	1.4	Accrued Expenses	$	0.8
Natural gas forward contracts - current		—			—		Accrued Expenses	1.1		Accrued Expenses	1.0
Natural gas forward contracts - non-current		—			—		Other non-current liabilities	2.6		Other non-current liabilities	2.3
Foreign exchange forward contracts		$	—		$	—	Accrued Expenses	$	0.2		$	—
Total derivatives designated as hedging instruments		$	—		$	—		$	5.3		$	4.1

Derivatives not designated as hedging instruments:
Foreign exchange forward contracts		$	—	Other current assets	$	0.1		$	—		$	—

Total derivatives not designated as hedging instruments		$	—		$	0.1		$	—		$	—

Total derivatives		$	—		$	0.1		$	5.3		$	4.1

Financial Assets and Liabilities not Measured at Fair Value

The carrying value of our long-term debt materially reflects the fair value of our long-term debt as its key terms are similar to indebtedness with similar amounts, durations and credit risks. See Note 4 “Debt” for additional information on our debt arrangements.

13. SUBSEQUENT EVENTS

Distribution Declaration

On April 13, 2016, the members of the Board of Managers of Ciner Wyoming LLC, approved a cash distribution to the members of Ciner Wyoming in the aggregate amount of $20.0 million. This distribution is payable on May 6, 2016.

On April 13, 2016, the Partnership declared a cash distribution approved by the board of directors of its general partner. The cash distribution for the first quarter of 2016 of $0.5640 per unit will be paid on May 13, 2016 to unitholders of record on April 29, 2016.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following management's discussion and analysis of financial condition and results of operations in conjunction with the historical unaudited condensed consolidated financial statements, and notes thereto, included elsewhere in this Report.

Cautionary Statements Regarding Forward-Looking Statements

This Report contains forward-looking statements relating to the financial condition, results of operations, plans, objectives, future performance and business of the Partnership. We have based such forward-looking statements on management’s beliefs and assumptions and on information currently available to us. Forward-looking statements include all statements that are not historical facts and may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “forecast,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions. In particular, forward-looking statements in this Report include statements concerning future distributions, if any, and such distributions are subject to the approval of the board of directors of our general partner and will be based upon circumstances then existing. You are cautioned not to place undue reliance on any forward-looking statements. Actual results may vary materially. You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements and, therefore, affect our ability to distribute cash to unitholders, include:


•	changes in general economic conditions in the United States and globally;


•	changes in our relationships with our customers or the loss of or adverse developments at major customers, including the American Natural Soda Ash Corporation, or ANSAC;


•	the demand for soda ash and the development of glass and glass making products alternatives;


•	changes in soda ash prices;


•	changes in demand for glass in the construction, automotive and beverage industries;


•	shifts in glass production from the United States to international locations;


•	the ability of our competitors to develop more efficient mining and processing techniques;


•	operating hazards and other risks incidental to the mining, processing and shipment of trona ore and soda ash;


•	natural disasters, weather-related delays, casualty losses and other matters beyond our control;


•	increases in electricity and natural gas prices paid by us;


•	inability to renew our mineral leases and license or material changes in lease or license royalties;


•	disruption in railroad or shipping services or increases in rail, vessel and other transportation costs;


•	deterioration in our labor relations;


•	large customer defaults;


•	the price and availability of debt and equity financing;


•	changes in interest rates;


•	foreign exchange rate risks, including, but not limited to, advantageous foreign exchange rates utilized by our foreign competitors in the sale of soda ash;


•	changes in the availability and cost of capital;


•	our lack of asset and geographic diversification, including reliance on a single facility for conducting our operations;


•	our reliance on insurance policies that may not fully cover an accident or event that causes significant damage to our facility or causes extended business interruption;


•	anticipated operating and recovery rates at our facility;


•	shutdowns (either temporary or permanent), including, without limitation, the timing and length of planned maintenance outages;


•	increased competition and supply from international soda ash producers, especially in China and Turkey;


•	risks related to the use of technology and cybersecurity;


•	potential increases in costs and distraction resulting from the requirements of being a publicly traded partnership;


•	exemptions we rely on in connection with NYSE corporate governance requirements;


•	risks related to our internal control over financial reporting and our disclosure controls and procedures;


•	risks relating to our relationships with Ciner Enterprises or its affiliates (including, but not limited to, Ciner Group in Turkey);


•	control of our general partner by Ciner Enterprises or its affiliates (including, but not limited to, Ciner Group in Turkey);

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•	the conflicts of interest faced by our senior management team, which operates both us and our general partner and are employed by Ciner Corp or its other affiliates;


•	limitations on the fiduciary duties owed by our general partner to us and our limited partners which are included in the partnership agreement;


•	changes in our treatment as a partnership for U.S. federal income or state tax purposes; and


•	the effects of existing and future laws and governmental regulations.

These factors should not be construed as exhaustive and we urge you to carefully consider the risks described in this Report, our most recent Form 10-K, and subsequent reports filed with the Securities and Exchange Commission (the "SEC"). You may obtain these reports from the SEC’s website at www.sec.gov. All forward-looking statements included in this Report are expressly qualified in their entirety by these cautionary statements. Unless required by law, we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

References

Overview

We are a Delaware limited partnership formed by Ciner Holdings to own a 51.0% membership interest in, and to operate the trona ore mining and soda ash production business of, Ciner Wyoming. Ciner Wyoming is currently one of the world’s largest producers of soda ash, serving a global market from its facility in the Green River Basin of Wyoming. Our facility has been in operation for more than 50 years.

NRP Trona LLC, a wholly-owned subsidiary of Natural Resource Partners L.P. (“NRP”) currently owns an indirect 49.0% membership interest in Ciner Wyoming.

On October 23, 2015, Ciner Enterprises acquired 100% of OCI Chemical Corporation in a stock purchase transaction from OCI Enterprises Inc. (“OCI Enterprises”) (the “Transaction”). OCI Chemical Corporation was subsequently renamed Ciner Resources Corporation. Ciner Corp owns indirectly the Partnership, through Ciner Holdings’, approximately 73% limited partner interest, and approximately 2% general partner interest and 100% of the related incentive distribution rights currently held by our general partner. As a result of the closing of the Transaction, OCI Enterprises no longer has any direct or indirect ownership interest in the Partnership or our general partner. On November 5, 2015, in connection with the closing of the Transaction, the Partnership changed its name from OCI Resources LP to Ciner Resources LP.

Factors Affecting Our Results of Operations

Soda Ash Supply and Demand

Our net sales, earnings and cash flow from operations are primarily affected by the global supply of, and demand for soda ash, which, in turn, directly impacts the prices we and other producers charge for our products.

Demand for soda ash in the United States is driven in large part by general economic growth and activity levels in the end-markets that the glass-making industry serve, such as the automotive and construction industries. Because the United States is a well-developed market, we expect that domestic demand levels will remain stable for the near future. Because future U.S. capacity growth is expected to come from the four major producers in the Green River Basin, we also expect that U.S. supply levels will remain relatively stable in the near term.

Soda ash demand in international markets has continued to grow, although the rate of growth has slowed recently due to sluggish economic growth in emerging markets. We expect that future global economic growth will positively influence global demand, which will likely result in increased exports, primarily from the United States, and to a limited extent, from China, the two largest suppliers of soda ash to international markets.

Sales Mix

Because demand for soda ash in the United States has remained relatively stable in recent years, we have focused on international markets to expand our business, and we expect to continue to do so in the near future. As a result, our operations have

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been and continue to be sensitive to fluctuations in freight and shipping costs and changes in international prices, which have historically been more volatile than domestic prices. Our gross profit will be impacted by the mix of domestic and international sales as a result of changes in input costs and our average selling prices.

Energy Costs

One of the primary impacts to our profitability is our energy costs. Because we depend upon natural gas and electricity to power our trona ore mining and soda ash processing operations, our net sales, earnings and cash flow from operations are sensitive to changes in the prices we pay for these energy sources. Our cost of energy, particularly natural gas, has been relatively low in recent years, and, despite the historic volatility of natural gas prices, we believe that we will continue to benefit from relatively low prices in the near future. However, we expect to continue to hedge a portion of our forecasted natural gas purchases to mitigate volatility.

How We Evaluate Our Business

Productivity of Operations

Our soda ash production volume is primarily dependent on the following three factors: (1) operating rate, (2) quality of our mined trona ore and (3) recovery rates. Operating rate is a measure of utilization of the effective production capacity of our facilities and is determined in large part by productivity rates and mechanical on-stream times, which is the percentage of actual run times over the total time scheduled. We implement two planned outages of our mining and surface operations each year, typically in the second and third quarters. During these outages, which last approximately one week, we repair and replace equipment and parts. Periodically, we may experience minor unplanned outages caused by various factors, including equipment failures, power outages or service interruptions. The quality of our mine ore is determined by measuring the trona ore recovered as a percentage of the deposit, which includes both trona ore and insolubles. Plant recovery rates are generally determined by calculating the soda ash produced divided by the sum of the soda ash produced plus soda ash that is not recovered from the process. All of these factors determine the amount of trona ore we require to produce one short ton of soda ash and liquor, which we refer to as our “ore to ash ratio.” Our ore to ash ratio was 1.51: 1.0 for both three months ended March 31, 2016, and 2015, respectively.

Freight and Logistics

The soda ash industry is logistics intensive and involves careful management of freight and logistics costs. These freight costs make up a large portion of the total delivered cost to the customer. Union Pacific is our largest provider of domestic rail freight services and accounted for 83.2% and 80.5% of our total freight costs during the three months ended March 31, 2016 and 2015, respectively. Our agreement with Union Pacific generally requires that the freight rate we are charged be increased annually based on a published index tied to certain rail industry metrics. We generally pass on to our customers increases in our freight costs but we may be unsuccessful in doing so.

Net Sales

Net sales include the amounts we earn on sales of soda ash. We recognize revenue from our sales when there is persuasive evidence of an arrangement between us and the customer, products have been delivered to the customer, selling price is fixed, determinable or reasonably estimated and collection is reasonably assured. Substantially all of our sales are derived from sales of soda ash, which we sell through our exclusive sales agent, Ciner Corp. A small amount of our sales is derived from sales of production purge, which is a by-product liquor solution containing soda ash that is produced during the processing of trona ore. For the purposes of our discussion below, we include these transactions in domestic sales of soda ash and in the volume of domestic soda ash sold.

Sales prices for sales through ANSAC include the cost of freight to the ports of embarkation for overseas export or to Laredo, Texas for sales to Mexico. Sales prices for other international sales may include the cost of rail freight to the port of embarkation, the cost of ocean freight to the port of disembarkation for import by the customer and the cost of inland freight required for delivery to the customer.

Cost of products sold

Expenses relating to employee compensation, energy, including natural gas and electricity, royalties and maintenance materials constitute the greatest components of cost of products sold. These costs generally increase in line with increases in sales volume.

Employee Compensation. See Part I, Item 1. Financial Statements - Note 6, “Employee Compensation” for information on the various plans.

Energy. A major item in our cost of products sold is energy, comprised primarily of natural gas and electricity. We primarily use natural gas to fuel our above-ground processing operations, including the heating of calciners, and we use electricity to power our underground mining operations, including our continuous mining machines, or continuous miners, and shuttle cars. The monthly Henry Hub natural gas settlement prices, over the past five years, have ranged between $1.73 and $6.00 per MMBtu. The monthly Henry Hub natural gas settlement prices as of March 31, 2016 and 2015 were $1.73 and $2.83 per MMBtu, respectively. In order to

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mitigate the risk of gas price fluctuations, we hedge a portion of our forecasted natural gas purchases by entering into physical or financial gas hedges generally ranging between 20% and 80% of our expected monthly gas requirements, on a sliding scale, for approximately the next five years.

Royalties. We pay royalties to the State of Wyoming, the U.S. Bureau of Land Management and Rock Springs Royalty Company (“Rock Springs”), an affiliate of Anadarko Petroleum, which are calculated based upon a percentage of the quantity or gross value of soda ash and related products at a certain stage in the mining process, or a certain sum per each ton of such products. These royalty payments are typically subject to a minimum domestic production volume from our Green River Basin facility, although we are obligated to pay minimum royalties or annual rentals to our lessors and licensor regardless of actual sales. We also pay a production tax to Sweetwater County, and trona severance tax to the State of Wyoming that is calculated based on a formula that utilizes the volume of trona ore mined and the value of the soda ash produced.

The royalty rates we pay to our lessors and licensor may change upon our renewal of such leases and license. Under our license with Rock Springs, the applicable royalty rate may vary based on a most favored nation clause in the license. The applicable royalty rate in the license may be adjusted if we pay a higher royalty rate to certain other mineral rights owners in Sweetwater County, Wyoming. The extent to which Rock Springs may increase the applicable royalty rate is currently the subject of litigation in Wyoming. Any increase in the royalty rates we are required to pay to our lessors and licensor, or any failure by us to renew any of our leases and license, could have a material adverse impact on our results of operations, financial condition or liquidity, and, therefore, may affect our ability to distribute cash to unitholders. See Part II, Item 1. “Legal Proceedings” for additional information.

Selling, general and administrative expenses

Selling, general and administrative expenses incurred by our affiliates on our behalf are allocated to us based on the time the employees of those companies spend on our business and the actual direct costs they incur on our behalf. Selling, general and administrative expenses incurred by ANSAC on our behalf are allocated to us based on the proportion of ANSAC’s total volumes sold for a given period attributable to the soda ash sold by us to ANSAC. Prior to the closing of the Transaction on October 23, 2015, under the Omnibus Agreement we reimbursed OCI Enterprises and its affiliates for the expenses incurred by them in providing services to us, and we also reimbursed OCI Enterprises for certain direct operating expenses they paid on our behalf. Subsequent to the closing of the Transaction, on October 23, 2015 the Partnership entered into a Services Agreement (the “Services Agreement”), among the Partnership, our general partner and Ciner Corp. Pursuant to the Services Agreement, Ciner Corp has agreed to provide the Partnership with certain corporate, selling, marketing, and general and administrative services, in return for which the Partnership has agreed to pay Ciner Corp an annual management fee, subject to quarterly adjustments, and reimburse Ciner Corp for certain third-party costs incurred in connection with providing such services. In addition, under the joint venture agreement governing Ciner Wyoming, Ciner Wyoming reimburses us for employees who operate our assets and for support provided to Ciner Wyoming.

First Quarter 2016 Financial Highlights:


•	Net sales of $114.4 million decreased 5.0% over the prior-year first quarter;


•	Adjusted EBITDA of $28.2 million decreased 14.5% over the prior-year first quarter;


•	Earnings per unit of $0.51 for the quarter decreased 20.3% over the prior-year first quarter of $0.64;


•	Quarterly distribution declared per unit of $0.564 increased by 4.8% over the prior-year first quarter; and


•	Distributable cash flow of $12.5 million decreased 8.1% over the prior-year first quarter; The distribution coverage ratio was 1.11 for the three months ended March 31, 2016 compared to 1.27 for the three months ended March 31, 2015.

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Results of Operations

A discussion and analysis of the factors contributing to our results of operations is presented below for the periods and as of the dates indicated. The financial statements, together with the following information, are intended to provide investors with a reasonable basis for assessing our historical operations, but should not serve as the only criteria for predicting our future performance.

The following table sets forth our results of operations for the three months ended March 31, 2016 and 2015:



	Three Months Ended March 31,
	2016			2015

(In millions; except for operating and other data section)
Net sales	$	114.4		$	120.4
Operating costs and expenses:
Cost of products sold	80.2			82.4
Depreciation, depletion and amortization expense	6.2			5.6
Selling, general and administrative expenses	5.8			4.9
Total operating costs and expenses	92.2			92.9
Operating income	22.2			27.5
Total other income/(expense), net	(1.1		)	(1.0		)
Net income	$	21.1		$	26.5
Net income attributable to non-controlling interest	11.0			13.7
Net income attributable to Ciner Resources LP	$	10.1		$	12.8

Operating and Other Data:
Trona ore consumed (thousands of short tons)	1,001.4			1,017.1
Ore to ash ratio⁽¹⁾	1.51: 1.0			1.51: 1.0
Soda ash volume produced (thousands of short tons)	662.4			673.4
Soda ash volume sold (thousands of short tons)	660.1			653.1
Adjusted EBITDA⁽²⁾	$	28.2		$	33.0
Adjusted EBITDA per short ton⁽³⁾	$	42.72		$	50.53


(1)	Ore to ash ratio expresses the number of short tons of trona ore needed to produce one short ton of soda ash and liquor and includes our deca rehydration recovery process.


(2)	For a discussion of the non-GAAP financial measure Adjusted EBITDA, please read “Non-GAAP Financial Measures” of this Management’s Discussion and Analysis.


(3)	Reflects Adjusted EBITDA divided by sales volumes.

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Analysis of Results of Operations

The following table sets forth a summary of net sales, sales volumes and average sales price, and the percentage change between the periods.



	Three Months Ended March 31,						Percent Increase/(Decrease)
	2016			2015			Percent Increase/(Decrease)

Net sales ($ in millions):
Domestic	$	47.9		$	48.6		(1.4)%
International	66.5			71.8			(7.4)%
Total net sales	$	114.4		$	120.4		(5.0)%
Sales volumes (thousands of short tons):
Domestic	221.5			209.6			5.7%
International	438.6			443.5			(1.1)%
Total soda ash volume sold	660.1			653.1			1.1%
Average sales price (per short ton):
Domestic	$	216.35		$	231.87		(6.7)%
International	$	151.52		$	161.98		(6.5)%
Average	$	173.28		$	184.41		(6.0)%
Percent of net sales:
Domestic sales	41.9		%	40.4		%	3.7%
International sales	58.1		%	59.6		%	(2.5)%
Total percent of net sales	100.0		%	100.0		%

Three Months Ended March 31, 2016 compared to Three Months Ended March 31, 2015

Consolidated Results

Net sales. Net sales decreased by 5.0% to $114.4 million for the three months ended March 31, 2016 from $120.4 million for the three months ended March 31, 2015, driven by a decrease in total average sales price of 6.0%, slightly offset by an increase in soda volumes sold of 1.1%.

Domestic average sales price declined 6.7% in the three months ended March 31, 2016, mostly due to freight. Our efforts to increase our domestic market share resulted in soda ash prices flat to slightly below 2015 levels. However, we had more volume in 2016 to customers who arrange their own freight, as well as one customer who switched volume to a closer location, resulting in lower freight costs. Freight is billed as a pass through to our customers, impacting the $15.52 reduction in domestic average price in the first quarter of 2016.

International average sales price declined 6.5% in the three months ended March 31, 2016. Our international segment includes both ANSAC and customers in Europe and South Africa. We made a decision to scale back our sales volume into Europe in 2016 due to unfavorable exchange rates, as our net profit from both ANSAC and domestic volumes are higher. The mix shift from Europe to additional ANSAC volume results in lower international prices as the Europe price includes freight all the way to the customer’s location.

Cost of products sold. Cost of products sold, including depreciation, depletion and amortization expense, decreased by 1.8% to $86.4 million for the three months ended March 31, 2016 from $88.0 million for the three months ended March 31, 2015, primarily as a result of the following:


•	a decrease in operating and maintenance costs of 15.4% to $4.4 million for the three months ended March 31, 2016, compared to $5.2 million for the three months ended March 31, 2015, partly due to lower negotiated prices for supplies and lower contract maintenance due to timing of projects;


•	a decrease in freight costs of 8.5% to $29.1 million for the three months ended March 31, 2016, compared to $31.8 million for the three months ended March 31, 2015, due primarily to lower sales volume into Europe;


•	a decrease in energy costs of 1.9% to $15.9 million for the three months ended March 31, 2016, compared to $16.2 million for the three months ended March 31, 2015, due primarily to lower natural gas prices; partially offset by


•	an increase in royalty costs of 13.2% to $6.0 million for the three months ended March 31, 2016, compared to $5.3 million for the three months ended March 31, 2015, due primarily to increased royalty rates beginning in fourth quarter 2015 for both federal leases and license with Rock Springs. The federal royalty rate increased to 6% from 4% as a result of the Helium

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Stewardship Act of 2013 expiring in September 2015 and the royalty rate for the license with Rock Springs increased to 8% from 7%; and


•	an increase in compensation and benefits of 0.6% to $15.8 million for the three months ended March 31, 2016, compared to $15.7 million for the three months ended March 31, 2015.

Selling, general and administrative expenses. Our selling, general and administrative expenses increased 18.4% to $5.8 million for the three months ended March 31, 2016, compared to $4.9 million for the three months ended March 31, 2015, primarily due to increased investments in our information technology infrastructure to improve efficiencies.

Operating income. As a result of the foregoing, operating income decreased by 19.3% to $22.2 million for the three months ended March 31, 2016, compared to $27.5 million for the three months ended March 31, 2015.

Net income. As a result of the foregoing, net income decreased by 20.4% to $21.1 million for the three months ended March 31, 2016, compared to $26.5 million for the three months ended March 31, 2015.

Liquidity and Capital Resources

Sources of liquidity include cash generated from operations and borrowings under credit facilities and capital calls from partners. We use cash and require liquidity primarily to finance and maintain our operations, fund capital expenditures for our property, plant and equipment, make cash distributions to holders of our partnership interests, pay the expenses of our general partner and satisfy obligations arising from our indebtedness. Our ability to meet these liquidity requirements will depend on our ability to generate cash flow from operations.

Our sources of liquidity include:


•	cash generated from our operations;


•	Approximately, $86 million ($190 million, less $84 million outstanding and less standby letters of credit of $20 million), is available for borrowing and undrawn under the Ciner Wyoming Credit Facility (as defined in “Debt” below), subject to availability; During the three months ended March 31, 2016, we had repayments on the Ciner Wyoming Credit Facility of $6.5 million; and


•	$10 million available for borrowing under the Revolving Credit Facility (as defined in “Debt” below), subject to availability.

We expect our ongoing working capital and capital expenditures to be funded by cash generated from operations and borrowings under the Ciner Wyoming Credit Facility. We believe that cash generated from these sources will be sufficient to meet our short-term working capital requirements, long-term capital expenditure requirements and to make quarterly cash distributions. However, we are subject to business and operational risks that could adversely affect our cash flow and access to borrowings under the Revolving Credit Facility and the Ciner Wyoming Credit Facility. Our ability to satisfy debt service obligations, to fund planned capital expenditures and to make acquisitions will depend upon our future operating performance, which, in turn, will be affected by prevailing economic conditions, our business and other factors, some of which are beyond our control.

On April 13, 2016, the Partnership declared and the board of directors of its general partner approved, a 1.2% increase over the fourth quarter 2015 declared quarterly distribution. The cash distribution for the first quarter 2016 of $0.564 per unit will be paid on May 13, 2016 to unitholders of record on April 29, 2016. See Part I, Item 1, Financial Statements - Note 2, “Net income per unit and cash distribution”, for more information.

We intend to pay a sustainable quarterly distribution and continue to grow our quarterly distribution to unitholders of record over time, to the extent we have sufficient cash from our operations after establishment of cash reserves and payment of fees and expenses, including payments to our general partner and its affiliates. We do not have a legal obligation to pay this distribution.

Capital Requirements

Working capital is the amount by which current assets exceed current liabilities. Our working capital requirements have been, and will continue to be, primarily driven by changes in accounts receivable and accounts payable, which generally fluctuate with changes in volumes, contract terms and market prices of soda ash in the normal course of our business. Other factors impacting changes in accounts receivable and accounts payable could include the timing of collections from customers and payments to suppliers, as well as the level of spending for maintenance and growth capital expenditures. A material adverse change in operations or available financing under the Revolving Credit Facility and the Ciner Wyoming Credit Facility could impact our ability to fund our requirements for liquidity and capital resources. Historically, we have not made working capital borrowings to finance our operations. As of March 31, 2016, we had a working capital surplus of $94.9 million as compared to a working capital surplus of $103.7 million as of December 31, 2015.

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Capital Expenditures

Our operations require investments to expand, upgrade or enhance existing operations and to meet evolving environmental and safety regulations. We distinguish between maintenance and expansion capital expenditures. Maintenance capital expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) are made to maintain, over the long term, our operating income or operating capacity. Examples of maintenance capital expenditures are expenditures to upgrade and replace mining equipment and to address equipment integrity, safety and environmental laws and regulations. Our maintenance capital expenditures do not include actual or estimated capital expenditures for replacement of our trona reserves. Expansion capital expenditures are incurred for acquisitions or capital improvements made to increase, over the long term, our operating income or operating capacity. Examples of expansion capital expenditures include the acquisition and/or construction of complementary assets to grow our business and to expand existing facilities, such as projects that increase production from existing facilities, to the extent such capital expenditures are expected to increase our long-term operating capacity or operating income.

The table below summarizes our capital expenditures, on an accrual basis:



(In millions)	Three Months Ended March 31,
Capital Expenditures	2016		2015
Maintenance	$	1.0	$	3.6
Expansion	4.4		1.4
Total	$	5.4	$	5.0

Capital expenditures during three months ended March 31, 2016 and three months ended March 31, 2015 reflect differences in the timing of capital expenditure programs in each year, respectively.

Cash Flows Discussion

The following is a summary of cash provided by or used in each of the indicated types of activities:



	Three Months Ended March 31,						Percent Increase/(Decrease)
(In millions)	2016			2015			Percent Increase/(Decrease)
Cash provided by (used in):
Operating activities	$	36.8		$	34.7		6.1	%
Investing activities	(4.4		)	(7.8		)	(43.6	)%
Financing activities	(29.9		)	(21.5		)	39.1	%

Operating Activities

Our operating activities during the three months ended March 31, 2016 provided cash of $36.8 million, an increase of 6.1% from the $34.7 million cash generated during the three months ended March 31, 2015, primarily as a result of the following:


•	an increase in cash flows provided from working capital of $9.2 million during the three months ended March 31, 2016 compared to $2.2 million of cash flows provided from working capital during the three months ended March 31, 2015; and


•	a decrease of 20.4% in net income of $21.1 million during the three months ended March 31, 2016, compared to $26.5 million for the prior-year first quarter.

Investing Activities

We used cash flows of $4.4 million in investing activities during the three months ended March 31, 2016, compared to $7.8 million during the three months ended March 31, 2015, for capital projects as described in “Capital Expenditures” above.

Financing Activities

Cash used in financing activities of $29.9 million during the three months ended March 31, 2016 increased by 39.1% over the prior-year first quarter, largely due to repayments of long-term debt of $6.5 million during the period. Distributions during the three months ended March 31, 2016 were $23.4 million compared to the three months ended March 31, 2015 of $21.5 million.

Borrowings under the Ciner Wyoming Credit Facility were at variable interest rates.

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($ in millions)	As of and for the quarter ended
	March 31, 2016
Short-term borrowings from banks:
Outstanding amount at period ending	$	83.5
Weighted average interest rate at period ending⁽¹⁾	2.97		%
Average daily amount outstanding for the period	$	88.5
Weighted average daily interest rate for the period⁽¹⁾	2.98		%
Maximum month-end amount outstanding during the period	$	88.5

(1) Weighted average interest rates set forth in the table above include the impacts of our interest rate swap contracts designated as cash flow hedges. As of March 31, 2016, the interest rate swap contracts had an aggregate notional value of $73.5 million.

Debt

See Part I, Item 1, Financial Statements - Note 4, "Debt" for table disclosure of our long-term debt outstanding as of March 31, 2016 and December 31, 2015, respectively.

Demand Revenue Bonds

The above revenue bonds require Ciner Wyoming to maintain standby letters of credit totaling $20.3 million at March 31, 2016 and December 31, 2015, respectively. These letters of credit require compliance with certain covenants, including minimum net worth, maximum debt to net worth, and interest coverage ratios. As of March 31, 2016, Ciner Wyoming was in compliance with these debt covenants.

Ciner Wyoming Credit Facility

On July 18, 2013, Ciner Wyoming entered into a $190.0 million senior unsecured revolving credit facility, as amended on October 30, 2014 (as amended, the “Ciner Wyoming Credit Facility”), with a syndicate of lenders, which will mature on the fifth anniversary of the closing date of such credit facility. The Ciner Wyoming Credit Facility provides for revolving loans to fund working capital requirements, capital expenditures, to consummate permitted acquisitions and for all other lawful partnership purposes. The Ciner Wyoming Credit Facility has an accordion feature that allows Ciner Wyoming to increase the available revolving borrowings under the facility by up to an additional $75.0 million, subject to Ciner Wyoming receiving increased commitments from existing lenders or new commitments from new lenders and the satisfaction of certain other conditions. In addition, the Ciner Wyoming Credit Facility includes a sublimit up to $20.0 million for same-day swing line advances and a sublimit up to $40.0 million for letters of credit. Ciner Wyoming’s obligations under the Ciner Wyoming Credit Facility are unsecured.

The Ciner Wyoming Credit Facility contains various covenants and restrictive provisions that limit (subject to certain exceptions) Ciner Wyoming’s ability to:


•	make distributions on or redeem or repurchase units;


•	incur or guarantee additional debt;


•	make certain investments and acquisitions;


•	incur certain liens or permit them to exist;


•	enter into certain types of transactions with affiliates of Ciner Wyoming;


•	merge or consolidate with another company; and


•	transfer, sell or otherwise dispose of assets.

The Ciner Wyoming Credit Facility also requires quarterly maintenance of a consolidated leverage ratio (as defined in the Ciner Wyoming Credit Facility) of not more than 3.00 to 1.00 and a consolidated fixed charge coverage ratio (as defined in the Ciner Wyoming Credit Facility) of not less than 1.15 to 1.00. The Ciner Wyoming Credit Facility also requires that consolidated capital expenditures, as defined in the Ciner Wyoming Credit Facility, not exceed $50 million in any fiscal year.

In addition, the Ciner Wyoming Credit Facility contains events of default customary for transactions of this nature, including (i) failure to make payments required under the Ciner Wyoming Credit Facility, (ii) events of default resulting from failure to comply with covenants and financial ratios in the Ciner Wyoming Credit Facility, (iii) the occurrence of a change of control, (iv) the institution of insolvency or similar proceedings against Ciner Wyoming and (v) the occurrence of a default under any other material indebtedness

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Ciner Wyoming may have. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Ciner Wyoming Credit Facility, the lenders may terminate all outstanding commitments under the Ciner Wyoming Credit Facility and may declare any outstanding principal of the Ciner Wyoming Credit Facility debt, together with accrued and unpaid interest, to be immediately due and payable.

Under the Ciner Wyoming Credit Facility, a change of control is triggered if Ciner Corp and its wholly-owned subsidiaries, directly or indirectly, cease to own all of the equity interests, or cease to have the ability to elect a majority of the board of directors (or similar governing body) of Ciner GP (or any entity that performs the functions of our general partner). In addition, a change of control would be triggered if we cease to own at least 50.1% of the economic interests in Ciner Wyoming or cease to have the ability to elect a majority of the members of Ciner Wyoming’s board of managers.

Ciner Wyoming was in compliance with all covenants and restrictions under its long-term debt agreements as of March 31, 2016.

Loans under the Ciner Wyoming Credit Facility bear interest at Ciner Wyoming’s option at either:


•	a Base Rate, which equals the highest of (i) the federal funds rate in effect on such day plus 0.50%, (ii) the administrative agent’s prime rate in effect on such day and (iii) one-month LIBOR plus 1.0%, in each case, plus an applicable margin; or


•	a LIBOR Rate plus an applicable margin.

The unused portion of the Ciner Wyoming Credit Facility is subject to an unused line fee ranging from 0.275% to 0.350% per annum based on Ciner Wyoming’s then current consolidated leverage ratio.

Revolving Credit Facility

On July 18, 2013, we entered into a $10.0 million senior secured revolving credit facility, as amended on October 30, 2014 (as amended, the “Revolving Credit Facility”), with a syndicate of lenders, which will mature on the fifth anniversary of the closing date of such credit facility. The Revolving Credit Facility provides for revolving loans to be available to fund distributions on the Partnership’s units and working capital requirements and capital expenditures, to consummate permitted acquisitions and for all other lawful partnership purposes. At March 31, 2016, we had no outstanding borrowings under the Revolving Credit Facility. The Revolving Credit Facility includes a sublimit up to $5.0 million for same-day swing line advances and a sublimit up to $5.0 million for letters of credit. Our obligations under the Revolving Credit Facility are guaranteed by each of our material domestic subsidiaries other than Ciner Wyoming, and to the extent no material adverse tax consequences would result, foreign wholly-owned subsidiaries. As of March 31, 2016, our only subsidiary was Ciner Wyoming. In addition, our obligations under the Revolving Credit Facility are secured by a pledge of substantially all of our assets (subject to certain exceptions), including the membership interests held in Ciner Wyoming by us.

The Revolving Credit Facility contains various covenants and restrictive provisions that limit (subject to certain exceptions) our ability to (and the ability of our subsidiaries, including without limitation, Ciner Wyoming to):

• make distributions on or redeem or repurchase units;

• incur or guarantee additional debt;

• make certain investments and acquisitions;

• incur certain liens or permit them to exist;

• enter into certain types of transactions with affiliates;

• merge or consolidate with another company; and

• transfer, sell or otherwise dispose of assets.

The Revolving Credit Facility also requires quarterly maintenance of a consolidated fixed charge coverage ratio (as defined in the Revolving Credit Facility) of not less than 1.10 to 1.00. The Revolving Credit Facility also requires that consolidated capital expenditures, as defined in the Revolving Credit Facility, not exceed $50 million in any fiscal year.

In addition, the Revolving Credit Facility contains events of default customary for transactions of this nature, including (i) failure to make payments required under the Revolving Credit Facility, (ii) events of default resulting from failure to comply with covenants and financial ratios, (iii) the occurrence of a change of control, (iv) the institution of insolvency or similar proceedings against us or our material subsidiaries and (v) the occurrence of a default under any other material indebtedness we (or any of our subsidiaries) may have, including the Ciner Wyoming Credit Facility. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Revolving Credit Facility, the lenders may terminate all outstanding commitments

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under the Revolving Credit Facility and may declare any outstanding principal of the Revolving Credit Facility debt, together with accrued and unpaid interest, to be immediately due and payable.

Under the Revolving Credit Facility, a change of control is triggered if Ciner Corp and its wholly-owned subsidiaries, directly or indirectly, cease to own all of the equity interests, or cease to have the ability to elect a majority of the board of directors (or similar governing body) of, Ciner Holdings or Ciner GP (or any entity that performs the functions of our general partner). In addition, a change of control would be triggered if we cease to own at least 50.1% of the economic interests in Ciner Wyoming or ceases to have the ability to elect a majority of the members of Ciner Wyoming’s board of managers.

The Partnership was in compliance with all covenants and restrictions under its long-term debt agreements as of March 31, 2016.

Loans under the Revolving Credit Facility bear interest at our option at either:


•	a Base Rate, which equals the highest of (i) the federal funds rate in effect on such day plus 0.50%, (ii) the administrative agent’s prime rate in effect on such day and (iii) one-month LIBOR plus 1.0%, in each case, plus an applicable margin; or


•	a LIBOR Rate plus an applicable margin.

The unused portion of the Revolving Credit Facility is subject to an unused line fee ranging from 0.275% to 0.350% based on our then current consolidated leverage ratio.

Ciner Enterprises Credit Agreement

In addition, there are restrictions in the Ciner Enterprises Credit Agreement that affect the Partnership. Specifically, Ciner Enterprises has agreed (subject to certain exceptions in addition to those described below) that it will not, and will not permit any of its subsidiaries, including Ciner Wyoming and us, to:


•	make distributions on or redeem or repurchase equity interests, other than distributions to our and Ciner Wyoming’s unitholders;


•	incur or guarantee additional debt, other than debt incurred under the Revolving Credit Facility or the Ciner Wyoming Credit Facility, among certain other types of permitted debt;


•	make certain investments and acquisitions, other than acquisitions by each of Ciner Wyoming and us, in an amount not to exceed $10 million and $2 million, respectively, and other exceptions set forth therein;


•	incur certain liens or permit them to exist, other than, with respect to our and Ciner Wyoming’s liens, an aggregate amount outstanding at any time equal to $200,000 and $1 million, respectively;


•	enter into certain types of transaction with affiliates, other than transactions between Ciner Wyoming and us;


•	merge or consolidate with another company; or


•	transfer, sell or otherwise dispose of assets, other than our and Ciner Wyoming’s dispositions of assets with a net book value not to exceed $500,000 and $2.5 million, respectively, in any given year.

Contractual Obligations

During the three months ended March 31, 2016, there were no material changes with respect to the contractual obligations disclosed in our Annual Report on Form 10-K filed with the SEC on March 11, 2016.

Off-Balance Sheet Arrangements

See Part I, Item 1, Financial Statements - Note 9, Commitments and Contingencies - “Off-Balance Sheet Arrangements”, for additional details.

Critical Accounting Policies

During the three months ended March 31, 2016, there were no material changes with respect to the critical accounting policies disclosed in our Annual Report on Form 10-K filed with the SEC on March 11, 2016.

Recently Issued Accounting Standards

Accounting standards recently issued are discussed in Item 1. Financial Statements - Note 1, “Corporate Structure and Summary of Significant Accounting Policies”, in the notes to condensed consolidated financial statements.

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Non-GAAP Financial Measures

We report our financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). We also present the non-GAAP financial measures of:


•	Adjusted EBITDA;


•	distributable cash flow; and


•	distribution coverage ratio.

We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax, depreciation, depletion and amortization and certain other expenses that are non-cash charges or that we consider not to be indicative of ongoing operations. Distributable cash flow is defined as Adjusted EBITDA less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We define distribution coverage ratio as the ratio of distributable cash flow per outstanding unit (as of the end of the period) to cash distributions payable per outstanding unit with respect to such period.

Adjusted EBITDA, distributable cash flow and distribution coverage ratio are non-GAAP supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:


•	our operating performance as compared to other publicly traded partnerships in our industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods;


•	the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;


•	our ability to incur and service debt and fund capital expenditures; and


•	the viability of capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of Adjusted EBITDA, distributable cash flow and distribution coverage ratio provide useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and distributable cash flow are net income and net cash provided by operating activities. Our non-GAAP financial measures of Adjusted EBITDA, distributable cash flow and distribution coverage ratio should not be considered as an alternatives to GAAP net income, operating income, net cash provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all items that affect net income and net cash provided by operating activities. Investors should not consider Adjusted EBITDA, distributable cash flow and distribution coverage ratio in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA, distributable cash flow and distribution coverage ratio may be defined differently by other companies, including those in our industry, our definition of Adjusted EBITDA, distributable cash flow and distribution coverage ratio may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

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The table below presents a reconciliation of the non-GAAP financial measures of Adjusted EBITDA and distributable cash flow to the GAAP financial measures of net income and net cash provided by operating activities:



	Three Months Ended March 31,
	2016			2015
(In millions, except per unit data)
Reconciliation of Adjusted EBITDA to net income:
Net income	$	21.1		$	26.5
Add backs:
Depreciation, depletion and amortization expense	6.2			5.6
Interest expense, net	0.9			0.9
Adjusted EBITDA	$	28.2		$	33.0
Less: Adjusted EBITDA attributable to non-controlling interest	14.3			16.7
Adjusted EBITDA attributable to Ciner Resources LP	$	13.9		$	16.3

Reconciliation of distributable cash flow to Adjusted EBITDA attributable to Ciner Resources LP:
Adjusted EBITDA attributable to Ciner Resources LP	$	13.9		$	16.3
Less: Cash interest expense, net attributable to Ciner Resources LP	0.4			0.5
Maintenance capital expenditures attributable to Ciner Resources LP⁽¹⁾	1.0			2.2
Distributable cash flow attributable to Ciner Resources LP	$	12.5		$	13.6

Cash distribution declared per unit	$	0.564		$	0.538

Total distributions to unitholders and general partner	$	11.3		$	10.7

Distribution coverage ratio	1.11			1.27

Reconciliation of Adjusted EBITDA to net cash from operating activities:
Net cash provided by operating activities	$	36.8		$	34.7
Add/(less):
Amortization of long-term loan financing	(0.1		)	(0.1		)
Equity-based compensation expense	—			(0.1		)
Net change in working capital	(9.2		)	(2.2		)
Interest expense, net	0.9			0.9
Other non-cash items	(0.2		)	(0.2		)
Adjusted EBITDA	$	28.2		$	33.0
Less: Adjusted EBITDA attributable to non-controlling interest	14.3			16.7
Adjusted EBITDA attributable to Ciner Resources LP	$	13.9		$	16.3
Less: Cash interest expense, net attributable to Ciner Resources LP	0.4			0.5
Maintenance capital expenditures attributable to Ciner Resources LP⁽¹⁾	1.0			2.2
Distributable cash flow attributable to Ciner Resources LP	$	12.5		$	13.6

(1) The Partnership may fund expansion-related capital expenditures with borrowings under existing credit facilities such that expansion-related capital expenditures will have no impact on cash on hand or the calculation of cash available for distribution. In certain instances, the timing of the Partnership’s borrowings and/or its cash management practices will result in a mismatch between the period of the borrowing and the period of the capital expenditure. In those instances, the Partnership adjusts designated reserves (as provided in the partnership agreement) to take account of the timing difference. Accordingly, expansion-related capital expenditures have been excluded from the presentation of cash available for distribution.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Our exposure to the financial markets consists of changes in interest rates relative to the balance of our outstanding debt obligations and derivatives that we have employed from time to time to manage our exposure to changes in market interest rates, foreign currency rate and commodity prices. We do not use financial instruments or derivatives for trading or other speculative purposes. Our exposure to interest rate risks, foreign exchange rate risks and commodity price risks is discussed in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 11, 2016. There has been no material change in that information.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on an evaluation of the effectiveness of the design and operation of disclosure controls and procedures, under the supervision and with the participation of the Partnership’s management, the Partnership’s principal executive officer and principal financial officer have concluded that the Partnership’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were effective as of March 31, 2016 to ensure that information required to be disclosed by the Partnership in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms and (ii) accumulated and communicated to the Partnership’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Partnership’s internal control over financial reporting during the period ended March 31, 2016, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

In addition to the information set forth in this Report, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 11, 2016, which could materially affect our business, financial condition or future results. During the three months ended March 31, 2016, there were no material changes with respect to the risk factors disclosed in our Annual Report on Form 10-K. The risks described in our Annual Report on Form 10-K are not our only risks. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Information regarding mine safety violations and other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95.1 to this Report.

Item 5. Other Information

Not applicable.

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Item 6. Exhibits

Exhibit Index



Exhibit Number			Description
3.1			Certificate of Limited Partnership of Ciner Resources LP (formerly known as OCI Resources LP) dated April 22, 2013 (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1 (File No. 333-189838) filed with the SEC on July 8, 2013)
3.2			Certificate of Amendment of the Certificate of Limited Partnership of Ciner Resources LP (formerly known as OCI Resources LP), effective November 5, 2015 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed with the SEC on November 5, 2015)
3.3			First Amended and Restated Agreement of Limited Partnership of Ciner Resources LP (formerly known as OCI Resources LP) dated as of September 18, 2013 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed with the SEC on September 18, 2013)
3.4			Amendment No. 1 to First Amended and Restated Agreement of Limited Partnership of Ciner Resources LP (formerly known as OCI Resources LP) dated as of May 2, 2014 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed with the SEC on May 7, 2014)
3.5			Amendment No. 2 to the First Amended and Restated Agreement of Limited Partnership of Ciner Resources LP (formerly known as OCI Resources LP), dated November 5, 2015 (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K, filed with the SEC on November 5, 2015)
3.6			Certificate of Formation of Ciner Resource Partners LLC, (formerly known as OCI Resource Partners LLC) dated April 22, 2013 (incorporated by reference to Exhibit 3.3 to the Registrant’s Registration Statement on Form S-1 (File No. 333-189838) filed with the SEC on July 8, 2013)
3.7			Certificate of Amendment of the Certificate of Formation of Ciner Resource Partners LLC (formerly known as OCI Resource Partners LLC), effective November 5, 2015 (incorporated by reference to Exhibit 3.3 to the Registrant’s Current Report on Form 8-K, filed with the SEC on November 5, 2015)
3.8			Amended and Restated Limited Liability Company Agreement of Ciner Resource Partners LLC (formerly known as OCI Resource Partners LLC) dated as of September 18, 2013 (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K, filed with the SEC on September 18, 2013)
3.9			Amendment No. 1 to the Amended and Restated Limited Liability Company Agreement of Ciner Resource Partners LLC (formerly known as OCI Resource Partners LLC), dated November 5, 2015 (incorporated by reference to Exhibit 3.4 to the Registrant’s Current Report on Form 8-K, filed with the SEC on November 5, 2015)
31.1*			Chief Executive Officer Certification Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*			Chief Financial Officer Certification Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**			Chief Executive Officer Certification Pursuant to Exchange Act Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**			Chief Financial Officer Certification Pursuant to Exchange Act Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
95.1*			Mine Safety Disclosures
101.INS*			XBRL Instance Document
101.SCH*			XBRL Taxonomy Extension Schema Document
101.CAL*			XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*			XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*			XBRL Taxonomy Extension Label Linkbase Document
101.PRE*			XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith

** Furnished herewith. Not considered to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and are not deemed incorporated by reference into any filing under the Securities Act of 1933, as amended

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CINER RESOURCES LP



		By:	Ciner Resource Partners LLC,
			its General Partner

Date:	May 5, 2016	By:	/s/ Kirk H. Milling
			Kirk H. Milling President, Chief Executive Officer and Chairman of the Board of Directors of Ciner Resource Partners LLC, the registrant’s General Partner (Principal Executive Officer)

Date:	May 5, 2016	By:	/s/ Kevin L. Kremke
			Kevin L. Kremke Chief Financial Officer and Director of Ciner Resource Partners LLC, the registrant’s General Partner (Principal Financial Officer and Principal Accounting Officer)