We took a long, hard look at Rhino Resource Partners LP (NYSE: RNO) last month but eventually picked fellow coal producer Natural Resource Partners LP (NYSE: NRP) as the August Big Yield Hunting selection. Up until a week ago, Rhino had outperformed Natural Resource since the Aug. 24 issue was published. But since then, it’s skidded back from a post-second quarter earnings announcement peak of USD15.78 on Sept. 13 to a Sept. 20 close of USD14.93, and become more interesting in the process.

Rhino primarily produces thermal coal, the type used in electricity generation. It also produces metallurgical coal, the type used in steel making. Rhino’s recent slide coincides with a continuation in the decline in the generic front-month coal futures contract traded on the New York Mercantile Exchange to a more than two-year low of USD52.50 from USD59.65 in mid-August, as well as continuing pessimism in global met coal markets.

Rhino sells steam coal primarily to electric utility companies as fuel for steam-powered generators. Customers for its metallurgical coal are primarily steel and coke producers who use coal to produce coke, which is used as a raw material in the manufacturing process.

In addition to operating coal properties, Rhino manages and leases coal properties and collects royalties from those management and leasing activities. It’s also invested in oil and gas mineral rights that began to generate royalty revenues in early 2012.

Rhino debuted on the New York Stock Exchange (NYSE) on Sept. 29, 2010, priced at USD21.50 per share. It closed as high as USD26.94 on the NYSE on Feb. 15, 2011, but has followed coal prices lower since. The stock is currently off its low of USD12.84, which it hit on May 21, 2012.

The board approved and management declared its first distribution on Jan. 24, 2011, USD0.4208 per unit paid Feb. 14, 2011. The payout stepped up to USD0.455 per unit with the May 13, 2011, and Aug. 12, 2011, payments, and was boosted to USD0.48 per unit for the fourth quarter of 2011 and the first two quarters of 2012.

In July management declared a USD0.445 per unit distribution that was paid Aug. 14, as the elimination of the distribution on its subordinated units required a reduction in the quarterly ordinary-unit distribution to its lowest allowable level.

That should set a floor for the distribution at the current USD0.445 per unit per quarter. And not coincidentally, we’re at a multiyear low for coal prices. At these levels Rhino Resource Partners, with its nearly 12 percent yield, is ripe for Big Yield Hunting. Buy under USD16.

We also take a look at current Open Positions, with the following updates. We’re advising Big Yield Hunters to book a gain by selling half of their positions in CSR Ltd (ASX: CSR, OTC: CSRLF). We’re sticking with Natural Resource Partners LP (NYSE: NRP), QR Energy Partners LP (NYSE: QRE), Superior Plus Corp (TSX: SPB, OTC: SUUIF), France Telecom SA (France: FTE, NYSE: FTE), Capital Products Partners LP (NSDQ: CPLP), Data Group Inc (TSX: DGI, OTC: DGPIF) and TABCORP Holdings Ltd (ASX: TAH, OTC: TABCF). And we’re boosting our buy-under target for BreitBurn Energy Partners LP (NSDQ: BBEP) to USD21.

We’re also advising them to sell, or “close out,” their positions in PetroBakken Energy Ltd (TSX: PBN, OTC: PBKEF), Telefonica SA (Spain: TEF, NYSE: TEF) and Arrium Ltd (ASX: ARI, OTC: ARRMF, OTC: OSTLY).

For more on Rhino and our other selections, see the September issue of Big Yield Hunting.