52 week range $3.55 - $0.81 Outstanding shares 11.8 million
1) 100 million tons of coal
2) 80 million tons of heavy minerals
3) Signed Letter of intent with Anadarko Petroleum APC on NYSE. Press released Dec. 7, 2000
4) Committed and experienced management team. Insiders own more than 51%
5) Exceptional leverage to the price of Coal, titanium, Garnet and Zircon. All of these are in strong uptrends.
6) 891 holes drilled, open in all directions
7) 4 year evaluation plan completed.
8) Major power companies interested in coal and major mining companies interested in the Heavy Minerals.
9) Excellent location two miles from Limon, Colorado with Interstate highway and railway running through property.
10) Market Cap, 14 million US. Substantially below asset value
Estimated NPV
Coal
100 million tons @ $30.00 US/ton = 3 billion dollars.
In ground value 90% discount = 300 million dollars
300 million divided by 12 million shares = $25.00 per share
Say in ground value of $0.50 per ton
Estimated 50 million dollars US divided by 12 million shares = $4.20 per share US.
Estimate of heavy minerals 80,000,000 gross tons based on preliminary recovery from Lakefield Research.
3.2% Ilmenite 2,560,000 tons x $70.00/ton $179,200,000 US
0.2% Rutile 160,000 tons x $500.00/ton $ 80,000,000 US
0.7% Zircon 560,000 tons x $250.00/ton $140,000,000 US
4.1% Garnet 3,280,000 tons x $100.00/ton $328,000,000 US
Total $727,200,000 US
Say 90% discount for in ground value = $72,720,000 divided by 12 million shares = $6.10 US per share US.
This does not take in account the rare earths present in the deposit. |
