>>>I asked the CEO about that, because I estimate that the amount of coal in that WV acreage would take 10 years to remove, and be costly to do so. He was well aware of that, and said that is why they are first going after the gas, which is much easier to take out. WHile they are taking the gas out, they will do geological studies to determine the most effective way to get the rest of the assets, and he seemed more interested in getting at minerals first than the coal. This guy has been doing this all his life, I think he knows how to do it. <<<
That's one of my concerns. What if they can't even get it out and be profitable. Sure there might be $200,000,000 worth of resources in the mountains but if it costs $250,000,000 to get it out it is really worth nothing. That's why I may wait and see what some of their plans are to get it out and also how much they estimate it will cost.
ALso, I never assume that just because a guy has done something all his life that the business will be fine. it may not be possible to mine the resources and be profitable. The CEO may be very good but it doesn't mean the company will automatically be successful. |
