Am I missing something? Where on earth do you get a book value of $2.85? If ICVI has mineral rights to a USGS estimated 10 mil tons coal in the ground doesn't mean they got it in their bank.
But heres a company I was looking at a few months ago that just sold an improved, almost WORKING MINE for only $1 million that had 37-42 million estimated reserves:
biz.yahoo.com
NROX sold it because, face it, these days coal mining is a tough
business to make money on, even with proven reserves of 42 mil tons
of reserves:
From the NROX Feb 10Q:
Competitive Conditions
Coal operation activities are estimated to contribute over 90% of the Company's future revenues and earnings stream. The Company's operational activities, however, have yet to commence and therefore, are subject to possible working capital constraints, start up delays, and permitting approval by state agencies. Certified reserve analysis studies by both the United States Geological Survey and independent consultants value the coal reserves between 37,000,000 to 42,000,000 metric tons of recoverable, high grade bituminous Class "B" coal. The coal industry is highly competitive, and the Company will compete in the future with a large number of other coal producers, most of which will be substantially larger and have greater financial resources and larger reserve bases than the Company. |
