Here is the neater version...
Stagg wouldn't say when they would be done but
it's not going to be finished overnight. They are evaluating LOTS of land, and we want them to take their time, the report is important, and must be accurate.
The beautiful thing is this: The U.S.G.S. puts MTEI's coal reserves
at around 10,000,000 tons, now, as a matter of fact, the U.S.G.S. has
historically been known to underestimate by as much as 60 to 75%, that is not a mistake, 60 to 75%.
Worst case scenario is 10,000,000 tons, which translates
into about $100,000,000.00 or $1.43 per share so far...
Next scenario is 16,000,000 tons, which translates into about $160,000,000.00 or about $2.29
Best case scenario, is 17,500,000 tons, which translates into about $175,000,000.00 or about $2.50 per share.
That is just the coal that we currently have. MTEI is in the process of acquiring other energy companies, and other pieces of land.
OK, so just the coal, can bring up to $175,000,000.00 of value to our shares, which could be as much as $2.50 so far...
Also, Eastern US coal can demand prices of up to $75 per ton, as stated by Stagg Engineering, depending on it's sulfur-content and BTU level, but we will underestimate here.
OK, that's anywhere from $1.43 to $2.50 per share so far...
Now, the U.S.G.S. also estimates there to be 2 billion cubic feet of
coal methane gas. Again, we could have anywhere from 2 billion CF, to 3.2 billion CF, to 3.5 billion CF. This gas currently sells in excess of $3 per 1000CF (possibly $5 w/ the alt. fuel tax credit).
Worst case scenario would be 2 BCF, which would add $6 to $10 million, which is an added share value of $.09 to $.14
Next scenario, would be from $9.6 million to $16 million for 3.2
BCF, which would add from $.14 to $.23 to the share value.
Best case scenario is $10.5 million to $17.5 million (w/tax credit) for 3.5 BCF. This would add anywhere from $.15 to $.25 value per share.
So, the gas part of our value can add anywhere from $6 million, up to $17.5 million, which would add an extra $.09 to $.25 value to each share.
Now, we have a possible share value of anywhere from $1.52 to $2.75 per share.
This is NOT counting ANY of our oil reserves, or any other land we might have acquired or will be acquiring in the future. This also does not include any value that will be added via acquisitions/mergers with other companies that are already producing.
With this said, I am VERY comfortable with my investment, yes, even
though we're at these levels right now, when the true value is shown in the price of the stock, EVERYONE will be happy.
Also, as I said before, Macker puts book value at around $4.50,
I'm not saying he is in error, but I don't know how he came to that figure, he may have more information than I do.
Main point: Mountain Energy is GROSSLY undervalued,
and right now, these prices are a joke.
Thank you for listening!
P.S. Bob Ulrich, do you think I am crazy? |
