MTEI - Mountain Energy - No BASHING Allowed Message Board

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Microcap & Penny Stocks : MTEI - Mountain Energy - No BASHING Allowed

MTEI 0.00240

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Nov 7 9:30 AM EST

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To: Thomas C. White who wrote (4310)	7/1/1998 1:04:00 PM
From: eric deaver	Read Replies (1) of 11684

You seem to be assigning a "net value" of $10 per ton of coal. "Worst case scenario is 10,000,000 tons, which translates into about $100,000,000.00 or $1.43 per share so far..." I assume that this is derived from the May 28 MTEI release as follows: "This low sulfur, low ash content, high BTU, clean burning currently sells for $25-$28 per ton. With cost of mining and transportation estimated at $11-$15 per ton, this will show a $10 per ton conservative net profit..." I just spoke w/ a mining engineer at Stagg to get a feel for cost of product sold. He indicated that for west virginia and using the mountian top removal mining technique, a cost of product sold along the line of $16-17/ton is reasonable. BTW, as I understand cost of procduct sold would include associated marketing and G&A in manufacturing accounting. Using this link: eia.doe.gov You will see that the average MINE PRICE for coal in WV is around $26.58 / ton. I think this pretty much validates Blitz's numbers. One can quibble over 10% here or there but it is pretty darn close IMO. I also spoke to Stagg about "spot market" prices. He indicated that while spot market is generally a little lower than the long term contracts, it is not a drastic difference and infact is sometimes (albiet rarely) a little higher. I did not identify MTEI in this discussion but was just interviewing him on the WV coal industry in general. He has no reason to be misleading. FWIW, Eric

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