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Gold/Mining/Energy : Coal -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (87)	9/20/2005 2:32:03 AM
From: Bart Hoenes	Read Replies (1) \| Respond to of 2032

Any idea what company this is referencing? From Tobin Smith, ChangeWave Since July 2004, the company's main mine has produced pulverized coal injection (PCI) and coking coal products -- both key components in the steel manufacturing process. And fiscal 2006 is off to a promising start. Its Q1 fiscal 2006 results (ending June 30) described progress on several fronts, including a boost in coal production and the more favorable restructuring of its current financial arrangements. Some Q1 Financial and Operating Highlights (all dollar amounts are Canadian): * Revenues from coal sales were $13.47 million, representing 180,307 tons of PCI metallurgical coal product at an average price of $74.73 per ton. * Produced 206,267 tons of PCI product at a cash cost of $61.74 per ton. Cost of operations increased as a result of additional fuel surcharges and higher-than-anticipated strip ratios for mining activities in May. * Operating profit for the quarter was $450,000 and positive cash flows of $980,000 were realized from mining activities. Notably, after the end of Q1 (July 2005), it completed a private placement for 1.25 million common shares at $4 per share, netting $5 million. These funds will allow the company to restructure its current debt and to provide working capital for ongoing capital projects. But most importantly, they just inked a contract to sell 665,000 tons, ending in 2006 -- and this is just part of a 2 million-ton deal with its major Chinese customer. Overall, we're looking at sales of 1.2 million tons in 2005 and approximately 3.5 million tons in 2006. But here's the big difference: The stuff in 2005 is going for $50 a ton; and the stuff in 2006 is going for $110-$120 a ton! The world's energy scene is currently very favorable for a coal company like this one. You gotta love it when the supply/demand equation gets out of whack, my friend. It means big gains for their bottom line and big investing profits for us! Today, this stock is sold over-the-counter. Soon they'll apply for listing on one of the regular exchanges -- likely the AMEX. That'll give a big boost to the stock's exposure and share price. Plus, this company is gearing up to play the China card in a really big way. We've got it pegged as a $12 stock in 12 to 14 months. Right now, you can load up on the stock around $4. It's a microcap -- it's not some sure thing. But the odds are squarely in our favor for a 200%+ gain from here. You can get the full details on my favorite microcap coal play and all of our current ChangeWave MicroCap Investor recommendations at: investorplace.com