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

To: 8bits who wrote (195)	12/30/2005 10:21:45 PM
From: 8bits	Read Replies (1) \| Respond to of 2058

Rough back of envelope calculations for ICO: Comparison to similar companies. (Eastern coal) Eastern coal enterprise value to reserves (per ton): $1.4 per ton CNX $1.59 per ton ICO $1.61 per ton MEE $3.16 per ton ALRP $3.2 per ton JRCC finance.yahoo.com For comparison Coal companies with a national presence: $1.6 per ton ACI $1.24 per ton BTU Latest income statement from ICO: intlcoal.com Price/Sales comparison for the last year: MEE - 1.36 JRCC - 1.53 ALRP - 1.72 CNX - 1.83 ICO - 2.27 (Last 9 months) P/E CNX - 10.7 ALRP - 15.8 MEE - 27 ICO - 33 JRCC - N/A With the lack of interest expense due to the pay off of their debt from the IPO their earnings should expand. From their 3rd quarter report: "Third quarter and year-to-date profitability was affected by approximately $1.2 million and $5.3 million, respectively, of non-cash costs associated with initial restricted stock grants to senior management." Ok, in theory this won't be repeated too often. It appears their revenue hasn't expanded much in the last 9 months. Comments from their report: "Problem areas included not only the fuel and explosives cost pressures that are impacting the entire coal industry, but also short term geological issues and permit delays at two of our East Kentucky operations. However, the 2006 outlook remains strong as we're expecting to have more production available and a favorable market to service." Quarter Business Developments In other third quarter business developments, ICG announced the successful startup of the new Flint Ridge mining complex in Breathitt County, Kentucky. The preparation plant began processing coal for shipment in early August. The Flint Ridge mining operations now include a deep mine, contour surface mine, and highwall mining system. When full production is achieved in early 2006, the Flint Ridge Complex is expected to produce approximately 2.0 million annual tons of high quality coal for the utility market." Ok so they expect revenue to expand. Pulled this from another board, coal company performance 2004: geocities.com Perfomance 2005 (Includes ICO): geocities.com Percentage gain/loss comparison 2005: geocities.com