JP Here is some information to help you...
I've been reading some things the past few days on coal production. There are discrepancy between what I've read and what MTEI gives as valuations of coal deposits. Perhaps easily explained. When I've read more and understand (at least a glimmer), I'll do that.
I don't know where you are obtaining your information,
and what type of discrepancy you have encountered,
but there was a post on this board by an individual
who was not well educated about the energy business.
He had posted some erroneous numbers.
Below are the real numbers, which have been confirmed by the U.S.G.S, and Stagg Engineering.
If you would like to ask any further questions, you can call Stagg
Engineering, a 20 year-old, very well respected oil, gas, and coal full service firm.
You can call them at: (304) 776-6660
Or you can visit their website at:
sesiusa.com
I understand you may not be an expert in the energy business,
either am I. I am learning as I go along. I had a phone conversation with one of the staff at Stagg Engineering, and she explained to me,
the current prices for coal. She said the coal from the Eastern US is regarded as some of the best in the world. Coal prices can range anywhere from $10 a ton, for high-sulfur, low BTU,
and can demand as much as $75 per ton for low-sulfur,
high BTU coal. MTEI's coal reserves, which were under-estimated, but confirmed by the United States Geological Survey to be at 10,000,000 tons. They always under-estimate, sometimes even
by as much as 60%.
Reserve estimates by the U.S. Geological Survey (''U.S.G.S.'') for Mountain Energy's holdings, indicate in excess 10,000,000 tons bituminous coal. 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.
Some facts about Mountain Energy:
1. MTEI owns land, and is in the process of acquiring more land.
These pieces of land contain Oil, gas, and coal.
But let's just stick to the coal area of discussion for now.
2. MTEI owns at least 10,000,000 tons of coal,
probably about 30-40% more, but let's just say 10M.
3. Coal from the Eastern US is regarded as some of the best quality coal in the world, and can sell for as much as $75 per ton,
this was confirmed by Stagg Engineering in the course of
my telephone conversation with them.
4. Costs to remove this coal, are estimated at around $11 per ton.
Now let's do the math, right here and now.
Please correct me if I am in error...
10,000,000 tons of hi-grade coal @ F.A.S. $25 p.t. = $ 250,000,000
Less costs for removal - $ 110,000,000
Total net profit for 10M tons = $ 140,000,000
$140,000,000 / 70M shares = estimated BV of $2 per share.
This is only counting 10M tons of coal, which there may be more:
*** The not-yet-valued gas and oil reserves.
*** Possible acquisitions/mergers
*** Possible acq/mergers with already producing companies
*** Future land acquisitions
*** Future prospects for electricity ventures
I hope this has helped you in your quest to educate yourself about the coal industry, as well as Mountain Energy.
Glad to have you aboard! |
