Gradual Production Increase..Ok, so we have been re-assured that the first coal shipment is 10,000 tons is in May and that this quantity will be shipped in smaller lot sizes as trial shipments to various steelmaking companies in Europe, South America and the Far East. Lets be conservative and assume that arrival at Corpus Christ is end end May and lets be conservative in assuming that it will take another month for the shipment to get there and be tested. Now we are at end June '11. Meanwhile the now three continuous miners are chewing up the Apache Seam and coal is washed, stockpiled and transported to Corpus Chrsti. With 10 miners we are to reach 3 Million tons per year i.e. 250,000 tons / month i.e. 3 continuous miners will likely be chewing up 75,000 tons/month. April/May/June = 225,000 tons sitting at Corpus Christ wating for the word GO!
Sean Casey says 275 Bucks per ton and he is probably conservative. Not knowing production / transportation costs in detail let's be conservative and assume a 100 $ profit per ton.
Remember the 75,000 tons sitting at port? Kaboom, 7.5 million in the bank, pays for more mining equipment. July / August / September '11. Let's do the math with five miners = 125,000 tons per month or 375,000 tons to be shipped and assuming the same profit arriving at 37.5 million bucks
At the end of 2011 we are to exit with 250,000 tons / month or 750,000 tons per quarter and bagging 75 million or even more per quarter.
And that's how the long wall mining plan will get financed...on our own...no share dilution necessary...nobody having to ask for a loan...debt free.
That's how I see it, plain and simple & old fashioned organic growth.
Good Weekend All