AGM
Basic information I took away.
1) Company had $5 mil in non reported debt that is being dealt with now. On top of Bond holders debt
2) Cline (old management) would not comply with Marret conditions for backstop financing. That is why it fell apart
3) Portapool - new investment group in India (based in Singapore) could not come up with 2.5 mil deposit. Deal was DOA with out the cash.
4) Old Management puchased two much equipment above ground and underground. When operation resumes it will be a long wall operation.
5) This one I can not understand - old management turned down a buyout bid of $7 per share in 2011
6) Marret will fiance - trikle effect - until offtake agreement / new investment is secured. Lights will remain on.
7) Haywood priority - settle case with BC govt / Sell assets in Madagascar and Cline Lake gold properity. Sell equipment - they have ten continous miners - been offered $850k per unit.
8) Secure offtake agreement / investment.
9) Rebuild company
A guy who claimed to be the founder of Northeast Coal and Bates boss at some point - spoke up and said this is a billion dollar asset, it has seams of Hi Vol B type coal, PCI Coal, and clean steam coal which will be in more demand in the US as natural gas prices increase. As the market changes you can swithch from one to another - that why the asset is so great. I said it was the best asset in the US. that is available. He said the new company needs to think big, but get sales contracts. With long wall producton cost can be estimated as low as $40/70 USD per mt
Hawood said his investment priority is the 23K rail link.
He feels it will take 6 months to year to secure a sale's contract, and restart the mine. He stated that Marret just wants their investment plus interest, that's it.
He will work at re establishing the comany and making it a success - end of story.