RE: Year End letterGood YE letter, the SP is up little bit with NKL being down so looks like investors are OK with it.
UO- Mined 230 tons, Sold 130 tons (90t in the 4th Q) so we have 100t sitting ready to go. They don't mention what were selling for $$$ but based on the statement: "We anticipate Ulaan Ovoo to produce 300,000 to 500,000 tonnes of coal in 2012, with increasing sales to Russia and at higher selling prices" sounds like we're not getting what we should for our coal. MY take now on UO is it is going to supply coal to the Russians via the Zeltura boarding crossing plus some "gift" coal with-in Mongolia and that's about it. The Eastern Sea Ports aren't going to work out. It may get developed more as time goes on but I'm not expecting much more than 400t at close to market prices. Chandgana is where the focus will be and that is where it should, the " Evonik-Steag power plant feasibility study" is ready and will be released shortly but I don't see us being much more than a .50 - .65 cent stock until mid year when the EPC contract & PPA are signed. Even at that John stated that shareholders are concerned about the CAPEX and share dilution which goes with financing the plant. all in all it does sound like they are being realistic about the challenges ahead which is OK for me as a long term investor, I would rather make decisions based on facts and not hype, I don't think their overly hyping anything. If we can get through all of the steps mentioned, we will see some nice up-tick in the SP. I am in thru 2012 unless we hit a major road block. So it's more wait and see.