RE:elef & coalsome facts related to coal assets in Mongolia from recent annual report ( 2021) on sedar.
the balance value of the coal asset is 0
but 2021 coal property in Mongolia uncurred cost of $
387,820 plus provision for closure and reclamation of $1,342,474 2020 these figures were 161.737 and 428.467 respectively
Last 3 years the property was under Leese Agreement. ELEF shall get 2$ royalty payments per ton produced ( or "100.000 was due and paid upon signing, and US$150,000 and US$200,000 due on the 1st and 2nd anniversary of the Lease, respectively"). However from $470,278 (US$350,000) paiments due only $81,321 (US $64,504) was collected as at December 2021
"The 3-year Lease will be extended upon mutual agreement and negotiations are in process as at the audit report date".
It's a desater what has been happening to coal assets in Mongolia under leadership of John Lee for years, and, of course, to all shareholders either.
Taking into account current cash balance of $579,508 snf liabilities of $2,502,139 ELEF has working capital deficit of $1.922.631
thus either ELEF should raise new funds through pp very soon or one part ( majority?) of coal assets will be sold. the market environment with market price of $250 is very good.
let's see what Lee will negotiate