Compliance Energy Corp CPYCF

RE: Valuation - Peter Brieger

[minor007]

Everything that happening here is based on the price of the coal-exploration on Van Island coal has been ongoing on by CEC for years-lots of it was optioned by HLB and lost because they did not have the money to fund the payments to West Fraser etc. who actually own the rights. Last payment made by CEC on the option was just made. (Sedar) When this was going on thermal coal was $50 per tonne now $120 plus. Met coal was $80 to $90 now $300. Some of the Van Island coal can be washed to Met. They did not forget about it ,it was not seen to be profitable. The Basin mine in Princeton (Coalmont) was started for two reasons- B.C. Hydro power call- the old Similkameen Mine in Princeton looked like a viable place to build a small coal fired power plant (50 meg) CEC actually completed some of the project and was successful in getting an offtake agreement from B.C. Hydro to build the plant then Gordon Campbell drank the global warming cool-aid (had to stop boozing so had to drink something) and stopped the burning of coal for power business. (unless you sequester the CO2) The second reason was to supply thermal coal to the cement plants in the lower mainland and Seattle, currently done by HLB. (Now a liability for HLB)The cement plants were paying $50 to $60 per tonne, they are now going to have to pay the export  price of $120 per tonne when their contracts run out, some this fall.  Gordon Campbell will have us importing cement from China with his carbon tax so maybe cement plants will be out of business. CEC now has a viable supply of coal for export from Vancouver Island and coal for domestic consumption at the Basin (400,000 tonne plant and equipment parked there ready to go complete with raw coal inventory) You can blame management from HLB or CEC if you want but the coal business is chicken or feathers and its not easy when it's feathers. Some CEC buyers today have started to figure this out. Just stay invested in the coal business-CEC-HLB-NNE.A-GCE-WTN-FDG and maybe a little Cambrian who own a big chunk of WTN. You won't get many opportunities to make money like this in a lifetime so don't piss it away. Cheers.