RE: Poor investors !!Big Mac - You commented "Production is only expected to last for 12-18 months." - Read the NR again, it states "Production from the Bay's Hollow permit is expected to last 12-18 months"....I question that because that means that the permits can be extended? ot does it mean what you are saying? or is it he lease?
----------Original Message Posted 9/10/2009 10:21:06 AM----------
Moongli - I can understand your frustration with the company and their lack of direction/progress in the past. However, it appears that your questions are somewhat answered in the news release. They have a mining company that will produce a ton for $40 and the current value is $58, meaning that NAG makes an $18/ton profit for each ton of coal produced (less cost of lease, marketing, their salaries etc). Production is stated to be 4000-6000 tons a month, which means that NAG is generating $72K-108K per month. If production goes to 20,000 tons (no apparent cost to NAG as contracted cost remains at $40/ ton) per month, revenue would jump to $360K per month. Production is only expected to last for 12-18 months. I'm not holding my breath on the last production figure but clearly this is good news. Better than what NAG was last week...