Jay Taylor write up....According to his write up 5000 to 10000 tonnes a month from mine #1 from the jellico coal seam, lets assume because of weather delays the month of Jan - Feb produced only 5000 tonnes and that with 3 augers as opposed to original 2 we easily hit 10000 tonnes for the month of march which gives us 15,000 tonnes for three months so being ultra coservative that gives $240,000 dollars by the end of march....with this cash flow and after paying everyone at least there shouldn't be need for a PP and price should start to rise. For June july and August lets say a total of 30000 tonnes can be produced once again being very ultra conservative that woul be $480,000 cash flow.
Mine#2 reading in between the lines the permit should be any day, so lets say by March 15th and it takes till april 1st to get up and running and fix all roads. Then after some glitches to be expected lets assume no production for the month of march or minimal we'll say 2000 tonnes
and by may 20000 tonnes and june 20000 tonnes being ultra conservative this would add another 42,0000 tonnes times 16 dollars
for $672,000.
So without even talking about mine #3 that according excerpts in Jay's article will also be producing lets be pesimistic and say not till #3 gets permitted could be till july.
Mine #1 should produce at total of 15,000 tonnes from Jan-March
" " " " " 30,000 tonnes from April-June
Total profit or cash flow including hiccups should be $720,000 if profit is calculated at 16 dollars a share. by end of june from mine #1
Mine #2 " " ' " " From May-June 42,000 tonnes at 16 dollars for profit of $672,000.
I think this low balling for a total profit from jan to end of June $720000 + $672,000= 1.392 million dollars.
This is just to offer prespective on huge possible up side potential...
My numbers are very skew towards to low end and not taking into account Mine#3 or blue gem price. If anybody has an opinion or would like to comment nuch appreciated. Anything less than this type of productiom by end of June would be unacceptable considering all the NR's Jay's write up and IR'S confidence.
Mad (realistic) Money