RE: RE: Great News! 20 Millions Revenue a YearHold on a second, read page 86 and 87 of the 43-101 report. Please correct me, but at the end of the table, under "Bank Balance" they estimate to net only $3,557,146 for 2010, $4,444,473 for 2011, $ 7,984,398 for 2012 and $13,426,484 for 2013... This isn't the 20mil a year we were thinking, is this correct?
https://www.sedar.com/CheckCode.do;jsessionid=0000_T34mu35o-OIMhr5nJKtT22:-1
Table 25-6: Estimated Financial Summary
MCoal Corporation
Phase 1 Operating and Capital Budget (Cash Basis)
2010 2011 2012 2013 2014
Tons Mined 144,520 177,444 177,444 95,653 -
Tons Sold 109,835 134,857 134,857 72,697 -
Price 139 $ 139 $ 139 $ 139 $ 139
Gross Revenue $ 15,228,081 $ 18,745,171 $ 18,745,171 $ 10,104,819 $ -
Cash Receipts $ 13,375,109 $ 18,745,171 $ 18,745,171 $ 11,957,790 $ -
Royalties Paid $ 1,491,022 $ 2,900,690 $ 2,539,971 $ 1,466,767 $ -
Net Cash Receipts $ 11,884,088 $ 15,844,481 $ 16,205,200 $ 10,491,023 $ -
Production Costs
Auger Contract $ 1,406,381
Mine Labor $ 1,259,876 $ 1,345,120 $ 1,345,120 $ 1,081,142 $ 762,184
Transportation to Processing Plant $ 1,011,638 $ 1,242,107 $ 1,242,107 $ 669,573 $ -
Coal Processing $ 939,378 $ 1,153,385 $ 1,153,385 $ 621,747 $ -
Transportation to Birmingham &
Backhaul $ 659,010 $ 809,144 $ 809,144 $ 436,179 $ -
Fuel $ 630,630 $ 739,042 $ 761,214 $ 422,652 $ -
Corp Management & Admin
(NovaDX) $ 480,000 $ 480,000 $ 480,000 $ 480,000 $ -
Mine Engineering $ 216,000 $ 216,000 $ 216,000 $ 216,000 $ 125,000
Equipment Maintenance $ 185,800 $ 217,971 $ 224,510 $ 121,025 $ -
Site Security $ 116,160 $ 113,760 $ 113,760 $ 142,080 $ 87,600
Travel & Entertainment $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ -
Revegetation $ 57,808 $ 70,978 $ 70,978 $ 38,261 $ -
Materials $ 40,000 $ 30,000 $ 30,000 $ 30,000 $ -
Mine Legal & Accounting $ 45,000 $ 35,000 $ 35,000 $ 25,000 $ -
General Liability Insurance $ 34,565 $ 38,680 $ 38,680 $ 28,457 $ 16,500
Equipment Insurance $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ -
Contract Personnel $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ -
Phone/Internet (Verizon) $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ -
Equipment Rental $ 16,000 $ 6,000 $ 6,000 $ 6,000 $ -
Office Trailer Power $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ -
Preproduction Costs
Total Production Costs $ 7,239,246 $ 6,638,188 $ 6,666,898 $ 4,459,117 $ 991,284
Cash Costs per Ton $ 65.91 $ 49.22 $ 49.44 $ 61.34
Technical Report on Phase 1 of the Rosa Mine Coal Property of MCoal Corporation,
in North-Central Alabama (U.S.)- March 2010
Prepared by McGehee Engineering Corporation
Page 85
Table 25-6: Estimated Financial Summary
MCoal Corporation
Phase 1 Operating and Capital Budget (Cash Basis)
2010 2011 2012 2013 2014
Exploration $ 120,000 $ 50,000 $ 25,000
Property Acquisition $ 125,000 $ 50,000
Joint Venture Interest $ 1,289,846 $ 2,117,839 $ 2,169,791 $ 888,566 -$ 397,213
Finance Interest $ 380,768 $ 230,893 $ 19,377 $ 7,625 $ 86
Taxes $ - $ 1,806,732 $ 2,278,280 $ 932,994 $ -
Operating Cash Flow $ 2,729,227 $ 4,950,830 $ 5,045,855 $ 4,202,721 -$ 594,157
Capital Costs
Equipment Purchases $ 2,447,881 $ - $ - $ - $ -
Bonding $ - $ 781,544 $ 1,028,563 -$ 1,478,482 -$ 195,386
Permitting
Lease Costs $ 125,000 $ 50,000
Total Capital Costs $ 2,572,881 $ 831,544 $ 1,028,563 -$ 1,478,482 -$ 195,386
Project Cash Flow $ 156,345 $ 4,119,286 $ 4,017,291 $ 5,681,203 -$ 398,771
Financing
Equipment Vendor Financing $ 807,468 -$ 481,959 -$ 227,366 -$ 239,117 -$ 20,476
Senior Debt Financing $ 3,000,000 -$ 2,750,000 -$ 250,000
Letter of Credit for Bond (Net of CD) $ -
Bridge Loan for CD -$ 400,000
Total Debt Financing $ 3,407,468 -$ 3,231,959 -$ 477,366 -$ 239,117 -$ 20,476
Equity $ -
Total Financing $ 3,407,468 -$ 3,231,959 -$ 477,366 -$ 239,117 -$ 20,476
Total Cash Flow $ 3,563,813 $ 887,326 $ 3,539,926 $ 5,442,086 -$ 419,247
Bank Balance $ 3,557,146 $ 4,444,473 $ 7,984,398 $ 13,426,484 $ 13,007,238