MD&A excerpts:The bad:
OTHER MATTERS
Legal proceedings:
On March 23, 2010, JSE Enterprises, LLC (“JSE”) a Kentucky company claimed that the Company owed
JSE $96,000 US dollars for the receipt of JSE goods, services, equipment and benefits in improvement of
mine located in Rockholds, Whitely County, Kentucky. The Company maintains the position that attempts to
collect the indebtedness will be defended as there was no contract between the Company and JSE. The
outcome of this action is not determinable at this time. Any amount paid as a result of this action will be
recorded in the period of resolution.
Contingent liabilities:
At period’s end, management was unaware of any outstanding contingent liability relating to the Company’s
activities.
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and the good:
FOURTH QUARTER
During the fourth quarter, the Company had a net loss of $408,501. The major costs consist of wages and
salaries expenses of $76,525, business development costs of $65,999, consulting fees of $37,000, investor
communication of $21,089, office and administrative fees of $18,920, professional fees of $56,225, transfer
agent fees of $6,069 and rent of $21,673. Also, during the fourth quarter, the Company recorded $236,385
share based compensation costs, mineral property impairment of $47,180, AP recovery of $5,556, bad debt
recovery $3,000, loss on sale of securities $479, foreign exchange loss of $686 and interest income of
$6,000. Also in the fourth quarter, the Company started coal production, generated revenue of $55,177 and
incurred cost of $40,592.
The last sentence staes that $55K of revenue were generated at a cost of $40.5 and that is about ~1000 tons of coal so if we are now producing 8000 tons (lets low ball it and not go with 12,000t) then the revenue will be 550K and cost of 400K or a profit of about 150K per month. Lets see if Q1 reports confirm those estimates.