If you like this project you will love PCY’s main coal project
. This is a monster of a project boasting 1.2
Billion tons of thermal coal in M & I category. Chandgana
is already in permitting stage and slated for mine
construction in 2012. Talk about “value-in-the-ground”;
for instance, Prophecy is projecting initial conservative
of about $5/ton for coal produced from Ulaan
Ovoo. If we use that as basis for Chandgana (1.2B x $5)
we’re talking off –the-chart numbers for a company like
Prophecy which as of this writing has a market cap of $67
MM. So you have to like the prospects of PCY going
forward. Granted, there is a lot of work to be done before
this potential is realized, but the company has been able
to overcome all hurdles to date and we have no reason to
question their ability to execute in the future. At this time
Prophecy is in the process of applying for land and water
use licences as well as doing the prep work for
Environmental Impact Assessment and Feasibility Study at
Chandgana.
Further to that point, the company is actively developing
plans for construction of a dedicated 600 Megawatt power
plant near Chandgana to start and eventually build a
series of such modules to reach total capacity of 4200
MW. It is a very ambitious project involving hundreds of
millions of dollars in capital expenditure, but given the size
of the deposit at Chandgana, there is enough coal to fuel
such a power plant for many decades to come. To be
clear, we’re not saying that Prophecy itself would be
building a power plant, but rather attract interested parties
and facilitate the project. If successful in getting this
project off the ground, Prophecy should have no problems
financing mine construction at Chandgana. We feel that,
unless the market decides to reward PCY shareholders
generously, in due course, other parties will emerge, able
and willing to pay up for these assets.