AGM Meeting & Target price $8-9 by May 2011Here's an overview of discussions from the AGM.
-Q1 result on April 15, 2011
-offer from Burlingtonrailway to operate and build the line.
- 5 million production expected by end of 2011 and 2012
-Technicalreport will be soon
-|Blue Seamreport will be done very soon
- 1 miner operating now. 10 in total byyear end. Deliveries throughtout the year.
- Jansen loadout to be completed by the end of this month.
- 1st shipment to Corpus Christie to occur sometime in May.
- Well over 100 persons working on site now. 400 plus to beworking at year end. Mraz stated a lot of people to hire and train.
- Rail spur to Jansen to be completed sometime in 2012 at acost of around $25 mil. No regulatory or legal issues to prevent theconstruction mentioned.
- Bulk sample to be sent in the next 2 weeks to a lab ineastern US for testing and onto further testing and blending to ascertain cokeproperties. Management is very conservative and want to present to customersproducts with certain qualities with confidence.
- Sean Casey stated no end to interest from potentialcustomers. Namely, Brazil,South America, Japan,Taiwan and Koreain that order.
- He expects to fetch $275/ton at current prices.
- Last of infill drilling just completed. New resourcereport due sometime later. So far, all drilling samples indicate consistentcoal qualities. They expect significant increase in resource.
- Presently studying expansion to 6.0 mty using longwall.Capital costs of expansion estimated around $200 mil.
- Longwall method expected to decrease cost of production by$15/tin.
- No significant cost difference between trucking or rail toJansen. Rail at $1.5/ton and trucking at $3.0/ton.
- Board considering spinning off ClineLake through special dividend.
- Special Rights Plan affirmed. +/- 48+ mil votesagainst.
Lossan 3rd priority for management presently.
- With Lodgepole and Sage Creek, management is seeking +$200mil. in damages each.
- Management believes that there is significant resource at ClineLake particularly at increaseddepth. Spinning off with separate management a possibility.
- Madagascar,500 mil. tonne of iron mass for open pit mining and further 500 mil. tonne atdepth. More drilling planned for this year.
adagascar, drill results sometime this year and Ernest said" hope for the best" ie a positive announcement may push up pricemarginally
They anticipate their first coal shipment in May.the rail road issue will bedone in 2012 at a cost of 25MM as mentioned in a previous post, the differencein cost between rail and truckis only $1.50. The reason they want rail is to be able to ship alot more coalthan 3MM tonneds per year.
Madagascar drilling will start after the rainyseason which will end in April
-A new video will uploaded onthe web on Monday, April 11, 2011
-Q1 result on April15, 2011