RE: Proceeds from the OFFERING...A question for Eigen337, where are you getting these numbers. I have been on the SEDAR website and am unable to download the recent 43-101.
I am like most others here, still a little shell shocked by the events that recently transpired. I am hoping to get a conversation with Bates or the CFO sometime soon.
I cannot believe that this is not an economic mine. Lets look at the positives
1- 43-101 report, 375 million tonnes of resource
2- NPV today is $1.4 billion, IRR is over 100%, and payback is less than 2 years. Now it will be interesting to read the report, what sales price will the coal be at., what will the operating costs be.
3- no debt, i would rather have them do an equity issue as opposed to debt financing.
4- as reported inthe Denver Post and TK mining website, they are hiring 50 workers immediately. I refuse to believe that this is so much a scam that mgmt would go out and hire workers and spend another $70 million on a mine that will not work.
5- lets just be really conservative and say that annual cash flow from operations will be $150 million
- 2 milllion tonnes at $75 margin, this is pretty significant cash flow for a company with current market cap of
$540 million (200 million shares x $2.7)
Good luck to longs