I think shareholders will be disappointed with NDX's results. The alabama mine at best will be marginally profitable. The blue gem coal seams are at most 24 inches and auger mining of thin seams is expensive and not cost effective. You always have to keep moving the machinery down the line. Further, I think the company overstated the results of the portable wash plant. These mobile plants do not yield near the same results as a real wash plant.
In terms of the rex mine, I would be surprised in there were not delays and cost overruns to get it in operation. There was not alot of due diligence that went into its acquisition.
I am really surprised that Sandstorm did not have a real coal guy involved in the investment decision. I think NDX wil be asking to Sandstorm to restructure its agreement just like Royal Coal.
On the IR firm, the other companies they have represented have done very well, particularly the potash companies. However, the CEO is a young arrogant guy who is vastly overpaid, particularly in terms of the options he receives.