Cline Mining Corporation T.CMK

TALKED TO KEN BATES this morning

[godman]

I had a 45 minute talk with Ken Bates this morning. He was very open and was more than happy to answer my questions. Nice to get it from the horses mouth rather than the horse's a$$ bashers. He expressed concern about all the FALSE rumors that have been circulating and had a few ideas where they were coming from.
1) Regarding continuous miners(CM), all three are working and will add the additional 7 as needed. I t takes about $11 million for each CM with support equipment. They have them all ordered and can take possession whenever they need them.
2) The financing was done as they wished to ramp up production to 3 mill ASAP. Regarding 350 mill tons for 2011, that is the 43-101 estimate and is SUPER conservative, not theirs, but they will go with that because they have no other choice, but the mine manager is very confident there will be more production then that. Mr. Bates implied that the manager was a little indignant at that number. 
3) Most of there production is focused on samples for the POTENTIAL CLIENTS, so far they have  TEN interested parties. He stated it is very important to get good coal samples to these potential customers. Sales is not a concern.
4) There is nothing wrong with production and it is on schedule for 3 mtns for 2012
5) The RAIL SPUR is going to be built when they are closer to the 1.5 mtns mark, so next year.
6)  Trucking has been approved for 3mtns a year on the highway and in Trnidad all additional lanes has been dealt with
7) BLUE SEAM the portal is going well and has all its permits. He explained that you are required to get MHSA approvals at very stages of the development, but there has been NO problems.
8) LONG WALL, there have been long walls VERY successfully run on property before and they want to get into that as soon as possible, but will do that thru cash flow.
9) PRICE MANIPULATION is definitely going on. 
10) Suitors, he said a few people sniffing around, but expects some big boys will show up when production is up.
11) Buyout, everyone has their price, Ken, LOL.
12) Lossan they will be looking after this is in full swing. Appears half is met and half is thermal. Development costs for Teck have been $1 billion to bring on 3 mtns even with all existing infra structure in place at their mine, so he feels the brought on production for $70 mil and for $250 mil they will be up to 3 mtns with NO DEBT. 
Ken Bates states all rumors were just VISCOUS LIES PERIOD. 
He said they will release information when they have it, but they have not information that is any different, the mine is producing and everything is running smoothly.
He even took the time to explain the mining operations and the average seam thicknesses, which is 6 ft. they are in about 4 ft right now working towards the 6 to 9 ft area. All the 43 101 is based ion 4 ft minimum. 
A point of interest is that they have 2 or three other seam they have not even looked at. one is thermal and the others are met.
I asked if I could tour the mine and he said anytime I wanted to, come down and they would give me a tour. He told me to call anytime and talk to himself  or any of the managers.

[courtney10]

Just wanted to clarify my position.  I am long CMK, whether you  choose to believe it or not is of no concern to me.  I was able to s/w the CFO just as the above poster was able to s/w the CEO.  You people should try calling for yourselves.  I find it hard to believe that my post here on this board has enough influence to cause people to sell.  Give me a break

[brundall]

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[godman]

Brundal, Sorry I was out doing something.1) Continuous miners are all just getting up and running. Most of the early coal is for samples, so they are making sure they are good quality and he has told them not to rush this part, because it is so important for sales contracts. Like he hinted to me they are doing better than RE is suggesting, because the RE people have to be super conservative, worst

[pastafagoli]

Point # 2The financing was done to ramp up production to 3M tonnes asap??  That was the goal all along.  Now after dilution we will hit this target later that anticipated including the 1M tonnes for 2011.  Lets give the money back as we were better without it !!  Obviously a BS answer - the blue seam explanation makes more sense and its mentioned in the new 43-101 that they are

[brundall]

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[deleuze68]

I take it you guys haven't read too many NI43-101's. It's right there under Preliminary Economic Assessment Cost and Revenue Projections. Page 16Average per Year Total2011 2012 2013 2014 2015–30 2011–30Production and RevenueTotal ROM short tons (ROMt) 636 5,000 5,455 5,455 5,455 103,818Total Clean short tons (CCt) 350 2,750 3,000 3,000 3,000 57,100Price F.O.R. - $ per short ton 193 160

[Wolfhunter2]

Sounds like he give ya a run around the bush answers GOD . But if he is giving tours to share holders maybe he would give a little tour to me to . But I wonder if he would let me bring some freinds from TECKCOMINCO down there with me to filter out the BS .

[stockhousepundit]

Teck Resources has not been called TECKCOMINCO since late 2008.  So..either your friends have been unemployed for close to three years and have lost their technical edge or you are just name dropping to demonstrate your vast implied knowledge through your associations.Just trying to filter out some BS.

[brundall]

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[Tinyhopes]

 GODMANThanks for making the phone Call to Ken.Thanks for posting what you can remember or as close as you can. NOW THE ARM CHAIR CEO’S COME OUT.AND ALONG WITH THE BASHERS PUMPERS.I DO NOT KNOW ANYTHING ABOUT COAL MINNING SO I WILL NOT TRY TO PROVE WHO IS WRIGHT OR WRONG.The management has said AND posted what they have and when things will be done. AND NO AMOUNT OF BASHING OF EACH OTHER