Cline Mining Corporation T.CMK

Comparison

[sanddevil]

And then there is Coalspur Mines as well https://www.coalspur.com/ which has a development project for an unmined coal resource estimated at about 300 MM tonnes of Thermal Coal and a Phase I Development cost of nearly 1 BB.

It is trading at $0.80 with no coal sales and no development.

Just boggles the mind that CMK wouldn't be able to figure out some sort of restructuring to come up with $2.5MM bond payment.

SD

[CoalRookie]

Would have been nice if they actually sold the 70,000 tonnes of coal that is just sitting there. Instead, it's just rotting away. Either the coal is low quality or they didn't get the price they wanted. I wonder if they have ever heard that "Beggars can't be choosers"?

[sanddevil]

Agreed.  Can you imagine the impact - psychologically and financially - if the coal pile was sold for even just $50/Tonne or $75/Tonne, even at a loss, just to cover the interest payment; buy some time; and show that somebody is willing to buy the coal ... just the world 'sold' would get investors hopes and confidence up. Brutal to say the least. SD

[ark88]

If only management listen to my suggestions posted here. 9-10 months ago I suggested that they hit the explore the "Strategic Alternative Buttom". Then some few months later, I suggested that they sell the 70k inventory, even at a loss as this has already been expensed on the balance sheet. That it was imperitive for cash flow reasons.   At this point, there are two things to

[mr1derful]

Too funny, Ark88. So the company should have listened to you and explore the strategic alternative buttom. This is so funny coming from the guy who said he would be disaapointed if the company was taken over for $5/ share. Well, you didn't quite get $5 but if you replace the $ with a cents sign then you are in the ball park. Weren't those consulting projections of cash flow so accurate?

[ark88]

One other thing to consider here is what the REAL VALUE of NECC is in a fire sale. That is tangible, liquidation prices. If it's over the loan amount, then Cline has a real chance as they can still collateralize the balance of the assets. Of course, whoever decides to step in here would have serious leverage in negotiations as they would be No.2 to the bondholder with no downside protection. &

[Eigen337]

This post has been removed in accordance with Community Policy

[ark88]

Eigen; I agree with almost all of your points as that's pretty much what I was implying in my earlier post.   One other possible complication is are there any conditions or obligations that Cline has to the Vendors of NECC. Remember back when Cline purchased NECC for $16 mil., that was bit of a shocker to everyone. Part of that deal included $1 per every ton sold royalty to the Vendor