North American Gem Inc V.NAG

Cost Of Production, Saturn

[Kiktyre]

I think it helps to look at the Chart for Historical Coal price in US by Region to gain an idea of what the production cost may be:
https://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html#spot

In the period between Nov 2005 & Nov 2007, the average weekly price ranges are:

Northern Appalachia: $40 ~ $47
Illinois Basin: $28 ~ $36
Powder River Basin: $10 ~ $21

It’s reasonable to believe that they were produced with profitability, and that give us a rough range (below the above prices) of what the ACC costs may be.

We can expect ACC to operate at higher than optimal cost due to the small scale and in contract-mining conditions. HHAPPY did mentioned some estimates in post “Just to refresh shareholders" on 10/01/2008 and I think they are realistic.

The most recent average price for Northern Appalachia coal was still above $100, so a likely gross profit of $50 is still quite healthy IMO.

KT

[jomby]

you think that's amazing.just check out what the monkeys think is a good idea.I guess building a pipeline and creating thousands of jobs has not occurred to anybody yet. Bullroarer A day in the life of Danny D’Amours Blog Home About/Contact Me Links Canada : an oil importer???According to the US department of energy, Canada is listed as the worlds 15th

[HighTest]

Economics lesson. Flip to the map near the last page in the power point presentation for the quick gist of what the point is. (Shipping costs strongly affect the transportation routes in sometimes a counterintuitive way) https://geoinfo.nmt.edu/staff/mclemore/imclass/documents/2007IMClassTransport_COMBO.ppt

[Saturn4]

Thanks Kiktyre.