NewStream Energy Technologies Group Inc (NSGP)

[JamesE_]

Wall Street Reporter interview recap...
Here are some loose notes from the new 70 minute audio interview with Robin Eves and Aiden Neary.

Technology:
Thanks to the UWy, Pristine-M's heat value has been further enhanced and is expected to equal or surpass Uinta Basin coal @11,700 BTU, which currently trades at $40.25/ton vs $11.90/ton for 8,800 BTU PRB coal.
Moisture reabsorption is NOT a problem.
Spontaneous combustion is NOT a problem.

Economics:
Due to process streamlining, Pristine-M plants should cost less than the previous $35M/MTPA estimate.
US CapEx ($35M plant financed @ 6%) = $3-$3.50/ton
US OpEx about the same = $3-$3.50/ton
Pristine-M will license at $1M/MTPA capacity plus a $3/ton royalty.
Pristine-M (PRB @$11.90 + $7 CapEx/OpEx + $3 Royalty) = $21.90/ton
Upgraded PRB coal should cost $18 LESS than than equivalent Uinta Basin coal, currently $40.25/ton. When you factor in a 25% savings in transportation costs and automated byproduct extraction including REEs, it appears we have a winner!

Outlook:
WNP still wants a 2-MTPA plant and has been pushing them to HTFU with testing.
In addition to their plans to export upgraded coal, WNP has permits to build a power plant.
CCTI has a very important meeting this Monday with EPC contractors and UWy process engineers to set final design for reassembly.
Test plant reassembly will commence in Q1 and will take 2 months. It is possible that lead times on some parts may extend build into Q2. They hope to have it up and running by April-May prior to a trip to Indonesia.
Robin talked of buying small coal mines and upgrading coal themselves to produce new revenue streams.
If they can meet their goals, CCTI could reach into the Billions evaluation in the coming 2-3 years.

W.S.R.’s previous “Six Licensing Deals Next 12 Months” interview had much to do with spurring October’s rally.
It’ll be interesting to see if lightning strikes twice. Fingers-crossed!