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That's right! Breaking out of the wedge to the high side. Very bullish.
Putting more coal on the train's boiler fire.
Too bad you sold out so early. Have you ever heard of "investing"?
There's every indication it will break .03 today. 16M in the first 30 minutes and already up 30%. This is going to catch a lot of radars today.
Look at the tight spread! Testing the resistance right now. Get ready for the train to leave the station. Coal train that is.
Here are the numbers for Pond Creek coal.
http://www.caer.uky.edu/energeia/PDF/vol13_2.pdf
KY: Original Amt: 4,600 Remaining: 3,300 in millions of short tons.
$100/ton * 3,300,000,000 = $3,300,000,000,000
That's $3.3 trillion dollars of coal in KY Pond Creek!
"Much of the Pond Creek coal must be blended or physically cleaned to meet emission standards. Resource estimates for the Pond Creek coal zone were calculated on individual coal benches or deposits that are most likely to be mined. Of the calculated original resource of 11 bst, about 8.7 bst remain."
A HOT Recommendation for FGGO is out!
http://www.vegashotstocks.com/vegas_hot_stocks_triple_crown.php
Great! The using the 2.5 multiplier is our number. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31184337
Either way, the fundamentals are pointing away from the pennies and more towards the mid single dollar range (to start).
International mining conglomerate BHP Billiton Ltd. is attempting a $170 billion takeover...
http://paguntaka.org/2008/07/23/coal-mine-and-steelmaker-industry-expand-arcelormittal-agreed-to-buy-second-appalachian-coal-company/
Coal Mine and Steelmaker Industry Expand, Arcelormittal Agreed To Buy Second Appalachian Coal Company
Appalachian coking coal is proving ever more irresistible to the international steel industry.
Luxembourg-based ArcelorMittal, the world’s largest steelmaker, has agreed to buy its second Appalachian coal company in a month.
ArcelorMittal’s latest acquisition target, West Virginia’s Concept Group, owns some 57 million tons of reserves in the state. And those reserves, which produced some 800,000 tons of coal destined for coke furnaces and ultimately integrated steel mills, are located next door to Mid Vol Coal Group and its 85 million tons of coking reserves, which ArcelorMittal bought last month. Mid Vol produced 1.5 million tons of coal from West Virginia and Virginia mines last year.
“With raw material costs continuing to soar, increasing our upstream self sufficiency in primary raw materials is a critical component of ArcelorMittal’s growth strategy,” executive Sudhir Maheshwari said in a statement. “Concept’s proximity to Mid Vol’s operations means we can draw on the strengths of both companies to increase their combined production capacity.”
The price of U.S. coal used to make the coke that fuels the blast furnaces can go for as much as $250 a ton. Just last year, the cost was closer to $90.
Steelmakers already face pressure from customers — manufacturers that make everything from automobiles and aircraft to washing machines and refrigerators. Steel producers are doing everything they can to control soaring prices for iron ore, metallurgical coal and scrap steel.
The deal ArcelorMittal announced Monday is but the latest in a growing number of coal acquisitions by the steel industry, which increasingly sees owning its own sources of coal as critical to controlling soaring costs for scrap metal, fuel and other essentials.
ArcelorMittal recently upped its stake in Australia’s Macarthur Coal. Iron ore miner Cleveland-Cliffs picked off a smaller West Virginia and Alabama operator a year ago and just last week boldly bid nearly $10 billion for Abingdon, Va.-based Alpha Natural Resources. That deal gives Cleveland-Cliffs potential access to vast supplies of coking, or metalurgical-grade, coal across parts of West Virginia, Virginia, Kentucky and Pennsylvania.
International mining conglomerate BHP Billiton Ltd. is attempting a $170 billion takeover of rival London-based Rio Tinto Inc. and Korean steel giant Posco has bought 10 percent of Macarthur Coal. Russian steelmaker OAO Severstal is openly shopping for coal mines.
Numbers for my last post look like this:
New mine at Walters = 400,000 tonnes
400,000/365 = 1095 tonnes/day
"The coal is expected to be available for sale by May 2009"
"The stock has traded in a range from $20.53 to $111.99 in the last 52 weeks."
Someone tell me again what the numbers Eugene is reporting now IN PRODUCTION? More than 1095?
CHHHHHHHHHHAAAAACCCCCCCCCHHHHHHHHHHHHHHIIIINNNNNNNNNNGGGGGGGGG
$20.53 to $111.99 in the last 52 weeks.
http://paguntaka.org/2008/08/01/new-coal-mining-exploration-to-open-walter-industries-inc-mining-company-operation/
New Coal Mining Exploration To Open, Walter Industries Inc. Mining Company Operation
Coal producer Walter Industries Inc. approved a plan to open a new coal mine with 400,000 tons of annual capacity, expanding the company’s United Land subsidiary’s surface mining operations.
United Land will invest about $30 million to develop the mine, which will employ around 50 people, and will be located in Jefferson County, Ala.
The new mine, to be called Flat Top Mine, is a 600-acre surface coal mine with reserves of about 2.3 million tons of steam and industrial coal on land owned by the company.
Development of the mine will begin immediately, and, with permits already in place, the coal is expected to be available for sale by May 2009.
The board also voted to double the company’s quarterly dividend to 10 cents per share.
The dividend is payable on Sept. 12 to shareholders of record on Aug. 8.
Shares fell $1.65 to $105.64 in afternoon trading. The stock has traded in a range from $20.53 to $111.99 in the last 52 weeks.
Tomorrow will be a very big day. The US government releases it's latest coal prices. We might want to double those figures again and get $60 - $120 OMG! chhhhhhaaaaaaaching
Last Tuesday, coal prices in 2008 had nearly tripled to $275 a tonne from $93 a tonne in 2007.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31060954
Triple the numbers again and we see $30 - $60
It's over $100/ton. Here's the latest figures from the U.S. Government. http://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html
So, maybe you should take your figures and multiply them by 2.5
Also, try projecting your numbers for the other mines that will open and adding these numbers in. It seems you are basing all of your calculations on just this one start up.
With that, maybe multiply again by another 4 for a multiplier of 10. Then, $1-$2 becomes $10-$20 or much more.
There in itself is the answer to the NSS, not the OCTBB short list you posted. Again, post actual facts and complete truths.
Tape of the last 3 minutes shows heavy buying: 23 buys to 5 sells. No up tick. Criminal imo.
2500 tonnes * $275/tonnes = $687,500 per day
$687,500 * 365 = $250,937,500 per year
1500 tonnes * $275/tonnes = $412,500 per day
$687,500 * 365 = $150,562,500 per year
Teck buys Fording Coal for $14.1 billion
TORONTO (Reuters) - Teck Cominco (TCKb.TO) said on Tuesday it will buy Fording Canadian Coal Trust (FDG_u.TO) for $14.1 billion in cash and stock, in a deal which will nearly double Teck's exposure to the lucrative metallurgical coal market.
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The transaction will see Fording unitholders receiving $82.00 in cash and 0.245 of a Teck Class B share per Fording unit, which Teck said represents an 18-percent premium to the 20-day volume weighted average price of Fording's New York-listed units.
Vancouver, British Columbia-based Teck already owns about 20 percent of Calgary, Alberta-based Fording.
Shares of Fording rallied $6.14, or 7.4 percent, to $88.63 in the wake of the news, putting it shy of the offer price of $91.72 per unit, based on Teck's share price.
By mid-morning, investors had pushed Teck's shares up 17 cents to $39.57.
The deal will give Teck full ownership of Elk Valley Coal by adding Fording's 60-percent stake to its own 40-percent holding. Elk Valley is the world's second-largest exporter of seaborne hard-coking coal, used mainly in steelmaking.
"It's a win-win-win situation," Teck Chief Executive Don Lindsay said on a conference call, touting both the premium Fording shareholders will receive and the immediate earnings and cash flow accretion that Teck will see.
"The long-term trends suggest that the economic development in China and India and Brazil and Russia and many other countries will continue to require steel and sea-borne metallurgical coal."
Teck estimates the deal should provide a 50 percent boost to its 2009 core earnings as forecast by analysts.
The deal had been anticipated by some analysts since Fording said last December it would explore strategic alternatives, including a possible sale. As a Fording shareholder and partner, Teck was seen as a logical buyer.
COAL BUSINESS TURNAROUND
Elk Valley's coal business, meanwhile, has enjoyed a sharp turnaround from last year, when it was hurt by weak prices and the sharp rise of the Canadian dollar.
Since then, metallurgical coal prices have soared, while the Canadian dollar has stabilized.
Teck said last week that Elk Valley's negotiated coal prices in 2008 had nearly tripled to $275 a tonne from $93 a tonne in 2007.
The transaction, which has been approved by Fording's board, will close by the end of October and is subject to regulatory approvals. It includes a $400 million break fee.
As part of the deal, Teck will issue about 36.9 million of its class B shares for proceeds of about $1.5 billion. It will also take on $9.8 billion of debt, about half of which it suggests could be prepaid within the first 14 months of the acquisition.
Teck said it would pay the Ontario Teachers' Pension Plan Board a so-called "top-up" fee of $105 million as part of an agreement following the company's purchase of Teachers' 11.25-percent stake in Fording in September 2007.
($1=$1.02 Canadian)
MMs walked down to the double bottom to cover their short positions from the prior run up. Look for this to continue it's upward trend with a few MM retreats to cover.
Other MMs have now woke up this this and it will be harder and harder for them to consider shorting the stock to the extreme that we have seen. There will be more and more pressure to let it run up as new money comes in.
Looking for new monthly totals to be released soon and another doubling of $$$. Quarterly release in 3 weeks will be too fun to watch as the MMs will have to figure out to let go and recoop at the top down which will be high.
MMs rarely lose and I don't think they will here but that means there will be an excellent bounce off the top and another round of waves that follow.
King of Pennies