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RE: i am hoping they find diamonds in the coal mine and the price goes to a dollar a share -my cost ---what are odds according to law of probability i wonder --bearing down on 80 so hope it is soon--just saying
FYI: I stopped by this operation a couple of weeks ago. There was absolutely NO MINING there at that time. The lights were on, but nobody was home! Only a security guard and his cat were on the property. If you like to feed the slot machine hoping for a big payday, then this might be for you. Just remember, the house (Eugene) gets most of the money.
ECC,
You and WP still watching this? Kinda' like watching the movie
"Groundhog Day", isn't it?
WPO,
How 'bout dem Bears!
Anvil,
Have you been by the mine recently? Just curious as to how they're doing.
RE: LMAO!... NEVER seen it snow UNDERGROUND(Mines)!.. and I seriously DOUBT! that snow(if that's even a factor) could block HEAVY! machinery from doing it's job.
Do you have any FACT(S) that "snow" is impeding operations??... Pleaseeee post your findings!
Bet you've NEVER seen coal just jump out of the UNDERGROUND (Mine) into coal trucks, or HEAVY! machinery just doing its job without someone to operate it.
If the workers can't get to the mine, snow WILL impede production. DUH!
WPO,
Spot prices for Central Ap coal having gone up may explain it. Check out this link.
http://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html
Wow, I think he's on to something here. The ALL CAPS have me convinced. Where do I buy?
It is basically the canned press release without stating that it's a press release. No mention of BK, either. Whole new audience of suckers now!
Anvil,
Do you know of the magazine "Coal Age"? Sept. 2009 issue article on page 10: "Massey sees improvement in coke markets" in which "seeing promising signs that US demand for coking coal is recovering" and Massey's coking coal shipments to Asia are growing and should account for about half its exports over the final six months of the year".
The VERY NEXT article is EC's PR: "Quest obtains new coal orders"!
Talk about product placement!
Eugene's hands may be tied, but Tarun's hands are cuffed. EC could be next.
RE: Still waiting, waffle boy. Who are the bashers here that you keep referring to?
I don't know? Could it be......
......the HAMBURGLAR????
Maybe things are looking up for the coal industry.
This past December, I bought JOY Global, manufacturer of underground mining equipment, at around $16.80. Sold it this May, after nearly doubling my money, for nearly $33.00. JOYG closed today at $42.88.
What this means for QMRS is anybody's guess. I don't have a lot of faith that EC can get this to work out for the minority of shareholders. JMO.
ILVMNY, I heard on FOX News this morning that Bernie "Ponzi" Madoff is getting roughed up a bit in prison.
In lieu of prison time for EC, I'd be willing to have him run through the gauntlet of the shareholder's he's misled and screwed out of their hard-earned money. That would be justice.
This saga started way before the country was in the financial shape to which you refer.
Right. I saw her make a train take a dirt road.
I worked as a supervisor in safety and in production in the Illinois Basin
RE: Unless you know somebody or work at the mines yourselves you can only speculate what equipment and/or plans they would have in place. I'm not saying they do, but I don't just buy that they don't without evidence of such to back up the claim.
That is true. I am only speculating. I have been underground in probably over 40 mines in the last ten years or so, and NONE of them had equipment installed to the extent as now prescribed by law. And I'm talking about mines from the largest coal companies in the country.
There are around 475+/- underground coal mines in the US, and while many have some of the equipment installed that puts them ahead of the game, only a select few have this new communication and tracking equipment installed. And those are the mines that allowed the design companies to use them for product development.
MSHA has a tendancy to change the rules in the middle of the game, so the coal companies wait until the deadline (June 15 in this case) to comply so that they can fully meet their obligations. Otherwise, they run the risk of spending shareholders moneys unwisely.
So, yes, I'm speculating that they do not have the equipment installed. Yes, MSHA will take their financial position into account, but MSHA will NOT let that position affect the safety of the workers underground.
In my opinion, I don't see this mine ever producing coal again as QMLM, or various factions of it.
One of the first plans they'll have to submit to resume production is the ERP (Emergency Response Plan). It requires real-time tracking of employees while they are u/g, as well as wireless communications. This technology/solution is not cheap. If this mine ever produces coal again, my opinion, once again, is that it will be owned by someone else who will put forth funds to install this system.
Check out these links as to how complex the solution is:
http://www.msha.gov/regs/complian/ppls/2009/PPL09-V-01.asp
http://www.msha.gov/REGS/COMPLIAN/GUIDES/CommoandTracking.pdf
For directions to the mine, I used Google Maps.
Type in Williamson, WV to get a map. Cross the river from there back into KY, and follow State Rt. 292 north, mine is at intersection with Slater's Bridge road. Not too far from Williamson. Small area, so don't blink, or you'll miss it.
In reference to your line of questions, I visited the mine in Nov., 2008, but did not go underground. No offense intended, but in case you don't know, people just can't go take trips to underground coal mines. The mine operator is responsible for everyone ug, and everyone must, at the very least, be hazard trained. With their limited work force, and my limited time to spend there, I just wasn't able to go underground.
I did not see any of the equipment they're using ug, but did see a continuous miner that was being repaired on the surface. I did see coal coming off the belt into the stockpile, and I did see coal being loaded into haul trucks. I talked to Bobby, and I saw the mine map of the then-current mining location. I compared that map to one from July, 2008 that I saw on another site. They had been making progress.
What I saw didn't concern me about the mining. What does concern me is all the shinnanegans going on away from the mine.
Pedro,
I had this same train of thought this morning, although mine was related to the 70% waste factor.
I visited "our" mine this past November, and was fortunate enough to see freshly cut coal coming out of the mine. There was some rock mixed in with the coal, but it did NOT look like 70% waste. I had a hard time believing that number, even though it was continually reported in the BK reports. Companies just cannot make it producing 70% of anything that does not sell.
The guy that first hired me in the mining industry some thirty years ago, and later moved to the eastern KY - WV coalfields, told me that he heard stories to the effect that some companies "lost" (or were robbed) of every fourth or fifth truck of coal that was headed to the market. Just vanished into thin air. Nobody knew anything about where they went. The good-ol'boy network at its best. The company never got paid for the missing loads, but someone did.
Now fast forward 30 years. With GPS on haul trucks, it's almost impossible for them to show up missing. Maybe the new plan to "make" money is to tell everyone who will believe you that your waste factor is 70%. However, you're really getting it out at 35-40% waste, and you split the difference in profit with whoever will help you pull off this scheme.
Anyway, just a thought...
Unless I'm mistaken, I think I saw her at the mine last fall. She's the one that had loaded out all the coal and rock while the conveyor belts were being replaced last summer.
RE: My tone in six months… I still believe it is a legitimate business attempt whether it fails or not.
One fact that cannot be disputed is that if the Pond Creek mine does not have an Emergency Response Plan (ERP) submitted to MSHA by 15 June, 2009, including a purchase order number for a wireless communication and tracking system, then they will be under citation and will not be allowed to work underground, and will most likely have a fine levied against them until the citation is lifted.
So, in six weeks, we'll know whether this fails or not.
I agree.
There will be something major happening to this mine, and a ton of small mines just like it, in June. All 450+ u/g coal mines in the US must comply with:
Two-Way Communication System
(from MSHA.gov website)
By June 15, 2009, in accordance with Section 2 of the MINER Act, until fully wireless systems are available, operators must set forth in their Emergency Response Plans the reasons that they are proposing alternative systems, that is, that wireless systems are not available, and provide an alternative that approximates, as closely as possible, the degree of functional utility and safety protection provided by a wireless two-way communications system. While operators and District Managers must consider mine-specific circumstances in determining appropriate two-way communications systems, this guidance outlines the features MSHA believes would best approximate the functional utility and safety protections of a fully wireless system, given the limitations of current technology. As noted, operators and others may propose other approaches or systems, and the District Manager will exercise his discretion in evaluating them. Communications systems that are already in use may need to be updated to comply with the MINER Act requirements to approximate the utility and safety protections of a fully wireless system.
Here's the link to the entire document:
http://www.msha.gov/regs/complian/ppls/2009/PPL09-V-01.asp
These wireless tracking and communication systems can go for $250K or more, depending on how many employees, how large the mine, etc. Don't look for EC or whomever to fork out that kind of cash for something that doesn't improve the coal flowing out of the mine. IMO, they'll close it or sell it before that expenditure.
Here's a new one to watch. I'm familiar with the operations people. Came over here from Peabody and Alliance Resources. Good mining crew. Don't know much about the company, though. It's traded on the Toronto Stock Exchange.
Friday, March 27, 2009
Phoenix Coal Inc. acquires Petersburg Coal reserve
LOUISVILLE, KY, Mar 27, 2009 (Canada NewsWire via COMTEX) ----Phoenix Coal Inc. (TSX: PHC: 0.74, -0.01, -1.33%) ("Phoenix" or "the Company"), a leading producer and consolidator of thermal coal mineral reserves in the Illinois Basin, announced today it has entered into a sublease agreement with Petersburg Coal, LLC ("Petersburg"). The subleased mineral reserves are contiguous to Phoenix's Gryphon Mining Complex, formerly known as the Pratt Mine. All mineral reserve and mineral resource quantities are assumed to be quoted in imperial (short) tons.
"With the sublease, Phoenix now controls over 40 million tons of underground reserves within the Gryphon Mining Complex," said David A. Wiley, President and CEO of Phoenix Coal. "In addition to the new reserves, Phoenix will have access to an alternative portal location capable of supporting efficient surface logistics and access to transportation routes, including rail, which will significantly increase the number of customers to which we can economically ship coal. The addition of Petersburg expands a project that is an important component of Phoenix Coal's growth plan and enhances the strategic value of our entire asset base."
Under the terms of the agreement, Phoenix will pay US$3 million at closing and an additional US$3 million upon satisfactory completion of certain contingencies, including receipt of all required permits. Phoenix's total royalty rate for coal sold from the Gryphon Mining Complex shall be 6% of gross sales price.
In addition to the estimated coal reserves contained within the Gryphon Mining Complex, Phoenix also controls 76 million tons of coal mineral resource at its Panama South Property as of December 31, 2007. Both the Gryphon Mining Complex and Panama South are located in Webster and Henderson Counties in Western Kentucky. The Company expects this region will serve as the hub for its future underground mining operations.
A preliminary estimate of the coal mineral reserve contained in the Gryphon Mining Complex was calculated as of March 25, 2009 by Marshall Miller & Associates, Inc. ("MM&A"), an independent geological and engineering consulting firm headquartered in Bluefield, Virginia. MM&A has provided project feasibility studies and related engineering and geological services at coal projects and mines worldwide since 1977. MM&A estimates that the Gryphon Mining Complex contains a proven and probable mineral reserve of approximately 43 million tons of thermal grade bituminous coal, located on approximately 10,000 acres. The mineral reserve at the Gryphon Mining Complex is underground proven and probable reserves in the Western Kentucky No. 9 coal seam. In order to calculate the quantity of the mineral reserve at the Gryphon Mining Complex, MM&A utilized exploration drilling logs and property control maps provided by Phoenix and Petersburg and public domain data from the Kentucky Geological Survey. The Petersburg property was not included in the mining plan and financial analysis developed for the NI 43-101, dated March 10, 2008. All of the requirements of the technical report relating to the Gryphon Mining Complex, including the Petersburg property, will be fulfilled when the NI 43-101 is updated.
The Company retained George J. Oberlick, P. Eng., J. Scott Nelson C.P.G. and Gerard J. Enigk, P. Eng. of MM&A to prepare the NI 43-101 technical report in respect of the Gryphon Mining Complex. Each of Messrs. Oberlick, Nelson and Enigk is a "qualified person" as defined in NI 43-101. The Company anticipates filing the updated NI 43-101 technical report on SEDAR within 45 days. The preliminary technical information contained in this Press Release relating to the above mineral resource and mineral reserve estimates is reported and verified by George J. Oberlick, P. Eng. of MM&A, who is a "qualified person" as defined in NI 43-101.
About Phoenix Coal Inc.
Phoenix Coal Inc. is an integrated mining company producing high sulphur, low chlorine, bituminous coal from the Illinois Basin. To address the increasing demand for energy in the Eastern United States as well as in the export market, Phoenix Coal is pursuing production growth through the focused acquisition, consolidation, and extraction of coal assets. Phoenix Coal currently operates surface coal mines in Muhlenberg County, Kentucky and a barge loading facility on the Green River. Development plans for additional surface operations, as well as an underground mine, are underway. The Company's executive offices are located in Louisville, KY and its operational headquarters are stationed in Madisonville, KY. For additional information, visit www.phxcoal.com
CONSOL is the largest undergound producer of coal in the US.
JANUARY 5, 2009
CONSOL TO IDLE 84 MINE DUE TO MARKET CONDITIONS
EIGHTY FOUR, PA. - - - Consol Energy Inc. could lay off all 260 miners from its 84 Mine in Washington County because of the sluggish economy, company officials said yesterday. The mine could be idled by the end of March.
On Friday, Consol posted a notice required under the federal Worker Adjustment and Retraining Notification Act notifying employees that layoffs could begin within 60 days. The company then would have two weeks to lay off workers, after which it would idle the mine until the economy rebounds, according to company spokesman Tom Hoffman.
The mine, which produces low-sulfur coal used for making coke for smelting steel, needs orders from steel companies to keep the mine open, said Hoffman. So far, he said, steel companies haven't indicated if they plan to keep production going, and, given the state of the economy, it is unlikely they will.
"It's prudent on our part," he said. "If the steel mills are saying they're not going to produce steel, we're not going to produce coal -- we're going to match what they're doing so we don't end up with a lot of inventory on the ground."
The company, based in Cecil, laid off 66 workers on Tuesday as part of its transition from a longwall to a continuous mining system, he said.
In the fall, coal produced by the 84 Mine could be sold to make coke for $150 a ton, according to Hoffman. Now, he said, it can't be sold at all; no one is buying.
The miners are preparing for the worst as they suspect the mine closing will become permanent because of a poor market for the coal they produce, said Mark Segedi, a union official from Ellsworth.
"Naturally, we're concerned," said Segedi, president of United Mine Workers Local 1197. "Everyone feels the writing is on the wall."
The company posted notice of the closing at the mine Friday, two months after it announced that it had reversed those plans. Consol said in October that it would lay off 50 miners there by Dec. 31 and keep the scaled-back mine open to supply coal to the steel industry.
But, Segedi said, the price dropped so low on metallurgical coal that labor costs would cause the company to lose money at the mine.
"They told us they have no orders after February," Segedi said Sunday.
As a result, Consol "just laid off 67 people," Segedi said. The remaining workers were not told Friday when they will be called back to work after the mine closes March 4.
"They're saying market conditions are going to dictate what is going to happen to us," he said. (Combined news reports)
Sleepin' with the fishes OR sleepin' with a horse's head...
Thanks, again.
Thanks, KOP. Where would I find the upload picture tool?
Thanks for sharing that, WP. How were you able to paste that? I couldn't get it to work for me.
Forwarded to me via email, so I have no source to credit.
MASSEY’S NET INCOME FOR QUARTER SOARS
RICHMOND, VA. - - - Massey Energy Company has reported net income of $54.0 million or $0.64 per diluted share for the third quarter of 2008. These results compare to net income of $21.4 million or $0.27 per diluted share in the third quarter of 2007.
Adjusted EBITDA for the third quarter was $173.6 million compared to $96.2 million in the same period a year ago. The year-over-year improvement was achieved as produced coal revenue increased by 28 percent to $666.4 million in the quarter driven by a 133 percent increase in favorably priced export shipments and a 25 percent increase in metallurgical coal shipments. Produced tons sold in the quarter remained level with last year's third quarter at 10.3 million.
The increased shipment levels of export and metallurgical coal, along with higher contracted sales prices, resulted in average produced coal revenue per ton of $64.59, up 27 percent compared to the third quarter of last year.
Commenting on the Company's third quarter results, Massey's Chairman and Chief Executive Officer Don Blankenship said, "We are extremely pleased to have increased production by 8 percent in a difficult environment. Further, as revenue per ton has increased, we have worked very hard to control costs. This positive combination enabled us to more than double our operating cash margin per ton and increase adjusted EBITDA by more than 80 percent compared to the third quarter of last year. We believe the year-over-year improvement is an indication of the increasing earnings power and value of our Company and we expect the next several quarters to be even stronger."
The reported net income for the third quarter was negatively impacted by the following pre-tax special charges: $15.2 million related to the Company's tender for and redemption of $313 million of its 6.625% senior notes due 2010 ($6.1 million of which was non-cash interest expense), $5.8 million related to the Wheeling Pitt litigation, and $6.5 million impairment on an investment in the Reserve Primary Fund money market fund ("Primary Fund"). Massey's net income excluding special charges for the third quarter was $72.2 million or $0.86 per diluted share.
Massey's third quarter operating cash margin per ton of $15.82 represented an increase of 111 percent compared to the operating cash margin per ton of $7.49 reported in the third quarter of 2007. The increased cash margin was achieved as revenue per ton increased by 27 percent and cost increases were held to a more moderate 13 percent. Average cash cost per ton for the third quarter was $48.77 compared to $43.26 in the third quarter of 2007. The increase was due to higher sales related costs on the higher realized prices and higher labor and diesel fuel costs which more than offset lower SG&A resulting from reduced stock-based compensation accruals.
For the first nine months of 2008, Massey generated produced coal revenue of $1.92 billion and recorded net income of $2.6 million or $0.03 per diluted share.
These results included second and third quarter pre-tax charges of $245.3 million and $5.8 million, respectively, related to the ongoing litigation with Wheeling-Pittsburgh Steel Company ("WP litigation charge" - see note 2) and the third quarter special charges related to our refinancing and the loss on short term investments. Net income excluding special charges for the first nine months of 2008 was $204.6 million or $2.49 per diluted share. This compared to $1.56 billion in produced coal revenue and $89.0 million in net income or $1.10 per diluted share in the first nine months of 2007. Adjusted EBITDA of $501.9 million in the first nine months of 2008 was up 50 percent compared to EBITDA of $334.3 million in the first nine months of 2007. (Massey Energy)
RE: "If I were EC, I would be holding production down before the BK, make stuff up etc. During this he could show the creditors, look what a POS this is and how much money it takes. The creditors then accept anything they can get.
QMNM turns on the tap, coal flows and profits roll in.
Sound like a plan?"
You bet it does. Good thinking. I have been wondering for some time now if that might just be THE plan. We should know soon. This is serious poker, with high stakes for several of the players, We should know something soon, say, in November, or not at all.
I agree. It's just as good a theory as a stock printing machine.
Q: By all means, please show me where I said October had a 70% waste factor? And I do find that insinuation quite amusing considering we're still in the month of October!
RE: Sorry that you didn't get the point, which is that July-September data is historical, not current. October waste percentage is current. Coal mines know day by day what their waste percentage runs. Or maybe in the case of a small mine like this one, it's week by week. Do you have that day by day/week by week info, or are you basing your claim on historical data?
Great. You've explained the July-September waste percentage. I accept that as fact from the document I reviewed.
Please explain, however, your claim that the current (October) waste is 70% "FACT". Do you have documents to back that up? Or are you extrapolating?
If you have October statements showing waste percentage, please post them. If not, just say so.
ex·trap·o·late
Pronunciation verb, -lat·ed, -lat·ing.
–verb (used with object)
1. to infer (an unknown) from something that is known; conjecture.
2. Statistics. to estimate (the value of a variable) outside the tabulated or observed range.
RE: Three thousand feet down, wow! the entry is on the side of a mountain. I've never experience a production shutdown for mine inspection.
A: It's probably 3,000 feet in, not down. If you have a history in mining, you should know that lay people don't have a feel for "mining lingo".
As for shutting down for mine inspectors, I have seen that happen. With a small work force, that strategy gets the inspector in and out of the mine quicker, and allows the miners to get back to what they really need to do. Otherwise, the inspection could drag on all shift.
RE:
ranttrmike _______
Re: WHY are they that high?
The one thing you can not do is argue the FACT that the current waste percentage is running 70%. Those number are in the BK Interim Reports.
You can not argue the reasons "why it is" because you have no factual evidence to support your argument.
A: Current waste % is 70%. How do you know what the current waste is? Do you have daily reports from the mine showing 70%?
Waste percentage for September was reported as 70%. Agreed. Fact. But that doesn't mean it is currently 70%. It could be better. It could be worse. But it is not a FACT, unless the daily reports can be provided.
In response to this post about production at a coal mine, here are a couple of my posts from the past few months to help everyone here understand mining a little better.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31398761
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31149941
There is a term used for non-production jobs called "dead work". Examples of "dead work" are: setting timbers to help support the roof; shoveling loose coal along a conveyor belt; spraying rock dust on the coal surfaces (keeps coal dust from floating around and causing a black lung environment); servicing machinery; repairing machinery; adding conveyor belt and its structure; advancing the electrical system for the machinery (all of the coal producing equipment is electric); cutting rock; airflow and gas management (cfm of air needed to ventilate the mine and disperse methane and CO2); water management (into/out of sumps); etc. These are jobs that do not "produce" coal, but without them, coal cannot be produced. Some dead work is a function of the production cycle, some is required by federal and/or state law. It may also be that production is being delayed due to federal MSHA inspectors requiring a bunch of dead work to be performed before allowing production to resume. Since 2006, many new laws have been added to an already cumbersome and outdated code of regulations. All of these affect production in some fashion, so while Eugene may have let info out in the PR, he may have been trumped by Mother Nature or Uncle Sam. But are these reasons to fold up the tent and go home? If there's no end to them in sight, the answer is yes. If there is light at the end of the tunnel, the answer is no. They're already in debt, and the best way to pay it off is to sell coal at $100/ton.
(sorry about the incomplete earlier post. got called away from computer)
In response to this post about production at a coal mine, here are a couple of mine from the past few months to help everyone here understand.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31398761
In response to this post about production at a coal mine, here are a couple of mine from the past few months to help everyone here understand.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31398761
ILVMNY: Be careful in Patterson if you go there.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31968850