NewStream Energy Technologies Group Inc (NSGP)

[PaulFran]

For the benefit of ease i will look at IS coal as an example of what Pristine M technology can do. (I am using the below data based on EIA data and the company filings).

PRB coal is on average 8,800 btu and is $11.50 per ton.
Central Appalachian coal is on average 12,500 btu and is $55 per ton

Pristine M can increase btu of PRB coal to circ 12,000 btu.

Cost of 1m ton facility is approx $35m. Life time of 20 years. Depending on what rate of return the company applies to their capital investment and the depreciation lifetime a very conservative approach would be to apply $3 per ton for capital costs. If Opex is $3.50 per ton then in theory Pristine M cab incease the btu of PRB coal for less than $7 per ton. Therefore PRB coal us now 12,000 btu at an all in cost of less than $19 per ton. Compare that to Central Appalachian coal at $55 per ton....

So what else is built into coal pricing
Sulphur content.... PRB is 0.8% Central Appalachian is 3%.
Ash content. PRB ash is one of the lowest in the US.
Cost of mining. PRB coal is tge cheapest in the US as all surface mining (at least in Wyoming)
Transportation cost.... PRB processed coal using Pristine M produces a dust free product. This helps with environmental concerns of coal dust.

Obviously Kiewit need to nail down the commercial cost of a 1m ton facility.

Hope this helps...