Kentucky Energy (fka QMIN)

[grapeman]

Independent reports on assets in the ground.
Levels of ash and sulfur
Mining methods called for.
In general a cost report on the cost of getting the coal out of the ground compared with current prices and the volume mined.

If you pull out 10,000 tons and wash 50 ash away, you have 5,000 tons and cost of washing. Throw in grade of coal and what is paid, then operating costs per month vs. production.

KENTUCY - The producing mines are tied up with the bigger boys.
What is left is not economical to mine. So it is used as it was with Quest. - The story goes - "Current prices of coal make it feasible to re-open this mine asset that has been closed for 15 years. We will bring it back into service and production to take advantage of the ever increasing demand for coal. Profits are to be had and get in during the rehabilitation of the mine and before production to make 100s% on your investment." They then sell stock- buy some outdated equipment that keeps breaking,, employ a few good old boys from the neighborhood to make it look like something is going on. Produce just enough coal to make it look like profitability is just around the corner so they can keep it going for 2-3 years+ and do a bunch of R/Ss. Live off the R/S money and the bag holders that were lured by the big returns,,, not realizing that KOL from 2009 to now went from $12 to $50
http://www.worldcoal.org/coal/market-amp-transportation/coal-price/
http://www.eia.gov/cneaf/coal/page/acr/table28.html

<<How would someone value a coal mine that is not operating?>>