Replies to post #14339 on Kentucky Energy (fka QMIN)

[MNRICEPKR]

I INDICATED AT AN EARLIER DATE, THIS IS MAINLY ABOUT THE ASSETS. Having the mine up and running opens the door for a sale. That is why Gene holds on to most of his shares and has aquired more. He knows it is a win win for him once they get into full production. The full production they are working to, is the only viable option on the table for Gene and company. GLTA.

[Anvil]

Evens:

They would be lucky to get $10-15MM for the mine. Recoverable coal is the number you want to look at. that is approximately 5MM tons. Then you need to wash it. Gwenco has been getting a yield of 30%. But assume it gets better up to 50%. Then you have 2.5MM clean coal spread over 5-6 years. At $40/ton profit, that is $100MM. But a buyer has all the mining risks, needs to have/purchase the right equipment and takes the pricing risk. As quickly as coal prices have gone up, it can come down.

The twist here is that Gene has probably lost control of the mine to the dip lender. If you offer Mendriatta an extra $5MM above what he is owed, and pay off the other creditors, you probably can buy the mine.

[Pedro2004]

evens _ If someone wanted to buy the Coal Reserves, all they have to do is pay $9 million dollars to the BK Court.

So why would someone pay $1.5 billion dollars?

[aharfo56]

Yes, but don't forget that according to the agreement, all of their current miners are on contractual basis (the mine isn't even doing well enough to keep them as full-time employees but rather keeps them as "contract labor."). They only have ONE full-time employee, and guess who that is? It rhymes with Eugene. That's also a big worry for those who want this company to go legit and profit; it's a one-man-show and Eugene controls everything...he has little if no oversight and can do what he wants...not a good position for a stock you're parking your money into. Buyer beware!