Replies to post #75 on Coal

[mhlld]

National Coal, The reason for my questions were simple. I wanted to know if TN Mining's coal production was in last qtrs revenues. They are not.

http://biz.yahoo.com/bw/040813/135380_1.html
Excerpt:

For the quarter, revenues from coal sales were $4.5 million, an increase of over 425% compared to the Company's first quarter of 2004. The Company also reported a gross profit margin of 24.7% for the quarter ended June 30, 2004, which represents a significant increase compared to the 5.4% gross profit margin for the previous quarter. The Company reported a net loss of $1,187,472, or ($0.03) per share, compared to a net loss of $1,066,208, or ($0.03) per share for the first quarter of 2004.

National Coal's significant increase in revenues from coal sales is due to increased production attributable to the Company's acquisition of assets from U.S. Coal, Inc., an expansion of its customer base and higher average sale prices per ton. "The significant revenue growth for the three month period ended June 30, 2004 compared to the prior three month period was due in part to our recent mine expansion following our acquisition of assets from U.S. Coal, Inc.," said Jon Nix, Chief Executive Officer of National Coal. "By having a focused management team and a well timed transition, we were able to realize production gains the very same day we took control of U.S. Coal's assets. I'm extremely proud of our performance. This operating philosophy will also be employed as we seek to increase revenues and improve our operating margins for the foreseeable future by expanding coal production at new mines on our existing properties and through the acquisition of new mining properties." Nix also added, "We believe our Company is well positioned to take advantage of the ever increasing demand for coal both in this country and throughout the world. For the remaining six months of 2004, we have contracts which represent nearly double the revenue reported in the first six months and we expect to receive additional contracts before year end. Our coal reserves, and the additional mining permits that are coming on line over the next several quarters, will enable us to become a much larger coal producer."

"We have implemented a business plan which will allow us to continue to focus on effectively managing our costs and running our operations efficiently, thus enabling us to capitalize on multiple opportunities in the marketplace," Nix concluded.