Quest currently has an 8 mil contract in place to sell coal to Logan & Kanawha Co through December. Bobby mentioned a 7000 ton per month contract at $80 per ton. He added that this company has been in contact to buy more coal over the 7000 ton per month figure at possibly $110 per ton. Quest’s current estimate from Pond Creek at full production is 1200 to 1500 per month, spelled out in the BK filing. They appear to have a good shot at clearing the BK. A big concern that I have as a shareholder is the current number of outstanding shares and the way that it has increased recently. Compare the quarterly SEC filings over the past year and you will see what I am talking about. I am somewhat worried about further dilution if more shares are issued or converted. Hash all of this out everyone. Let us know what you think, good or bad. I am long on QMNM and still acquiring on the dips as I can free up cash. I won’t take a guess at what level it might reach in the coming weeks and months or over the longer term. But I do believe it is worth significantly more than the current level. It should gain nicely and hold after the first Q report with significant production figures.
Sentiment : Strong Buy
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