So it looks like their major expenses are contract miner (paying to get the coal out of the ground) and mine rehab (this cost should fade quickly I would suspect, as once it's up and running there shouldn't be major rehab). General and admin costs seem a little high...but who knows. I'd like to see those come down, since it's a small co., but who knows what they lump under that category.
It's pretty hard to figure out what they 'need' to mine in order to be profitable, as the costs are jumping up and down quickly past two months (which one would expect as they do major overhauls and get production started/ stopped at first).
Contract miner costs, for example, have doubled, but this is probably due to working on pond creek AND cedar grove? Also, I wonder what manufacturing overhead means - would assume it includes all new toys (belt, motor, etc.) power, water, etc. to the place, but again, I'm no accountant. It did jump up a lot this past month, but if it's the purchases of new equip, it's no problem. Why do I always need more info!!!
2 comments:
Nice post LAT!!!!
Bottom line is they need to produce what they say they're producing via numbers!!!!
Yes.
If they break the 1000ton/ month I am guessing they start to see profits...just a guess though w/ too big a swings in the #'s so far to be accurate! Another month or two of data and I can probably extrapolate out what they NEED to do to make $$$ so I don't have to ride a damn honda shadow and we can all take a trip to vegas. :)
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