Opened an Ameritrade account today and will be buying a block of BTU, here's why.
The west black line of the rectangle represents nothing but my ineptness with Paint. The north, east and south black lines represent the approximate current pit boundaries. The Google Earth photo is at least a year old. The yellow rectangle represents an area that is currently mined out. The arrows represent the direction of mine progress. Currently the mine is being high graded, in other words, they are shooting for the highest profit margin. The yellow area was mined using shovels in order to prepare the area to be mined with draglines such as the one in the red circle. The current east to west configuration of the pits probably averages about 2.75:1 strip ratio. over the course of the next couple of quarters I expect a dragline to start mining to the west just west of the yellow rectangle where the strip ratio is about 1.25:1. This will do a couple of things; A) it will lower cost significantly B) It will put pressure on other mines in the region. I'm just thinking aloud but in my best guestimation BTU, which is already the largest producer in the PRB is looking to increase their value by decreasing the value of other properties by putting them out of business. I'm hoping like hell to get my block purchased prior to the 25th when the quarterly results come out. All is pending a money transfer to Ameritrade.
In other news Revelation Coal is purchasing the old Alpha (now Contura) mines in the basin. They are about to take a blow to the nuts IMHO because the Belle Aye mine is going to be hurt by this BTU move.
As always DYODD and comments are welcome.
The west black line of the rectangle represents nothing but my ineptness with Paint. The north, east and south black lines represent the approximate current pit boundaries. The Google Earth photo is at least a year old. The yellow rectangle represents an area that is currently mined out. The arrows represent the direction of mine progress. Currently the mine is being high graded, in other words, they are shooting for the highest profit margin. The yellow area was mined using shovels in order to prepare the area to be mined with draglines such as the one in the red circle. The current east to west configuration of the pits probably averages about 2.75:1 strip ratio. over the course of the next couple of quarters I expect a dragline to start mining to the west just west of the yellow rectangle where the strip ratio is about 1.25:1. This will do a couple of things; A) it will lower cost significantly B) It will put pressure on other mines in the region. I'm just thinking aloud but in my best guestimation BTU, which is already the largest producer in the PRB is looking to increase their value by decreasing the value of other properties by putting them out of business. I'm hoping like hell to get my block purchased prior to the 25th when the quarterly results come out. All is pending a money transfer to Ameritrade.
In other news Revelation Coal is purchasing the old Alpha (now Contura) mines in the basin. They are about to take a blow to the nuts IMHO because the Belle Aye mine is going to be hurt by this BTU move.
As always DYODD and comments are welcome.