Prophecy Coal (TSX:PCY) (OTCQX:PRPCF) Receives Positive Feasibility Study for 600 MegaWatt Chandgana Mine-Mouth Power Project in Central Mongolia
Vancouver, British Columbia, January 18, 2012 - Prophecy Coal (TSX:PCY) (OTCQX:PRPCF) (Frankfurt:1P2) has received a positive feasibility study for the company's 600 MegaWatt Chandgana Mine-Mouth Power Project in Central Mongolia.
InvestmentPitch.com has produced a "video news alert" which provides a summary of this news. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Prophecy Coal" in the search box.
The report was independently prepared by Steag (www.steag.com), the fifth largest power producer in Germany, and operator of nine coal-fired power plants. Outside Germany, Steag is contributing to the public power supply in the Philippines, Columbia and Turkey with three coal-fired power plants.
The feasibility study covers a 4 x 150 MegaWatt power plant to be built adjacent to Prophecy's Chandgana coal deposit, which contains 140 million tonnes of measured coal. The Power Plant and the coal deposit were both licensed in 2011.
Construction is planned to start in April 2013, with the first 150 MegaWatt unit being commissioned in October 2015, with subsequent units to roll out in April and October 2016, and April 2017.
The project is projected to have a capital cost of US$744 million, and have 30 years of commercial operation. This cost includes the power plant, overhead transmission lines, and administrative costs, but not mine development costs.
John Lee, Prophecy's CEO states, "The Feasibility Study has outlined the robust financial return for the Chandgana power plant based on conservative parameters. Our low-cost coal supply enables future delivery of affordable and stable electricity to both Central and Eastern Mongolia. The opportunity represents a potential long term revenue stream from power plant operation, as well as from coal operation, without coal transportation issues."
This fully-licensed power plant project has first-mover advantage to supplying Mongolia much need electricity, which currently comes from antiquated plants totalling approximately 700 MegaWatts. Once power and the mine are brought online, there is good potential to introduce additional plant units at lower capital costs.
In the long run, the volume of coal resource along with the project's proximity to China offers the potential to scale up capacity and export electricity to China.
The coal resource is next to a two-lane highway and 150 kilometres from the existing power grid, and will be supplied at a rate of 2.7 million tonnes per year. The company has more than 1.4 billion tonnes of surface minable thermal coal resources on two coal properties, with the company's other project, the Ulaan Ovoo mine already in production.
Prophecy Coal also holds a 45% interest in Prophecy Platinum , which was spun-off in June. The company's investment portfolio, which includes Prophecy Platinum, along with shares in two other publicly traded companies, contributes a significant portion to the value of Prophecy Coal's shares. Prophecy Coal trades at $0.43, and with approximately 198 million shares outstanding, is capitalized at $85 million.
For a more information on Prophecy Coal, including details of the resource estimate and the feasibility study, please visit their website www.prophecycoal.com, phone Chris Ackerman at 800-459-5583 or email cackerman@prophecycoal.com.
InvestmentPitch.com is a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals. InvestmentPitch.com specializes in producing short three minute videos based on news releases and research reports.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
604-684-5524
bmorgan@investmentpitch.com
InvestmentPitch.com has produced a "video news alert" which provides a summary of this news. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Prophecy Coal" in the search box.
The report was independently prepared by Steag (www.steag.com), the fifth largest power producer in Germany, and operator of nine coal-fired power plants. Outside Germany, Steag is contributing to the public power supply in the Philippines, Columbia and Turkey with three coal-fired power plants.
The feasibility study covers a 4 x 150 MegaWatt power plant to be built adjacent to Prophecy's Chandgana coal deposit, which contains 140 million tonnes of measured coal. The Power Plant and the coal deposit were both licensed in 2011.
Construction is planned to start in April 2013, with the first 150 MegaWatt unit being commissioned in October 2015, with subsequent units to roll out in April and October 2016, and April 2017.
The project is projected to have a capital cost of US$744 million, and have 30 years of commercial operation. This cost includes the power plant, overhead transmission lines, and administrative costs, but not mine development costs.
John Lee, Prophecy's CEO states, "The Feasibility Study has outlined the robust financial return for the Chandgana power plant based on conservative parameters. Our low-cost coal supply enables future delivery of affordable and stable electricity to both Central and Eastern Mongolia. The opportunity represents a potential long term revenue stream from power plant operation, as well as from coal operation, without coal transportation issues."
This fully-licensed power plant project has first-mover advantage to supplying Mongolia much need electricity, which currently comes from antiquated plants totalling approximately 700 MegaWatts. Once power and the mine are brought online, there is good potential to introduce additional plant units at lower capital costs.
In the long run, the volume of coal resource along with the project's proximity to China offers the potential to scale up capacity and export electricity to China.
The coal resource is next to a two-lane highway and 150 kilometres from the existing power grid, and will be supplied at a rate of 2.7 million tonnes per year. The company has more than 1.4 billion tonnes of surface minable thermal coal resources on two coal properties, with the company's other project, the Ulaan Ovoo mine already in production.
Prophecy Coal also holds a 45% interest in Prophecy Platinum , which was spun-off in June. The company's investment portfolio, which includes Prophecy Platinum, along with shares in two other publicly traded companies, contributes a significant portion to the value of Prophecy Coal's shares. Prophecy Coal trades at $0.43, and with approximately 198 million shares outstanding, is capitalized at $85 million.
For a more information on Prophecy Coal, including details of the resource estimate and the feasibility study, please visit their website www.prophecycoal.com, phone Chris Ackerman at 800-459-5583 or email cackerman@prophecycoal.com.
InvestmentPitch.com is a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals. InvestmentPitch.com specializes in producing short three minute videos based on news releases and research reports.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
604-684-5524
bmorgan@investmentpitch.com
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