Conversation with IR
I had about a half-hour cenversation with Matthew Emery in Prophecy's Investor Relations yesterday. I found him to be intelligent, approachable, and open. He seemed to have genuine enthusiasm for the projects, and was not evasive at all. I found that very encouraging. There is no reason at all to be shy about asking him your questions.
He said that he hadn't seen John Lee in over two months. Mr. Lee has been spending his time in Mongolia and China. Other posts had shown that he had been in Mongolia since November, but the China angle is interesting and encouraging. While he is Mongolia, he would obviously be focusing on the PPA and preparing for the start of construction of the power plant. Prophecy Coal does have several staff members in Mongolia, with job titles that are targeted toward government relations, approval and construction. Matthew said that the PPA was the key, and that after the PPA and tariff agreement are signed, other pieces are poised to fall like dominoes. His time in China would probably be spent working out the deal with the EPC contractor, power plant design, and financing. Matthew did not have a response to my question as to whether or not progress is being made toward working out a deal on future power plants for sale of electricity to China. He kept bringing me back to the topic of the PPA. The PPA should establish Prophecy as a legitimate emerging power producer, positioning Prophecy to offer power to China. Matthew said that they had recently been targeting the PPA for approval sometime in the first quarter, but a recent flurry of activity in Mongolia had given him hope that the approval could come sometime soon.
We only spoke briefly about Ulaan Ouvoo. He kept directing me back to the PPA. Re-opening Ulaan Ouvoo will depend on the Mongolian government increasing the official price for sales to the government, and the reduction of taxes on sales to others. He did not have an update on those two items. I assume the border crossing issue also remains. He did say that they receive many calls from people who are interested in purchasing our coal, so the demand is still there.
We also spoke of the Titan project. He said that there is nothing happening on it the first half of this year, as they focus on activity in Mongolia. He said that in the second half of the year, they could consider the possibility of a drilling program to define and expand the resource, selling it to raise cash to increase our stake in the Mongolian projects, or selling it to Prophecy Platinum, where it would be a better fit. I would assume that would be a stock transaction, giving Prophecy Coal and/or Prophecy Coal stockholders additional shares in Prophecy Platinum. Personally, I find the Titan project to be very interesting, and would like to see progress on it. We should devote a thread here to the potential and possibilities of the Titan project.
We then spoke of the drill results on Wellgreen, and my comments are posted on the NKL board.
I then took a few minutes to tell him what I would like to see, as a retail investor. I would like to see more news, with more detail, more often. I would like to see news or an article highlighting the "green" aspects of the Chandgana power plant. I had to assume from the use of limestone as a reimbursible item in the PPA calculations that it has a scrubber for reducing sulphur dioxide emmissions. We should be promoting it, not only as "clean coal", but as an environmentally responsible way to support Mongolia's economic development while cleaning up its air at the same time. I told him that I would also like to see John Lee speak about the other power projects in Mongolia, as he has in the past, and how they are progressing, and how they, along with CChangana, fit into an overall, rational plan for Mongolia's growth that require the success of all of the projects to fill Mongolia's needs.
Overall, I was left with a firm resolve in my mind that Prophecy Coal is the right place to be invested, with potential for explosive growth in the short, medium, and long term.
mjaArizona
He said that he hadn't seen John Lee in over two months. Mr. Lee has been spending his time in Mongolia and China. Other posts had shown that he had been in Mongolia since November, but the China angle is interesting and encouraging. While he is Mongolia, he would obviously be focusing on the PPA and preparing for the start of construction of the power plant. Prophecy Coal does have several staff members in Mongolia, with job titles that are targeted toward government relations, approval and construction. Matthew said that the PPA was the key, and that after the PPA and tariff agreement are signed, other pieces are poised to fall like dominoes. His time in China would probably be spent working out the deal with the EPC contractor, power plant design, and financing. Matthew did not have a response to my question as to whether or not progress is being made toward working out a deal on future power plants for sale of electricity to China. He kept bringing me back to the topic of the PPA. The PPA should establish Prophecy as a legitimate emerging power producer, positioning Prophecy to offer power to China. Matthew said that they had recently been targeting the PPA for approval sometime in the first quarter, but a recent flurry of activity in Mongolia had given him hope that the approval could come sometime soon.
We only spoke briefly about Ulaan Ouvoo. He kept directing me back to the PPA. Re-opening Ulaan Ouvoo will depend on the Mongolian government increasing the official price for sales to the government, and the reduction of taxes on sales to others. He did not have an update on those two items. I assume the border crossing issue also remains. He did say that they receive many calls from people who are interested in purchasing our coal, so the demand is still there.
We also spoke of the Titan project. He said that there is nothing happening on it the first half of this year, as they focus on activity in Mongolia. He said that in the second half of the year, they could consider the possibility of a drilling program to define and expand the resource, selling it to raise cash to increase our stake in the Mongolian projects, or selling it to Prophecy Platinum, where it would be a better fit. I would assume that would be a stock transaction, giving Prophecy Coal and/or Prophecy Coal stockholders additional shares in Prophecy Platinum. Personally, I find the Titan project to be very interesting, and would like to see progress on it. We should devote a thread here to the potential and possibilities of the Titan project.
We then spoke of the drill results on Wellgreen, and my comments are posted on the NKL board.
I then took a few minutes to tell him what I would like to see, as a retail investor. I would like to see more news, with more detail, more often. I would like to see news or an article highlighting the "green" aspects of the Chandgana power plant. I had to assume from the use of limestone as a reimbursible item in the PPA calculations that it has a scrubber for reducing sulphur dioxide emmissions. We should be promoting it, not only as "clean coal", but as an environmentally responsible way to support Mongolia's economic development while cleaning up its air at the same time. I told him that I would also like to see John Lee speak about the other power projects in Mongolia, as he has in the past, and how they are progressing, and how they, along with CChangana, fit into an overall, rational plan for Mongolia's growth that require the success of all of the projects to fill Mongolia's needs.
Overall, I was left with a firm resolve in my mind that Prophecy Coal is the right place to be invested, with potential for explosive growth in the short, medium, and long term.
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