GOTTESMAN COMPANY & Cooperating Intermediaries Seller Profile New York ~ California Mergers & Acquisitions CONFIDENTIAL Acquisition Opportunity Northern Appalachian (NAP) Coal Mining Reserves Business Description: These are 984 acres of northern Appalachian (NAP) coal mining rights available for immediate purchase. This is top-of-the-line Northern Appalachia (NAP) metallurgical bituminous coal. It is recoverable by deep mining (reserves were calculated on the room and pillar method of mining). These are reserves, not yet mined. The conservative estimate is that 4.08M tons of coal can be mined at this location. For interested and qualified purchases the customary engineering report is available, which is current. This is the highest grade coal available in the United States. The Seller owns all the land, surface and mineral rights. ALL ARE FOR SALE. Interested buyers can look at just the minerals rights, the land, or the entire package. Operational Strengths: Typical mining costs can range from as low as $20 to the low $30’s per ton depending on how the mine is developed. Or, the reserve could be leased to a reputable mining company who will permit the reserve, mine it, and pay the owner a royalty on each ton that is delivered to the market. There is no cap on the number of years to mine for the owner. The Transaction: The asking price to acquire these rights is $40M. The seller will accept customary due-diligence contingencies from qualified buyers. Financial Information: The latest (3/5/10) spot market for Northern Appalachian coal is $64/ton. This is down from $105/ton two years ago, but the price has been climbing for the past 9 months. At $64 the value of the coal is $261M with the cost of $122M for mining ($30.00/ton). The net value at this level is therefore $139M. Please see the government site for the latest spot prices for this grade coal. www.eia.doe.gov Direct All Inquiries to Gottesman Company Refer to: S-2482-1 OB GV Tel: 212-570-0700 Fax: 212-734-2511 E-mail: firstname.lastname@example.org 3/10 st Gottesman Company – 200 East 71 Street – New York, NY 10021 www.Gottesman-Company.com Gottesman Company makes no warranty or representation in connection with the information provided herein. Gottesman Company is a Finder, whose mission is to locate opportunities and introduce participants.
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