buy buy buy, page-113

DC

Good Q

No denying the coal quality at BM (especially S levels) is nowhere near as good as LV dirt. That's a given and a negative to the BM project. Maybe why MNM have staked out 600+ sq km of LV dirt as well.

We know that for example:

1) CHTD process does take out a percentage of the S.
2) Modern power plants use advanced technology on higher S coals to remove the S eg. FGD, adding calcium, etc.
3) High S coals can be blended with low S coals to reduce the overall percentage of S.

The statement reads:

"The company carried out a comparative analysis on the project’s sulfur control options – using Flue Gas Desulfurization (FGD) or procuring lower sulfur coal, and determined that the latter be more cost effective".

I suppose that is the key here - what discount will be applied to BM CHTD BCE to make it "cost effective".

I am obviously not able to answer that accurately...time will tell.

The thing for me though, as mentioned, existing rail infrastructure is a massive plus and hopefully will offset the discount in BCE sell price somewhat.

I suppose we can take comfort in the fact that Exergen believe the deal overall worth investing $50+ million in developing a demo CHTD plant and doing a 50:50 JV at BM.

"A bird in the hand is worth two in the bush" and all that.

Cheers K