Fragen an die Prophecy coal IR - 500 Beiträge pro Seite

[Fritz777]

Fragen an Prophecy Coal

Wie in unserem Hauptforum erläutert sammle ich Fragen an die IR von Prophecy damit diese gebündelt beantwortet werden können, wobei ich hoffe das die Fragen, da sie in diesem Fall von eine Gemeinschaft ausgehen eingehender behandelt werden, als wenn jeder nur für sich seine Fragen stellt.

Nach Anfragen an die IR besteht auch aufgrund der doch relativ hohen Anzahl an täglichen Lesern im PC Forum ein Interesse von Seiten der IR Antworten zu erstellen die einer breiteren Leserschaft zugänglich sind und von denen von Anfang an klar ist das sie für jeden interessierten auf W.O. zu lesen sind.

Ich habe Chris auch geschrieben das er mir bei diesem ersten Versuch auch gerne eine Antwort auf eine nicht gestellte Frage schreiben kann, sofern es bezüglich der weiteren Entwicklung von PC etwas gibt das von Interesse für uns sein könnte, aber als Einzelereignis nicht gleich in einer Aussendung über die Börse zu verlautbaren ist.

Mein Grundgedanke dabei ist aber nicht eine billige Form von Werbung für PC, sondern das wir auf Fragen die uns beschäftigen eine möglichst befriedigende Antwort erhalten.

Ob der Versuch funktioniert werden wir sehen, das hängt jetzt in erster Linie mal davon ab das hier Fragen gestellt werden und dann auch davon, ob die Antworten nicht nur ausweichend sind, denn in diesem Fall ist mir der persönliche Aufwand mit dem Sammeln und übersetzen zu groß.
Noch ist nicht absehbar wie sich die Geschichte entwickelt, sollte das ein Service werden das längere Zeit besteht werde ich mich noch genauer darüber äußern, wie es genau funktioniert.

Also immer ran und postet eure Fragen sofern ihr welche habt, nur dann kann es auch funktionieren.
Ich freue mich über jede Frage und es geht natürlich auch per BM.

Gruß Fritz

[Karibik02]

He he wollte dir grad schreiben wie man das macht! Super ;-)

[Fritz777]

Antwort auf Beitrag Nr.: 42.558.941 von Karibik02 am 06.01.12 12:14:17

Hi Karibik

Danke, das war dann aber auch durch die Hilfeleistung von Schniddelwutz im PC Thread ganz einfach, ich hoffe das auch Fragen kommen und habe aufgrund meines Urlaubs ganz vergessen das wir heute einen Feiertag haben.
Ich werde heute die ersten Fragen die im PC Thread gelandet sind und oder per BM zu mir gelangt sind für die leichtere Übersicht hier einstellen.

Gruß Fritz

[Fritz777]

Antwort auf Beitrag Nr.: 42.559.109 von Fritz777 am 06.01.12 12:38:52

Das ist der Stand bis jetzt, ich führe die Fragen und meine Übersetzung an, so kann jeder, der denkt ich spreche den Kern seiner Frage nicht nochmals eine Korrektur meiner Übersetzung durchführen.

Asphaltierten Strasse mit Verbindung UO bis Sukhbaator, , mit dem Bau Prophecy vor kurzem beauftragt wurde. Wer trägt die Kosten, wann ist der geplante Bauende.

As the road from UO to Sukhbaator gets paved by Prophecy, who will carry the costs and when will the works get finaliced?

Welche Operativen Kosten hat jetzt UO Produktion& Transportkosten bis Sukhbaator.

How high are the operational costs at UO now on the one hand for the production and on the other for the transportation?

Welcher Anteil in der Produktion hat 4500kkal Kohle und welchen 5100kkal.

How high ist the percentage of 4500kcal/kg and of 5100kcal/kg coal at UO?

Wurde Sovgavan aufgegeben, wo liegt der Kern der Probleme?

Did Prophecy Coal abandon the Sovgavan plans and what is the core of the problems there?

Wer wird die Stromleitungen bauen bzw betreiben die Chandgana mit dem CES verbinden, wird Miete fällig?

Who will build the power lines that connect Chandgana with the Mongolian grid and will PC have to pay a rent to use the Mongolian grid?

Wurden für die Kraftwerksplanung schon die Planungen beauftragt?

Is there already a company working on concrete plans for the power plant?

Gibt es schon genauere Planungen ab wann ein Listing an der MSE erfolgen soll?

Are there more exact plans from the management when we will get a listing at the MSE?

Gibt es Überlegungen das Vanadium und CU/Moly Projekt weiter zu explorieren?

Do conciderations from the management exist to go on exploring Titan and Okeover?

[TimLuca [KommA]]

Antwort auf Beitrag Nr.: 42.558.916 von Fritz777 am 06.01.12 12:10:47

Hallo,

interessantes Vorhaben.
Ich finde es gut, das Anleger aus Deutschland/Österreich/Schweiz....
das hier mal so anpacken!

Ich hoffe auf Erfolg.

Ich bin am 22.01. in Vancouver, wenn ich Zeit bekomme, dann kann ich auch gerne mal beim MM vorbei schauen. Verspreche es aber nicht......

Gruß
Stefan

[Fritz777]

Antwort auf Beitrag Nr.: 42.560.183 von TimLuca am 06.01.12 15:23:17

Hi Tim

Freue mich dass dir die Idee gefällt, jetzt hoffe ich nur noch auf eine rege Beteiligung damit auch wirklich viele Fragen zusammen kommen.

Das wäre wirklich toll, wenn du dazu in Vancouver Zeit findest.
Für mich ist Vancouver leider ein wenig zu weit weg.

Gruß Fritz

[Fayy]

Hi fritz!
hi fritz!
Hoffe du bist gut gerutscht!

1. Once there was rumor about a closer connection with the Batista family. Are you still in contact with others than Harald?
2. A couple months ago John Lee and helmut Pollinger held some quite interesting video-interviews mainly for German speaking investors.
Why did they stop?
3. Is prophecy still interested to acquire additional land around UO and Chandgana?
What's the current status there?
4. You said that the coalprices across the Zelturaborder are higher than in Sovgavan. Do you expect them to remain higher after the opening of the border?
Gruss und schoenes WE

[Fritz777]

Antwort auf Beitrag Nr.: 42.562.570 von Fayy am 06.01.12 22:55:43

Hi Fayy

Danke der Nachfrage, hatte zum Glück im engsten Familienkreis einen sehr ruhigen Wechsel ins neue Jahr, wodurch das neue Jahr ganz ohne Kater einen guten Anfang genommen hat.
Ich hoffe dein Rutsch war auch so, wie du es dir vorgestellt hast.

Danke auch für die höchst interessanten Fragen zu so später Stunde und auch dir ein schönes WE.

Fritz

[Fritz777]

Antwort auf Beitrag Nr.: 42.562.621 von Fritz777 am 06.01.12 23:27:16

Hi

Die zwei Fragen habe ich noch erhalten.

Will the road to Sukhbataar still be of any importance after the opening of the Zeltura border?

What a topic, Cornerstone Investor. I know you want be able to tell a lot about it, but could you please give some hints if there is still something going on with Vale, with the Russians, or with both?

Gut ich sage mal der Andrang war jetzt nicht so besonders groß, aber zu viele Köche verderben den Brei, zu viele Fragen erhalten vielleicht zu wenig Aufmerksamkeit.

Ich werde noch bis morgen warten, sollte noch eine Frage kommen, dann wird die Mail von mir verfasst und am Montag versendet.

Ich werde auf keine schnelle Beantwortung der Fragen drängen und die Fragen und die Antwort hier und natürlich in unserem Hauptthread einstellen, falls die IR es will stelle ich die Fragen und Antworten auch auf SH ein, sonst nicht.

Was nachher geschieht hängt davon ab ob auch einige Fragen so beantwortet wurden das die die sie gestellt haben damit zufrieden sind.
Das ist ein faires Kriterium anhand dessen ich entscheiden werde ob ich so eine, oder eine andere Kontaktaufnahme zur IR wieder einmal durchführen werde.

Gruß und einen schönen Sonntag
Fritz

[Fritz777]

Antwort auf Beitrag Nr.: 42.564.467 von Fritz777 am 07.01.12 21:08:48

Bis jetzt sehen die Fragen so aus.

Ulan Ovoo


• As the road from UO to Sukhbaator gets asphalted by Prophecy, who will carry the costs and when will the works get finalized?


• How high are the operational costs at UO now on the one hand for the production and on the other hand for the transportation oft he coal to Sukhbaator?


• How high ist the percentage of 4500kcal/kg and of 5100kcal/kg coal at UO?


• Did Prophecy Coal abandon the Sovgavan plans and what is the core of the problems there?


• Will the road to Sukhbataar still be of any importance after the opening of the Zeltura border?


• You said that the coalprices across the Zelturaborder are higher than in Sovgavan. Do you expect them to remain higher after the opening of the border?


• Is Prophecy still interested to acquire additional land around UO and Chandgana?
What's the current status there?



Chandgana


• Who will build the power lines that connect Chandgana with the Mongolian grid and will PC have to pay a rent to use the Mongolian grid?


• Is there already a company working on concrete plans for the power plant?

General questions about Prophecy Coal


• Are there more exact plans from the management when we will get a listing at the MSE?


• Are there any conciderations of the management to go on exploring Titan and Okeover?


• What a topic, Cornerstone Investor. I know you want be able to tell me much about it, but could you please give some hints if a partnership with Vale, with a Russian Company, or with both is still an issue?


• Once there was rumor about a closer connection with the Batista family. Are you still in contact with others than Harald?

• A couple months ago John Lee and helmut Pollinger held some quite interesting video-interviews mainly for German speaking investors.
Why did they stop?

Nacht Fritz

[Fritz777]

Antwort auf Beitrag Nr.: 42.564.750 von Fritz777 am 07.01.12 23:17:01

Die Fragen wurden teilweise noch geringfügig editiert und um einige weitere Fragen ergänzt.
Vor einigen Stunden wurden sie abgeschickt.Ich habe auf keine schnelle Beantwortung gedrängt und das nächste Posting von mir in diesem Thread wird dann zeigen was wir zurück bekommen.

Gruß und danke das ich mit keiner gänzlich ablehnenden Haltung bezüglich des Versuches konfrontiert wurde.

Fritz

[Fritz777]

Antwort auf Beitrag Nr.: 42.566.693 von Fritz777 am 08.01.12 23:00:21

Wird wohl noch ein wenig dauern bis wir die Antworten erhalten.

Working on those answers…bear with me, it’s always quite hectic around here. Having an internal conference call on Friday and should find out updates on feasibility study.



Regards,



Chris Ackerman

Investor Relations Manager

Tel: [phone] ext. 110

www.prophecycoal.com

www.prophecyplat.com

Gruß Fritz

[Fritz777]

Antwort auf Beitrag Nr.: 42.582.209 von Fritz777 am 12.01.12 06:08:50

Update zu den Fragen.

They are all done, I'm just having them reviewed by the lawyer to make sure I didn't violate any rules. Hopefully send today.

Nice NKL run, hopefully pcy will catch fire by proxy if the feas study wasn't enough.

Regards,

Chris Ackerman
Investor Relations Manager
Tel: [phone] ext. 110
www.prophecycoal.com
www.prophecyplat.com



-----Original Message-----
From: xxx [mailto:xxx]
Sent: January-19-12 11:25 AM
To: Chris Ackerman
Subject: Questions

Hi Chris

Incredible, the market gives no value to the assets of PC, but well you will get enough mails about that topic and what I wanted to know is if the answering of the questions is proceeding?

Best regards
xxx

[hagadi]

Hallo Fritz,

das wäre eventuell noch eine Frage die ich nach der heutigen news hätte

Sind neben PCY weitere Kohle-Zulieferer für das Chandgana KKW bereits vorgesehen/bekannt?

[Fritz777]

Antwort auf Beitrag Nr.: 42.640.599 von hagadi am 24.01.12 17:46:21

Hi Hagadi

Das kann ich mir nun wirklich nicht vorstellen, das hier andere Kohlezulieferer benötigt werden, das geht ja vollkommen am Sinn vorbei die eigene Kohle zu verbrennen.
Der Chris lässt sich ja wirklich sehr viel Zeit mir zu antworten und da kann ich gerne heute mal wieder anfragen wie es jetzt so steht und deine Frage rein verpacken.
Mal schauen, ob ich eine Antwort erhalte.
Hätte ich geahnt wie kompliziert es sich gestaltet auf die Fragen eine Antwort zu bekommen, hätte ich wohl die Finger von der Sache gelassen.

Gruß Fritz

[hagadi]

Antwort auf Beitrag Nr.: 42.640.747 von Fritz777 am 24.01.12 18:07:52

Ich will das auch nicht glauben, aber man hat schon Pferde kotzen sehen usw....

[Fritz777]

Antwort auf Beitrag Nr.: 42.641.023 von hagadi am 24.01.12 18:52:34

Hi hagadi

Auf deine Frage habe ich keine Antwort erhalten, auf die anderen gerade vorhin, habe es selbst noch nicht gelesen, vielleicht jetzt beim Posten.

Ulan Ovoo


• As informed recently Prophecy Coal awarded the tender to construct a paved highway from 308th km of the Ulaanbaatar-Altenbulag to Tushig soum with consortium partner NTB LLC. Could you give few more information to the project? Who bears the costs? When works shall start? End of the project?

I don’t have any informative details on this right now but will provide when available.

• Will the road to Sukhbataar be of any importance after the opening of the Zheltura border?

Yes, not all non-Mongolian sales will go through Zheltura.


• Since Prophecy Coal has produced 200K tons of coal and sold rather the same quantity in 2011 is it possible to get few details to the operation key figures, e.a. monthly productivity, current cash-cost, margin, transport cost to Sukhbataar etc.

For business/competitive reasons, like other similar companies, we do not provide such details. Those metrics are also not as significant before UO is in full commercial production stage.


• What is the rate of 4500kcal/kg and 5100kcal/kg coal being turned out at UO?

The rate of production of 4500 and 5100 kcal coal is not known to us yet . We are in the process of finalising our mining plan for the next year and then for 5 years. Should have the answer around the end of March. Currently, we are mining enough to supply our local contracts as well as a small amount that goes to Russia. We are not ready to discuss contracts or sales to any buyers until we can know with confidence what quality of coal we will be mining in what quantities and the production costs.

• Are the plans to sell coal via Sovgavan port abandoned completely or temporary? What is the core of the problems selling the coal on Asian market over Russian far-east ports?

Rather than adopt the term, ‘abandoned’, I would prefer to use ‘deferred’, as it indicates we still consider this a viable, even attractive, opportunity once certain logistical constraints are overcome. Specifically, we had a surprising degree of difficulty securing actual rail cars to transport the coal, curtailing of the diesel supply into Mongolia by Russia made transport difficult and the dip in thermal coal market price combined to render this option non-economical for the time being. There is no shortage of demand coming from destinations accessible from Sovgavan, however, and we receive weekly inquiries regarding significant orders of UO coal.


• What is a main benefit after the opening of Zheltura border point? Influence on sale price & margin, saving of transport costs etc.????

Lowering transportation costs is definitely a benefit but it fits under the larger category of overall margin which will clearly be positively influenced by a significant reduction in overhead. Similarly, we are able to realize a higher sale price in Russia…again, this contributes to a positive increase in margin. Opening the Zheltura border point will enable Prophecy to gain increased access to Russian markets and to up off-take volumes to further capitalize on the increased margin.


• Is Prophecy still interested to acquire additional properties around Ulaan Ovoo and Chandgana?

Yes to both.

• What's the current status there?

We are reviewing surrounding property at both sites for possible acquisition.


Chandgana

• In which extent will the Mongolian state participate on the power plant project?

Obviously the Mongolian government will be a vital partner in the power plant project and they have demonstrated their support from the very beginning by granting permits and licensing in a very expeditious manner. We expect continued consultation in both directions, including during final negotiations over the power purchase agreement. As our investors know, there is national election in Mongolia later this spring but, as our ongoing discussions have revealed, this project transcends politics. We have excellent relationships in Mongolia and are focused on creating a project that will benefit that nation as a whole.

The project itself, in terms of management and logistics, will be overseen and directed by Prophecy in conjunction with the EPC contractor selected through the RFP process.

• Who will build (bear the costs) the power lines that shall connect Chandgana power station with the Mongolian grid.

Prophecy will pay and build the power lines. The cost of the power lines is included in the feasibility study NR on Jan 17.

• Assuming the financing will be secured end of this year, how delays on Mongolian railway project (Tavan Tolgoi-Choybalsan) can impact negatively on the start of the power plant construction. Can construction work start without laying a railway line to the site before.

There are paved roads within 2km of the site, with easily traversable gravel/dirt roads leading to and from. Tractor trailers – large transport trucks – will be able to bring in the heavy equipment necessary to prepare the site without need for the railway to be completed. Excavation, clearing, leveling, paving and other ground prep work will be rather extensive and time-consuming. In addition, construction camp set-up can take place in the absence of rail transport. Put plainly, there is plenty of work to do and plenty that can be done, regardless of whether there are delays on the railway project.

• When can we expect a mining license for the Chandgana Khavtgai property?

We are not expecting to apply for a mining licence for Chandgana Khavgai in the foreseeable future as we will not be mining there for some time. We have a mining licence for Chandgana Tal which we will modify as soon as required to mine for the TPP.
Chandgana Tal has 140 million tonnes of measured coal. For 600 MW power plant, required coal is ~2.7 million tonnes per year thus there is enough coal for the 600 MW power plant for almost 52 years.


General questions


• Are there more exact plans from the management, when Prophecy Coal gets listed on MSE?

Nothing specific at this time. Bottom line is we will continue to methodically advance the project according to the larger overall plan and timeline we’ve outlined. One catalyst leads directly to the next and, while we may adjust the trajectory from time to time and according to necessity, we see no reason to deviate from the course as set.

Feasibility study (released on Jan 17, 2012) – EPC contractor selection (Q1-Q2 – 2012)– Power Purchase Agreement (Q2 2012) – Project Financing (Q3 – 2012)– Commence Construction (Q2 2013).


• Are there any considerations of the management to explore Titan and Okeover properties?

The short answer is yes, but it is not a high priority near term. Some exploration activity was undertaken at Titan in 2010 and we’ve cited some next steps on the PCY website. We have done work at Okeover too.

The focus of the company is squarely on our Mongolian interests, with a current strong emphasis on the advancement of the Chandgana power plant project. There will come a point in its development where less effort will be required to maintain momentum and this will enable us to channel more resources toward our other international holdings.


• Attraction of cornerstone investors was one of main and very expected by private shareholder objectives for 2011, the same as the listing on HK stock exchange. Could you give any comments there to?

We are still looking for cornerstone investors. We will know more once Chandgana financing is completed. No comment re: HKSE listing at this time.


• Once there was presented that John Lee had a closed connection with the Harald Batista. Is he in contact meanwhile with other Batista family members? What benefit could it have for Prophecy Coal?

Harald Batista is an advisor to the company. The benefits of this are legion and quite plain. Fantastic connections, insight, expertise…I could go on.
• 2012 is a year of parliament election in Mongolia. Since last one was very restless with few negative impacts on the business could you make any predictions how will proceed the upcoming election.

It might be easier to make predictions regarding the upcoming US elections, frankly, but I won’t go down that road either. I would refer you to my previous comments about the election and the relationships we have in Mongolia. These are projects with tremendous benefits for the people of Mongolia and the leaders and aspiring leaders of that country recognize this. We are assisting them in developing their own resources in order to provide energy to heat and light their homes, power their existing and new infrastructure…and channel that power to other domestic and international firms engaged in mining Mongolia’s rich natural resource base. Our office in Ulaanbataar is largely run and staffed by Mongolian citizens and we are excited for their future as democracy continues to advance and flourish in their native country. Energy independence and corresponding self-determination - very achievable goals – are on the horizon.

• In 2011 mainly for German speaking investors got the posibility to a more direct contact to John Lee through video-interviews, is something similar planned for the near furure.

We have a strong communications team based out of our Vancouver office that is supported by IR, graphic design and administrative specialists. Plans are in the works for a program that will increase the exposure of the company, provide more frequent updates and communiques from the leadership team and, basically, more fully engage the investment community and Prophecy shareholders in particular. We recognize that, while our team is constantly committing enormous efforts, we could provide more frequent, interim updates as to specific developments that, while pertinent and informative, fall short of necessitating a full news release.

We are in the process of compiling an FAQ based on shareholder and public inquiries. If your readers would like to submit questions they are welcome to do so via email at [e-mail]



Sebaldo, habe extra grün gewählt.

Gruß Fritz

[sebaldo]

Antwort auf Beitrag Nr.: 42.648.106 von Fritz777 am 25.01.12 20:47:10

Ach, das war grün?

Danke, Fritz. Der Chris hat sich ja richtig Mühe gegeben, auch wenn er die interessantesten Fragen nicht beantworten konnte (durfte). Im großen und ganzen nichts Neues, aber so ein paar kleine Details sind (für mich) jetzt doch zurecht gerückt.

Wir sollten das unbedingt fortsetzen.

[Fritz777]

Antwort auf Beitrag Nr.: 42.648.181 von sebaldo am 25.01.12 21:01:43

Hi Sebaldo

Danke für das positive Feedback an Russo und mich, ich werde die Fragen und Antworten jetzt erst mal im Hauptthread einstellen, damit mehr als 50 Leser die Antworten lesen können.

Bei Bedarf können wir den Thread hier ja mal wieder aktivieren.

Gruß Fritz

[russo-touristo]

Antwort auf Beitrag Nr.: 42.648.248 von Fritz777 am 25.01.12 21:13:33

Danke, Fritz!

ich bin zufrieden mit Antworten. Mehr konnte man nicht erwarten.
Gutes IR Team, genauso wie das ganze Management.

Noch einmal,Vielen Dank!

Russo

[burni82]

Vielen, vielen Dank für das Engagement!!! Wirklich klasse

[Fritz777]

Antwort auf Beitrag Nr.: 42.648.345 von russo-touristo am 25.01.12 21:32:57

Hi Russo

Danke an dich, der Sinn mancher Antworten, wie kein Zeitplan für ein Listing an der MSE erschließt sich mir erst durch Wissen, das ich von dir habe.

Persönlich freue ich mich auch das wir nun die Antworten erhalten haben und ich habe mich dann auch bedankt und geschrieben das ich nicht dachte, das es so kompliziert wird (Anwalt).

Der Chris meinte das PC da sehr genau geprüft werde, dadurch ist es meiner Meinung nach erfreulich, dass er nicht nur ausweicht, sondern auch ein paar etwas klarere Statements abgibt.

Fritz

[Spriing]

Vielen Dank Fritz, auch an die Fragensteller!

[TimLuca [KommA]]

Antwort auf Beitrag Nr.: 42.648.106 von Fritz777 am 25.01.12 20:47:10

Hallo @Fritz777,

da ast du einen klasse Job gemacht!
Danke dafür.

Ich muss zu meiner Schande gestehen, ich habe es in Vancouver nicht zu Prophecy geschafft. Zwei Tage für solch eine Messe sind einfach zu kurz.....
Aber interessant war es allemal......

Viel Glück und Erfolg weiterhin....

Gruß
Stefan

[berni40]

Antwort auf Beitrag Nr.: 42.648.106 von Fritz777 am 25.01.12 20:47:10

Moin Fritz,

besten Dank für deine vorbildliche Arbeit.

Die Antworten sind für mich beruhigend und warten wir auf den Erfolg

Danke! Gruß berni

[hagadi]

Antwort auf Beitrag Nr.: 42.648.106 von Fritz777 am 25.01.12 20:47:10

Klasse Fritz,

war ne tolle Idee.

Jetzt haben wir die infos auf quälende Fragen aus erster Hand!

[Fritz777]

Antwort auf Beitrag Nr.: 42.650.177 von hagadi am 26.01.12 10:55:36

Ein Danke an alle die durch ihre Fragen die Geschichte ermöglicht haben und ich freue mich, wenn ein paar Fragen die ihr hattet beantwortet wurden, auch wenn es einiges an Geduld benötigt hat.
Vielleicht machen wir ja später mal, sofern Fragen auftauchen eine zweite Runde, dann geht es hier wieder weiter.

Gruß Fritz

[likeshares]

!

Dieser Beitrag wurde von FairMOD moderiert. Grund: auf eigenen Wunsch des Users

[likeshares]

Auf viele Fragen gab es scon mal Antworten!

Zitat von Fritz777: Hi hagadi

Auf deine Frage habe ich keine Antwort erhalten, auf die anderen gerade vorhin, habe es selbst noch nicht gelesen, vielleicht jetzt beim Posten.

Ulan Ovoo


• As informed recently Prophecy Coal awarded the tender to construct a paved highway from 308th km of the Ulaanbaatar-Altenbulag to Tushig soum with consortium partner NTB LLC. Could you give few more information to the project? Who bears the costs? When works shall start? End of the project?

I don’t have any informative details on this right now but will provide when available.

• Will the road to Sukhbataar be of any importance after the opening of the Zheltura border?

Yes, not all non-Mongolian sales will go through Zheltura.


• Since Prophecy Coal has produced 200K tons of coal and sold rather the same quantity in 2011 is it possible to get few details to the operation key figures, e.a. monthly productivity, current cash-cost, margin, transport cost to Sukhbataar etc.

For business/competitive reasons, like other similar companies, we do not provide such details. Those metrics are also not as significant before UO is in full commercial production stage.


• What is the rate of 4500kcal/kg and 5100kcal/kg coal being turned out at UO?

The rate of production of 4500 and 5100 kcal coal is not known to us yet . We are in the process of finalising our mining plan for the next year and then for 5 years. Should have the answer around the end of March. Currently, we are mining enough to supply our local contracts as well as a small amount that goes to Russia. We are not ready to discuss contracts or sales to any buyers until we can know with confidence what quality of coal we will be mining in what quantities and the production costs.

• Are the plans to sell coal via Sovgavan port abandoned completely or temporary? What is the core of the problems selling the coal on Asian market over Russian far-east ports?

Rather than adopt the term, ‘abandoned’, I would prefer to use ‘deferred’, as it indicates we still consider this a viable, even attractive, opportunity once certain logistical constraints are overcome. Specifically, we had a surprising degree of difficulty securing actual rail cars to transport the coal, curtailing of the diesel supply into Mongolia by Russia made transport difficult and the dip in thermal coal market price combined to render this option non-economical for the time being. There is no shortage of demand coming from destinations accessible from Sovgavan, however, and we receive weekly inquiries regarding significant orders of UO coal.


• What is a main benefit after the opening of Zheltura border point? Influence on sale price & margin, saving of transport costs etc.????

Lowering transportation costs is definitely a benefit but it fits under the larger category of overall margin which will clearly be positively influenced by a significant reduction in overhead. Similarly, we are able to realize a higher sale price in Russia…again, this contributes to a positive increase in margin. Opening the Zheltura border point will enable Prophecy to gain increased access to Russian markets and to up off-take volumes to further capitalize on the increased margin.


• Is Prophecy still interested to acquire additional properties around Ulaan Ovoo and Chandgana?

Yes to both.

• What's the current status there?

We are reviewing surrounding property at both sites for possible acquisition.


Chandgana

• In which extent will the Mongolian state participate on the power plant project?

Obviously the Mongolian government will be a vital partner in the power plant project and they have demonstrated their support from the very beginning by granting permits and licensing in a very expeditious manner. We expect continued consultation in both directions, including during final negotiations over the power purchase agreement. As our investors know, there is national election in Mongolia later this spring but, as our ongoing discussions have revealed, this project transcends politics. We have excellent relationships in Mongolia and are focused on creating a project that will benefit that nation as a whole.

The project itself, in terms of management and logistics, will be overseen and directed by Prophecy in conjunction with the EPC contractor selected through the RFP process.

• Who will build (bear the costs) the power lines that shall connect Chandgana power station with the Mongolian grid.

Prophecy will pay and build the power lines. The cost of the power lines is included in the feasibility study NR on Jan 17.

• Assuming the financing will be secured end of this year, how delays on Mongolian railway project (Tavan Tolgoi-Choybalsan) can impact negatively on the start of the power plant construction. Can construction work start without laying a railway line to the site before.

There are paved roads within 2km of the site, with easily traversable gravel/dirt roads leading to and from. Tractor trailers – large transport trucks – will be able to bring in the heavy equipment necessary to prepare the site without need for the railway to be completed. Excavation, clearing, leveling, paving and other ground prep work will be rather extensive and time-consuming. In addition, construction camp set-up can take place in the absence of rail transport. Put plainly, there is plenty of work to do and plenty that can be done, regardless of whether there are delays on the railway project.

• When can we expect a mining license for the Chandgana Khavtgai property?

We are not expecting to apply for a mining licence for Chandgana Khavgai in the foreseeable future as we will not be mining there for some time. We have a mining licence for Chandgana Tal which we will modify as soon as required to mine for the TPP.
Chandgana Tal has 140 million tonnes of measured coal. For 600 MW power plant, required coal is ~2.7 million tonnes per year thus there is enough coal for the 600 MW power plant for almost 52 years.


General questions


• Are there more exact plans from the management, when Prophecy Coal gets listed on MSE?

Nothing specific at this time. Bottom line is we will continue to methodically advance the project according to the larger overall plan and timeline we’ve outlined. One catalyst leads directly to the next and, while we may adjust the trajectory from time to time and according to necessity, we see no reason to deviate from the course as set.

Feasibility study (released on Jan 17, 2012) – EPC contractor selection (Q1-Q2 – 2012)– Power Purchase Agreement (Q2 2012) – Project Financing (Q3 – 2012)– Commence Construction (Q2 2013).


• Are there any considerations of the management to explore Titan and Okeover properties?

The short answer is yes, but it is not a high priority near term. Some exploration activity was undertaken at Titan in 2010 and we’ve cited some next steps on the PCY website. We have done work at Okeover too.

The focus of the company is squarely on our Mongolian interests, with a current strong emphasis on the advancement of the Chandgana power plant project. There will come a point in its development where less effort will be required to maintain momentum and this will enable us to channel more resources toward our other international holdings.


• Attraction of cornerstone investors was one of main and very expected by private shareholder objectives for 2011, the same as the listing on HK stock exchange. Could you give any comments there to?

We are still looking for cornerstone investors. We will know more once Chandgana financing is completed. No comment re: HKSE listing at this time.


• Once there was presented that John Lee had a closed connection with the Harald Batista. Is he in contact meanwhile with other Batista family members? What benefit could it have for Prophecy Coal?

Harald Batista is an advisor to the company. The benefits of this are legion and quite plain. Fantastic connections, insight, expertise…I could go on.
• 2012 is a year of parliament election in Mongolia. Since last one was very restless with few negative impacts on the business could you make any predictions how will proceed the upcoming election.

It might be easier to make predictions regarding the upcoming US elections, frankly, but I won’t go down that road either. I would refer you to my previous comments about the election and the relationships we have in Mongolia. These are projects with tremendous benefits for the people of Mongolia and the leaders and aspiring leaders of that country recognize this. We are assisting them in developing their own resources in order to provide energy to heat and light their homes, power their existing and new infrastructure…and channel that power to other domestic and international firms engaged in mining Mongolia’s rich natural resource base. Our office in Ulaanbataar is largely run and staffed by Mongolian citizens and we are excited for their future as democracy continues to advance and flourish in their native country. Energy independence and corresponding self-determination - very achievable goals – are on the horizon.

• In 2011 mainly for German speaking investors got the posibility to a more direct contact to John Lee through video-interviews, is something similar planned for the near furure.

We have a strong communications team based out of our Vancouver office that is supported by IR, graphic design and administrative specialists. Plans are in the works for a program that will increase the exposure of the company, provide more frequent updates and communiques from the leadership team and, basically, more fully engage the investment community and Prophecy shareholders in particular. We recognize that, while our team is constantly committing enormous efforts, we could provide more frequent, interim updates as to specific developments that, while pertinent and informative, fall short of necessitating a full news release.

We are in the process of compiling an FAQ based on shareholder and public inquiries. If your readers would like to submit questions they are welcome to do so via email at [e-mail]



Sebaldo, habe extra grün gewählt.

Gruß Fritz

[BelaDavid]

Hut ab, Fritz, fuer Deinen tollen Einsatz!
gr
Jay