I had a conversation with Mr. Lee a few months back and he told me it will cost about $35 a tonn to ship our coal to the eastern seaboard.
So if we use this number and attach a $10 margin of error to it that gives us $45 for shipping costs.
When we buy our own mining equipment we will lower our production costs to about $7 but lets just say $10.
There is a 5% tax on the sale price so we can round that up to $5 assuming a sale price of $85.
$45 shipping
$10 mining
$5 tax
$ 2.55 for the % that Just gets
This gives us $62.55 ish... We will also use a sale price of $85 so that is about $22 profit.
I put in a lot of cushion into these numbers so I will be the first to admit there is a lot to improve on the profit margin and this will be forth coming. But this should give us some idea to the new investors what we are looking at.