Quest Bouncing Back, Synopsis of Teleconference
Tags: OTCBB: QMNM, QMNM, QMNM.OB, Quest, Quest Minerals and Mining
Quest Minerals & Mining Inc. (OTCBB: QMNM) is bouncing back today, up nearly 25%, after starting the week off with 4 consecutive red closes. The company conducted a teleconference update for investors on Tuesday that shed light onto recent developments at Quest and also provided some insight into what the future holds for the company.
In my personal opinion, some of the most important topics covered during the call were:
The Pond Creek mine is expected to enter into full-production mode of about 1,500 – 2,500 raw tons per day within the next 30 days. The mine is now active, employs both a first shift of miners and a second shift of maintenance personnel, and will soon hire a 2nd shift of miners to hit full production.
The Cedar Grove mine will be online by the end of 2008 and is expected to produce approximately 1,500 – 2,500 raw tons per day once it enters into full-production mode.
Profitability – Management anticipates being operationally profitable by the end of the 3rd quarter.
Exit from Chapter 11 – Management anticipates moving out of chapter 11 status within the next 90 or so days. This is expected to be facilitated through future payments which will be generated by both operating cash flow and capital from investors, which reportedly have expressed a very high level of interest in Quest as of late.
In Closing:
All eyes will be on Quest in the coming weeks and months with key focus largely being placed on the company’s ability to:
1. Reach full production at Pond Creek;
2. Begin fulfilling previously announced coal contracts;
3. Move out of BK;
4. Bring Cedar Grove online;
5. Post an operational profit as well as significant mining revenues; and
6. Attract additional capital at favorable terms.
If the company can execute on these previously outlined strategic initiatives, current levels will seem like a steal in a few months. Judging by the company’s recent track record of staying on point with outlined objectives, I’m pretty optimistic that they can meet most, if not all of them.
