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Message: A summary of things to consider...Revs & Mkt Opps

A summary of things to consider...Revs & Mkt Opps

posted on Feb 09, 2009 10:37PM

Some food for thought...

REVENUE PROJECTIONS

From Jennings Capital Inc. report published September 25, 2007:
- Mean deployment revenue per mine of $500,000 (USA).
- Annual recurring revenue of $100,000 over a life of mine of five years (USA).

From Clarus report published June 23, 2008:
- ACT management has said that it expects most US mine installations to be priced at no less than $400,000.
- At the upper end of the pricing range are larger mine systems ("longwall" in particular) where systems will be sold for $700K-$1.2 million per mine.
From Research Capital reports published March 6, 2008 and June 11, 2008:
- $500,000 to $1 million per large longwall mine (CHINA).
- $400,000 per large room-and-pillar mine (CHINA).
- $50,000 to $150,000 per small mine (CHINA).

MARKET OPPORTUNITIES

MARKET 1: COMMUNICATIONS & TRACKING FOR COAL MINING (UNDERGROUND & SURFACE)


Top Coal Producing Countries: http://coal.infomine.com/countries/

Coal Facts: http://www.worldcoal.org/pages/conte...

Top Ten Hard Coal Producers (2007e)

PR China 2549Mt Russia 241Mt
USA 981Mt Indonesia 231Mt
India 452Mt Poland 90Mt
Australia 323Mt Kazakhstan 83Mt
South Africa 244Mt Colombia 72Mt

Coal Mining: http://www.worldcoal.org/pages/conte...

Mining Methods
Coal is mined by two methods:

  • surface or ‘opencast' mining
  • underground or ‘deep’ mining
The choice of mining method is largely determined by the geology of the coal deposit. Underground mining currently accounts for about 60% of world coal production; although in several important coal producing countries surface mining is more common. Surface mining accounts for around 80% of production in Australia, while in the USA it is used for about 67% of production.

Major Coal Producing Regions in the USA: http://www.eia.doe.gov/fuelcoal.html

Coal Production and Number of Mines by State and Mine Type (as of September 2008): http://www.eia.doe.gov/cneaf/coal/pa...

USA OPPORTUNITY

** Note: Tuesday, July 31, 2007
Activemine's Wireless Technology Specified In Safety Plans Submitted By Mining Companies Owning 62 Coal Mines (Active Control Technology presents proposals valued at $200,000 to $1 million per mine as West Virginia deadline for safety plans comes into force today)
http://tinyurl.com/b5otpm

Underground: 563 mines [Source: Report No.: DOE/EIA 0584 (2007) - Report Released: September 2008]
- Major States: Kentucky, West Virginia, Virginia, & Pennsylvania.

** Note: ACT announced the sale of ActiveMine systems to various underground coal mines in West Virginia on the following dates:
- Monday, December 1, 2008
Active Control Receives Purchase Order To Integrate Gas Monitors Into ActiveMine System
http://tinyurl.com/dh7wd2
- Wednesday, May 21, 2008
Active Control Receives Another Purchase Order For ActiveMine
http://tinyurl.com/alh8tv
- Friday, February 29, 2008
Active Control Receives $275,000 Purchase Order To Install ActiveMine In West Virginia Coal Mine
http://tinyurl.com/apzdyh
- Friday, December 21, 2007
Active Control Receives $1.4 Million Purchase Order For Activemine Installations At Three West Virginia Coal Mines
http://tinyurl.com/b984d7
- Tuesday, November 20, 2007
Active Control Receives First of Five Purchase Orders From Magnum Coal, Totaling $1.8 Million
http://tinyurl.com/c95mco

Surface: 795 mines [Source: Report No.: DOE/EIA 0584 (2007) - Report Released: September 2008]
- Major States: Pennsylvania, Kentucky, West Virginia, Virginia, Ohio, & Alabama.

** Note: ACT announced the sale of an ActiveMine system to a Wyoming open pit coal mine on January 5, 2009.

http://tinyurl.com/cl9d2r


CHINA OPPORTUNITY

Most Chinese mines are deep underground.
16,000-23,500 mines estimated (2,500 large; 20,000+ small, privately-owned) >> Estimated that only 3,200 mines are legal.

MARKET 2: MINING AUTOMATION > Potential == ???

** Note that ACT received two orders of ActiveMine from a worldwide mining machinery manufacturer as per a press release dated October 25, 2007

http://tinyurl.com/b4uz2j

MARKET 3: COMMUNICATIONS & TRACKING FOR HARD ROCK / BASE METAL MINING > Potential == ???

USA: According to the USGA, there are 1,965 mines and processing plants for 74 types of non-fuel minerals and materials in the US.

MARKET 4: COMMUNICATIONS & TRACKING FOR COAL & HARD ROCK / BASE METAL MINING - OTHER COUNTRIES/REGIONS (E.G., AUSTRALIA, INDIA, SOUTH AFRICA, LATIN AMERICA, SOUTHEAST ASIA)

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