Chris Cline was the greatest coal miner of all time. Cline owned a 164-foot luxury yacht named Mine Games which had its own two-person submarine. Click here to watch a YouTube video of the yacht/submarine.
In 2014, Cline broke up with the ex-wife of Tiger Woods and took his coal mining firm Foresight Energy public, which made Cline a billionaire. Cline had the foresight to see that the world was turning against high sulfur thermal coal so he sold his stake in Foresight for $1.4 billion. Cline saw huge profits to be made in the future on low sulfur coking coal, which doesn't pollute nearly as much. Although there are many alternative forms of energy to replace the production of thermal coal, there are no replacements for coking coal which is 100% needed for the production of steel!
As Cline cashed out of Foresight Energy with perfect timing he simultaneously decided to develop Donkin, which was one of the world's largest undeveloped coking coal mines. Cline acquired Donkin from its 75% owner Glencore (GLCNF) and 25% owner Morien Resources (TSXV: MOX) after Glencore and MOX together invested $43 million to build an indicated coking coal resource of 174 million tonnes including a probable saleable coking coal reserve of 48 million tonnes. Click here to read a 2014 article about Cline's acquisition of Donkin from Glencore and MOX!
MOX retained a valuable gross production royalty of 2% to 4% on all coal sales from Donkin.
Cline believed that Donkin would become the most profitable coal mine of his career and placed the mine into a subsidiary Kameron Coal named after his daughter. Cline personally invested $250 million developing Donkin and bringing the mine into production, but in 2019 tragedy struck... Cline was with his daughter Kameron at one of his nine private islands in the Bahamas when she started feeling sick. He decided to fly Kameron in his helicopter to Fort Lauderdale for medical attention, but his pilots had no experience flying the helicopter from his private island at night. With no visual reference the pilots accidentally flew the helicopter into the ocean and Cline, his daughter Kameron, and the pilots were tragically killed. The NTSB finally released a report about the crash a few months ago: click here to read about the tragedy.
Last year when coking coal prices crashed, Donkin became unprofitable and with Cline's estate reluctant to invest new funds into the project Kameron Coal was forced to place Donkin on care and maintenance. With coking coal becoming the #1 largest gaining commodity of 2021 year-to-date due to a lack of new mines ready to come online, we believe a bidding war is secretly taking place in private right now for Donkin. With coking coal prices continuing to skyrocket and no dip in sight, we expect some type of transaction to take place very soon where a large coal company will acquire Donkin/Kameron Coal from Cline's estate with plans to quickly bring it back into production. If we are right we expect MOX to explode north of $1 per share right away.
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