Topic: How To Invest

Hi Pat: What do you think of Cline Mining now that it’s in production?

Article Excerpt

Cline Mining, $2.11, symbol CMK on Toronto (Shares outstanding: 206.9 million; Market cap: $436.6 million; www.clinemining.com), has received U.S. safety approval to begin full mining at its New Elk coal property in Colorado. The company expects the mine’s coal production to start up by the end of this year, and reach a rate of three million tonnes a year in early 2012. The New Elk mine has reserves estimated at as high as 315 million tonnes of coal. Coal prices could weaken until economic growth strengthens. However, Cline has low costs, and its New Elk coal property is in a favourable mining jurisdiction. The chance of a takeover by a larger coal company adds appeal. Cline Mining is okay for aggressive investors to hold. ..