- The Company’s continuing optimism for significant growth in revenues, profits, and cash flows in 2012 and 2013 from its Refined Coal (RC) activities conducted by ADA’s Clean Coal Solutions, LLC (“Clean Coal”) joint venture. ADA continues to believe that the annual run rates that will be achieved at the end of 2012 of new and existing RC facilities leased to others will generate annual segment revenues and annual pre-tax income for ADA of approximately $100 million and $50 million, respectively, through 2021 after payments to minority partners. We also believe that by the end of 2013, annual RC segment revenues and pre-tax income have the potential to double from the expected end of 2012 levels stated above.
- The status of RC facilities in full-time operation, which are operating at higher-than-expected coal production and utilization rates. ADA will provide information on the 7 RC facilities that are currently in full-time operation, treating coal for 14 boilers that, in the aggregate, average more than 20 million tons per year. Of these 7 RC facilities:
- 3 facilities, treating an aggregate average of 9 million tons of coal per year, are fully permitted and monetized. Recent coal usage on these RC units is up, which is indicative of higher energy demand during the hot summer months. During June 2012, these 3 leased facilities, which are rated at an aggregate 9 million tons per year, operated at an annualized rate of nearly 11.5 million tons;
- 3 non-leased facilities, treating an aggregate average of 10 million tons of coal per year, are currently being operated by Clean Coal and generating tax credits for its own use. These units are also running at elevated levels of coal utilization. ADA expects that Clean Coal will lease and monetize these 3 facilities over the next few months; and
- the remaining RC facility is expected to be operated by Clean Coal for the long-term to generate tax credits for its own use.
- Clean Coal has finalized monetization contracts for an 8 th RC facility treating 3 million tons of coal per year. The Company is awaiting a Private Letter Ruling (PLR) from the Internal Revenue Service and Public Utility Commission (PUC) approvals before full-time operation can commence. These items are expected in the next few months.
- Clean Coal is in negotiations to monetize several additional RC facilities.
ADA-ES To Provide Operations Update At Annual Meeting Of Shareholders
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.