With global energy consumption expected to grow by nearly 60% between 2004 and 2030, the need to both expand infrastructure and prospect more fuel sources is reaching paramount heights.
Two of our portfolio companies in the news today are positioning themselves to capitalize on the world’s thirst for energy. Both out with announcements this morning that mark the dawn of a new day for each respective business.
Marmion Up’s The Ante!
Marmion Industries Corp (OTCBB: MMIO) has just recently broken ground on a new state-of-the art facility which is expected to help the company meet rising demand for its products and also significantly improve efficiencies in a number of other key areas.
MMIO’s recent growth and future prospects have created the need for the acquisition of 2.75 acres of property in order to build a brand spanking new 31,500 square foot manufacturing facility. The new Marmion compound will increase the company’s production capabilities while acting as their international sales office and overall home base.
Quest Inks A Winner!
In other energy news, Quest Minerals and Mining Corp. (OTCBB: QMNM) announced a $8M purchase order today that has massive implications on the company’s future. They did log less than $100K in revs last year, so this deal, if booked, is surely QMNM’s crowing achievement to date.
The purchase agreement with Logan & Kanawha Coal Company, LLC specifies that the company – which by its own account has been serving the coal industry for over 80 years and has sold over 250,000,000 tons of coal in that time – will order as much as $8M worth of coal from Quest between now and December.
This would equate to revenues per share of about $.025. Thats almost 7 times its current trading price!
Cashing In On An Essential Commodity
As the image above shows, Coal prices have proven to be both lower and more stable than that of oil and gas historically. According to the World Coal Institute, “Coal provides 25% of global primary energy needs and generates 40% of the world’s electricity”. The institute also states that: “At current production levels, proven coal reserves are estimated to last 147 years. In contrast, proven oil and gas reserves are equivalent to around 41 and 63 years at current production levels respectively”.
Despite the obvious negative environmental impact of burning coal, the natural resource will be in high demand for the foreseeable future. This facilities a very favorable operating environment for Quest going forward if the company can begin prospecting coal and shipping to fulfill orders such as the one announced today.
So there you have it , two micro-cap market prospects for Tuesday morning, MMIO and QMNM.
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