Laserfiche WebLink
Mr. Sergent then led a discussion on the financial borrowings of the Company. Mr. Smith <br />made a motion that the Company approve a $50 million credit line of AEI Holding Company, Inc. <br />to pay off the Provident Bank term loan and also to use funds exclusively from AEI Holding <br />Company for future growth at l0% interest. This motion was seconded and carried. <br />Mr. Smith then discussed the Company's financial conditions. It is estimated that the <br />Company will show a loss of $1.8 million as of December 31, 1997. <br />The next item of discussion concerned the rail and production schedule of the mine. Mr. <br />Smith stated that the rail schedule is presently eight trains behind due to a rail car shortage as a result <br />of the rail merger. In addition, Mr. Smith asked that Mr. Sieber provide new production schedules <br />and estimates for Bowie #2 after December 31, 1997. Based on current sales, the forecast for 1998 <br />is 1.2 million to 1.6 million tons. <br />Mr. Smith then stated that in late March or early April 1998, test coal may be available for <br />Mr. Nakano's markets. Mr. Nakano asked for coal specifications and Mr. Smith said he would <br />provide this information in two weeks. <br />Mr. Sergent then led a discussion on the marketing of the Company's coal with longwall <br />production. Mr. Addington discussed the feasibility of adding longwall production to Bowie #2, as <br />well as the purchase of the loadout adjacent to Bowie #2 and the unit train loadout. <br />Mr. Smith stated that the projected idling date of Bowie #1 is January 31, ]998. There will <br />be an additional review of the quality and the date will be adjusted accordingly. <br />Mr. Nakano led a discussion on improving communications between shareholders. Mr. <br />Nakano would like the Company to consider letting a trainee engineer from Japan spend two years <br />• at the mine to gain experience, and possibly hire the engineer after the two year term. <br />2 <br />