ECC Capital Corporation Investment
Note: I wrote this for myself. This isn't investment advice, just my notes. Updated 02/20/2025.
These guys used to do residential mortgages, but were basically shot by the GFC. In 2024, they issued 84MM new shares (now 190MM total out) to PhenixFN for $0.05/ea.
From Phenix, they acquired the Kemming Mines in Wyoming. This is an open pit mine that produces coal. They also have $21MM left on their outstanding seller side financing for the mine (from Phenix).
§Current buyers of the energy:
- Local power plant is converting from coal to natural gas by 2026 (Pacificorp)
- A cosmetics plant is being built1
- Ammonia plant is being built, 1.8MM tons/year2
- A highway is being built as well3, but this will take three years
§Financials:
- Mined 2.5MM tonnes last year4
- Sold these at a price of $50/unit5
- So $250MM annual revenues
- Call it 10-20% margins
- $25-50MM in profits
- At $0.07/share, we are talking $13MM market cap
- A 2019 bankruptcy bid valued the mine at $215MM
- There may be pension liabilities left, as there were some in 2011, but that is unclear right now.
§Notes
- Utah company wants to make cosmetics from Wyoming coal
- Kemmerer could become home to $2.5 billion coal-to-ammonia plant
- Moving US 30 west to access coal reserves would cost $30 million
- Production data
- EIA coal price data
§Update: April 2026
They reported and it was ok. The mine continued to decline and did a little bit better than what I was expecting. They are continuing to let people go. Selling at $0.13/share. Good outcome. There could be more here given the shell, but happy where this is at.