Mr. Baker: America West Resources is an energy company, and we are located in central Utah. At the present time, we are producing a thermal-compliant coal, meaning low-sulfur coal, to our customers with a strategic plan to expand our company in the future.
TWST: For the first two quarters of 2009, you had a 55% increase in your coal revenue. How much of that was attributable to price increases? What accounts for the rest?
Mr. Baker: Approximately 35% was price increases. And we've also created some efficiencies at the operations by lowering costs as well as acquiring new equipment, which gave us an increase in production.
TWST: Let's talk about the 18 million customer contract you secured in December. Tell us about that arrangement and what it will mean for the company in this upcoming year.
Mr. Baker: It's our company's first long-term contract; it's a five-year contract. The 18 million is for the base portion of the contract. The contract also has an option for another 18 million over the five-year period with options, and it's with a Western industrial customer. One of their requirements is for high-BTU and low-sulfur coals, so the niche between the two companies and its synergies are excellent. We see this customer as a long-term customer beyond this term of contract and into the future.
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