Rally Trade please provide references
$65/ tonne for the coal? Can you please provide where you get 65$ a tonne? Seems rather unrealistic to me. Also read the PEA:
https://www.erdene.com/assets/pdf/DonkinPrelimAssess.pdf
I have taken an excerpt here:
The report states that after processing at the Victoria Junction Coal Preparation Plant during the
pilot scale study, the Donkin bulk sample coal achieved 70% to 75% recovery of metallurgical
product with ash 3%, and total sulphur (TS) content of 2.1%. The thermal product yield was 5%
to 10% with ash and TS of 7% and 4% respectively. Coarse rejects contained the bulk of the
pyritic sulphur (TS 16%) with little coal evident in the reject material which had an ash content of
65%. The flotation tailings were also high in ash, at 75% to 80%, with a sulphur content of 2% to
And another here:
Total cash costs for coal
production, transportation to the port and loading into the ocean-going vessel, and royalties are estimated
to be $23.13/tonne.
And here we have semisoft coking coal prices a little above $67.
NWR Says Quarterly Prices for Coke, Coking Coal Gain
Monday, 31 January 2011 00:00
New World Resources NV, a mining and coking company based in Amsterdam, said contract prices for first-quarter delivery of coke and coal increased.
T
he company agreed to deliver mostly semi-soft coking coal for an average price of 165 euros ($226) per metric ton, 7 percent up on the previous three months, it said today in a statement. Coke prices are up 1 percent, at 339 euros a ton.
Thermal coal prices are 13 percent higher than a year ago, at 71 euros a ton, the company said.
NWR said it fulfilled its overall coal production targets for 2010. A lower-than-expected proportion of coking coal in the sales mix affected 2010 revenue. The shortfall in coking coal production was partly offset by an increase in that of thermal coal, according to the statement.
The company expects to produce about 11 million tons of coal and 800 kilotons of coke in 2011, the company said, adding that external sales are likely to reach 10.3 million tons of coal and 720 kilotons of coke on 2011.
The company has the capacity to produce an extra 400 kilotons of coal this year, depending on market conditions, the company said.
NWR is due to publish fourth-quarter results on Feb. 24.
Source: Bloomberg