The Facts on Feasibility Here is the table of facts straight from the feasibility study.
Back in 2011 they were anticipating $76.50 costs and an average of $174.22 for the coal for an EBITA of $97.72 and return of 28% and payback in year 5.
Now, even if costs remain the same at $76.50, the average price they get cannot be any more than the current semi soft price of $110 for an EBITA of $33.50...
That is a decrease of $64.22 or 65.7% in their revenue per tonne on the EBITA, the rate of return, and payback will suffer accordingly.
Those are the facts at today's prices, its even way below their alternative case producing all high grade thermal (EBITA $71.79).
In fact their alternative case is simply a no go right now. At a cost of $64.35 to produce high grade thermal, and with thermal fetching below $60 well, you do the math.
Those are the facts 2guys.
happy investing.
Chris.