TSX:TECK.A - Post by User
Comment by
VOKBLVRon Jan 22, 2018 9:13pm
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Post# 27412546
RE:RE:RE:Elkview problem
RE:RE:RE:Elkview problem
CIBC Wordl Markets has calculated that the dryer problem could reduce coal output for the corporation by up to 13% this year. His numbers puzzle me as he apparently cuts the Elkview output by about 50%. I do not know how he getst this figure as mining still continues. The difference to my way of thinking is in the price that could be affected by shipping coal with a higher moisture content rather than a premium dried product. I have no knowledge of the value of wetter coal but it is more expensive to ship and would have a lower value but as to tonnage reduction-I don't know-. If no body will buy wet coal that's one thing- and then without a market -the Elkview operation would have to shut down and taking 6.5 million tons out of the mix is way more than 13%. and to make any predction at this time without knowing what has to be fixed and for how long it would take is a question that only Teck and their suppliers could answer.
I would klike to hear the details on the basis for the CIBC's World Markets estimate.
I think he is not estimating - but guessing. I can do that too but why not wait for an informed answer that should be available in a couple of weeks.