Thanks DTR -
As you can tell from the CPR data, the bought in coal provides very robust margins for Conti. The sulfur issue mentioned was at Vlakvarkfontein, not Ferreira - and that was sorted out long ago. Remember too that Conti sacked the previous Ferreira contractors & then improved efficiencies/performance with a new contractor, as well as a reconfigured pit design (north wall).
The independent SRK CPR report is available here:
http://www.conticoal.com/research/CCL_CPR_15_Aug_2011_final.pdf
see page 4-29
Bought in coal costs 205,000t for ZAR68m = ZAR332t = $39t [using current USD:ZAR 8.5:1]
Processing costs = ZAR88.4 = $10.4t
Export costs (shipping) = ZAR99.3 = $11.7t
total FOB cost of bought in coal = $61t
Export sales prices = ZAR736 - ZAR779 = [$86.6 -$91.6]
so baseline margins for bought in coal using CPR report "other export" pricing of $86.6t gives margins of $25.6t
total free cash from bought in coal = $5.25m for 2012/13 using SRK's data or $6.27m @ $91.6t sales price.
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happy for someone to cross check my numbers - been a long day so the maths might not be 100%
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