macarthur coal, page-29

re: 670 prediction totally wrong with an expected profit of over 200 mil for 2006 and a div of 50c, MCC will have $1.20 eps for a pe of 4 and a fully franked div of 8%. How cheap is that ! clearly the market does not believe current coal prices will hold, but with contracts locked in till April 06 there is little chance of earnings surprises on the downside. With coal contract negotiations to start in Nov there could be a re rating if coal prices hold up, as expected.
l see min value of $7 here, so will hold. Water problems have been aleviated, some port congestion has improved and new projects in the pipeline look good for the next few years.