Yes the coal quality decreases west towards Kestrel West into the 600 and 700 series but most would value the mine based on the DCF from production the 500 panels, with Kestrel West being considered future upside. Kestrel West is more likely closer to SSCC than the high vol HCC currently produced, but at any rate the 40% tier of the royalty structure is not going to matter if they're not achieving above A$300/t.
Valeria is a predominantly thermal mine (some low quality met) so if Glencore used the 40% royalty tier as an excuse, its is clearly BS. It's more likely due to the high development capex required to start a new thermal mine. And its not approved, Glencore withdrew from the approvals process.
WHC Price at posting:
$6.68 Sentiment: Buy Disclosure: Held
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